# Lottery winnings **URL:** \ **Category:** Factual Questions\ **Created:** [June 5, 2013, 1:53am UTC](https://boards.straightdope.com/t/lottery-winnings/660175 "2013-06-05T01:53:44Z")\ **Posts on this page:** 12\ **Page:** 1
**Author:** ![panaccione](https://avatars.discourse-cdn.com/v4/letter/p/94ad74/32.png) [@panaccione](https://boards.straightdope.com/u/panaccione)\ **Post date:** [June 5, 2013, 1:53am UTC](https://boards.straightdope.com/t/lottery-winnings/660175/1 "2013-06-05T01:53:44Z")
I’m wondering how lottery companies regulate their business. It seems reasonable to assume they know how many winning and losing tickets are out there, and how much profit they will make at the end of the day. But, I bet this is a huge secret. Does anybody have any inside information on how lottery ticket companies function? ---
**Author:** ![Keeve](https://avatars.discourse-cdn.com/v4/letter/k/f07891/32.png) [@Keeve](https://boards.straightdope.com/u/Keeve)\ **Post date:** [June 5, 2013, 1:56am UTC](https://boards.straightdope.com/t/lottery-winnings/660175/2 "2013-06-05T01:56:39Z")
They aren’t a “company”. It’s the government. Which lottery are you asking about? Every time I go to a lottery’s website, all that information is clearly in black and white. ---
**Author:** ![panaccione](https://avatars.discourse-cdn.com/v4/letter/p/94ad74/32.png) [@panaccione](https://boards.straightdope.com/u/panaccione)\ **Post date:** [June 5, 2013, 1:58am UTC](https://boards.straightdope.com/t/lottery-winnings/660175/3 "2013-06-05T01:58:57Z")
Ok, government. Any of them. Scratch off tickets to the Power-ball. ---
**Author:** ![Keeve](https://avatars.discourse-cdn.com/v4/letter/k/f07891/32.png) [@Keeve](https://boards.straightdope.com/u/Keeve)\ **Post date:** [June 5, 2013, 2:00am UTC](https://boards.straightdope.com/t/lottery-winnings/660175/4 "2013-06-05T02:00:46Z")
For example, [http://www.state.nj.us/lottery/where/4-0\_where.htm](http://www.state.nj.us/lottery/where/4-0_where.htm) says that NJ Lottery gives out 58.63% of their sales as prizes, 34.43% for Education & Institutions, etc. ---
**Author:** ![panaccione](https://avatars.discourse-cdn.com/v4/letter/p/94ad74/32.png) [@panaccione](https://boards.straightdope.com/u/panaccione)\ **Post date:** [June 5, 2013, 2:08am UTC](https://boards.straightdope.com/t/lottery-winnings/660175/5 "2013-06-05T02:08:45Z")
Hmm, maybe it’s not such a secret after all. Thanks. ---
**Author:** ![cantara](https://avatars.discourse-cdn.com/v4/letter/c/6f9a4e/32.png) [@cantara](https://boards.straightdope.com/u/cantara)\ **Post date:** [June 5, 2013, 5:40pm UTC](https://boards.straightdope.com/t/lottery-winnings/660175/6 "2013-06-05T17:40:47Z")
Lottery corporations are run by the state/provincial governments. They must publish how they [allocate](http://www.olg.ca/about/public_disclosure/disclosure.jsp)the monies. I’m amazed at the difference between NJ and [Ontario Canada](http://www.olg.ca/about/economic_benefits/index.jsp). NJ 58.7% paid in winnings ON ~33% paid in winnings In Ontario they even disclose the [number of winning scratch tickets remaining](http://www.olg.ca/lotteries/games/viewInstantTicketInfo.do)in active games (although not how many tickets are outstanding). ---
**Author:** ![DCnDC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dcndc/32/2842_2.png) [@DCnDC](https://boards.straightdope.com/u/DCnDC)\ **Post date:** [June 5, 2013, 6:10pm UTC](https://boards.straightdope.com/t/lottery-winnings/660175/7 "2013-06-05T18:10:49Z")
Clearly this a liberal conspiracy. We need to organize a blue-ribbon panel to investigate this _immediately_. ---
