The lottery contributes billions of dollars to state governments each year. Some people play for fun, while others believe it’s their answer to a better life. Regardless of why you play, there are a few things to keep in mind. NerdWallet writers have analyzed the economics of lotteries to show how much your odds are of winning and how you should approach playing them.

Throughout history, the casting of lots to decide fates or distribute prizes has been an enduring method for allocating goods and services. The first recorded lottery to allocate funds for public good was held by Augustus Caesar in Rome to pay for city repairs. Since then, state governments have used the lottery to raise money for everything from roadwork and education to crime prevention and veterans’ benefits.

State lotteries are often seen as a “painless” source of revenue, because the winners voluntarily spend their money, rather than taxpayers being forced to fund government spending. In an anti-tax era, it’s easy to see why this argument is effective.

However, research has shown that the popularity of state lotteries is independent of a state’s fiscal circumstances. Lotteries have won broad public approval even in times of prosperity. This suggests that state officials may be unable to manage an activity that they themselves profit from, and that political pressures — such as a desire for increased gambling revenues — are likely driving the ongoing evolution of state lotteries.