The lottery is an enormously popular activity in many states, with Americans spending over $100 billion annually on tickets. But lotteries have a troubled history as public games and as a source of revenue for state governments, and they’re often subject to criticism for misleading consumers about the odds of winning.

The casting of lots for making decisions and determining fates has a long record in human history, including several examples in the Bible. But lotteries involving cash prizes are more recent, dating back at least to the 15th century in the Low Countries. Town records from Bruges, Ghent, and Utrecht show that public lotteries with tickets for sale were held to raise funds for town fortifications, as well as to help the poor.

In modern times, lotteries are often promoted as a way for people to “volunteer” their money to fund “public good.” They also provide a tax-free alternative to raising taxes or cutting other government programs, and they can bring in substantial revenues even during times of economic stress. Yet studies have found that the popularity of lotteries is not tied to a state’s actual fiscal condition; the desire to win a prize is largely independent of the need for public funds.

Lottery advertising often depicts prior winners enjoying their newfound wealth, creating aspirational appeal that draws people in. Stories like this play on the FOMO (“fear of missing out”) principle, a powerful driver of consumer behavior that has helped the lottery become a massive industry.

The fact that lottery proceeds are supposed to be for a “public good” further enhances the public’s perception of its merits. It’s one reason why state lotteries typically win broad approval from voters, even in times of financial stability. However, as Lotto sales have expanded and then plateaued in recent years, state lotteries are introducing new products to try to maintain or increase their revenues.

A major problem with the lottery is that it’s an addictive game that disproportionately attracts lower-income players. A study by Clotfelter and Cook found that a large percentage of those playing state lottery games live in middle-income neighborhoods, while the proportion who come from low-income areas has remained about the same. The same trend holds true for those buying scratch-off tickets.

While some people will always be attracted to the lottery, it’s important to keep in mind that it is gambling. It may seem harmless, but it can quickly turn into a dangerous addiction. Before you buy a ticket, consider your finances first and make sure to budget for this indulgence. And if you find that it’s becoming more of a compulsion than a fun hobby, be mindful of the danger signs and don’t hesitate to seek professional help. You’ll be glad you did.