Specifically Canada, Australia and the United Kingdom distribute all prizes immediately after winners are declared. The monetary prize is paid out as a lump sum, tax free to the winner.Contrarily, some countries such as the United States, require taxes to be withheld from the lump sum prize. Although, the winner has the opportunity to choose between annuity payment and a one time payment, the one time payment is much smaller.
Most often, the winner is presented with only half of the advertised jackpot; this is the amount that is offered even before the tax is withheld. The annuity option provides regular payments to be dispersed over time subsequently extending from ten to forty years.Coincidentally, with various online lotteries, the annual payments may be as minute as $25,000 over forty years to include a balloon payment on the final year.
Government-backed securities often implemented the investment of these type instalment payments. The insurance back-up of online lotteries was responsible for paying the winners. However, many winners opted to take the lump-sum payment as they conceived that they were able to obtain a better rate of return on the investment elsewhere.To date, lottery is played in almost every country all over the world.