December 22 is a date marked in red on the Spanish calendar. That day is celebrated Extraordinary Christmas Lottery Drawan event that awakens the enthusiasm of millions of people who aspire to win the hundreds of prizes that are distributed.
Among all of them, of course, stands out ‘El Gordo’ whose main attraction lies in its juicy prize, which amounts to 4 million euros per series, or what is the same, 400,000 euros per tenth. However, it is crucial to understand that the net amount winners receive is not the entire advertised prize.
In accordance with the regulations of the Tax Agencythe first 40,000 euros are exempt from taxes. On the rest, a 20% tax is applied, which means that, after paying 72,000 euros to the Treasury, the winner keeps 328,000 euros per tenth. But what happens to the lottery administrations that sell the winning ticket? Do Lottery administrations receive anything for selling ‘El Gordo’?
Do the administrations take any commission for selling ‘El Gordo’?
By selling ‘El Gordo’, the administrations They don’t get a direct commission for the prize itself. Their profits are derived from a 4.5% commission on the value of each tenth sold, equivalent to 90 cents per ticket. That is to say: They don’t get anything for selling the winning ticket.beyond the prestige that, surely, has a superlative impact on the sales of later editions.
However, although they do not earn commission for prizes over 2,000 euros, they do earn a benefit for the payment of smaller prizeslike those of the stone. For the first 200,000 euros in prizes paid, administrations receive a 2.5% commission, adding up to 5,000 euros. From that amount, the commission is reduced by half, being 1.25%.
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