The lottery is a form of gambling that involves drawing numbers at random. While some governments outlaw the lottery, others have endorsed it and organize state and national lotteries. The jackpots on the various lottery games range from a few hundred thousand dollars to billions of dollars. While lottery sales are increasing in popularity, a high proportion of low-income households don’t play the lottery.
U.S. lottery sales totaled over $91 billion
According to statistics compiled by the North American Association of State and Provincial Lotteries, U.S. lottery sales totaled over $91 billion last year. The money goes towards a variety of programs, including education, transportation, and tourism. State lotteries use the money for a number of purposes, including prize payouts, retailer payouts, state funds, and administrative costs. In Michigan, for example, the lottery is on track to contribute $1 billion to its school aid fund. Its player relations manager Jacob Harris says that 28 cents of every dollar collected is allocated to education. Similarly, the lottery in Georgia has raised $22 million over the last year.
Powerball jackpot surges to $1.6 billion
The Powerball jackpot soared to $1.6 billion on Saturday night, the biggest in lottery history. This is a record-breaking jackpot for the lottery, and will probably lead to a rush of new players. There are only two other jackpots that have reached this level in the United States, and one of those was $1.586 billion in January 2016.
People with low incomes don’t play the lottery
Despite its massive losses, people with low incomes still play the lottery. Studies have found that the poorest third of American households buy more than half of all lottery tickets. In addition, states advertise their lottery games aggressively in low-income neighborhoods. According to the research, poor people do not view lottery tickets as harmless entertainment, but instead as a potential investment.
Lottery pools boost chances of winning
Lottery pools increase the chances of winning the jackpot by splitting the prize among all the pool members. For example, if a pool of 200 people wins a $10 million prize, they will each win $50,000 before tax. However, winning a lottery pool can create arguments, fame, and family issues.
Tax implications of winning
If you have won the lottery, you may be wondering what the tax implications are. Lottery winnings are taxed like regular income, and you will be required to pay taxes on the amount when you file your tax return. In New York City, for example, you will be taxed up to 3.876%. If you live in Yonkers, the tax rate is 1.477%. The state level is higher, at 8.82%.