The History of Lottery Fundraising

A lottery is a gambling game wherein a ticket is sold for a chance to win a prize, such as cash. Lotteries are a popular way for state governments to raise funds for various purposes, including education, public works projects, and other public benefits. In addition, lottery proceeds are also used for medical research and disaster relief efforts. Since New Hampshire first introduced a state lottery in 1964, the practice has been embraced by most states, despite strong religious objections and concerns about compulsive gambling.

In the early days of the American colonies, lotteries were popular for raising money to support public goods and services. The Continental Congress voted to establish a lottery in 1776 as part of its campaign to fund the American Revolution, and Benjamin Franklin held a private lottery to fund cannons for Philadelphia’s defenses. After the American Revolution, many states continued to hold public lotteries as mechanisms for obtaining “voluntary taxes” from their citizens. Lottery revenues helped build Harvard, Dartmouth, Yale, Brown, King’s College (now Columbia), William and Mary, and other American colleges.

As state lotteries grew, their operations became increasingly complicated and dependent on government revenue. Consequently, policy decisions were made piecemeal and without a comprehensive overview. Few, if any, state officials have a coherent gambling or lotteries policy and are often relegated to addressing the specific operations of their lottery systems, rather than broader issues of public welfare.