Joined: Jan 15, 2010
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May 17th, 2013 at 4:48:48 AM permalink
I bought a few tickets, also the "rule of thumb" I use is 1/3 of the advertised jackpot amount is what you'll see after immediate payment and taxes.

I have recently grown very angry about advertising jackpots by annuity rather than immediate value, it's straight up lying. I tried explaining this anger to a friend of mine who has a masters in chemical engineering and he just didn't get it, he said something along the lines of "but you'd get all the money with the annuity" when I tried explaining the time-value of money. I have a handful of little things I get angry about, this and JJ-douchebag-Abrams ruining Star Trek are my current beefs.

Off to see Star Trek.
Its - Possessive; It's - "It is" / "It has"; There - Location; Their - Possessive; They're - "They are"
Joined: Nov 16, 2009
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May 17th, 2013 at 5:06:08 AM permalink
Quote: Zcore13

That would be insane. I wish there was a way to do it so that 550 winners could win 1 million rather than one winner winning 550 million. 1 million to 550 people would be life changing and probably a huge boost to the local economy. 550 million to one person is overkill and seems like a waste to me. I'd even prefer 1010 winners of $500,000


The Canadian government hosts a number of lotteries, the biggest one right now is called Lotto Max. It's only a few years old, and has a max jackpot of $50 Million. If the jackpot pool keeps building, they give away the rest in $1 Million prizes in redraws, one for each $1M. Not too long ago there were about 50 side prizes as well. There is a reasonable frenzy when the 'maxmillion' prizes start to climb in #.
Wisdom is the quality that keeps you out of situations where you would otherwise need it
Joined: Oct 14, 2009
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May 17th, 2013 at 5:08:49 AM permalink
Quote: ahiromu

I bought a few tickets, also the "rule of thumb" I use is 1/3 of the advertised jackpot amount is what you'll see after immediate payment and taxes.

I see the Powerball web site says the current $550 million jackpot has a $350.1 "cash value." I assume that is the lump sum option.

The highest tax rate is 35%, except if you're single it is 39.6%. Assuming one is not single, the ratio of money received after the lump sum and taxes would be 41.4%. However, that doesn't count state taxes, which vary by state. In California, the highest rate is 10.3%. All things considered, 1/3 sounds like a good rule of thumb. Assuming that figure, I show a $2 ticket for the May 18 draw has an expected value of 94.2 cents.
It's not whether you win or lose; it's whether or not you had a good bet.
Joined: Oct 19, 2009
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May 17th, 2013 at 5:48:06 AM permalink
I understand many slot machine jackpots are awarded as ten or twenty year annuities but not advertised as anything but lights that flash the total amount that will eventually be received.

I agree that it is indeed deceptive.

When New York first started their lottery the rules were not well understood. One "Million Dollars a Year for Life" winner submitted the ticket in the name of his two year old kid figuring he would have the longest life of anyone in the family. The lottery people told him: You get absolutely nothing and the kid gets his first check at 18... and thanks because now we can fund that price for a fraction of what the ticket was worth before you put a minor's name on it.

A lottery ticket is considered "an expectation" but once the results are announced it can become "property" and the subject of fraud upon creditors, so treading carefully is required. I'd certainly see a tax lawyer or cpa before opening a bottle of champagne.
Joined: Jan 14, 2010
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May 17th, 2013 at 9:06:06 AM permalink
Quote: sodawater

If you believe that we should pay out $1 million prizes to lots of persons: After players told us that in focus groups, we actually started that game. No one played.

The problem is that if you think about lotteries rationally you would never play them. What kind of investment has a lot of people give you money, the investment group keeps half the money, and then it gives most of it to a small number of people.

Lotteries are all about fantasies. The bigger the fantasy, the more popular the game. People say things with their rational mind, but that isn't what reacts.
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May 17th, 2013 at 9:26:48 AM permalink
I have my 2 tickets. Rational or not, it's still fun.
Joined: Nov 11, 2009
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May 17th, 2013 at 9:44:46 AM permalink
Quote: slyther

I have my 2 tickets. Rational or not, it's still fun.

Yup. The cure for a lotto addiciotn is to make it not fun anymore. It's one thing when you buy your tickets once a week, and involve family and friends, and you spend the weekend daydreaming about buying a Caribbean island or a private jet. That's "fun." It's less so when there are three drawings bunched up together, which drives up the price. And take palce twice a week, so you're rushing to get your mid-week tickets. And if you can't manage to get tickets for one drawing, youa gonize at recognizing your usual numbers when the results are posted.

That's not fun.
Donald Trump is a fucking criminal
Joined: Dec 8, 2009
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May 17th, 2013 at 9:50:57 AM permalink
Just bought my five tickets.

Upon winning, I plan to donate $10 mil. to establish a Trust Fund for the express purpose of keeping Mike in the Wizard of Odds/Vegas business for the rest of his lifetime.
Joined: Nov 1, 2009
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May 17th, 2013 at 9:52:15 AM permalink
Can't speak for other states but here they offer "subscriptions" for multiple draws, up to 25 draws
Joined: Nov 2, 2009
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May 17th, 2013 at 10:05:18 AM permalink
Quote: slyther

I have my 2 tickets.

So does that mean I'm five times the loser you are?
(Can you guess how many tickets I got?)
I invented a few casino games. Info: http://www.DaveMillerGaming.com/ 覧覧覧覧覧覧覧覧覧覧覧覧覧覧覧覧覧覧 Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁

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