Wtf lottery can't cover sales tax?

http://m.lasvegassun.com/news/2016/mar/14/arizona-cafe-known-for-lottery-tickets-stops-selli/

Saw this article in the paper- can't figure out the last line- how could there be sales tax on a state run lottery , so much so that Rosie's loses money selling tickets because of sales tax????
If it doesn't cover Rosie's then it has to be the same percentage with everyone so how could this not effect everyone
Any idea?

Quote: Wizardofnothing

http://m.lasvegassun.com/news/2016/mar/14/arizona-cafe-known-for-lottery-tickets-stops-selli/

Saw this article in the paper- can't figure out the last line- how could there be sales tax on a state run lottery , so much so that Rosie's loses money selling tickets because of sales tax????
If it doesn't cover Rosie's then it has to be the same percentage with everyone so how could this not effect everyone
Any idea?

I think this was just poorly written. I don't think that any state has a sales tax on lottery tix. I'm sure what the reporter meant was that the owner of Rosie's had hoped that selling lottery tix would generate profits that would help him pay the sales tax he owes for selling other items that are taxable. It didn't generate enough, apparently was too expensive to administer, too much labor cost, etc., so he said the hell with it.

It's also possible that he was referring to payments lottery retailers receive for selling winning tix, which would most likely be taxable as income. Again, he could mean that the tax on these payments was too high to justify continued sales.

Just sloppy journalism. No copy editing.