It is frequently suspected that Powerball is just a giant money laundering scheme. See if anyone actually wins and claims it? My guess the winners from the large jackpots are always from states where you don't have to publicly claim.
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Honestly, people look at the lottery stuff wrong. It's not the big prizes that they steal and siphon off, it's all the smaller stuff that goes "unclaimed". If you add up all the smaller prizes (under $10K) that are never claimed every year, you'd find that there's several billion a year that just disappears.
Of course its SUPPOSED to go to funding schools and whatnot, but it never does. It almost always ends up just disappearing into the ether.