During the Roman Empire, lotteries were common, particularly among wealthy noblemen during Saturnalian revels. Records show that various towns held public lotteries to raise funds for fortifications and poor people.
In 1612, King James I authorized the English lottery. It became a popular tax alternative. The money raised was used for many public purposes, including roads, bridges, canals, libraries, colleges, and the Colonial Army.
Lotteries were also used in various colonies during the French and Indian Wars. Benjamin Franklin organized a lottery to raise money for cannons for the defense of Philadelphia. In 1755, the Academy Lottery financed the University of Pennsylvania.
The Virginia Company of London supported settlement in America at Jamestown and held many private lotteries. Alexander Hamilton wrote that people would be willing to risk trifling sums in order to win a considerable amount of money.
The first known European lotteries were held during the Roman Empire. They were held in various Low Countries towns, including Ghent and L’Ecluse. Among the prize money was 1737 florins, which is equivalent to US$170,000 in 2014.
The first recorded French lottery was held in 1539. It was called Loterie Royale. The prize money was intended to be distributed among the poor. It was authorized by an edict of Chateaurenard.
The first French lottery was a fiasco. Tickets were expensive. The organizers were criticized. They were also reported to have given away slaves and land.
Alexander Hamilton wrote that lotteries should be kept simple. He advised that the organizers could make the process fairer for everyone.