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Powerball lottery madness spreads to big media

Topic closed. 80 replies. Last post 11 years ago by CASH Only.

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dvdiva's avatar - 8ball

United States
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September 17, 2003
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Posted: October 19, 2005, 1:05 am - IP Logged

The biggest scam annuity was Pepsi billions. That was the most inflated annuity I've ever seen although it never happened. I would have to agree what counts is the cold hard cash you can get at once.

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    NY
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    October 16, 2005
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    Posted: October 19, 2005, 2:04 am - IP Logged

    Todd wrote:

    >> For the millionth time, the record is not based on the cash option.
    >> Somebody help me.

    There isn't any reliable help available.  The annuity is based on the cash that's available, so that's the only legitimate basis . You and MUSL can repeat your claim as many times as you like, but it won't change the reality. When Jack Whittaker won there was $170 million dollars to give away and this time there's only $165 million. That's not a record to anyone with a wit of sense, regardless of what they do with the money before they start writing checks.

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      NY
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      Posted: October 19, 2005, 2:07 am - IP Logged

      The biggest scam annuity was Pepsi billions. That was the most inflated annuity I've ever seen although it never happened. I would have to agree what counts is the cold hard cash you can get at once.

      Excellent point. I could offer a billion dollars in exchange for a modest investment of $1000 and still put  most of the $1000 in my own pocket.Anybody who wins Powerball could also buy an annuity that would eventually pay out far more than the advertised jackpot, but there's no such thing as a free lunch. Whatever you get has to be paid for with the cash that's available.

      I'll also point out that the billion dollar prize offered by Pepsi isn't the only large payout offered but never delivered.

      Look at Powerball.  They advertised, but never paid a jackpot of $315 million dollars.  The most that was ever paid out was the $170 million pre-tax payout to Jack Whittaker. I guess that means that we've had several records since then, since several jackpots offered an annuity of more than $170 million to any winner who chose to wait long enough. Of course nobody has done that.

      When Sears  used to advertise a "sale price" that was in effect for 11 months of the year, and called the higher price offered every 12th week the regular price they got sued for false advertising. Lottery advertisements about jackpots aren't any different. The vast majority of the grand prizes are cash payments that range from about 48% (the current Powerball ratio) to 61% (about the best MM ratio) of the advertised jackpot.

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        NY
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        Posted: October 19, 2005, 2:19 am - IP Logged

        >> CNN is currently blaring headlines about the current $340 million Powerball jackpot possibly becoming the largest in history.  Their news story, posted Monday morning, states, "Wednesday's Powerball drawing could produce the largest lottery prize in history, a record jackpot of $340 million. "

           

        >> Not true.

        >> What CNN might be referring to is the record for the largest single prize ever awarded

        That's very clearly what they're referring to. That's why it says  "Wednesday drawing could produce the biggest ever lottery prize" and "pushed the potential jackpot for this week's game past the previous record".

        You're still right about them getting the story wrong, but they're hardly alone. Even if there's a single winner the jackpot isn't a record. The advertising has reached is a new Powerball record, though.

          Todd's avatar - Cylon 2.gif
          Chief Bottle Washer
          New Jersey
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          Posted: October 19, 2005, 6:38 am - IP Logged

          Roll EyesRoll EyesRoll EyesRoll EyesRoll EyesRoll EyesRoll EyesRoll EyesRoll EyesRoll EyesRoll EyesRoll Eyes

           

          Check the State Lottery Report Card
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            new delhi
            India
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            September 20, 2005
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            Posted: October 19, 2005, 7:42 am - IP Logged

            Todd will PTS be open now for any purchases for the PB today...you said till wednesday...someone just emailed me from London ...they must have tried a couple of hours ago.........

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              new delhi
              India
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              September 20, 2005
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              Posted: October 19, 2005, 7:46 am - IP Logged

              sorry..just went to PTS..get the msg loud and clear...Big Grin

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                new delhi
                India
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                September 20, 2005
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                Posted: October 19, 2005, 7:51 am - IP Logged

                GOOD MORNING...NOW GET UP YOU GUYS!!Coffee

                 

                its the big PB day!!!

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                  New Mexico
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                  March 10, 2005
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                  Posted: October 19, 2005, 7:57 am - IP Logged

                  Mawning to you shalini.

