Lotto tickets are typically 2 dollars jackpots are often over 500 million. How are these funds generated?

Question

I don’t understand because not that many people actually buy these. I don’t understand where they get such large sums of money so often.

In: Economics

Answer 1

When you say not that many people buy these, I’m assuming you’re referring to the $72 Billion dollars spent by Americans buying these tickets each year.

The winnings come from a portion of sales. The rest goes into public programs depending on location. People don’t hit the jackpot every cycle either.