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The first known lottery was created in France by King Francis I in or around 1505. It didn’t take hold until the late 17th century, when it reappeared as public ones for Paris and as private ones for religious orders.

Lotteries offer a small chance to win big money, and it’s hard to argue with that logic. But they also expose people to gambling addiction, which is a real and growing concern. And that’s why lawmakers in most states have deemed it unwise for the state to promote such a vice, even when it’s aimed at helping the poor.

Ball Draw Machine: A device that mechanically scrambles a set of numbered balls and randomly draws from that mix to determine the winning numbers in a game.

Beneficiary: The designated recipient(s) of a lottery’s profits.

Lottery winners are required to pay federal, state, and local taxes on their winnings. Some jurisdictions also withhold amounts from winners to cover outstanding monetary obligations like child support. The amount withheld is subtracted from the winner’s prize, and the remaining balance of the winnings is paid to the winner. The amount withheld varies from jurisdiction to jurisdiction, and is often based on the amount of the winnings.