Lotteries in The United States - History

History

In early American history, legislators commonly authorized lotteries to fund schools, roads, bridges, and other public works. Evangelical reformers in the 1830s began denouncing lotteries on moral grounds, and petitioned legislatures and constitutional conventions to ban them. Recurring lottery scandals and a general backlash against legislative corruption following the Panic of 1837 also contributed to anti-lottery sentiments. From 1844 to 1859 alone, ten new state constitutions contained lottery bans. By 1890, lotteries were prohibited in every state except Delaware and Louisiana.

Some US patents were granted on new types of lotteries. In 21st-century vernacular, these would be considered business method patents.

Before the advent of government-sponsored lotteries, many illegal lotteries thrived. (see Numbers game, and Peter H. Matthews) The first modern government-run US lottery was established in Puerto Rico in 1934, followed by New Hampshire in 1964; today, lotteries are established in 43 states, the District of Columbia, Puerto Rico, and the Virgin Islands; The most recent US lottery to be legalized was in Arkansas; its voters approved a lottery in the 2008 election.

The first modern US joint lottery game was formed in 1985 in Maine, New Hampshire, and Vermont. In 1988, the Multi-State Lottery Association (MUSL) was formed with Iowa, Kansas, Missouri, Oregon, Rhode Island, West Virginia, and the District of Columbia as its charter members; it is best known for Powerball, which was designed to create large jackpots. Another joint lottery, The Big Game (now called Mega Millions), was formed in 1996 by six other lotteries as its charter members.

Instant lottery tickets, also known as scratch cards, were introduced in the 1970s and have become a major source of lottery revenue. Some lotteries have introduced keno and/or video lottery terminals (slot machines in all but name).

Individual lotteries often feature three-digit and four-digit games akin to "numbers games"; a five number game game, and a six number game (the latter two often have a jackpot.) Some lotteries also offer at least one game similar to keno. Presently, many US lotteries support public education systems.

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