The word lottery is derived from Middle Dutch loterie, itself a variant of loter “fate” or “lot” (the Latin for “fate”), and the first public lotteries were probably held in the Low Countries in the 15th century, as evidenced by town records in cities such as Ghent and Utrecht.

In the early colonial era, lotteries played an important role in raising money for various public needs, such as paving streets and building wharves. Lottery revenues also helped fund the establishment of Harvard and Yale. George Washington sponsored a lottery in 1768 to build roads across the Blue Ridge Mountains.

Throughout much of the history of state lotteries, their advocates have argued that they are a painless form of revenue: players voluntarily spend money to have the chance to win large prizes, and governments then receive the proceeds without having to raise taxes or cut other services. This argument seems to have been most effective in times of economic stress, when voters and politicians fear that states will have to cut social safety nets or increase other taxes. However, studies have shown that the objective fiscal conditions of a state do not appear to influence the decision whether or when to adopt a lottery.

While many people do play the lottery out of pure pleasure, most buy tickets because they believe that a few small purchases can help them achieve wealth and security. The sway of these messages has been reinforced by the presence of billboards and other advertisements that promote winning strategies. But while some tips might be technically true, they tend to obscure the fact that winning the lottery is a matter of pure random chance.