$1.6 BILLION Lottery

The Mega Millions

[Marshall]

As of this post, the projected payout for Tuesday's US multi-state Mega Millions drawing is $1.6 billion (US). I am sure by then, it will probably reach $2 billion. Yes, I bought a ticket for yesterday's drawing, but I also watched as people were spending hundreds to thousands of dollars on a chance to win. I spent $2.00. How much would you spend and what would you do if you won? Remember, that current $1.6 billion is an annuity payment over around 30 years. If you took the cash instead, it would be around $910,000,000.00 (less taxes of course).

[justpassing]

what would you do if you won

I'll certainly die from a heart attack ...

[brotherhood of LAN]

I'd be thankful that I'm young enough to take the 30 year option. Half of it would be given away. Some local sports teams would be beneficiaries. The way I see it, the mission is to spend the money in better ways than 50% of other people, and hopefully it's for the greater good.

But there'd be some nepotism in the giveaway for sure...

It's an insane amount.

[NickMNS]

1 in 300M are the odds. At 2$ a ticket a meager 600M investment would net 1B$. Brilliant!

[Marshall]

1 in 300M are the odds. At 2$ a ticket a meager 600M investment would net 1B$. Brilliant!

Assuming you are the sole winner.

[tangor]

The tax man will be the true winner. :)

[NickMNS]

Assuming you are the sole winner.

That's a great point. So maybe 3 or 4 winners are expected, thus the pot is really 1,6B / 4 or 400M (less taxes) so 200M.

The expected value of the ticket is 1/300M * $200M = $0.67 for which you pay $2. (this is a over simplification of a rather complex calculation)

The tax man will be the true winner. :)

Big time!
For each ticket sold the respective state lottery commissions (aka: tax-man) pocket somewhere around $1.33 per ticket on the front end. Then the state and federal tax-man together pocket another 800M or so by clawing back the pot.

My money stays in my pocket. I pay enough taxes, without being tricked into forking more over through the lottery. But I would like to sincerely thank all those that do play, specially the big rollers. Thank you for paying a bigger share of the tax burden.

[justpassing]

So if I recover from my heart attack, I will also consider using the most of it to help others. I am not going to change my way of life, which is modest. I love my house, so I am no planning on getting another one, or having particular expenses. With my wife, we do not have kids, and will not have any now. So we would use most of it, to help others, and projects were the money is really going to those in need, and not being hijacked by intermediate organisms and people.

If had kids, I think it would be different I would put aside enough to be sure my kids and grand kids could leave peacefully, without money problems. I don't now how much I would dedicate to the future such descendants. I wouldn't want them to be lazy and turn #*$!s like most of kids from celebrities and rich people.

[keyplyr]

I have never spent a single dollar gambling. I've worked in Las Vegas for years and never wagered a bet. Don't need the headache.

[justpassing]

An important stats to know, 100% of winners bough a ticket...

[NickMNS]

@justpassing that is true.

Would you pay $20 for the chance to win the 1.6B?

[topr8]

For each ticket sold the respective state lottery commissions (aka: tax-man) pocket somewhere around $1.33 per ticket on the front end.

as i've always said ... lotteries are an extra tax on the poor!

[tangor]

Lottery tickets are more entertainment for the buck than buying a ticket to a movie theater. The movie only lasts 2 hours or less, the lottery ticket is (usually) 24 hours of dreams. :)

Of course folks can get silly and spend too much ... I invest $1 a month, and only if "over this winning amount". Costs me about $5 dollars a year. :)

There's the old joke about a wisher wanting to win the lottery if only a higher being would make it happen ... and after a week of supplication a "voice" was heard saying "I can't help if you don't buy a ticket!"

[keyplyr]

Would you pay $20 for the chance to win the 1.6B?

No... it's a sucker's game. Just how many Millions have you won so far?

I've watched what greed does to people. I've seen how they end up. If gambling was a fair game, Las Vegas wouldn't exist.

[NickMNS]

@Keyplyr
My point is that the price is currently set at 2$ to win 1.6B and the vast majority of people seem fine with that. Are they still fine with $20 per ticket, how about $200? At a certain point as the price rises the people begin to reason more rationally, is the cost of the ticket really worth it given the probability, where is the fair price?

