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	<title>Powerball &#8211; CalWatchdog.com</title>
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		<title>Huge CA Powerball sales sharpen lottery debate</title>
		<link>https://calwatchdog.com/2016/01/14/huge-ca-powerball-sales-sharpen-lottery-debate/</link>
					<comments>https://calwatchdog.com/2016/01/14/huge-ca-powerball-sales-sharpen-lottery-debate/#comments</comments>
		
		<dc:creator><![CDATA[James Poulos]]></dc:creator>
		<pubDate>Thu, 14 Jan 2016 17:57:51 +0000</pubDate>
				<category><![CDATA[Breaking News]]></category>
		<category><![CDATA[Life in California]]></category>
		<category><![CDATA[gambling]]></category>
		<category><![CDATA[poverty]]></category>
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		<category><![CDATA[Powerball]]></category>
		<category><![CDATA[lotteries]]></category>
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					<description><![CDATA[Californians joined in the country&#8217;s fever over an extraordinary Powerball prize, leading the nation in ticket sales &#8212; but not without raising conflicting feelings about the lottery. &#8220;In California, about 80 cents]]></description>
										<content:encoded><![CDATA[<p><div id="attachment_85671" style="width: 531px" class="wp-caption alignright"><img fetchpriority="high" decoding="async" aria-describedby="caption-attachment-85671" class=" wp-image-85671" src="http://calwatchdog.com/wp-content/uploads/2016/01/Powerball.jpg" alt="Photo Credit: ABCnew.com" width="521" height="218" srcset="https://calwatchdog.com/wp-content/uploads/2016/01/Powerball.jpg 1600w, https://calwatchdog.com/wp-content/uploads/2016/01/Powerball-300x125.jpg 300w, https://calwatchdog.com/wp-content/uploads/2016/01/Powerball-768x321.jpg 768w, https://calwatchdog.com/wp-content/uploads/2016/01/Powerball-1024x428.jpg 1024w" sizes="(max-width: 521px) 100vw, 521px" /><p id="caption-attachment-85671" class="wp-caption-text">Photo Credit: ABCnew.com</p></div></p>
<p>Californians joined in the country&#8217;s fever over an extraordinary Powerball prize, leading the nation in ticket sales &#8212; but not without raising conflicting feelings about the lottery.</p>
<p>&#8220;In California, about 80 cents of every $2 ticket sold goes toward education,&#8221; as the Los Angeles Times <a href="http://www.latimes.com/local/lanow/la-me-ln-powerball-jackpot-20160109-story.html" target="_blank" rel="noopener">reported</a>. &#8220;Nationwide, more than $1 billion in Powerball tickets were sold, lottery officials said.&#8221;</p>
<h3>Playing with fire</h3>
<p>But the mind-boggling sum at stake has brought California&#8217;s long debate over the virtues and vices of state lotteries back into the spotlight. &#8220;Addiction <span id="itxthook0p" class="itxtrst itxtrstspan itxtnowrap"><span id="itxthook0w" class="itxtrst itxtrstspan itxtnowrap itxtnewhookspan">experts </span></span>are concerned the rising Powerball jackpot could bring those dealing with gambling addictions back into their old habits,&#8221; <a href="http://sacramento.cbslocal.com/2016/01/13/huge-powerball-jackpot-provides-temptation-for-gambling-addicts-to-relapse/" target="_blank" rel="noopener">according</a> to CBS Sacramento. &#8220;The odds of winning Wednesday’s $1.5 billion drawing [were] 1-in-292 million, but the odds of having a gambling addiction in California are 1-in-25.&#8221;</p>
<p>The controversy has extended to the popular practice of office pool purchases in the workplace. &#8220;Previous groups of lotto winners have seen their feelings of victory evolve into anger and disputes that ended up in court for years when one buyer claimed there was never a pool, or someone who didn&#8217;t pitch in money feels they should still have been included,&#8221; as NBC Los Angeles <a href="http://www.nbclosangeles.com/investigations/Warning-About-Powerball-Office-Pools-364920281.html" target="_blank" rel="noopener">cautioned</a>.</p>
<p>Nationwide, meanwhile, the debate has roped in religious figures as well, with some pastors beginning to publicly question the wisdom of the system, as the Christian Post recently <a href="http://www.christianpost.com/news/powerball-1-5-billion-jackpot-pastors-speak-out-christians-playing-lottery-gambling-154754/" target="_blank" rel="noopener">noted</a>.</p>
<p>For years, critics have pointed to analyses that suggest poor lottery players are impacted negatively and disproportionately by the allure of massive paydays. &#8220;While approximately half of Americans buy at least one lottery ticket at some point, the vast majority of tickets are purchased by about 20 percent of the population. These high-frequency players tend to be poor and uneducated, which is why critics refer to lotteries as a regressive tax,&#8221; as Wired <a href="http://www.wired.com/2011/01/ff_lottery/all/1" target="_blank" rel="noopener">reported</a> in 2011. &#8220;In a 2006 survey, 30 percent of people without a high school degree said that playing the lottery was a wealth-building strategy,&#8221; the magazine observed. &#8220;On average, households that make less than $12,400 a year spend 5 percent of their income on lotteries — a source of hope for just a few bucks a throw.&#8221;</p>
<h3>The cost of winning</h3>
<p>Even those who beat the odds have sometimes found themselves more cursed than blessed by riches. &#8220;The sad truth of lottery winners is that their lives don&#8217;t always end up as idyllic as they might imagine, many of them becoming not only the target of a massive tax burden and low-level scam artists, but also a magnet for their own vices,&#8221; as Jared Keller <a href="http://www.psmag.com/business-economics/dont-fall-for-the-oldest-lottery-trick-in-the-book" target="_blank" rel="noopener">wrote</a> at Pacific Standard.</p>
<blockquote><p>&#8220;Suzanne Mullins won the Virginia lottery in 1993 and ended up paying out a $154 million settlement to a loan company after going deeply into debt; Evelyn Adams gambled away $5.4 million in Atlantic City; Willie Hurt blew $3.1 million on a crack addiction. Even Pentecostal preacher Billy Bob Harrell Jr.&#8217;s generosity after winning a $31 million jackpot in 1997 became his undoing — he simply couldn&#8217;t say no when people asked for a handout, and ended up killing himself after his money (and wife) ran out.&#8221;</p></blockquote>
<p>Assuming a Californian winner preserved his or her fortunes in other ways, both good and bad news remain on the tax front. &#8220;In this 44-state contest it may be advantageous to win in California, which is one of 10 states where the lottery winner will not be required to pay state taxes,&#8221; the Orange County Register <a href="http://www.ocregister.com/articles/million-699481-lottery-billion.html" target="_blank" rel="noopener">surmised</a>. &#8220;Still, the federal tax bite is fairly big, leaving a lump-sum winner with $524 million.&#8221;</p>
<h3>Impacting schools</h3>
<p>Despite the commotion and concern, California education advocates have insisted that Powerball was making even more of a positive impact than usual. &#8220;Last year, on average, Powerball pulled in about $7 million in gross revenue in California each week, which means a not-so-whopping 42 cents or so was allocated to each of the state’s 6.2 million students,&#8221; as the San Francisco Chronicle <a href="http://www.sfchronicle.com/bayarea/article/Is-Powerball-fever-helping-California-schools-6751974.php" target="_blank" rel="noopener">reported</a>. &#8220;Last week, though, as the jackpot climbed into the stratosphere, people dreamed of buying jets and yachts and sports franchises. The state sold $267.5 million in Powerball tickets, or about $16 per kid.&#8221;</p>
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