Gambling and lotteries funded America's early expansion, funding infrastructure and capital projects.

How America became a nation of gamblers

For thousands of years, humans have liked to gamble. What started as dice games and betting on chariot races became a way for states to generate revenue here in America. This article explores how states have been using gambling to pay for infrastructure and capital projects–and the cost it’s had on the citizens.

Benjamin Franklin founded America's first lending library, the Library Company of Philadelphia, in 1731.

Benjamin Franklin donated the books that became the first true public library in the US.

The New York Stock Exchange wouldn't have been made if not for municipal bond sales

The Funding Act of 1790 nationalized and consolidated the debt held by the 13 colonies to be sold off in the form of bonds.

Colonial Americans used tobacco, wampum, and land-backed notes to solve a chronic coin shortage

British coins rarely circulated in the colonies due to an unfavorable trade balance, forcing colonists to improvise. They traded in Spanish dollars, Native American shells, tobacco warehouse receipts, and eventually paper money backed by land rather than gold.

Browse a timeline of the fascinating history of board games in America.

Public libraries are funded by a mix of local taxes, state grants, and federal programs.

Andrew Carnegie donated $56M to build 2,509 public libraries worldwide

Carnegie, who left school at 12 and credited borrowed books for his self-education, began funding libraries in 1881. Of the 2,509 libraries built, 1,681 were in the United States. He required each community to maintain the library as a condition of his gift.

Celebrations for America's 150th birthday in 1926 were a poorly organized mess that nearly bankrupted the host city of Philadelphia.

The bond market dates back to the 1100s in Venice

In the early 1800s, bonds were used to fund US railroads and canals in Great Britain. “Liberty Bonds” were sold during both World Wars in the 20th century. Learning about the early and modern history of bonds can offer a glimpse into how the modern bond market came to be.

Travel the 363-mile Erie Canal, the waterway that cut freight costs by 90% and opened the American frontier.

Bills passed during the Civil War shaped postwar America

Despite the war with the South, Congress passed transformative laws like the Homestead Act and the Morrill Land-Grant College Act, which encouraged westward settlement and expanded higher education.

The Stamp Act of 1765 was a key stepping stone toward the American Revolution, igniting colonial resistance to British taxation.

The reaction to the first direct tax on colonists prompted the second-ever colonial congress and a broad boycott of British goods. It also gave birth to the Declaration of Rights and Grievances, the congress's document articulating the "no taxation without representation" stance. The act's passage was a major stepping stone to revolution.

Circulating libraries helped the novel's popularity surge

As literacy rates began to rise in the 19th century, so did the demand for reading materials. The only problem? Newspapers and books weren’t cheap, and newly literate middle-class families struggled to afford literature. That changed when booksellers began offering small fees for patrons who decided to borrow rather than purchase books. This was eventually called a circulating library, an innovation that would satisfy the burgeoning readership of novels and increase literacy rates further.

The federal government's decision to pay off the states' Revolutionary War debts required a new tax, which sparked an armed rebellion. 

July Fourth wasn't always a holiday, and its meaning has changed over time.

The Tariff Act of 1789 was one of America's first acts.

The federal government distributes more than $160M in grants directly to libraries each year

The Institute of Museum and Library Services distributes funds annually to State Library Administrative Agencies, which support statewide initiatives and channel funds to public and academic libraries.

The origins of public education in the US stem from Puritan religious views

The 1647 Old Deluder Satan law reflects Puritan belief that illiteracy allowed Satan’s influence. The law—the first of its kind in the colonies—mandated towns of over 50 households hire a teacher and over 100 support a grammar school.

Benjamin Franklin advocated for the use of paper money and even engineered some key anticounterfeiting techniques used today.

Religion dominated many aspects of Colonial life and was enforced by the government

Eight of the 13 British Colonies in America had official, established churches, and laws mandated that everyone attend a house of worship and pay taxes that funded ministers' salaries.

The earliest colonial schools were often religious

The earliest American schools were far from our notions of “public” or “private”—they were neighborhood institutions, often founded by religious groups, that sought to educate children academically and spiritually.

The Erie Canal was built without a single dollar of federal funding

After President Madison and Congress rejected the project, New York State financed the 363-mile Erie Canal entirely on its own—authorizing $7M in bonds in 1817.

Hollywood helped fund American military activity by boosting bond sales

To help fund its WWI military activity, the US introduced Liberty Bonds—government-issued debt marketed directly to the public. Starting at $50, the campaign targeted working Americans and offered Thrift Stamps to make bond-buying more accessible. Hollywood led the charge, with stars like Charlie Chaplin and Mary Pickford boosting bond sales.

DeWitt Clinton’s “Big Ditch” gamble transformed New York

Mocked as “Clinton’s Folly” and “Clinton’s Big Ditch,” New York Gov. DeWitt Clinton championed the Erie Canal against skeptics. His political drive secured funding for the project in 1817.

Nevada legalized gambling in 1931

Las Vegas was originally a quiet town, but the legalization of gambling (along with relatively lax divorce laws) turned it into a Prohibition-era destination.

A timeline of colonial settlement

An overview of early American settlement, beginning with the London Company's expedition to Virginia. Source includes a number of citations for further reading.

A bankrupt flour merchant in debtor's prison helped inspire the Erie Canal.

Amateur engineers built America’s first great infrastructure project

With no engineering schools in the US, the Erie Canal was designed and built by self-taught amateurs who improvised new methods and became known as the “Erie School of Engineering.”

