Lottery is a form of gambling in which participants purchase tickets and hope to win prizes based on the drawing of numbers. The first known public lottery was held in 1466 in Bruges, Belgium. The modern game of financial lottery is more complex and involves buying annuities or a lump sum of money that will pay out in regular payments over time. Some states have banned the game, while others endorse it and regulate it.

The idea of determining fates and distributing goods through the casting of lots has an ancient history, including several instances in the Bible. More recently, the lottery has been used to raise funds for a variety of public projects and private endeavors, from town repairs and fortifications to assisting poor families. The lottery’s popularity has been linked to a perception that proceeds from ticket sales help to fund a specific public good, such as education. Lottery organizers are adept at promoting this perception, especially during periods of economic stress, when fears of tax increases or budget cuts are highest. However, studies indicate that the objective fiscal circumstances of a state do not have much influence on its lottery participation levels.

Despite the low odds of winning, many people play the lottery, contributing billions annually to the economy. Lottery advertising campaigns expertly capitalize on the feeling that you’ll never know if you could have won had you not tried, an effect called fear of missing out, or FOMO. “Lottery marketing campaigns portray previous winners and the aspirational dreams of wealth they have created, tapping into the audience’s need to improve their lives,” says consumer psychologist Adam Ortman.