Making decisions and determining fates by the casting of lots has a long record in human history, including several instances in the Bible. But lotteries as commercial enterprises for material gain are of recent origin, fueled by popular anti-tax movements and a new materialism asserting that anyone can become rich through effort or luck. State governments began establishing lotteries in the 1960s, and since then they have proliferated across America. Most follow a similar pattern: the state legislates a monopoly; establishes a government agency or public corporation to run the lottery (instead of licensing a private company in exchange for a percentage of the profits); begins operations with a modest number of relatively simple games; and then, under constant pressure for additional revenues, progressively expands the lottery in size and complexity.
Lotteries are not only extremely popular, but also a major source of revenue for the states. According to the Federal Reserve Bank, in 2009 alone, state lottery proceeds totaled $47.4 billion, a figure that will almost certainly increase this year. The money is used for a variety of purposes, such as education, public works projects and health care. It is also often earmarked for public safety initiatives. Despite the widespread popularity of lotteries, critics argue that they have numerous negative consequences, such as encouraging poor behavior and providing a gateway to gambling addiction.
In colonial-era America, lotteries played a significant role in financing both private and public ventures. Benjamin Franklin organized a lottery to help fund the establishment of a militia to protect Philadelphia against French attacks, and John Hancock ran one to raise money for Boston’s Faneuil Hall. George Washington ran a lottery to build a road in Virginia over a mountain pass, although that project did not produce enough funds to make it viable.
Lottery winners often choose numbers that have sentimental value to them, such as birthdays or other lucky combinations. Mathematically, however, the choice of numbers has no effect on the results of a lottery drawing; each draw is an independent event. Sticking to predictable number sequences can actually hurt your chances of winning. Instead, Kapoor suggests picking numbers randomly and avoiding repeating numbers, which other players will likely do as well. She also recommends buying more tickets to improve your odds of winning, and pooling money with other lottery players to buy a large number of tickets.
When you win the lottery, consider your anonymity. Keeping your name out of the news and telling as few people as possible can help protect you from scammers and old “friends” who want to reconnect. It is also worth putting together a team of experts, including an attorney, accountant and financial planner. These professionals can help you decide whether to take an annuity or cash prize and weigh the pros and cons of both options.
Lastly, it is important to stay informed about your local laws regarding lottery winnings. Some states require you to report your winnings and some have age limits for lottery winnings. Make sure you understand the rules in your state before you purchase your ticket.