Lotteries
What is a "lottery"?
A lottery is perhaps the oldest form of gambling in America, George Washington had a lottery in order to finance the Revolutionary War. In a lottery, a number is picked out, at random, and whoever chose that number, prior to the draw, wins the money.
Are state lotteries the only legal lotteries?
In the United States, state lotteries are the only legal lotteries. However, in non-profit groups, a chance is the same thing as a lottery. So if you buy a chance book from your church, you are actually participating in a lottery.
What if I lost my lottery ticket?
In the lottery, you have a ticket. You have to show that ticket in order to prove that you've won. If you lose that ticket, you've lost the lottery.
Do I need my original winning lottery ticket to collect my winnings?
In the lottery, you need to show your original winning lottery ticket in order to collect the money. The reason they don't want you to give in a copy, is that on a copy, things can be changed to make it look as if a ticket that didn't win the lottery, actually did win the lottery.
What does it mean when my winnings are "paid over time"?
In the lottery there are two ways to receive your winnings. One is in a lump sum, all the winnings at once. Generally, the taxes are taken out of that as well. However, there is another way, you can be paid your winnings over time. So if you won ten million, they might give you a million a year for ten years. That's winnings paid over time.
What is a "lump sum" payout?
In the lottery, there are two ways to get paid. One is to be paid over time. The other is to get a lump sum. Now, the lump sum may be 50% of the total lottery. So for example, if it's a giant lottery that's giving $30 million dollars to the winner, if you decide you want a lump sum, there's a very good chance that they're going to pay you $15 million. Because they feel that over time, you would have gotten to the $30 million, had they paid you out a little at a time.
How do I calculate the "lump sum" or "over time" lottery payout?
When you look at a lottery, you have to determine whether or not you take the "lump sum," or have your payments made over a longer time period. It's important to evaluate whether the smaller payments are going to be better for, and the only way to do this is the speak to an accountant.
Can I share a lottery ticket with others?
In the lottery, any number of people can share a lottery ticket. As long as there aren't any trust issues, then it's perfectly fine to share a ticket.