How does the lottery pay for the prizes?
Question by zdabest98: How does the lottery pay for the prizes?
How are lottery tickets so cheap with great prizes? How do they afford that. Does anyone know?
Best answer:
Answer by thugonthemove
Millions play the lottery which is why they are so giving when it comes to top prize…
Lets see. Let us do a fake lottery with the prize being $ 4 million. 5 million people purchase a ticket at $ 5 each. This is a pool of $ 25 million. They put maybe $ 8 million (because there are smaller prizes) towards prizes and about $ 3 million towards taxes. This gives them a profit of $ 13 million.
$ 0.60 of each $ 2 ticket goes to the jackpot. That’s the only source of money that goes into it.
Prizes are a percentage of the ticket price. Not all games are the same percentage or price. Go to your lottery website, click on the Contact link and ask.