Prize Linked Savings (you may also see them called ‘Save to Win’ games) are an interesting take on savings accounts, where every deposit is ‘kept’ unlike in normal lotteries, but some proportion of interest is assigned to a lucky winner through a lottery. In that way, prize linked savings games hit our psychological love of […]
Today we’re going to tell a story about something you’ve always wanted to do – beat the lottery. Subtitle it: Massachusetts Oddsmakers Meet High Volume Betting and Lose. Lottery Tickets as a Form of Investing? Have you ever walked into a gas station or a convenience store and, on a whim, purchased a few scratch […]
Presented on this page is a calculator which allows you to enter some details about an upcoming Mega Millions drawing and receive the tool’s best guess of the expected value per ticket purchased. For details, read the article below the calculator.
Happy Thursday, readers! I’m delighted to share with you this short story about my entry into the recent Mega Millions drawing. Alas, I didn’t win anything, but I’ll share this little anecdote with you nonetheless. Skip to the end if you are easily bored by math!
We recently talked about paradoxes with insurance and the lottery, but I’m not ready to give up on this topic just yet! I present to you this article which uses IRS data to try to answer: “What is the relationship between gambling and income?”.
Most of those comments I’ve seen on this blog and others seem to imply that the lottery (and most other forms of gambling…) is a game only for the poor – even sometimes referred to as a ‘poor tax’. Lucky for the naysayers, the IRS has compiled data which shows that Americans in all income classes (even the 1%!) love to gamble. Yes, in 2009, 284 of the taxable returns with over $10,000,000 in adjusted income had gambling winnings reported! So, dear readers, let’s take a look at gambling in the United States…