Official lottery is a state-controlled game that has rules and regulations governing the way it is run. Most states use the money generated by the games to fund public services like education, infrastructure or public safety. Lotteries can be played in a variety of ways, from scratch-off tickets to the statewide lottery. Lottery winnings are subject to taxes and other fees.
Lotteries aren’t new, and they’ve been used for centuries to raise money for everything from civic projects to wars. They helped pay for Boston’s Faneuil Hall and the Continental Congress’s fight against French marauders during the Revolutionary War.
Despite the moral uneasiness, Cohen says the early American population was “financially desperate,” and state governments grew increasingly reliant on lotteries to fill their coffers. In the late 1800s, however, corrupt practices and a growing sense of moral unease finally doomed them. As bond sales grew and taxation became more standardized, lotteries fell out of favor.
Today, scammers target lottery winners to steal their prize money. Often, they call and pretend to be from a government agency like the Federal Trade Commission, then ask for their winnings in exchange for money upfront or a fee to help them collect the prize. Lottery officials also warn that if you win, the official lottery will never contact you directly. If a person tells you that you have won a prize in an international sweepstakes or contest that does not occur in your jurisdiction, it is a scam.