40 cents of every dollar does not go to the government. A portion of the money goes to the company that runs the lottery. (Which by the way is not an American company, but an Italian one.) Then there is the cost of the machines, their upkeep, and some goes to the retailers that sell … Read more
If 40 cents of every dollar spent on power ball lottery's goes to the government, why does the US gov't tax the winnings of the lottery? Here there is no tax on winning a lottery.