Don't you think lottery is a rip-off ? They sell lotteries and set aside a percentage of sold tickets for the prizes. But when you win the jackpot you will only get the full prize if you choose 20-30 year payments. If you choose lump-sum you will get about 55% of the prize value before tax, after tax (federal and state if applicable) the remaining is about 35-40%.
Case in point, a lady won $54 mil jackpot and only get $30 mil in lump-sum before tax, after tax she will get only about $20 mil. The tickets sold was more than $80 mil, but they paid out a total of less than $35 mil ($30 mil for jackpot and less than $5 mil for misc prizes). The paid out is less than 50% of tickets sold, or another word is they profit more than 50% of the revenue.
No wonder so many states want to sale lottery tickets of all kinds, the profit is so great for the sellers. The lottery players are real suckers.
http://www.nypost.com/p/news/local/brooklyn/gilded_cage_for_jail_guard_YfbhNwgqc0ICMGZHedBeYO
Case in point, a lady won $54 mil jackpot and only get $30 mil in lump-sum before tax, after tax she will get only about $20 mil. The tickets sold was more than $80 mil, but they paid out a total of less than $35 mil ($30 mil for jackpot and less than $5 mil for misc prizes). The paid out is less than 50% of tickets sold, or another word is they profit more than 50% of the revenue.
No wonder so many states want to sale lottery tickets of all kinds, the profit is so great for the sellers. The lottery players are real suckers.
http://www.nypost.com/p/news/local/brooklyn/gilded_cage_for_jail_guard_YfbhNwgqc0ICMGZHedBeYO
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