In our age of inequality and limited social mobility, lottery games offer the chance to fantasize about becoming rich at a low price. For many people, it’s a harmless pastime. But for others, it’s a disguised tax on those least able to afford it. Lottery players as a group contribute billions to government receipts they could have used for retirement or college tuition. And while the odds of winning vary wildly, it’s hard to deny that these gambles are often made on the basis of a false meritocratic belief: we all deserve to be rich someday.

The drawing of lots to make decisions and determine fates has a long history (see the Bible, for example), but it became more common in modern times to use lotteries for material gain. A notable example was Benjamin Franklin’s 1776 effort to raise money for cannons to defend Philadelphia against the British. Lotteries also played a role in financing public projects, such as roads and libraries, in the American colonies.

Most states have their own lotteries, and the proceeds are typically divvied up between administrative and vendor costs and toward whatever the state designates. In 2023, for example, 50%-60% of the revenue went to the prize pot; the rest was allocated differently by each state. The North American Association of State and Provincial Lotteries publishes how each state spent its lottery money.