In the United States, about 50 to 60% of adults play legal lotteries. Around two-third of them play regularly. Many youths also play lottery, even though it is forbidden by law. So, daily a large number of people win by playing lotteries.
All lottery winners are expected to claim their prize within a specific period of time. In states like Florida and Missouri, the claim should be made within 180 days after the draw. The amount each person wins is based on the total number of winners. If the jackpot is high, then the chance for multiple winners is more. Then, the prize amount will be divided equally among the winners.
All the lotteries in the U.S are subject to the laws of individual states. In most states, if the prize amount is less than $600, the winner can claim the prize in any lottery retailer. An amount up to $50,000 should be claimed from the regional lottery office and cash prizes exceeding this are required to be claimed from the lottery headquarters.
Lottery winners may select to receive their prize amount as a single lump sum payment or as annual annuity. If you choose to get the payment as a single lump sum, the amount withheld may not be adequate enough to pay for state or federal taxes.
In annual annuity payment, lottery winners will receive the payment in a series of installments. Actually, the prize amount received will be comparatively less than the initial payment option. Most winners prefer the annuity payment option, as the tax on annuity is significantly less. If the winner dies before receiving all installments, the remaining portion of the payment is given to the winner's living spouse or children. Online lotteries or lottos pay the winners through insurance backup.
