The Christmas lottery is one of the most anticipated events of the year in Spain. But behind the glamour of the lottery are lesser-known details that affect the administrations that sell tithes.
Today, we’re revealing one of the best-kept secrets about the Christmas Lottery: how much money each division gets for every tenth it sells, and how much it charges to collect the prizes.
Each lottery administration acts as an intermediary between the national lottery and the players. Its main function is to sell tithes and, if awarded, to manage the collection of the money for the winners.
The money the lottery administration earns for every ten sold.
When the lottery administration sells tithes, it takes a commission for each ticket sold. This commission is not fixed and may vary by administration, but in general, lottery administrations receive a percentage of the price of the tithe.
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In the Christmas Lottery, each tenth costs 20 euros. Of these 20 euros, the administrations keep a percentage as a commission.
This percentage can vary, but on average, lottery administrations usually keep 4% of the total value of the tithes sold. This means that for every tenth of 20 euros sold, the administration receives approximately 0.80 euros.
What happens when the tithe is rewarded?
When tithes are awarded, the collection process also has its own set of rules. Lottery boards are responsible for managing the tithe prizes they sell. In this case, they charge a fee for the collection service.
The percentage that departments charge for this collection service varies depending on each department’s policy. However, it is usually 1.25% or 2.5% of the award amount.
It is important to note that this percentage is calculated on the total prize, not on the tithe itself. If the amount does not exceed 200,000 euros, 1.25% is taken, and if it exceeds that, 2.5% of the prize.
Although the percentage they bring in may seem small, it is a big part of the business that keeps this popular event going. Now that you know these details, you can better understand how the system behind the Christmas lottery works and how the administrations profit from selling and managing the prizes.
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