Ever wonder how the lottery can advertise a jackpot of $100 million, and that means that the winner receives a lumpsum payment of only approximately $40 million, or receive 3.33 million each year for 30 years. The fact is that the Florida Legislature explicitly permits the lottery to advertise the jackpot as the sum of the payment option, irrespective of the present value of the payment streams. Florida Statute, 24.107 states as follows.
24.107 Advertising and promotion of lottery games.—
(1) The Legislature recognizes the need for extensive and effective advertising and promotion of lottery games. It is the intent of the Legislature that such advertising and promotion be consistent with the dignity and integrity of the state. In advertising the value of a prize that will be paid over a period of years, the department may refer to the sum of all prize payments over the period.(2) The department may act as a retailer and may conduct promotions which involve the dispensing of lottery tickets free of charge.
Deceptive and yet, interesting…