Colonial self-rule fostered strong autonomy and distrust of centralized power

American colonies were governed through a patchwork of different systems, ranging from Crown-run to locally controlled. Broad local autonomy—often followed by sudden imperial crackdowns—taught colonial leaders to prize home rule and distrust distant centralized power, attitudes that later informed US federalism.

Why endowments took off at the turn of the century

After the Civil War, economic growth boosted philanthropy, much of it ending up in universities and colleges. Charles Eliot, the longtime president of Harvard, realized a university’s success was determined by how much money it could hold in the endowment. His approach to endowments radically changed their role in the modern university.

The first US stock exchange dates back to the 1790s in Philadelphia

Only two years after that stock exchange in Philadelphia started, the largest stock exchange in the US to date was created: the New York Stock Exchange.

The US' coastal vacation destinations were developed with the aid of railroad companies, creating pivotal aspects of the vacation industry.

The history of March Madness brackets

Every spring, millions of Americans fill out their March Madness brackets in hopes of picking the winner. But where did this annual tradition start? This CBS News article tells the story of how a bar in Staten Island started a $10 pool with 88 participants in 1977, and grew it into a $1.5 million contest that ended up getting shut down by the IRS.

The US has used a wide variety of different currencies between the 1690s and today

From colonial money to national banknotes, people have used all kinds of forms of currency throughout the history of the United States before settling on the dollar bills and quarters that we pay for things with today.

The Erie Canal transformed New York City into America’s banking capital

By redirecting western trade through New York Harbor, the canal turned New York into the nation’s commercial hub. This surge in commerce shifted financial power from Philadelphia to Wall Street, establishing the city as America’s banking capital.

The roots of American law and the jury system trace back to medieval England

King Henry II established a jury of 12 local knights to settle land disputes in the 12th century, and his judges developed national laws common to everyone. American courts inherited this "common law" tradition directly from the English system.

The Ford Foundation helped expand America’s regional theater

In 1961, the philanthropic arm of Henry Ford’s massive empire seeded an initial grant of $9M to fund regional theaters around the United States. This was done to replicate the repertory theaters throughout Europe.

Roger Williams founded the first American colony without an established church

Banished from Massachusetts in 1636 for preaching religious dissent, Williams founded Providence, Rhode Island—one of the earliest governments in the Western world to guarantee broad religious liberty. His phrase "wall of separation" between church and state directly influenced Jefferson and the Constitution's framers.

The history of bankruptcy in the US dates back to the signing of the Constitution

In 1787, this founding document gave Congress the right to establish nationwide bankruptcy laws. Legislators took advantage of that power in 1800 when they passed the Bankruptcy Act of 1800, the first comprehensive bankruptcy law at the federal level.

The canal became a highway for American reform movements

Beyond goods, the canal carried ideas. Its corridor hosted Second Great Awakening revivals and became a center for activism—fueling abolitionist networks, women’s suffrage organizing, and other reform movements.

See inside the Boston Public Library, the first city-run free public library in the US

Founded in 1848, the McKim building opened in 1895 during a period of cultural optimism and social reform. Its Beaux-Arts architecture features marble staircases, murals by John Singer Sargent, and a Renaissance-inspired courtyard.

Alexander Hamilton consolidated the states' debts, implemented a tax system, and established a national bank.

Lottery winners have two choices: lump sums or annuities

Lottery winners can receive either a lump sum or a yearly payout for 30 years. If they take the lump sum, they can receive only about 60% of the winnings—and that 60% is then taxed. If they choose to receive the annual payout as an annuity, there are tax strategies they can use to minimize how much they owe.

The Articles of Confederation were the first governing documents of the United States

Drafted in 1777 and ratified in 1781, the articles created a weak national government without the ability to tax or regulate commerce. This led to problems for the new nation, necessitating the Constitutional Convention in 1787.

See the documents that shaped the Declaration before it was written

This Library of Congress collection comprises early arguments for Colonial rights, protests against British authority, draft constitutions, and multiple working drafts of the Declaration of Independence. It traces the ideas and language that preceded the final document adopted in 1776.

Few actual Stamp Act stamps survived, as colonists destroyed nearly all of them in protest

The elaborate stamp bore royal symbols and the word "America" and was printed in Britain and shipped to the colonies to be sold by government officials. Protests erupted in nearly every colony before it could take effect, often violently targeting stamp collectors.

The Stamp Act Congress made 'no taxation without representation' into a constitutional argument

The 1765 gathering of 27 delegates from nine colonies at New York's Federal Hall produced the Declaration of Rights and Grievances, which asserted that colonists could only be taxed by their own elected representatives. The document codified the principle that would define the road to revolution.

Tribal casinos have generated billions in revenue

After Congress passed the Indian Gaming Regulatory Act in 1988, granting tribes the legal right to operate casinos on reservation land, tribal gaming expanded dramatically. Today, tribal gaming ranks among the largest revenue sources for participating tribes.

On July 1, 1862, the agency now known as the Internal Revenue Service was established and named the Bureau of Internal Revenue

It was created to collect the first-ever US income tax, which was created to help pay for the Civil War. After gaining their independence from Britain, Americans were skeptical about giving the federal government absolute power to collect federal income taxes. As a result, early US tax laws dictated that direct taxes, like income taxes, had to be directly apportioned to a state's population. The nation went back and forth on its federal tax laws multiple times. For instance, in 1872, the income tax from the Civil War was repealed. But it was revived in 1894, and then repealed again in 1895. In 1913, Congress passed the 16th Amendment, giving Congress the power to levy income taxes on individuals and corporations without apportioning the burden among the states in line with population, once and for all.