beat: $315m powerball winner now broke

[kiemo]

I have always wondered what the house edge in the lottery actually calculates out to be. I gotta think it trumps keno as the worst for the player.

Personally I have spent no more then 50 bucks in my life buying powerball tickets and I have never won anything back. And I think I would personally prefer winning a smaller amount (less then 10 million) then one of the huge jackpots. Too much money without earning it changes a persons life and probably not for the better in most instances.

[PokerSoccer]

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hurley?

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lol i was thinking the same thing

[DING-DONG YO]

I'm way ahead in the lotto. Like 20K. It paid for college.

[rokstedy]

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I have always wondered what the house edge in the lottery actually calculates out to be. I gotta think it trumps keno as the worst for the player.

Personally I have spent no more then 50 bucks in my life buying powerball tickets and I have never won anything back. And I think I would personally prefer winning a smaller amount (less then 10 million) then one of the huge jackpots. Too much money without earning it changes a persons life and probably not for the better in most instances.

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?????

you better not play then at all. don't want to risk winning too much money!!! then what would you do?!

[bottomset]

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Flips aren't -EV dude.

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they are online when you pay rake, though HU on FT its only -.25 per flip

[JKratzer]

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creating smarter gamblers everywhere,

DDY

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Smart would be not to make -EV bets, which the lottery is.

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sometimes the jackpot gets high enough to make lotteries +EV.

[krazyace5]

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if you die you lose it all tho

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no, the annuity becomes part of your estate. It is an asset you own and will be given to the recepients of your will just like your money in the bank.

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Thats nice to know, I had always heard it was not willable as well.


If anyone wants more proof that this guy was a [censored] here is an old article that chronicles the first 3 yrs after he won.

http://www.washingtonpost.com/wp-dyn...2005Jan25.html

[otnemem]

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if you die you lose it all tho

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no, the annuity becomes part of your estate. It is an asset you own and will be given to the recepients of your will just like your money in the bank.

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Then I have two questions: 1) Is there any truth to the statement that if you die two years into an annuity payment plan, the rest of your lotto win is not paid out. And 2) What is the advantage of taking a lump sum?

[DING-DONG YO]

1) why would that be true? You win the lotto, the annuity is your asset, if you die it becomes part of your estate. I don't think it would matter if you died 1 day aftewards. Why do people think this?

2) You mean the advantage over holding and not selling your annuity? The theory is that you could invest the lump sum and make enough off it to have more than the future value at the end of the payment period.

Say you're paid 15M/year over 20 years with the annuity. The future value of that is 300M pretax+the gains you would realize from investing your 15/year

Most think you would have more at the end of 20 years than the above scenario if you just took the lump sum now (say 100M) and invested it for 20 years.

The prudent thing to do would be to evaluate both scenarios (along with possible proceeds from the sale of an annuity) plus all the tax implications and pick the one with the highest EV.

[spino1i]

A fool and his money are soon parted.