Youd need a licence from the government as it's a form of gambling to setup on about the other questions I duno..
Not a bad place to start reading: http://en.wikipedia.org/wiki/Lottery..._United_States.
To answer who is getting paid. Here is the break down for NY's lottery for 2005-2006.
Prizes 56% Over $3.8 Billion.
Aid to Education 32% $2.203 Billion*.
Commissions for Traditional Lottery Facilities 6% $389 Million.
Commissions for Video Gaming Facilities 2% $122 Million.
Other Direct Expenses 2% $149 Million.
Other Operating Expenses 2% $123 Million.
Lottery is government owned, therefore I doubt you can start one..
As has been said depending on the country in which the lottery would be run depends on what you would ned to do. Here in the UK you need a licence and this will be the case in most countries.
Regarding what happens to the money most reputable lotteries would declare and report on where there money goes. The lottery camelot do here in the UK a certain % always goes into the prize fund they obviously also take a % for profit and the rest goes to charity (or projects the government can't be bothered to pay for themselves).
Here in the UK there is a lottery that is online called Play Monday. The prizes for this lottery are quite small compared to the main UK lottery because the take up has been poor...
In the US, forget about it. I asked the same question like a year ago (wanted to do the same thing for one of my sites). Search it up in NP..
I think it can get very complicated when there are legal issues with the government...
My understanding is that online gambling is illegal in the United States. People are still doing it though.
Their may be ways to profit in similar things. For example, a contest that requires skill isn't considered gambling. btw, I'm not your lawyer; check the facts before you start. :-)..
My understanding is that lotteries, contests, sweepstakes, etc. are regulated on a state by state basis in the United States.
That is why some states have lotteries and others do not. That is also why some contests have the disclaimer that residents of XYZ state are not eligible to participate.
I'd be very careful because you can open yourself up to a lot of issues/challenges if you try and start a lottery. I too am not a lawyer so check with your attorney and see what they recommend...
I won a lottery in Nigeria lol.
But lotteries are illegal unless it is supported by the government. If it is not supported by the government, they very it as gambling... which is illegal unless you are lisenced. As you notice, none of the big casinos offers lotteries or online gambling, because the US will not allow it...
I think you need to pay any bills to goverment.. ? m ?
Heres a funny. I personally like indians as they generally are happy with the basics. But here in Washington State, you have to be a Indian tribe to open a casino. The State regulates it but the tribes get the money, (well the State gets tons of it too in the form of taxes) and they are doing very well up here.
But you, my mother or brother or even if all of our cousins chip in.. even the rich ones we cannot open any form of a poker house or casino, thats is illegal.
Now all I want to know is this.. yes I can see they should have a right to so many salmon, and other natural resources as that was what we promised to them a couple hundred years ago in our treaty with them.
But I cannot remember reading anywhere when I was in school that they used to sit around and pull one arm bandits and play texas holdem, lol.
But any way this is a interesting thread and I have been thinking for a long while how to get the community more involved in a couple of my tourist related websites. I knew I could not do gambling as such.. but I was wondering if a treasure hunt on my site for a prize would be legal?. I imagine so, as long as it is something like a free dinner for two at the local eatery or such.
The reason I say I am sure it is legal is we have tons of timeshare condos around here and they always have the deal where you get a phone call to listen to their speil and then you get a vacation or something out of it.
Hey chief, pass the peace pipe.