system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why are Powerball and Megamillions paid out by the state that the winner resides in?
gpt
The state is typically the body that sets up and runs the lottery. The ones you mention do cross state lines, but ultimately the state still had to allow the lottery to come there in the first place. The state reaps millions of dollars from the ticket sales, therefore they are also responsible for the payout.

It's been said that the lottery is just a tax on stupid people. It's not too far off, considering it is literally taking the most money from the poorest group of people and funneling it back into the govt.