Lottery is a fixture in American life, with Americans spending upward of $100 billion on tickets each year. States promote the lottery as a way to raise money, with the proceeds going toward a range of state projects. But just how meaningful that revenue is in broader state budgets—and whether it’s worth the trade-off of people losing money—is debatable.

In the US, state lotteries are regulated by laws that set their prize pools and terms of play, select and train retailers and employees to sell and redeem tickets, pay high-tier prizes, and help players and retailers comply with lottery rules. Most states rely on a lottery commission or board to administer the lotteries. This agency may also establish rules for retailers, assist lottery vendors with marketing, oversee retailer compliance with lottery laws and rules, and provide oversight of the operations.

The word “lottery” derives from the Dutch noun lot, meaning “fate.” In the 16th century, the Dutch organized state-sponsored lotteries to collect funds for a wide variety of purposes, including helping the poor and subsidizing military operations. Benjamin Franklin sponsored a lottery to raise money for cannons during the Revolution, and Thomas Jefferson held one in Virginia to try to reduce his crushing debt.

Before the 1970s, lotteries were little more than traditional raffles. The public purchased tickets for a drawing at some future date, often weeks or months away. But innovations in the 1970s transformed lotteries. These included scratch-off tickets and games with lower prize amounts but significantly higher odds of winning, on the order of 1 in 4. Lottery revenues typically expand dramatically when they first launch, then level off or decline. To maintain or even increase those revenues, lotteries introduce new games every so often.

Lottery marketers are constantly trying to convince the public that playing the lottery is a good thing, that it helps support education and other worthy causes. But the truth is that the overwhelming majority of lottery funds are spent on administrative costs and vendor fees, with very little going toward actual prizes. The remainder is divvied up among various projects determined by each state’s legislature, and the percentage that goes to education varies widely from state to state.

Many people choose their lottery numbers based on personal connections or events, such as their birthdays. But it’s important to remember that choosing the same numbers over and over doesn’t increase your chances of winning. Instead, be sure to choose a mixture of different numbers each time you buy a ticket. This will decrease the competition and increase your chances of success.