There is a certain inextricable human urge to gamble, and lotteries are one of the most convenient and direct ways for people to do so. But they also serve to perpetuate myths of quick wealth in a world of limited social mobility, which is why it’s so important to understand what lotteries are actually doing.

State lotteries are more than just traditional raffles, in which participants buy tickets for a drawing that takes place at some future date. Rather, they are a form of gambling that combines the elements of chance with market forces. Revenues typically expand dramatically upon their introduction, then level off or even decline. To keep revenues growing, lottery officials are constantly introducing new games and increasing promotional efforts—particularly through advertising.

The oldest known lotteries were held in the Low Countries during the 15th century to raise funds for town fortifications and help the poor. Records show that the first public lotteries were run in Bruges, Ghent, and Utrecht in 1445.

The modern state-run Staatsloterij is the oldest continuously operating lotteries in Europe, and it dates back to 1726. This history suggests that lotteries have long had a broad appeal. However, their use as a tax-based means of funding public usages has raised concerns about the impact on problem gamblers and on lower-income communities. They are criticized for running at cross-purposes with the state’s larger public interests. In addition, their promotion of gambling can be seen as inappropriate for a state government.