Lotteries, in one form or another, have been a common form
of fundraising and distribution for since the earliest days. The following
presents a brief summary of its history.
Bible
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In Chapter 26, Book of Numbers, references to Moses
described him using a lottery to award land west of the River Jordan by
casting lots for reward. Choosing by lot has been a method of making
determinations at least as far back a biblical times, with the division of
the land west of the Jordan among the tribes of Israel (Numbers 26:55).
According to Proverbs 18:18, "The lot puts an end to disputes and
decides between powerful contenders."
Lots also appeared in the literature and traditions of Greece, India,
China, Japan and Rome.
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205-187 BC
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The Hun Dynasty in China created Keno. The lottery money was used for defense
and for the construction of Great Wall of China.
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100-44 BC
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Draw games of different forms date back to Caesar. One of the
first recorded mentions Augustus Caesar, who conducted the first known public
lottery for a community cause, raising funds for repair work in the city of
Rome. Also, it was common for emperors to give their dinner party guest gifts
ranging from slaves to lavish villas, all awarded as door-prize drawings.
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1400's
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However, the Encyclopedia Britannica states that the
lottery as we now know it, dates back to France
of 1400s when towns tried to raise money to fortify defenses.
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1420
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The French city of L’Ecluse used lottery to
raise money to strengthen the town’s fortifications. The prizes were in
the form of goods or commodities.
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1446
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Widow of Flemish artist Jan Van Eyck disposed of his
remaining paintings via a raffle.
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1465
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Belgium
holds lotteries to build chapels, almshouses, canals, and port facilities.
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1466
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Bruges,
Belgium,
raised money for the poor.
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1498
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The Portuguese instituted a lottery.
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1500's
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1520
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King Francis I of France allowed lotteries to
operate. Historians credit him with organizing the first state lottery, which
quickly became an important source of raising royal revenue. The exact date of this varies among
sources, ranging from 1505 to 1539.
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1530
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Florence Italy held
the very first number lottery with cash prizes. This was first municipal
lottery to offer money as a prize, know as La Lotto de Firenze.
Soon afterwards, similar drawings in Genoa
and Venice
were held.
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By 1567
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Queen Elizabeth I established the first English state
lottery with prizes of cash and tangible items, and 400,000 tickets were
offered for sale. The English caught “lottery fever” and the
funds were used
to restore the nations harbors facilities.
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1600's
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1612
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King James I of England
raised 29,000 pounds for the Virginia Company’s expeditions to colonize
America. Virginia Company of London, the financier of Jamestown
in Virginia,
was permitted by the Crown to hold lotteries to raise money for the company's
colonial venture. Theses lotteries were relatively sophisticated and even
included instant winners. Eventually, however, the crown banned the lotteries
because of complaints that they were robbing England of money. The company
dissolved shortly thereafter.
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1665
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The Dutch held a lottery to raise money for the poor in
New Amsterdam, the predecessor of New
York.
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1694
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British Parliament began using a state lottery to float a
1-million-pound loan. Tickets were 10 pounds each and the prizes awarded were
in 16-year cash annuities.
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1700's
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1726
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Netherlands
formed a lottery which is now considered to be the oldest lottery in
operation.
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1744
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The first lottery in the Colonies began in Massachusetts because
of military debts.
You can read a more thorough description of this lottery
by visiting: Massachusetts
Lottery
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1748
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Philadelphia Lottery held
.
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1753
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A lottery raised money to start the British Museum.
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1755
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The first case of the Lotto Mania was reported when eager
ticket-buyers broke down the doors of English ticket offices on opening day.
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1759
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Louis XV founded the Loterie
Royale of the Military
School, and outlawed
all other lotteries. The funds
were used to reduce the state's debts. This was the forerunner of the Loterie Nationale.
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1768
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George Washington sponsored a lottery to build a road
across the Blue Ridge Mountains.
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1769
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The crown tried to prevent lotteries from occurring without
its permission. Once the War of Independence started, the Continental
Congress voted to allow a $10 million lottery to finance the war. The lottery
had to be abandoned, however, because it was too large and the tickets could
not be sold.
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1776
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The first “national” lottery was created by
the Continental Congress in 1776 to try to raise funds for the American
Revolution. While that did not work well, many smaller public lotteries
helped build several American universities like Harvard, Dartmouth,
Yale, Brown, Columbia, Princeton,
and William and Mary.
Ben Franklin, John Hancock, and George Washington were all
prominent sponsors of specific lotteries for public works projects. A lottery
sponsored by John Hancock financed the rebuilding of Faneuil Hall in Boston after it was
damaged by fire. Franklin sponsored a lottery
to raise money for cannons to defend Philadelphia
against the British.
By one source, there were about half a dozen respectable
lotteries operation in each in the 13 colonies prior to the American
Revolution. The Continental Congress saw lotteries as a means of financing a
Revolutionary Army, helping to make them independent of England. Ironicly,
the colonists didn’t view a lottery as "taxation without
representation", which was key complaint of the colonies.
