I think everyone agrees with you that at face value it’s bullshit. What the commenter above was also saying is that in your scenario, you end up with slightly less food then you expected which has happened to all of us.

In the lotto scenario, you end up with multi-generational wealth that means your great great grand children would never have to work if the money is managed appropriately.

The state lotto systems should absolutely be taxed up front though. That way whoever wins gets the full advertised value of the jackpot.