There’s far less incentive for the government to care about who wins a normal lottery than about who wins an election lottery. (And I’ve read that in third world countries, the lotteries often are rigged so that cronies of officials win them.)
Ironically, there actually is corruption in state lotteries. I remember watching an Dateline NBC documentary about it. Apparently, some stores that sell lottery tickets will buy winning tickets back from their customers at a reduced price and cash in the ticket themselves. (The reason a customer would agree to this is to avoid having to pay back taxes, child support, etc.)
Beyond the cached answer of “people are ridiculously irrational,” here are a few reasons why.
In some cases, they may not know that lottery winnings will taken before they buy the ticket. When they go to collect their winnings, an unscrupulous store clerk/manager might then inform them. Or maybe they do know beforehand, but are also aware that they can sell the ticket.
I’ve also heard of store clerks/managers misleading lottery winners about how difficult it is to collect their winnings. After a certain threshold (to pull a number out of the air, say $1000), winners have to deal with the state directly in order to collect their winnings. I imagine that this is to verify/record the winning ticket and recipient. If the store can convince you that it’s more hassle than it’s worth, then their offer to buy the ticket off you sounds more enticing.
Right now, few people think that state lotteries are rigged...
There’s far less incentive for the government to care about who wins a normal lottery than about who wins an election lottery. (And I’ve read that in third world countries, the lotteries often are rigged so that cronies of officials win them.)
That’s true, so far as I know.
Ironically, there actually is corruption in state lotteries. I remember watching an Dateline NBC documentary about it. Apparently, some stores that sell lottery tickets will buy winning tickets back from their customers at a reduced price and cash in the ticket themselves. (The reason a customer would agree to this is to avoid having to pay back taxes, child support, etc.)
I don’t get this. Why would someone who stands to lose out by winning the lottery be buying lottery tickets?
Beyond the cached answer of “people are ridiculously irrational,” here are a few reasons why.
In some cases, they may not know that lottery winnings will taken before they buy the ticket. When they go to collect their winnings, an unscrupulous store clerk/manager might then inform them. Or maybe they do know beforehand, but are also aware that they can sell the ticket.
I’ve also heard of store clerks/managers misleading lottery winners about how difficult it is to collect their winnings. After a certain threshold (to pull a number out of the air, say $1000), winners have to deal with the state directly in order to collect their winnings. I imagine that this is to verify/record the winning ticket and recipient. If the store can convince you that it’s more hassle than it’s worth, then their offer to buy the ticket off you sounds more enticing.
OK, makes sense.