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1777
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It was proceeds from the United States Lottery 1777 that
paid for the provisions for Washington’s
troops.
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1800's
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By the early 1800s, lotteries were very popular, but
abuses by private citizens (side betting and heavy ticket markups) prevented
the government from getting the profits, and attempts began to outlaw
lotteries
Also during the early 1800's, gambling came under
increasing attack. There was always a group opposing gambling on moral
grounds and on religious beliefs
The attack against gambling was focused particularly on
lotteries because it represented a form of wagering that was offensive to
both the moral sensibilities of reformers, and the Jacksonian
resentment toward privilege. The exclusive charters granted to
lottery operations were examples of this form of privilege. Ironically,
President Jackson was an inveterate gambler and had such a history
of problems that he must be viewed as a likely addictive or compulsive
gambler. His gambling was well-known but tended to be seen as the behavior of
a gentleman; hence he was reserved the disapprobation held for commercial
gamblers.
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1827
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The U.S barred postmasters from selling lottery tickets.
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1833
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Pennsylvania, New York, and Massachusetts
put an end to state authorized lotteries
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By 1840
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Most states had banned lotteries by this date.
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1856
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The Act Concerning Lotteries forbade all lotteries in Canada,
including the French and Catholic clergy.
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By 1860
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Only Delaware, Missouri, and Kentucky
still allowed state-authorized lotteries. Tickets from these few states were shipped
around the country by mail or smugglers. Lottery prohibition had led to the
creation of many illegal or underground lotteries.
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By 1868
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Most of the states had already adopted anti-lottery laws. By
1868, Congress declared it unlawful to use the mail for lotteries. The
Supreme Court ruled that lotteries had "a demoralizing influence upon
the people."
But also in 1868, the Louisiana Lottery Company was
authorized and was granted a 25-year charter. A carpetbagger criminal
syndicate from New York
bribed the Legislature into passing the lottery law and establishing the
syndicate as the sole lottery provider. The Louisiana Lottery was an
interstate venture with over 90% of the company's revenue coming from outside
Louisiana.
This lottery was a prolific money maker. Attempts to repeal the 25-year
charter were defeated with assistance of bribes to legislators.
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1878
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All states except Louisiana
prohibited lotteries.
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1895
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The Louisiana Lottery was abolished after Congress enacted
a prohibition against moving lottery tickets across state lines by any
method.
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1900's
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From 1894 to 1964, there were no
legal government-sponsored lotteries operating in the United States. This ban led to a
paradox: of lotteries that were widely played, but always illegal. One of the
most well known was the Irish Sweepstakes which began in 1930 for the purpose
of raising money for hospitals in Ireland. Although it was illegal to
sell tickets in the U.S.
or to ship them here, they were smuggled into the country. Participation in America was
high, with about 13 percent of the country having bought these tickets at
sometime.
Another prominent form of the lottery was the illegal
"numbers" game. Despite the illegality, numbers was quite popular.
One author claimed that the amount being wagered on numbers was $5 billion in
1960. Another estimate shows that the numbers game was grossing
$20 million annually in Chicago
alone during the early 1970s and the total handle was $1.1 billion.
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1917
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The Queensland State Lottery in Australia was first to start in
20th century.
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1930
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Both the Irish Sweepstakes launched, and La Lotto de
Firenze in Florence
was introduced.
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1964
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Growing opposition to tax increases became the leading
factor for re-establishing state-run lotteries in the 20th century.
In 1964 New
Hampshire was the first state to sponsor a lottery, It was
called a "Sweepstakes" and was affiliated with horse-racing to
avoid the federal anti-lottery laws. The Tickets went on sale on March 12,
1964.
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1967
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New York
followed, establishing its own lottery.
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1969
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Canada
legalized gambling and gave Provinces authority to operate lottery.
Charitable & religious organizations allowed to hold
lotteries as well.
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1970
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Manitoba & Quebec establish first
modern Canadian Lotteries.
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1971
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While sales of lottery tickets jumped from $5.7 million in
1964 to more that $202.4 million in 1999, New Jersey was the first state operate a
financially successful modern lottery. It began in 1971, and was successful because it
stressed frequent action at low cost, returning a higher percentage of
lottery revenues as prizes. There were also various attempts to legalize a
national lottery, but they failed to be passed by Congress.
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1988-1992
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The Multi State Lottery started with The Lotto America
game in February 1988. It was changed to a 6/54 game format in 1989, and
offered two plays for $1. In 1992,
the first Powerball drawing was held, replacing the
previous game.
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1996-2002
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The first Big Game drawing was held on September 6,
1996. A Tuesday drawing was added
in 1997, and players were given a cash payout option. In May 2002, this
multi-state changed its name to Mega Millions.
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References
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