In the interest of clearing the air, we present the Lottery News Glossary, a compendium of lottery-related words and phrases, complete with definitions and in some cases examples of usage. If you have any questions about an entry, or suggestions for new entries, feel free to email us . An annuity is a financial instrument not unlike a loan or mortgage.
Lotteries use annuities to create higher jackpots than they have the cash on hand to support.
The problem with this is that, like a bank who lends through a mortgage, the player who wins an annuity-backed jackpot must collect the money slowly, usually over 20 to 26 years. The other benefit of an annuity is that taxes are deferred. You pay taxes on the money only as it is received each year, the balance of the money continues to earn interest untaxed, while lump sum payments require all taxes to be paid up front. Boxing As in a Boxing System. It works just like Wheeling Systems do for lotto games.