To: Cronos
Good question. If a multi million dollar winner takes the annuity, they only get about $ 100,000 dollars up front and then the yearly installments. One can invest the lump sum better, the lottery may not be around forever, plus the person knows they may not live 30 years ( or be in any condition to enjoy it by then ). No idea why the lottery still keeps half but if it wasn't the government running things, they would be sued for false advertising and lose the case.
IIRC, several winners have sued over the years to get the whole amount of the jackpot and have lost every time in various courts.
The half of the jackpot started with the earliest lotteries I have heard of and every new lottery since then has gone the annuity or lump sum amount. It's a cash cow for the government, just on the jackpot part.
72 posted on
02/22/2006 8:57:36 PM PST by
Hillarys Gate Cult
(The man who said "there's no such thing as a stupid question" has never talked to Helen Thomas.)
To: Hillarys Gate Cult
thanks for that explanation
73 posted on
02/22/2006 9:11:22 PM PST by
Cronos
(Never forget 9/11. Restore Hagia Sophia! Ultra-Catholic)
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson