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History of Lotteries

World Lotteries

Although the United States has the most lotteries in a single country, the lottery idea has spread all over the world. It has become a popular leisure activity that provides critical funds for public and government services. In 1994, the UK National Lottery was created which has resulted in one of the best selling lotto games in the world.

Lotteries can be found in Asia, Australia, Africa, Europe, Latin America and Canada. The very first multi-national lottery was created by 5 Scandinavian countries in 1992 called the Viking Lotto. The historical game of numbers - Policy Racket is still played in US though illegal.

Historical Overview

A lottery is defined as a game of chance where lottery players each have an equal probability of winning prizes or jackpots. Lotteries have not only provided entertainment to millions, but has also provided crucial funding to public services for centuries. The very first state-run lottery organization was formed in 1530 in the country of Italy. It offered cash prizes for lottery winners. From there, the lottery would spread to England, and would then cross the Atlantic in the early 1600's when the first settlers arrived in the New World.

In the United States, an initial lottery was created in 1612 in Jamestown. This lottery provided the town's residents with 50% of their annual budget. Lotteries have even been used to support the Armed Forces when George Washington used it for the Revolutionary Army. Thomas Jefferson also used it to fund public projects.

Lotteries were very popular in Southern states prior to taxation. The lotteries were used to fund toll roads, schools and bridge construction. During the period of 1790 until the Civil War, lottery sales were used to construct 50 colleges, 300 schools and 200 churches. Examples of the colleges that were built include Yale, Princeton and Harvard.

The state of Georgia permitted the first lotteries in 1784 and 1785 in order to raise money for a poorhouse and a hospital that would benefit seamen in Savannah. Additional lotteries were authorized within the state for the same funding purposes that were seen in Savannah. Public works projects such as Milledgeville street construction, the Screven County Courthouse and the August fire company were built.

Modern Lotteries

Modern state-run lotteries that everyone is familiar with began in 1964 in New Hampshire. The state's proceeds were allocated to education funds. Nowadays, state lotteries are being operated in a total of 42 states including the District of Columbia. Net proceeds help to fund transportation, education, prison construction, environmental and natural resource programs, economic development and senior citizen centers.

Technological advancements were made in order to grow with the lottery expansion. Lottery players can now select instant ticket games and several on-line or computerized games. On-line games allows players to select a range of numbers, depending on the format of the game. They can play several times in 1 day or they can play for a specified amount of draws in advance. An on-line lottery play averages $1 and tickets are printed with the assistance of on-line terminals that are connected to a state's central lottery system which validates winning tickets. On-line winning numbers are chosen in live drawings that are televised and documented in the central computer system.

Instant ticket product advancement in the previous 20 years have provided lottery players with an array of game options. Instant games allow players to scratch off a protective coating to reveal matching symbols. Depending on the game's rules that are displayed on the ticket, players can quickly determine if they are a winner. These types of games come in several colors, shapes and sizes. Their prizes also vary.

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Multi-jurisdictional alliances have formed over the years that offer lottery players much larger prizes. They are meant to provide an opportunity for very large jackpots.