The casting of lots to make decisions and determine fates has a long record in human history, as demonstrated by the Old Testament’s instructions for Moses to take a census of Israel and divide its land by lot. More recently, lottery games have also been used for commercial promotions in which property is given away and for military conscription as well as for selecting jury members from lists of registered voters. However, the defining feature of lottery gambling is that payment of a consideration (money or goods) is required for a chance to win a prize.

The first recorded public lotteries offering tickets for sale with prizes in the form of money were held in the Low Countries in the 15th century to raise funds for town fortifications and to help the poor. The earliest records were found in the town archives of Ghent, Bruges, and Utrecht.

Today, the majority of lottery ticket sales go toward the prizes, with a small percentage allocated to administrative and vendor costs. Each state sets its own allocations, which can include anything from a percentage of total sales to a designated project such as education.

Some states even hold lottery-like draws for subsidized housing units, kindergarten placements, and prestigious sports team draft picks. The financial benefits of these draws are not insignificant, but they are a far cry from the huge sums that are available through state lotteries. And while the argument goes that lotteries help to alleviate tax pressure, studies have shown that the amount of state lottery revenue is not related to a state’s actual fiscal health.