While lotteries like the Mega Millions Jackpot have been popular for hundreds of years, it wasn’t until 1964 that the first state-run, government-sponsored lottery was formed in New Hampshire. Today, 43 U.S. states offer a lottery; the most recent one was authorized by legislators in the state of Arkansas in 2008.  As states continue to grapple with record budget deficits, it’s likely that government-sponsored lotteries will play an increasingly important role in generating revenue that can help shrink state shortfalls.

Unique among the games is the Mega Millions Jackpot, which boasts the distinction for awarding the largest jackpot ever in North American history. The 2012 record jackpot—a staggering $656 million—was split between lucky ticket holders in Kansas, Illinois and Maryland.

Although government-sponsored lotteries are usually viewed as a form of entertainment by ticket-buyers, the proceeds from ticket sales can help fund important public works projects such as school and road construction. NC Mega Millions, for example, debuted just three years ago and has already raised over $2.5 billion for educational programs throughout the state of North Carolina. NC Mega Millions earmarks 100% of net lottery proceeds toward college scholarships, new school building and other worthy endeavors.

In Arizona, lottery officials set out an ambitious plan to spread lottery profits across a wide swath of valuable government-run programs, including 36% toward economic and business development; 27% toward education; 23% toward health/welfare programs; and 14% toward the environment. A diverse range of specific beneficiary programs, from the Heritage Fund (managed by The Department of Game and Fish) to the state university system, benefit from lottery proceeds.

Like Arizona, the state of Minnesota chooses to divvy up its state lottery proceeds among several key categories, including 60% to education, transportation, public safety and human services and 40% to the environment and Natural Resources Trust Fund.

Legislators in other states have chosen a less targeted approach when it comes to spending lottery revenue.  As ticket-holders eagerly await Maryland lottery results, for example, lawmakers funnel the profits into a variety of state-funded programs including the environment and public health as well as education. The tactic seems to be working. Maryland lottery results hold perennial appeal, and over $12 billion in revenue has benefitted the state since creation of the lottery.

State-sponsored gambling attracts its share of detractors. A vocal contingent of consumer advocates oppose lotteries because, they say, state lotteries disproportionately hurt poorer families, essentially represent a regressive tax and encourage problem gambling. Various studies have shown that minorities such as blacks and Latinos more frequently play the lottery than whites. In addition, less highly educated service workers favor the game more so than white collar workers, and those with a high school diploma play more than college graduates. Lottery proponents counter that lotteries are simply an alternative mechanism for states to raise money through means other than taxes; and it works well, particularly in those states that lack a state sales or income tax.

While it’s doubtful such divisions will be resolved anytime soon, state-sponsored gambling continues to win over players who seek a dream for as little as a dollar.