The casting of lots for prizes has a long record in human history, but the idea of selling tickets with money as the prize is of more recent origin. The first recorded public lottery to offer tickets for a cash prize was held in the Low Countries in the 15th century, raising funds for town fortifications and helping the poor.

In the years since New Hampshire began the modern era of state lotteries in 1964, virtually every state has introduced one. They follow similar patterns: The arguments for and against their adoption, the structure of the resulting state lotteries, the evolution of lottery operations.

Initially, the lotteries gain broad public approval by convincing voters that they benefit a particular public good (education, for example). This appeal is especially effective during economic stress when voters are fearful of tax increases or cuts in public programs. Yet the objective fiscal circumstances of a state government do not appear to have much effect on whether or when a lottery is established.

Once a lottery is established, however, the debate shifts from its general desirability to more specific features of its operation. Criticisms focus on the alleged regressive impact on lower-income groups, problems with compulsive gambling, and other matters that raise doubts about the appropriate role of a lottery in a democracy.

Lottery critics argue that the state owes a duty to its citizens to avoid promoting a form of gambling that may produce harms. They point out that lottery advertising is often misleading, inflating the odds of winning a jackpot and the value of a prize won (lotto jackpots are generally paid in equal annual installments over 20 years, with inflation dramatically eroding the actual current value).