Money for Lottery

Reply #6

Stack47 — Mon, 26 Oct 2009 17:47:58 GMT

When a state begins a lottery, initual start-up costs are probably subsidized by state funds. Once the games are rolling, winnings come from the ticket sales. I'm not exactly sure but I believe lottery retailers keep a monthly debit and at the end of each month send a check to the state lottery if sales are more than payoffs or get a credit when payoffs exceed sales.

Reply #5

BobP — Mon, 26 Oct 2009 06:46:42 GMT

I believe you will find a lottery will pre-fund prizes for new games and scratch-offs and sometimes guarantee a minimum jackpot for a faltering game as a form of advertising promotion. As funds can come from unclaimmed prizes they aren't exactly spending from their budget. BobP

Reply #4

Dollar419 — Mon, 26 Oct 2009 02:11:32 GMT

This is an direct question perhaps you may want to contact the state lottery office in your specifc state.

Reply #3

GASMETERGUY — Sun, 25 Oct 2009 16:22:51 GMT

The lottory is a money maker for the states.

A subsidy would be sort of defeating the purpose, don't you think

Reply #2

rdgrnr — Thu, 08 Oct 2009 04:45:55 GMT

I don't believe there's any need for a subsidy Oasis. They make a ton of money for flipping a few switches.

It's a great job, no heavy lifting.

Reply #1

savagegoose — Wed, 07 Oct 2009 17:22:28 GMT

this isnt exactly how it works but its close

state takes in $100m in ticket purchases

assigns %60 or 60 mill in prize money

divides it into brackets for ea prize pool

20% top = 12m

30% middle= 18m

50% lower. =30m

top prize in this instance would be $12 mill, if its annuity they buy state mutual bonds and the payout is paid annually so taxes get taken out the yearly payment.

say %1 interest on bonds, = 120k a year for 25 years,

Money for Lottery

OASISBLISS — Sat, 03 Oct 2009 04:12:06 GMT

Kind of new to this and loving it...

Question, does all of the lottery winnings come from the $$ taken in for lottery tickets or is it subzidized in any way.

How much profit typically does the Lotto keep?

thanks for the info

OB