The casting of lots for making decisions and determining fates has a long record in human history, including several instances in the Bible. The earliest lottery to distribute prizes for money, however, is not quite so ancient. It was a popular dinner entertainment in ancient Rome that took the form of drawing tickets for prizes (typically fancy dinnerware) that guests would take home with them. This type of lottery was also common among Roman emperors as they gave away property and slaves at their Saturnalian feasts.
In the modern world, state lotteries have a similar history. They start with legislative monopolies; establish government agencies or public corporations to run them; begin operations with a modest number of relatively simple games; and, under pressure for additional revenues, progressively expand their offerings and their promotional efforts. This expansion is generally driven by the need to attract enough players to sustain a high level of prize payouts and to keep interest in the game growing.
When a lottery advertises its jackpot, it is usually calculated as the total value of the prize pool invested in an annuity over three decades. This means that a winner will receive a lump sum upon winning the lottery, and 29 annual payments thereafter, with each payment increasing by 5%.
Studies have shown that lotteries enjoy a good deal of broad public support because they are seen as benefiting a particular public good such as education. However, they have been successful in winning broad public approval even when states are experiencing economic stress and may be facing the prospect of raising taxes or cutting back on government services.