How is it the government's money? People pay for the lottery.
She doesn't know that.
When people buy a lotto ticket, they are eseentially paying into the jackpot. The more people there are that buy tickets, the higher the jackpot gets. So the gov doesnt spend a dime in this. The gov does, however, get a huge tax check from the winner's payout.
The other thing you may not realize is that when a lottery winner chooses to take annual payments, the lottery puts the money into an interest bearing account. So basically, the lottery is making interest off your lottery winnings. But I've heard that they actually pay your annual lottery payments from the interest. What happens with the extra money I'm not sure. With the economy the way it is and the interest rates being sooo low, I'm not sure if its even enough to cut a payment!
Financial people suggest you take the lump sum. You only get 1/2 of the amount, but you can put your money in an interest bearing acct and make money for yourself rather than the lottery commission.
Yes, when you win a lottery the state tax commission and fed tax commission get their part first. You get what's left over.