Origins
Lottery is a game that involves winning a prize by drawing a number. This game first originated in China during the Western Han Dynasty, approximately 200 years before Christ. These ancient Chinese lotteries were used to raise money for various causes, including war. Later, the concept of lottery spread throughout Europe. It was the Roman Emperor Caesar Augustus who popularized the game by introducing it to his cities. Augustus would hold lottery draws for guests at his dinner parties.
Rules
The Rules of Lottery govern the operation of a state-licensed lottery. They state how tickets are issued, how prizes are distributed, and how winning tickets are verified. In many cases, the rules are published publicly. It is important to familiarize yourself with these rules before playing the lottery. In September, the Kansas Lottery announced a total of $15.1 million in prizes across draw games and instant scratch games.
Prizes
You can claim Lottery prizes in person at any lottery retailer. If your prize is over $100, the winner must sign a Winner Claim Form. If your prize is under $100, a parent or guardian must sign your ticket. You must also submit Federal Forms W-9 and W-8BEN to claim your prize.
Costs
In addition to the prize money, the lottery also has cost implications. The money collected from these games reduces state revenue, including education funds. For example, the lottery in Wisconsin cost the state an extra $3 million to advertise. And while the lottery advertising campaign in Wisconsin produced a 4:1 return on investment, advertising in other states has been less successful. The lottery in Massachusetts produced $626 for every dollar spent on advertising, while the lottery in New York only produced $79 for every dollar spent.
Tax implications
The tax implications of lottery winnings can be quite significant. For starters, the government can levy as much as 37% of lottery winnings. The tax can be paid either as a lump sum or in installments. But lottery supporters point out that it is an “inexpensive” source of revenue that always benefits public services.