Lottery Winnings – Looks Can Be Deceptive!
State-sponsored lotteries are extremely popular and highly successful methods by which state governments in many countries raise much needed funds for financing public expenses, especially education. In Michigan alone, during the year 2000, Michigan Lottery reported annual sales of $1.69 billion in fiscal 2000, and generated $618.5 million in net revenue for the state School Aid Fund, supporting public education (K-12) programs throughout the state. Retailers received annual commissions of $120.3 million, while Michigan Lottery players collected prizes worth $920.8 million. Table I presents sales and funding figures accounted for by the Michigan Lottery since its inception in 1972. The numbers are quite impressive. 22 Case 5 Lottery Winnings-Looks Can Be Deceptive!
Totals: 1972 Start-up through FY 2000*
Total Lottery Ticket Sales $25.12 billion
Net Revenue to Aid Education $9.83 billion
Retailer Commissions $1.68 billion
Prizes to Players $12.86 billion
The Big Game is a multi-state lottery game with BIG Jackpots. Seven states participate in The Big Game: Georgia, Illinois, Maryland, Massachusetts, Michigan, New Jersey and Virginia. By teaming up together, the member lotteries are able to offer players jackpots that start at $5 million. The jackpots grow until someone wins. Jackpots can grow as high as $200 million or more. In fact, The Big Game holds the record for the largest lottery jackpot ever in the United States: $363 million! This jackpot rolled 18 times since last being hit! Two winning tickets -- one sold in Michigan, and one sold in Illinois -- matched all six numbers in this Big Game drawing, each worth an annuitized value of $181.5 million. The winners were Larry and Nancy Ross of Shelby Township, Michigan, and Joe and Sue Kainz of Lake County, Illinois. The Michigan Lottery can pay Big Game jackpot winnings in one of two ways: as an annuity or in one...
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