The History of Lotteries: Funding Empires One Ticket at a Time

From building the Great Wall to funding Ivy League universities, lotteries have quietly shaped world history.

Ancient Beginnings in China and Rome

Lottery-style games date back to the Han Dynasty in China around 205–187 BCE, where a keno-like game is believed to have helped finance state projects. In ancient Rome, Emperor Augustus organized a lottery to raise funds for repairs to the city, with prizes often consisting of goods rather than cash — sometimes even unwanted household items handed out as a form of party entertainment during Saturnalia feasts.

The First European Public Lotteries

The first recorded public lottery offering cash prizes was held in the Burgundian city of Bruges in 1446, organized to raise funds for city fortifications and aid to the poor. This model spread across the Low Countries and later into France and England, where Queen Elizabeth I chartered England’s first official state lottery in 1566 to fund the construction of harbors and other public works.

Building America, One Ticket at a Time

Lotteries played a surprisingly central role in early American history. Colonial governments used them to fund roads, bridges, and militias, and several prestigious universities, including Harvard, Yale, and Princeton, were partly financed through lottery proceeds in the 1700s. Even the Continental Congress attempted to run a lottery to help fund the Revolutionary War.

A Period of Bans and Scandals

By the mid-19th century, widespread fraud and corruption scandals involving lottery organizers led most U.S. states to ban lotteries entirely, a prohibition that lasted nearly a century. Similar bans occurred in various European countries as governments grew wary of the social and financial harm caused by unregulated lottery operators.

The Modern Revival

Lotteries made a major comeback starting in 1964, when New Hampshire launched the first modern U.S. state lottery, followed by dozens of other states over the following decades. Today, state-run lotteries are a significant source of public revenue worldwide, often earmarked for education and infrastructure, proving that this ancient form of gambling remains as relevant as ever.