NY Lottery Lump Sum Payout On Scratch Tickets Is Higher. How Come?

Reply #3

maringoman — Tue, 05 Aug 2014 13:15:20 GMT

I will look into the issues raised and see if my question is answered. From a casual look, it seems to pay better if you play scratch offs in NY.

Reply #2

Stack47 — Tue, 05 Aug 2014 03:21:24 GMT

With a fixed $1 million annuity prize, the cash value depends on when the ticket is validated and can change for the reasons you mentioned. A larger discrepancy might be because of the number of payments which changes the amount of cash necessary.

Reply #1

LottoMetro — Tue, 05 Aug 2014 03:12:11 GMT

The lump sum is the real prize not the annuity even though that's the one advertised......some states invest at different rates thus the annuity is higher. Kind of like the differences between Powerball and Mega Millions. If you adjust the prizes for cost they will still be different due to the way each group invests the pool.

If NY scratcher lump sum is higher at the same odds and price then it is a better deal. But many times this will not be the case

NY Lottery Lump Sum Payout On Scratch Tickets Is Higher. How Come?

maringoman — Tue, 05 Aug 2014 03:00:56 GMT

Most states that sell scratch offs have some that players can win $1M which is usually an annuity.

For MA if you win $1M and choose to claim it as a lump sum, you automatically lose about 35% of that $1M. Then on the $650,000 that remains you still have to pay taxes thereby ending with less than half of the jp. That's not the case in NY. There, the lump sum payout is $780,000 so after taxes you still end up with more than half of the jp. Does anybody know why the lump sum pay-out for NY ticke... [ More ]