| Posted: October 7, 2008, 5:58 pm - IP Logged |
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CA treats these prizes as two distinct classes (as required by law). Most states do the same or similar (with a few exceptions).
unPAID prizes are prizes with values of $559 or less that are never redeemed. In any online game prize structure with a 50% payout, over time, you will end up very close to the 2% figure attributed to Alborg above (meaning a game designed at 50% will actually payout at 48%). By law in CA (again, a lot of states have similar rules) those UNPAID prizes must be returned to players (which is what propels the CA Lottery "promo ticket" fund). People buy a bunch of tickets, maybe they don't check them, they get lost, they go through the wash, etc.
unCLAIMED prizes have a value of $600 and above and would necessarily have had to be claimed (taxes withheld, etc.) By law in CA, unCLAIMED prizes go directly to the beneficiary once the claim period has expired.