I posted this comment a few days ago, but it is worth repeating: https://news.ycombinator.com/item?id=32278994 https://news.ycombinator.com/item?id=32278994 In

I posted this comment a few days ago, but it is worth repeating: https://news.ycombinator.com/item?id=32278994 https://news.ycombinator.com/item?id=32278994 In Canada, the Canada Revenue Agency considers gambling winnings to be windfalls that are not subject tax, so any winners receive the full value of the advertised prizes [0]. [0] https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-3-property-investments-savings-plans/series-3-property-investments-savings-plans-folio-9-miscellaneous-payments-receipts/income-tax-folio-s3-f9-c1-lottery-winnings-miscellaneous-receipts-income-losses-crime.html#toc11 https://www.canada.ca/en/revenue-agency/services/tax/technic... A possible reason as to why this is also the case is that most/all of the lotteries are run by the provinces themselves, so you could think of them removing the taxable amount continuously in an accumulative fashion as the total pot grows and then only advertising what the winner would take home.