While the history of the online lottery in the United States is still young, it is well underway. As of this writing, seven states operate online lotteries. As federal legislation clarifies, states will make decisions regarding this activity. Laws and regulations are constantly in flux. Here are some things to keep in mind:
Online lotteries are legal in the US
Buying lottery tickets online is not illegal, although it is not possible in every state. The lottery industry is regulated in each state and online retailers are subject to various rules. In general, online purchases are made through authorized lottery retailers who adhere to local gambling authority guidelines. While buying tickets online is entirely legal in the US, it is best to buy from an authorized retailer. There are a number of advantages to purchasing lottery tickets online.
They offer instant win scratch tickets and traditional drawing-style games with large jackpots
Currently, 44 states and the District of Columbia offer lottery games. Each state offers a combination of traditional drawing-style games and instant win scratch tickets with large jackpots. While most states only allow players to buy their tickets in person, a few have recently moved to an online sales system. However, there are several key differences between the two types of games. Let’s take a look at what makes each different and which are the most popular.
They help with tax payments on prizes of $600 or less
If you’ve won a prize in a raffle, you should know that federal income tax withholding is required on winnings. The Internal Revenue Service (IRS) will withhold 25 percent of a prize winner’s prize amount. This means that you’ll still owe some money when tax time rolls around. The maximum rate of tax is 37 percent, so if you won a prize worth more than $600, you’ll still owe some money to the IRS.
They are a nice alternative to brick-and-mortar retailers
The online lottery retailer model has a number of advantages. For one thing, you can be in multiple locations at the same time. The biggest downside is that you’ll need to depend on Loto-Quebec for billing. As an all-powerful state corporation, Loto-Quebec can monopolize the online lottery market. Also, online lottery retailers are at the mercy of Loto-Quebec, which is notorious for not validating their inventory.