The lottery is a big business in the United States, with Americans spending an estimated $100 billion each year on tickets. But while the game of lightning-strike fame and fortune might seem like a product of the same culture that birthed Instagram and the Kardashians, its roots are as old as America itself. Here are three things to know about lotteries.

The term “lottery” refers to any game whose prize money depends on a random draw of numbers, whether it’s the multi-state games like Powerball and Mega Millions or local state lotteries. The first recorded lotteries were in the Low Countries in the 15th century, when towns held them to raise funds for town fortifications and poor relief. Some were even subsidized by the church.

When people hear the word lottery, they think of a simple game with a large jackpot. But there are actually many different types of lottery games, including scratch-off tickets, keno and online games. The one that generates the most revenue in North America is the Mega Millions game, which draws numbers from a pool of 80. But there are also smaller prizes available in state lotteries, such as free tickets or a chance to win a new car.

Despite Puritans viewing gambling as a sin and a doorway to worse vices, in the early days of the United States, lotteries were popular. John Hancock ran a lottery to help build Boston’s Faneuil Hall, and George Washington ran one to fund a road over a mountain pass. Some of the country’s most prestigious colleges also got their start thanks to lotteries, including Harvard, Yale and Columbia.

In the 1800s, the same religious and moral sensibilities that eventually led to prohibition turned against lotteries as well. And corruption also worked against them, as lottery organizers could sell tickets and abscond with the proceeds. “That sort of political and moral distaste and the desire to get rid of corrupt lotteries helped turn public opinion against gambling in general, and that helped lead to prohibition,” Matheson says.

Today, most state lotteries are regulated and run by government agencies. Some operate a single game, while others offer multiple games and are part of a larger multi-state network. The largest state lotteries generate more than $25 billion a year in ticket sales and operating revenues, with the rest coming from taxes on lottery winnings.

When you play the lottery, it’s important to pick your numbers carefully. Experts suggest picking a range of numbers and avoiding those that end in the same letter, such as 1-2-3 or 4-5-6. This is because more than one person might pick those numbers and split the prize with you.

It’s also a good idea to purchase your tickets early in the day. That way, you’ll be in the running for the big jackpots, and will have more chances to win. You should also be aware that winners of the big jackpots must choose between annuity payments or a lump sum. The former usually results in a significantly smaller amount than the advertised jackpot, because of the time value of money and income taxes withheld from the annuity.