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Most Confused Gambling State Benefits from Powerball Lottery Win

A Powerball payday will bring millions in lottery tax to Kentucky, even as the state fights to deny gambling rights on the Internet and elsewhere to residents.

Kentucky state revenues took in over $3.5 million by virtue of the winning Powerball lottery ticket being sold in the state, even as state law and policy toward gambling becomes ever more confusing. A single ticket for the lottery grand prize of $128.6 million was sold in Georgetown, Kentucky for the drawing this past Saturday.

If the money is collected in a single, lump-sum payment, the lucky gambler would receive over $60 million. Of that, 25 percent, or around $15 million, would go to federal taxes.

Kentucky imposes a 6 percent state tax on lottery winnings, The state's share would amount to over $3.5 million for the single ticket.

Even as gambling continues to benefit the state, Kentucky Governor Steve Beshear and his minions plot ways to deny gambling to state residents. The ongoing case against certain offshore online gambling sites has taken a bizarre twist, as Kentucky lawyers have asked that unnamed US residents be added to the original complaint, which thus far has been denied by the courts.

Kentucky remains the center of online gambling operators in the US, as Churchill Downs already operates, and has made arrangements to purchase Although the US Department of Justice says all Internet gambling is illegal, it has never investigated Kentucky's open online gambling.

While Kentucky officials have no problem citing the social costs carried by competitive gambling, they also have shown no compulsion to refuse any windfall from gambling sources, so the lottery tax is expected to be banked quickly.

Winning lottery numbers were 32-36-37-41-53, with a Powerball number of 30.

Published on December 27, 2009 by A.J.Maldonado

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