**Author:** ![Shmendrik](https://avatars.discourse-cdn.com/v4/letter/s/ee7513/32.png) [@Shmendrik](https://boards.straightdope.com/u/Shmendrik)\ **Post date:** [June 5, 2013, 6:17pm UTC](https://boards.straightdope.com/t/lottery-winnings/660175/8 "2013-06-05T18:17:34Z")
> [@cantara](#): > > Lottery corporations are run by the state/provincial governments. They must publish how they [allocate](http://www.olg.ca/about/public_disclosure/disclosure.jsp)the monies. > > I’m amazed at the difference between NJ and [Ontario Canada](http://www.olg.ca/about/economic_benefits/index.jsp). > NJ 58.7% paid in winnings > ON ~33% paid in winnings The overall profit by government at all levels is the same, because close to half of those NJ winnings return to the federal government as income tax, while the winnings in ON are tax free. ---
**Author:** ![JRDelirious](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jrdelirious/32/9531_2.png) [@JRDelirious](https://boards.straightdope.com/u/JRDelirious)\ **Post date:** [June 5, 2013, 10:47pm UTC](https://boards.straightdope.com/t/lottery-winnings/660175/9 "2013-06-05T22:47:49Z")
Private companies such as [Scientific Games](http://www.scientificgames.com/sections/lottery-systems/) and [GTech](http://www.gtech.com/eng/index.html) are _contracted_ to maintain and secure the network, provide the hardware and tickets, train the POS operators, etc. but the distribution of revenues and prizes are under the government agency’s control, by law. The contract comes under whatever the government sets aside for administration expense. ---
**Author:** ![anson2995](https://avatars.discourse-cdn.com/v4/letter/a/c77e96/32.png) [@anson2995](https://boards.straightdope.com/u/anson2995)\ **Post date:** [June 6, 2013, 2:36pm UTC](https://boards.straightdope.com/t/lottery-winnings/660175/10 "2013-06-06T14:36:08Z")
Lottery drawings like Powerball are a [modified parimutuel system](http://en.wikipedia.org/wiki/Parimutuel_betting), which means that the payout is a fixed percentage of sales. On scratch-off tickets, it’s the same way. The print X number of tickets knowing that the amount paid out will be a fixed percent of the number sold. As an aside, the psychology of the scratchoffs is fascinating because they are marketed as games… as if the person who buys the tickets is “playing” or has some sort of interaction. In reality, there would be no practical difference if the printed 90% of the tickets to say “sorry you lose.” ---
**Author:** ![howye](https://avatars.discourse-cdn.com/v4/letter/h/a9adbd/32.png) [@howye](https://boards.straightdope.com/u/howye)\ **Post date:** [June 6, 2013, 3:31pm UTC](https://boards.straightdope.com/t/lottery-winnings/660175/11 "2013-06-06T15:31:41Z")
They even know what winning scratch off tickets are still out there: [http://www.ohiolottery.com/Games/InstantGames/Prizes-Remaining.aspx](http://www.ohiolottery.com/Games/InstantGames/Prizes-Remaining.aspx) ---
**Author:** ![DCnDC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dcndc/32/2842_2.png) [@DCnDC](https://boards.straightdope.com/u/DCnDC)\ **Post date:** [June 6, 2013, 3:42pm UTC](https://boards.straightdope.com/t/lottery-winnings/660175/12 "2013-06-06T15:42:48Z")
> [@howye](#): > > They even know what winning scratch off tickets are still out there: > > [http://www.ohiolottery.com/Games/InstantGames/Prizes-Remaining.aspx](http://www.ohiolottery.com/Games/InstantGames/Prizes-Remaining.aspx) And if you’re going to be buying scratch-offs, it’s obviously a good idea to check your states’ lottery site before you buy; in most states stores can continue selling the tickets until they run out, even if the top prizes have already been won.