Pay out vs. spend money

[Nathanael86]

English Grammar Error, Intermediate level

ESL/EFL Test #5 "Talk about it later", question 10

I've been paying out a lot of money recently in the hope of winning the lottery but so far I haven't had much chance yet.

(a) paying out
(b) recently
(c) haven't had
(d) chance

English Grammar Error, Intermediate level

ESL/EFL Test #5 "Talk about it later", answer 10

I've been paying out a lot of money recently in the hope of winning the lottery but so far I haven't had much luck yet.

Correct entry: luck
The error was: (d) chance
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Hey,

I'm having trouble with the expression "to pay out" in this sentence. I would only use "pay out" if I wanted to withdraw money and the bank clerk would pay me out the requested amount of money. In almost every other context I would rather use "spend money." Am I right?

[Mister Micawber]

Either will work here.
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Native English teacher at Mister Micawber's