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

In addition to what a lot of other people have said, the lottery doesn’t have the entire pot of money ready to give the winner. They promise to give $345 million in installment payments over 20 years. You can also choose to take the cash payout, which is a large nut up front, but smaller than the advertised jackpot. People often opt for this because they think they can make more money in the long run than wait for the installment payments.