$1.5 Billion Powerball Pot Just $522 Million After Taxes

Capitol Confidential ^ | Jan. 12, 2016 | Tom Gantert

[bjorn14]

Nope. Left over money goes to your estate.

[MarkL]

With the outlay of $1

Nope. The powerball is a $2 ticket. But that's not the best part...

I've heard it claimed that lotteries are taxes on the poor, but that's not really the case. It's a tax on the mathematically challenged.

The best example of this was from a few years ago, when the organized crime syndicate behind it wanted to help jack up the grand prizes. They figured out that the best way for this was fewer big payouts, and new marketing.

Their solution was to add additional numbers to the set of possible number, effectively reducing the odds of winning the jackpot by about 40%.

At the same time, they rolled out a marketing campaign, stating that the additional numbers from which to choose "gives you more ways to win!"

I read somewhere that the odds of being struck by lightning WHILE being attacked by a shark are greater than winning the jackpot.

Still you can't win if you don't pay, even if the odds of winning are fractionally better than 0%. So I'll admit, I also pay my share of the "Stupid Tax," buying a couple of tickets when the jackpot hits about $300M or more.

But it's funny how much more honest "The Mob" was when they ran lotteries, better known as "The Numbers." Back then, when you won, you actually collected what they promised. Funny how much more honest "the Mob" was than the REAL "organized crime syndicate," also known as the government.

Mark

[MarkL]

You can't guarantee that the state lottery commission or the insurance company that issues the annuity will ever fulfill their promise. Only a fool would trust a state entity or an insurance company on a promised future payment that large.

DING, DING, DING!

You hit the nail on the head:

Lottery winners in Illinois get IOUs for prizes over $600

Mark

[MarkL]

Lottery winnings are exempt from State taxes in MI?

I believe that some states waive the state tax in multi-state lotteries, since they already profit from the lotteries.

Mark

[William Tell]

DCBryan1 said: Just look at IL and CA issuing "IOUs" to lottery annuitants.

Did CA do that?

[FrankR]

Oops! The last time I played it, personally, it was still $1. My wife usually plays it for us.

Still, $2 against even a minimum $12 million jackpot is a pretty good invest ment...if you win.

But, like I tell my wife, if we had back the money she’s spent on tickets, we wouldn’t need the jackpot! ;)