Lottery is big business, with Americans spending an estimated $100 billion each year on tickets. But it’s not without its problems. State lotteries have a complex and sometimes rocky history, both as public games of chance and private games of chance.

Lotteries’ roots stretch back centuries, with biblical examples such as Moses’ instructions to divide the land by lot and Roman emperors using lottery games to give away property and slaves during Saturnalian feasts. The modern-day lottery can be traced to 15th-century Burgundy and Flanders with towns raising money for municipal repairs and aiding the poor, followed by Francis I’s sanctioning of public lotteries in various Italian cities.

Regardless of their origin, modern-day lotteries share several key characteristics. They have a strong initial surge in revenue; after that, their revenues typically level off and may even decline. To sustain or increase revenues, state lotteries rely on new products to attract players and re-energize interest. This is done through a combination of adding new games and increasing promotional efforts, such as advertising.

Many people, especially those with low incomes, play the lottery for financial reasons. While for many, it’s a harmless way to fantasize about winning a fortune at a cost of a few bucks, it can be a significant budget drain for others who are not careful. Studies have shown that those with the lowest incomes play a disproportionately large share of lotteries, and critics point to it as a hidden tax on those least able to afford it.