|Posted: November 8, 2003, 11:08 am - IP Logged|
I asked the N.Y. State Lottery Commission why they didn't give the cash value amount for the lottery jackpots. Below is their answer. If other states and the Multi-State lotteries can I still think they should be able to.
From: "Questions" <email@example.com>
Subject: RE: Contact Us Form
Date: Wednesday, November 05, 2003 11:10 AM
Unfortunately, the New York Lottery cannot determine what the cash value is until after a drawing has been "hit." The advertised LOTTO jackpots are based on a sales trend from this time last year, not the sales of the current drawing. The advertised LOTTO jackpot is also the pre-tax amount that would be received over the 25-year payment period.
The calculating of the "cash value" process works like this; The morning after the jackpot has been hit, the Lottery's Financial unit calls brokerage firms and asks, "How much cash will I need today to invest into government bonds to make $X amount of dollars over 25 years (x = the advertised annuity jackpot)? The brokerage firm with the lowest bid is the amount that is used for the cash value. Depending on how the current interest rates are will determine the cash value. These discounted figures are pre-tax figures.
The New York Lottery invests in treasury securities, which have the 100% guarantee of the United States Government.
To see the current and past cash value payouts, check out the "Winners News," "Draw Game Winners" to see what some Lottery winners have received for their lump sum:
NYL Press & Community Relations
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