By Manpreet Singh
With the recent opportunity to win a large sum of money, many ran to their local stores to purchase lottery tickets. The lucky ticket offered the chance to live the rest of one’s life with luxury, opportunity, and above all happiness. But have you ever thought about where all the money goes?
The lottery companies make millions and sometime billions in ticket sales, however not all of the money goes to the winner. A portion of the winning amount also goes back to the community.
Most of the money the lottery companies make from ticket sales goes towards education, environmental protection, and many more projects.
“Revenue from that pie is divided in three ways: About 60 percent goes to prize winners; 15 percent to retailers, marketing and operations; and 25 percent, or about $14 billion, goes back to the states for government services,” accprdomg to CBS news.
Even though the money that goes towards education is not enough to truly create profound change in the system, the California lottery gives more than $1 billion a year to public education.
“It is amazing how so much goes into something that seems so simple. I thought all the money went to the winner and to taxes. I really appreciate that the lottery companies think about education as one of the projects they would like to donate to,” senior Janet Hwang said.
It is important to realize that the winner must pay taxes for the large amount of money that they win. Also, the vendor selling the winning ticket, also receives a small portion of the prize as well. So the number that is advertised is not necessarily what the winner receives.
The entire lottery system runs on the profitability from sales. Without the people’s hopes of winning, the marketing and operations of the game would be non-existent.
With lotto sales going through the roof and many students coming the age to play, it is important to know what you are gambling your money on and where your money goes when you do the win.
At the end of the day, the chance of winning the lottery are very small, but the impact that the lottery has is grand and that is why it still exists.