In the 17th century, lotteries began to become popular in the Netherlands, where they collected funds for the poor and other public purposes. People found lotteries to be a simple, painless way to tax themselves. In 1726, the Netherlands established the Staatsloterij, the oldest continuously running lottery. The word lottery is derived from the Dutch noun “lot,” which means “fate.”
In colonial America, there were over two hundred lotteries, raising more than $1.4 billion for roads, colleges, canals, bridges, and libraries. The University of Pennsylvania and Princeton University were financed with the Academy Lottery, while the Commonwealth of Massachusetts used the money raised by a lottery to fund its “Expedition against Canada” in 1758. Ultimately, the lottery was a huge success for the colonies. However, its popularity didn’t last very long.
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The official lottery of Indiana is the Hoosier Lottery, which has several state-specific and multi-state games. The state lottery’s profits go toward school funds, and its profits go to a variety of other causes. For example, the Iowa Lottery, which is part of the Multi-State Lottery Association, offers Lotto America and Lucky for Life. These games are run by the Governor’s Office and help support many causes throughout the state.
Once a lottery winner receives a prize, he or she must make sure they have the money to claim their prize. The rules for claiming a lottery prize vary depending on the state in which the winner resides. If the prize is over $600, the lottery website will send a W2-G form to the winner. If the prize is $5,000 or more, the lottery site will automatically deduct 24% federal tax and the state tax.