There are people that are willing to purchase $1000 worth of 2$ lotto tickets for what amount to 1/600,000 chance to win $200M that result in an expected value $333.33 ($666.66 over priced), but give the same person the opportunity to wager $500 to have a 1/10 to win $5,000 they would likely turn you down, despite the fact that the expected value is $500, or what mathematically amounts to a fair price.

I must say I really enjoy watching the spectacle, the mass hysteria. My favorite part is listening to people rationalize what they know is a poor decision. When i worked in an office, every time such a draw would arise I would have people in my office trying to convince to partake in the office pool. "You'll regret it!" they said "Monday you will be only one left in the office." The Mondays always came and the whole lot of them came back to work more depressed then the time before. They are probably still doing to this day. Schadenfruede...

Then again, I every morning I open my AdSense dashboard and I still haven't won that bet. Who is the one that really has the schadenfruede?

[lucy24]

For each ticket sold the respective state lottery commissions (aka: tax-man) pocket somewhere around $1.33 per ticket

Nope, only about half that amount is the “tax-man”. The other half goes to the businesses that run the lottery. That's why state lotteries notoriously have by far the lowest payoff percentage of any form of gambling, legal or otherwise; the money is split three ways rather than two.

[Shepherd]

I swear I would spend every dime trying to beat wikipedia for the #1 spot in the serps...

[justpassing]

I swear I would spend every dime trying to beat wikipedia for the #1 spot in the serps...

:)

something I am sure about, is, that I would not use the money to build a business. Even if there is no risk from a financial point of view, this is too many worries and stresses.

[Shepherd]

Managing/maintaining money is one of the most demanding "business" or jobs there is. Even if one was to become purely philanthropic in their endeavors it would be 100 hour a week job.

[justpassing]

At least one winner, from South Carolina: [wtop.com...]

[engine]

Lottery tickets are more entertainment for the buck than buying a ticket to a movie theater. The movie only lasts 2 hours or less, the lottery ticket is (usually) 24 hours of dreams. :)

No comparison, because, if you buy a ticket to a movie theatre you are a guaranteed winner and can watch the movie. It's not a gamble.

I'm not a fan of gambling, and i've only ever put down $1 in Las Vegas just to say i've done it. I knew I wasn't going to win.

I have bought lottery tickets in the past, but usually as a present for someone, and in return, some people have bought me tickets. The odd are just too small, but I am a believer in you have to in it to win it. But, really, I can go a couple of years without even thinking of buying a ticket, no matter the size of the draw.

On those weak odds of winning, if it ever came up for me, I probably wouldn't move house, but i'd want to make sure my friends and family wern't short of a penny or two, and i'd probably want to do more to support local charities in the first instance: I'd want to do some good with it, which always gives me the greatest satisfaction. Yes, i'd probably employ people to look after it for me.
However, the chances are negligible of a win, so i won't think any more about it.

[Marshall]

At least one winner, from South Carolina

Guess since I do not live in South Carolina, it was not me. Then again, I did not buy a ticket.

[NickMNS]

Then again, I did not buy a ticket.

That automatically makes you a winner, you are at least $2 richer than those that played.

[keyplyr]

Well the BIG ONE has come and gone and I didn't waste one second of my time worrying about whether I picked the winning number, nor waste my money.

But one thing is certain, greed will prevail and there will be another BIG ONE

[lucy24]

I would spend every dime trying to beat wikipedia for the #1 spot in the serps...

Not enough. Based on current revenues, it would take more like $50bn.

[Shepherd]

Doggone it Lucy, can't a guy dream?

[Leosghost]

Doggone it Lucy, can't a guy dream?

... ..

Welcome My Son.

We Told You What To Dream

^_^

[Shepherd]

Oh, by the way, which one's Pink?

[lucy24]

Wouldn't it be fun, though, if a $1.6bn investment in any aspect of your website could be guaranteed to yield more than $1.6bn in profits?

:)

[Shepherd]

Yes, the eternal struggle of business, ROI.

Everyday websites remind me more and more of Las Vegas. The best way to make a Billion online is to spend 2 billion.