In the end You only get about 20% of what is collected the rest of the Money is Taxes!
There is a Reason they call it the Lottery Tax... (or Moron Tax) Cause it's a Tax. Sadly it is a Tax on Poor people who buy tickets with high hopes much like number running but on a Much more Grand scale and with the Government taking most All of the money
It is Estimated around 1.55 Billion tickets have been sold.... OK So do the math... $2 times 1.55 Billion is 3.10 Billion... WOW 51% or so just Disappeared already!!!
$1.5 Billion Annuity
$930 Million Lump Sum
It gets MUCH Worse though...
Lets assume you take the Lump sum cause any Idiot knows you should be able to make more with the Money than letting the Government make interest on it. In fact if they can make more in Interest on your Money than the ENTIRE Prize amount!!
Read more Below!
About 80% of Powerball is TAX!!
For every $2 Powerball Ticket, Only 50 percent goes to prize to begin with,
40 percent to causes such as education, and 10% to retailers Bodega etc that sells the tickets and other administrative costs,
Lets Dig deeper
$930 Million gets a Immediate Federal Tax Large Jackpots are Taxed at the Maximum Rate of 39.6%
Then there is State tax a few states have none but most have it a good avg is 5% or so
Total Prize is about $645 Million
That's Only about 20%
This is $645 Million on 3.10 Billion Collected or about 20.74% if my Math is right.
For Every Dollar paid in this means about .20 cents of it is a Prize and .80 Cents is TAX and Stupid Tax... Much like walking up to the Cashier at the Poker Cage giving her $100 and only getting $20 in Chips to bet with.. Talk about getting Scalped!!
With this in mind I walked to the Bodega and Bought a couple tickets for the first time in YEARS to pay my Stupid Tax.... Good Luck all
Each ticket has a 1 in 292 million chance of being the winner