As has been mentioned in previous articles, people from all demographics have a taste for gambling. As Personal Finance blogger, I may not seem like the type of person who is intrigued by lottery payouts, but here in the States the recent Mega Millions drawing was estimated at a lump sum payment of $462 million. If we assume a 1 in 176 million chance to win and a 50% tax rate, the expected value of a $1 lottery ticket seems to be $1.31! Additionally, losses are tax deductible against other gambling winngs (meaning that $1 may only cost you $0.75 or less) and a significant portion goes to fund state governments, very often in the form of education subsidies.
Casinos
Live Sports Gambling Markets: A New System to Beat
Is sports gambling beatable?
Casinos, over the years, have traditionally thought of sportsbooks as an amenity to offer to their customers as opposed to a real way to make money. They cap the bets made on traditional over/unders and to people who consistently win in sports gambling (known as ‘sharps’). The casinos believe that sports gambling is beatable by a select few and just hope that the losses of the masses can wash out the gains of the few. But, the obvious question is: if it is beatable, how does one stay ahead of the market/line-setters?
Thoughts for the Day: Economists Surveyed
Here’s your thoughts for the day, not from me but from a new survey of economists. The American Economic Association was polled in the September edition of Econ Journal Watch. Find the raw numbers at Real Clear Markets.