[DManA]

They advertise he won $200 million and give him $80. It fraud pure and simple.

[BlueNgold]

If he wanted to take the 25 year payouts it would amount to, before taxes, the $200MM plus. Because he opted for the lump sum he gets less overall (see my post above) but he gets it all NOW and can invest/spend it as he chooses.

It is not fraud, it is the pre-published and understood rules of the ‘game’.

[hoosier hick]

The lump sum value is called the “present value of a stream of cash flows.” $232 million over 20 years gets discounted due to inflation reducing the value of future payouts (although lotteries use a much higher discount rate than inflation, I don't know what it is). Especially given the likelihood of hyperinflation before long, taking the lump sum payout is very smart...

hh

[neocon1984]

"They advertise he won $200 million and give him $80. It fraud pure and simple".

I don't think it's fraud, but I am not a lawyer. I used to be a salesman, and I certainly think it's salemanship. No offense to those in the trade, excepting car dealers.