Lottery payouts are the way lottery winnings are distributed. In the US, large lottery winnings generally are advertised as an annuity amount, paid in 20 or more installments; in most cases, a cash option is available.
Legislation varies by US jurisdiction; many statutes specify a minimum payout percentage. To make lotteries competitive, some jurisdictions increase payout percentages versus those of a neighboring lottery. The percentage changes are likely due to competition from illegal numbers on daily numbers games.
- Clotfelter, Charles (1991). Selling hope: state lotteries in America. Harvard University Press.