The casting of lots to determine decisions and fates has a long record in human history, including some examples in the Bible. But the modern lottery is a relatively recent invention, having emerged as an alternative to raising taxes for public works and charity. The first recorded public lotteries in Europe were conducted in the 15th century to raise money for repairs and town fortifications and to help the poor.
Once state lotteries have established a foothold, their popularity and growth often become self-perpetuating. The same people who support the lottery as a source of entertainment tend to be the same ones who fund it in the form of contributions and advertising purchases. And despite the widespread public perception that the majority of lottery funds are distributed as prizes, the truth is that state governments (which have a legal monopoly) keep a large share of proceeds to pay for things like commissions on ticket sales and salaries for lottery officials.
This situation is compounded by the fact that no government has a coherent gambling policy and few, if any, have a comprehensive state lottery strategy. Instead, the lottery industry tends to evolve piecemeal and incrementally, driven by pressures from specific constituencies such as convenience store operators; lottery suppliers (whose heavy contributions to state political campaigns are regularly reported); teachers (in states where lotto revenues are earmarked for education); and politicians (who rapidly grow accustomed to lottery profits). Consequently, few, if any, state officials have a clear view of how to manage an activity that they profit from.