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The Gaming Table by Andrew Steinmetz

 CHAPTER XIII. page 2

In the Middle Ages the same practice prevailed at the banquets of
feudal princes, who apportioned their presents economically, and
without the fear of exciting jealousy among the recipients, by
granting lottery tickets indiscriminately to their friends. The
practice afterwards descended to the merchants; and in Italy,
during the 16th century, it became a favourite mode of disposing
of their wares.

The application of lotteries by paid tickets to the service of
the state is said to have originated at Florence, under the name
of `Lotto,' in 1530; others say at Genoa, under the following
circumstances:--It had long been customary in the latter city to
choose annually, by ballot, five members of the Senate (composed
of 90 persons) in order to form a particular council. Some
persons took this opportunity of laying bets that the lot would
fall on such or such senators. The government, seeing with what
eagerness the people interested themselves in these bets,
conceived the idea of establishing a lottery on the same
principle, which was attended with such great success, that all
the cities of Italy wished to participate in it, and sent large
sums of money to Genoa for that purpose.

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