KUALA LUMPUR (Jan 25): Have you ever wondered where your money goes when you place a minimum bet of RM2 on a lottery ticket?

It’s been a week since Malaysians flocked to Sports Toto Bhd's (KL:SPTOTO) outlets nationwide, eager to try their luck at the record-breaking RM100 million Supreme 6/58 jackpot.

On the evening of Jan 18, the jackpot soared to an unprecedented RM121.732 million, marking the largest payout in Malaysia’s lottery history.

This new record surpasses the previous high of RM97.75 million set in 2022, which was shared by lucky winners from Penang and Selangor.

The RM121.732 million prize was split among winners in three categories: a Standard Play winner took home RM34.92 million, two System Play winners also won RM34.92 million each, and multiple EZ-Bet winners collectively shared RM16.96 million.

While winning the jackpot requires an extraordinary stroke of luck — some say you’re more likely to be struck by lightning in your lifetime than win the lottery — the excitement surrounding the event is undeniable.

Millions of tickets were sold on Jan 18, but only a fortunate few walked away as winners.

For those who didn’t win, it's nice to indulge in the fantasy of what they would do with a vast fortune, even if that dream lasted just a few hours or days.

Each Supreme 6/58 ticket is RM2 per bet.

So, what happens to your RM2 bet if you're not among the lucky winners?

Let's take a closer look at how Sports Toto allocates every RM2 bet placed, shedding light on the tightly regulated nature of the lottery industry and its contributions to national revenue.

According to channel checks by The Edge, here's how each RM2 bet on Sports Toto is distributed:

Eight percent (16 sen) is deducted as gaming tax, leaving RM1.84 in net sales.

An additional 8% pool betting duty is applied, amounting to 14.72 sen, bringing the total deducted to 30 sen.

55% of the total stakes collection, or RM1.10, is allocated as prize money for bettors, meaning only just over half of your bet is put into the prize pool.

Of this prize pool, 65% (or 71.5 sen) is reserved for the jackpot — where the biggest prizes lie — while the remaining 35% (or 38.5 sen) is distributed among other prizes.

The industry is also subject to sales and services tax (SST), which amounts to 4.39 sen, calculated on the gross sales minus taxes and payouts.

After all these deductions, Sports Toto is left with about 54.89 sen, or 27% from each RM2 bet. This portion is used to cover operational costs, generate profits, and fulfil corporate obligations, including contributions to the National Sports Council.

For perspective, the numbers forecast operator industry is subject to a gaming tax of 8% on gross sales and pool betting duty of 8% (taxed on net sales). It also contributes 10% of its pre-taxed profits to the National Sports Council. Apart from that, it pays corporate taxes.

This breakdown highlights how the Malaysian gaming industry is structured and heavily regulated, ensuring a fair allocation of revenue while contributing to public causes.

Now, let's work it backwards.

Using the RM121.732 million jackpot as a base, it's estimated that the total pool money amounted to about RM187.54 million, which means the total gross sales were approximately RM341 million up until the jackpot was hit.

The government is expected to collect around RM27.28 million in gaming tax and RM25.09 million in pool betting duty. Meanwhile, Sports Toto stands to pocket over RM90 million to cover its operational costs while generating profits.

Perhaps this is something to consider the next time you buy a lottery ticket.