The History of the Lottery

The lottery has been around for decades. Statistics show that in the fiscal year 2003, Americans wagered $44 billion on the lottery. This is an increase of 6.6% from fiscal year 2002 and a steady rise since 1998. According to the North American Association of State and Provincial Lotteries (NASPL), the U.S. lottery market is worth $556 billion, up 9% from FY 2005.

Lottery retailers receive commissions on each ticket sold and retain a certain percentage of the money. Many states also have incentive-based programs to encourage retailers to sell more lottery tickets. For example, in Wisconsin, the lottery commission pays bonuses to retailers who increase the number of tickets sold. This incentive program was implemented after retailers reported declining sales.

As the lottery has grown in popularity, it is important to remember that its roots are ancient. Many ancient documents record the use of lotteries to determine ownership of property. During the fifteenth and sixteenth centuries, drawing lots became more common in Europe. In 1612, King James I of England began operating a lottery to provide funds for the colonial settlement of Jamestown, Virginia. Other early lotteries raised funds for wars, colleges, and public-works projects.

After the Civil War, many southern states relied on lottery revenue. In Louisiana, the lottery was widely popular. In 1868, the Louisiana legislature gave the Louisiana Lottery Company permission to operate. In exchange for the state’s approval, the lottery company would donate $40,000 per year for twenty years to Charity Hospital of New Orleans. The company also had the advantage of not paying taxes on the lottery revenue. The lottery soon became widely popular throughout the country.