"I agree. Even with Oklahoma, the combined population of all of the Powerball states is still a lot lower than the combined population of all the Mega Millions states when that game's odds were only 1 in 135 million. Heck, even with North Carolina joining Powerball later this year, its current odds will still be appropriate for the population. I think Powerball jumped the gun on its latest matrix change."

Sorry, I know I already posted a comment on this topic, but when I read "only 1 in 135 million" I had to chuckle.  You've got much better odds of getting hit by lightning, having of a heart attack or slipping and breaking your back in your bathtub.  One of the funniest things I once read was  "You are several times more likely to die in a car accident on your way to buying a lottery ticket. "  It's funny that so many people get excited when a jackpot keeps rolling over.  I'd love to win $300M so don't get me wrong, but I'd rather have better odds and win a lot less.  So many people only buy tickets when the jackpot rolls over several times, so that might be the source of Powerball's complaint.  Less winners means higher jackpots which attract more players.  The odds aren't any better of winning (or losing) when the jackpot grows, so I do not understand the logic of "I'll buy a ticket when the jackpot is $300M"  I guess when people like Howard Stern are signing $500 million dollar deals..$100 million a year...people start to lose perspective on what a lot of money really is.  If I got a really great job and made $100,000 a year for the next 30 years (which would make me very old!)  that would only be $3 million.  Taking inflation into consideration, let's make it $4 million!  Now imagine not having to get out of bed, deal with screaming bosses, disgruntled co-workers, miserable customers....sounds like Paradise to me.

I would like games with easier odds and minimum jackpots of $4 million cash after taxes as well, but in reality, no game would sell enough tickets to justify that. If Powerball and Mega Millions got hit every drawing, they'd be out of business, and you can't win a lottery that's out of business.

@ryanm:

I'm not so sure you are correct when you say they would be out of business.  Powerball has a minimum annuity jackpot of $15 million.  At a cash value of less than 50% that's still $7 million.  Even if you paid the maximum amount of Federal withholding (35%) and a state tax of 5% (Indiana's is 3.4%) that is a total of 40% or $2.8 million leaving a balance of $4.2 million.

And they are still generating revenue for the states at that.  If I remember correctly 29 cents of every sales dollar goes directly to the states.  (Somebody please double check me.  I didn't look it up and I may be confusing that with the Hoosier Lottery.) 

I put the question of increased odds to Powerball last year when they changed the matrix.  Here is part of their answer:

This past year we got hit more than predicted and sales dropped by $200 million...Our goal is to keep sales above $2 billion per year.  When we drop below that, states get grouchy. 

It was clear to me from their answer (which I did edit) and it is clear to me now that they can survive paying smaller jackpots.  The game is profitable at that level.  But it does not generate enough money to satisfy the insatiable appetite for cash our state legislatures have.

In short their position is (and this was actually said to me by a Powerball representative I spoke to on the phone):

Winners are bad for the game.  Too many winners keep the jackpots small and smaller jackpots mean smaller sales.

So again we're back to that obsession with record jackpots.  The game would surrive and indeed thrive if more people payed regularly instead of obsessing (and indeed only playing) when there is ahuge (or even record) jackpot.

At least that's my opinion.

Jim 

When all those jackpots were won last year, they were barely out of the "guaranteed" range. Powerball was lucky the jackpots were hit every third drawing instead of every other drawing or every drawing. While Powerball's guaranteed cash jackpots are $7.3 million, in reality, they sell only enough to fund a $4.3 million cash jackpot at that level, assuming 30.28855% of sales goes toward the jackpot. They only guarantee minimum jackpots and minimum rollovers because they don't expect those jackpots to be won at those levels that often.

All states need a lotto. 

I'm glad to her PB got off to a strong start in OK. I doubt my Okie friends played however.