Where did they start?
Lotteries have a much older history than many people realise. Though we often think of them as a modern invention tied to national games or big jackpots, the roots of lotteries stretch back through centuries and in fact even across continents.
As long ago as around 200BC the Chinese used lotteries to fund the building of the Great Wall of China! Yes, lotteries have been around for that long.
Where Did Lotteries Begin?
The very earliest recorded lotteries are in ancient China around 200 BC, during the Han Dynasty. They created lottery-like games that were used to raise funds for major state projects, like the construction of the Great Wall of China. It appears that they issued “keno slips”, which was an early form of lottery ticket, and went towards the way the Chinese funded their grand infrastructure.
Now, would you believe it, in Ancient Rome, lotteries were a form of entertainment at dinner parties. It appears that what happened was that guests were given tickets and the winners received prizes, which were items of variable value.
However, just like in China, the Romans too began to realise they could use them as a serious tool for public funding. This happened during the time of Emperor Augustus Caesar, when the city of Rome needed repairs, he realised that if he started a lottery, he could raise the funds he needed. Instead of increasing taxes, he basically turned to the voluntary contributions he could get through lottery sales, as his income generator and then of course the idea caught on.
Lotteries Instead of Taxes
Over time, in the Middle Ages, lotteries were used successfully to raise funds. Cities such as Ghent, Utrecht, and Bruges, in what is now Belgium and the Netherlands, realised that they could use lotteries to pay for public projects. Lotteries were used to fund fortifications, buildings, and support for the poor. In fact, by the 17th century, many towns in the Low Countries were relying on lotteries as a regular source of revenue.
Why were they so popular? It is easy, they were a painless form of taxation. The other option was direct taxes, these were deeply unpopular, lotteries allowed people to voluntarily contribute to public needs, along with the exciting prospect of a personal hand-out. As usual, people were far more willing to part with their money when there was a chance of personal gain.
It didn’t always work.
However, lotteries weren’t always well received. This was because in 1539, King Francis I of France decided to introduce a national lottery to help with his country’s struggling finances. Unfortunately, the plan backfired. He was too greedy, you see he set the ticket prices too high for most people to afford, and those who could afford them were opposed to the idea. The effect was that people were so appalled that lotteries were banned in France for nearly 200 years, but then occasionally when the government was desperate for money, they were tolerated.
The Arrival in England
It was under the reign of Queen Elizabeth I that the lottery arrived in England, the date was January 11th, 1569, the day the English state lottery began. The English government, seeing the success of lotteries on the European Continent, decided that they could use it as a fund raiser. However, instead of selling the tickets directly, the government decided to sell the rights to sell the lottery to brokers, these brokers then hired agents to actually sell them to the public.
Why did the English decide to do it this way? This was because of the price they had set for each lottery ticket, which meant that most people couldn’t afford a full one. The government decided that they would allow brokers to sell a share in each ticket, in a similar way that today people buy shares in companies. In some ways, it has been said that these brokers were the forerunners of our modern day stockbrokers.
This, of course, raises an interesting question: Are shares, in some ways, still a kind of lottery today?
Interestingly, the English state lottery only continued for 250 years, as by 1826, due to increasing pressure from opponents of gambling in Parliament, the government had to cancel the lottery system altogether. Its final draw marked the end of an era.
Then and Now
Today’s National Lottery was introduced in 1994 and operates under a different model.
You see it was a time when the government was being pushed to increase its support for charities and sport. The Prime Minister at the time, John Major, was looking for ways to reduce government expenditure and he realised that if he restarted the UK lottery, he could increase the funding of both through a lottery. It worked as funding to both charities and sport increased. The result, which I like, is that our success in sport had sustainably increased, proof of this is shown by the number of Gold medals our athletes as gaining every four years. So, the UK National Lottery is achieving its aim.
Conclusion
History shows us that from funding the walls in China, to financing cities in the medieval Europe, to today’s lotteries, that are now fashioning the dreams of millions today, the lottery has had a long and surprising journey.
Isn’t History fun?
10 interesting questions to spark curiosity or discussion:
- Did you know that lotteries helped fund the Great Wall of China over 2,000 years ago?
- How did ancient Romans use lotteries for entertainment at dinner parties?
- Why did Emperor Augustus turn to a lottery instead of raising taxes in Rome?
- What made lotteries a “painless” form of taxation in medieval Europe?
- Why did King Francis I’s national lottery in France fail so dramatically in 1539?
- How did Queen Elizabeth I’s government structure the first English lottery in 1569?
- Were early English lottery brokers the forerunners of modern-day stockbrokers?
- Why was the English state lottery eventually abolished in 1826 after 250 years?
- What connection is there between the modern UK lottery and Britain’s Olympic success?
- Could investing in shares today be seen as a modern version of the lottery?
For more on lotteries:
https://www.lottoland.co.uk/magazine/history-of-the-lottery.html
https://www.pinnacle.com/en/betting-articles/educational/the-history-of-lotteries/Z5YJXP3HEG45YM3Z
https://www.bl.uk/learning/timeline/item102765.html
©Tony Dalton