According to money.cnn.com, lottery proceeds don’t always get used for their stated purposes. Typically, lotteries claim that ticket revenues go to fund state-run programs such as parks, education, emergency responders, veterans’ health and other services. If the proceeds are not going to these programs, then where are they actually going? It is said that a good portion of the lottery proceeds are going back to the state budgets. It almost feels like when you are purchasing lottery tickets, you are actually just paying more tax. If you have ever complained that you are paying too much tax, then you should probably not purchase lottery tickets.
The odds of winning are stacked against you and they want you to feel you are only spending a few dollars. If you purchase a lottery ticket once per week, then you are spending $52 per year. If you multiply this out by a decade, then you can see you are giving $520 in essentially extra tax money. Additionally, if you did win you will probably be in the 39.6% tax bracket and will need to pay a significant portion of your winnings back to the state. So, not only are lottery profits from your original purchase get rolled back into the state’s budget, but you are now also paying more tax from your winnings.
It sounds silly because you could win millions if you do win, but the key is that you are probably not going to win. I also don’t like that there is a monopoly on lotteries because nobody else is allowed to own this business besides states (government). These are just my thoughts on the topic of lottery tickets. Wrong or right, I’d rather utilize the money for something else.