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In this format, there is risk to the organizer if insufficient tickets are sold. More commonly, the prize fund will be a fixed percentage of the receipts.
The first recorded signs of a lottery are keno slips from the Chinese Han Dynasty between and BC. These lotteries are believed to have helped to finance major government projects like the Great Wall of China.
From the Chinese "The Book of Songs" 2nd millennium BC. The first known European lotteries were held during the Roman Empire , mainly as an amusement at dinner parties.
Each guest would receive a ticket, and prizes would often consist of fancy items such as dinnerware. Every ticket holder would be assured of winning something.
This type of lottery, however, was no more than the distribution of gifts by wealthy noblemen during the Saturnalian revelries.
The earliest records of a lottery offering tickets for sale is the lottery organized by Roman Emperor Augustus Caesar. The funds were for repairs in the City of Rome, and the winners were given prizes in the form of articles of unequal value.
The first recorded lotteries to offer tickets for sale with prizes in the form of money were held in the Low Countries in the 15th century.
Various towns held public lotteries to raise money for town fortifications, and to help the poor. The town records of Ghent , Utrecht , and Bruges indicate that lotteries may be even older.
The lotteries proved very popular and were hailed as a painless form of taxation. The Dutch state-owned Staatsloterij is the oldest running lottery.
The English word lottery is derived from the Dutch noun "lot" meaning "fate". The first recorded Italian lottery was held on 9 January in Milan organized by the Golden Ambrosian Republic to finance the war against the Republic of Venice.
However, it was in Genoa that Lotto became very popular. People used to bet on the name of Great Council members, who were drawn by chance , five out of ninety candidates every six months.
This kind of gambling was called Lotto or Semenaiu. When people wanted to bet more frequently than twice a year, they began to substitute the candidates names with numbers and modern lotto was born, to which both modern legal lotteries and the illegal Numbers game can trace their ancestry.
King Francis I of France discovered the lotteries during his campaigns in Italy and decided to organize such a lottery in his kingdom to help the state finances.
This attempt was a fiasco, since the tickets were very costly and the social classes which could afford them opposed the project. During the two following centuries lotteries in France were forbidden or, in some cases, tolerated.
Although the English probably first experimented with raffles and similar games of chance, the first recorded official lottery was chartered by Queen Elizabeth I , in the year , and was drawn in This lottery was designed to raise money for the "reparation of the havens and strength of the Realme, and towardes such other publique good workes".
Each ticket holder won a prize, and the total value of the prizes equalled the money raised. Prizes were in the form of silver plate and other valuable commodities.
The lottery was promoted by scrolls posted throughout the country showing sketches of the prizes. Thus, the lottery money received was an interest free loan to the government during the three years that the tickets 'without any Blankes' were sold.
In later years, the government sold the lottery ticket rights to brokers, who in turn hired agents and runners to sell them.
These brokers eventually became the modern day stockbrokers for various commercial ventures. Most people could not afford the entire cost of a lottery ticket, so the brokers would sell shares in a ticket; this resulted in tickets being issued with a notation such as "Sixteenth" or "Third Class".
Many private lotteries were held, including raising money for The Virginia Company of London to support its settlement in America at Jamestown.
The English State Lottery ran from until Thus, the English lotteries ran for over years, until the government, under constant pressure from the opposition in parliament, declared a final lottery in This lottery was held up to ridicule by contemporary commentators as "the last struggle of the speculators on public credulity for popularity to their last dying lottery".
An English lottery, authorized by King James I in , granted the Virginia Company of London the right to raise money to help establish settlers in the first permanent English colony at Jamestown, Virginia.
Lotteries in colonial America played a significant part in the financing of both private and public ventures. It has been recorded that more than lotteries were sanctioned between and , and played a major role in financing roads, libraries, churches, colleges, canals, bridges, etc.
During the French and Indian Wars, several colonies used lotteries to help finance fortifications and their local militia.
In May , the Commonwealth of Massachusetts raised money with a lottery for the "Expedition against Canada". Benjamin Franklin organized a lottery to raise money to purchase cannons for the defense of Philadelphia.
Several of these lotteries offered prizes in the form of "Pieces of Eight". Washington was also a manager for Col.
Bernard Moore's "Slave Lottery" in , which advertised land and slaves as prizes in The Virginia Gazette. At the outset of the Revolutionary War, the Continental Congress used lotteries to raise money to support the Colonial Army.
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