Mega Millions and Powerball jackpot draws started in the 90s and have grown massively in recent years.

But America's lottery system goes back further than that, and in colonial times helped finance some of the country’s roads, bridges, and schools, like Harvard and Yale.

Jackpots have been on the rise since those two major lottery organizations, Mega Millions and Powerball, struck a deal in 2010 to cross-sell tickets in each others' member states.

Today, state-sponsored lotteries contribute millions of dollars to state budgets, but some critics question how effective they actually are. CNBC finds out more.