LITTLE ROCK, Ark — Everyone dislikes paying taxes – even when they win a lottery prize. So today the Arkansas Scholarship Lottery (ASL) is launching four new scratch-off tickets that will solve that issue for top-prize winners.
When a player wins the top prize on any of the “Taxes Paid” tickets, he will be paid the entire amount. The lottery is actually increasing the amount of the prize and then paying the taxes so the winner collects the entire prize amount printed on the ticket. Normally the lottery deducts 24 percent for federal taxes and 7 percent for state taxes before awarding the winning check.
The four tickets include a $10 ticket with a top prize of $200,000; a $5 ticket with a top prize of $100,000; a $2 ticket with a top prize of $20,000, and a $1 ticket with a top prize of $5,000.
“Winners will be very pleased to walk away with the entire amount of the top prize,” said Bishop Woosley, ASL director. “With taxes taken out, the amount paid on a $200,000 prize would normally be $138,000. However, in order to pay top-prize winners the entire amount, we have put $289,855 into the $10 ticket top prize to cover the taxes.
“With the income tax deadline just a few weeks ago, people who win the top prizes on these instant tickets will be thrilled not to have more taxes!”
All non-winning Taxes Paid tickets are eligible to enter in the lottery’s Spring Cash Giveaway through May 31 when the promotion ends. The third and final drawing in the promotion will be June 4 when 100 players will win $500 in cash, 50 winners will win $200 each and 40 people will take home $100 in cash. For details on the promotion, go to the My Arkansas Lottery website and click on “The Club.”
Woosley said he wants to remind players that the lottery is designed as entertainment and should be played responsibly.