Winners and Losers: A History of the Lottery
Two winning tickets were drawn over the weekend for the $1.8 billion Powerball, the second biggest jackpot in U.S. lottery history. The winning tickets were sold in Texas and Missouri, and each winner stands to collect either a lump sum of more than $400 million or annual payments that would total close to $900 million.
Although this is one of the biggest lotteries in recent memory, it’s far from the first. The use of lotteries stretches back to ancient civilizations, but the modern idea of a lottery probably has its roots in 15th century Europe, when towns in Burgundy and Flanders organized lotteries to raise funds for fortifications and to aid the poor. Perhaps the first European public lottery to award money prizes was held in the Italian city-state of Modena in 1476. A lottery in Genoa became the model that quickly spread across other Italian cities and beyond. In England, Queen Elizabeth I chartered a lottery in 1566 to finance public works, and by the 17th century, lotteries were a common method for funding various public and private ventures.
In America, lotteries played a crucial role in funding early colonial ventures. The Virginia Company used lotteries to help finance the settlement of Jamestown. The Continental Congress even attempted to use a lottery to raise funds for the American Revolution in 1776, and the establishment of several Ivy League colleges was partially funded through lotteries. A particularly prominent lottery was organized in Louisiana in 1869 and ran continuously for 25 years. Agents for the Louisiana Lottery were located in every city in the United States. The total sales per month were $2,000,000 at its peak; monthly drawings generated prizes up to $250,000, and twice-yearly prizes could go as high as $600,000.
Despite their popularity, lotteries faced legal challenges owing to concerns about fraud, corruption, and immorality. By the 19th century, many U.S. states began to legislate against lotteries, culminating in a federal ban on the use of mail for lottery-related materials in 1868, and in 1878 the Supreme Court declared lotteries “a demoralizing influence upon the people.” In 1890 President Benjamin Harrison and Congress agreed in condemning lotteries as “swindling and demoralizing agencies” and prohibited the interstate transportation of lottery tickets.
The 20th century brought renewed interest in lotteries, with some countries establishing national lotteries to fund public projects. The Irish Hospitals’ Sweepstakesin the 1930s set a precedent for modern lotteries. While lotteries run by governments are now common, there remains controversy around the collection and distribution of funds. Lotteries have evolved to include various formats, such as scratch tickets and online games, and continue to be a popular means of raising funds for public purposes.