Lottery is a game where people can win huge sums of money by drawing random numbers and matching them to winning combinations. It appeals to humans’ innate desire to dream big, promoting the idea that it’s only a matter of time before somebody, somewhere wins a fortune.

But the odds of winning are low to vanishingly small—and expecting to hit the jackpot is a fool’s errand. So if you’re thinking about playing the lottery, it’s important to understand how the odds work and how they differ from one drawing to the next.

Throughout history, the lottery has been used as a form of taxation to raise money for public works projects and social welfare programs. The practice grew popular in the colonies, and the Continental Congress even held a lottery in 1748 to help fund militias against marauding French forces. Many private lotteries were also organized, and these helped build Harvard, Dartmouth, Yale, King’s College (now Columbia), and William and Mary.

The word lottery is probably derived from the Latin loteria, which means “to pull lots”; it may have been inspired by the Old Dutch phrase loten, meaning “to throw or take away.” In any event, the first state-sponsored lotteries were held in Europe in the 1500s, with English advertisements appearing using the term two years later.

Historically, state lotteries establish a government-run monopoly; begin operations with a modest number of relatively simple games; and progressively expand their offerings as demand grows. In general, the prize funds are generated from a percentage of ticket sales, and the higher the participation rate, the larger the jackpot.