Where does the lottery get its money from?

Question

I mean, how can they afford to pay someone, say 345 million dollars, after winning?

In: Other

Answer 1

Let’s say you have a 6 sided dice.

You sell 6 different people a ticket with 1-6 on it for $2 each.

So there is only 6 possible outcomes and 6 people spent $12 on it

So it rolls and someone wins..you give them $6.

The lottery is like that except millions of dice. Governments basically take all the ticket sales cut them by around 25% and that is the jackpot.

If multiple people win they split the jackpot. The lottery itself cannot lose. So lots of governments run them.