How does the lottery make a profit? | TigerDroppings.com

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Thundercles
LA-Monroe Fan
Mars
Member since Sep 2010
1716 posts

How does the lottery make a profit?


Like now, they're preparing to give a way half a billion dollars. Do they really make well over that much in ticket sales? If so, that's an alarming number of people that are buying tickets.






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sheek
LSU Fan
Austin Texas
Member since Sep 2007
36352 posts

re: How does the lottery make a profit?


consider the millions of tickets that are sold weekly with no winner. Its like a Casino, they are not in the business to pay out more than they take in.





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TreyAnastasio
Michigan Fan
Bitch I'm From Cleveland
Member since Dec 2010
44092 posts

re: How does the lottery make a profit?


There is a rake just like at any casino.





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HeadyMurphey
LSU Fan
Los Santos
Member since Jan 2008
15770 posts

re: How does the lottery make a profit?


quote:

Like now, they're preparing to give a way half a billion dollars. Do they really make well over that much in ticket sales?


No, they do it for the benefit of the people and just eat the loses






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GEAUXT
New Orleans Saints Fan
Member since Nov 2007
13198 posts

re: How does the lottery make a profit?


why do you think there's such a big gap between the jackpot and the "cash value"





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Count Chocula
Yale Fan
Tier 5 and proud
Member since Feb 2009
48494 posts

re: How does the lottery make a profit?


Take in $500m

Winner chooses cash payment = lottery pays out $260m = profit

Winner choses annual payments = $26m annually = lottery invests excess reserve = profit



This post was edited on 3/30 at 10:50 am


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Thundercles
LA-Monroe Fan
Mars
Member since Sep 2010
1716 posts

re: How does the lottery make a profit?


I know they obviously make a profit, but I'm curious if it's 100% ticket sales or if they get other sources as well.





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Siderophore
LSU Fan
Member since Nov 2010
3334 posts

re: How does the lottery make a profit?


This.

The jackpot is only if you agree to get the money over 26 years rather than right now.

They get to make interest/whatever in all the intervening time.






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TigerDeacon
Wake Forest Fan
West Monroe, LA
Member since Sep 2003
24306 posts

re: How does the lottery make a profit?


quote:

Thundercles








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Duckie
LSU Fan
Tippy Toe, Louisiana
Member since Apr 2010
20702 posts

re: How does the lottery make a profit?


Not to mention the huge taxes they have to pay to fed/state.





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JB Bama
Alabama Fan
Tuscaloosa, AL
Member since Sep 2008
2065 posts

re: How does the lottery make a profit?


Uhh.. not to mention they only pay out 28%.

Seriously did this topic really get legit replies in it?

The lottery is the most profitable venture in the world basically. It nets 72 cents on the dollar so when you see a 100 million lottery. It means they pocketed 257 million yesterday!






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Siderophore
LSU Fan
Member since Nov 2010
3334 posts

re: How does the lottery make a profit?


quote:

Uhh.. not to mention they only pay out 28%.


You have it backwards.

~30% is the reduction against the jackpot. Not the cash out total.

Cash out for this is around 440 million.

And again, the reduction is only if you take it as a lump.



This post was edited on 3/30 at 11:24 am


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JPLSU1981
LSU Fan
Baton Rouge
Member since Oct 2005
17192 posts

re: How does the lottery make a profit?


quote:

Uhh.. not to mention they only pay out 28%.



Supposedly MegaMillions pays out:

50% to winners
35% to states (based on their state's contribution to the prize pool)
15% operating costs


And I believe in Louisiana the first couple million by law go to fund K-12 education.



This post was edited on 3/30 at 11:25 am


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JB Bama
Alabama Fan
Tuscaloosa, AL
Member since Sep 2008
2065 posts

re: How does the lottery make a profit?


MegaMillions ROI is -76% so go figure how they pay out 50% to winners...






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reb13
Ole Miss Fan
Oxford, MS
Member since May 2010
9851 posts

re: How does the lottery make a profit?


quote:

Georgia Lottery proceeds are used to fund specific education programs: 1) Tuition grants, scholarships or loans to undergraduate college students for attendance at eligible Georgia colleges, universities, or technical colleges; 2) The Georgia Prekindergarten Program for all 4-year-olds; and 3) capital outlay projects including computer and other technological upgrades for schools, technical institutes, colleges and universities in the state.






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