Correct me if I am wrong, but you can still be on welfare (or a social service program) while still making an income, albeit a very small income. You don't have to make $0.00 to qualify for a social welfare program. I believe there is a cut-off line. So, these people may very well work (and make below the poverty line), and be spending the money they made on lottery tickets. Obviously, if you make below the poverty level, you should not be buying lottery tickets to begin with.