Gambling and Taxes – Playing the Lottery Online


Every week, millions of people purchase lottery tickets and hope to win. If you’re one of them, you should know that the rules of a lottery are quite strict. You can’t just attach a lottery ticket to another one, nor can you combine a ticket with another fee. Prizes must be awarded to the lucky winners only, and they must be claimed within three months of the draw. The lottery must also have prizes worth at least 20% of its gross potential income.

The first known lotteries were held in the Roman Empire, when king Francis I of France decided to organize a lottery in his kingdom to boost the state’s finances. The first lottery in France, called the Loterie Royale, was held in 1539 by the King of France. The edict of Chateaurenard endorsed the lottery, but it turned out to be a disaster. The ticket prices were expensive and the social classes were opposed. The game was banned in France for almost two centuries, though it was tolerated in some cases.

The US lottery operates in forty-five states. It consists of state-level games, including Powerball and Mega Millions. Individual states also have lottery programs. Many offer online lottery options to their residents. In addition to purchasing tickets, many states offer electronic games for real money. We look at lottery options in six individual states and answer common taxation questions. You may also want to check the legality of lottery in your state. Before you start playing the lottery, make sure to understand how much tax you’ll have to pay.