                  How's things in New Delhi?

                  J

                  Absorb the good, ignore the bad, weigh the ugly.

                  It's about number behavior.

                  Egos don't count.

                   

                  Dedicated to the memory of Big Loooser

                   

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                    new delhi
                    India
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                    Posted: October 19, 2005, 8:06 am - IP Logged

                    Hi jack...about time someone resurrected...nothing much..watched a bit of the Saddam hussein trial....BBC and CNN are airing just that and nothing else......with bits thrown in in the morning or was it yesterday about Wilma.

                     

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                      New Mexico
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                      Posted: October 19, 2005, 8:26 am - IP Logged

                      Todd wrote:

                      >> For the millionth time, the record is not based on the cash option.
                      >> Somebody help me.

                      There isn't any reliable help available.  The annuity is based on the cash that's available, so that's the only legitimate basis . You and MUSL can repeat your claim as many times as you like, but it won't change the reality. When Jack Whittaker won there was $170 million dollars to give away and this time there's only $165 million. That's not a record to anyone with a wit of sense, regardless of what they do with the money before they start writing checks.

                      When Jack Whittaker won there was $170 million dollars to give away and this time there's only $165 million. That's not a record to anyone with a wit of sense, regardless of what they do with the money before they start writing checks.

                      So, you're saying that in dollars that exist on the day of the drawing the Powerball jackpot is actually $5M smaller than the largest in the past as measured on the same yardstick.

                      Maybe you should start an ongoing thread keeping track of jackpot sizes using this yardstick.  RECORD CASH VALUE JACKPOTS, you could call it.

                      It's clear that the label, "Record Jackpots" is subject to more than one interpretation, more than one measure.  Maybe you can become the official source for the loyal opposition, for the minutia of data for prizes actually awarded at cash value.

                      Seems a worthy venture.  That sort of information should be available somewhere in a single source for newsmen hungry for some story with a different slant. 

                      Jack

                       

                      Afterthought:  After I posted this the question suddenly popped into my head.  When states publish figures concerning prizes awarded, bragging they've given out x dollars in prizes, given x in money for education, I wonder if the prize totals they're quoting are the annuity figures, notwithstanding whether the winners took the cash value.

                      I'd bet they are.  And I'll bet when they talk about the other side of the issue, the amount going to education, or into the state budget, the figures they name don't have anything to do with ballooning annuities.  They're talking about actual dollars in a bank somewhere.

                      Prima facie evidence they know the difference between real dollars and annuity dollars and they'll settle for cash value, thenk you vurrry much.

                       

                      Absorb the good, ignore the bad, weigh the ugly.

                      It's about number behavior.

                      Egos don't count.

                       

                      Dedicated to the memory of Big Loooser

                       

                        Todd's avatar - Cylon 2.gif
                        Chief Bottle Washer
                        New Jersey
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                        Posted: October 19, 2005, 8:51 am - IP Logged

                        Todd wrote:

                        >> For the millionth time, the record is not based on the cash option.
                        >> Somebody help me.

                        There isn't any reliable help available.  The annuity is based on the cash that's available, so that's the only legitimate basis . You and MUSL can repeat your claim as many times as you like, but it won't change the reality. When Jack Whittaker won there was $170 million dollars to give away and this time there's only $165 million. That's not a record to anyone with a wit of sense, regardless of what they do with the money before they start writing checks.

                        USA Mega clearly lays out what the annuity payment schedule would be, year-by-year, before and after taxes, for every state that offers that game.  Clearly, the tables show how the jackpot of $340 million would be achieved over 29 years (30 payments).

                        If you think that "no reliable help is available" then excuse me for saying that you are being intellectually dishonest, and I'm not going to be sucked into an argument with someone who is so wrapped up in their own opinions that they ignore the facts.

                         

                        Check the State Lottery Report Card
                        What grade did your lottery earn?

                         

                        Sign the Petition for True Lottery Drawings
                        Help eliminate computerized drawings!

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                          baton rouge
                          United States
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                          January 26, 2005
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                          Posted: October 19, 2005, 8:51 am - IP Logged

                          I know how you feel it!!!

                          It is Diwali in your country, could it not be a blessing  and it would be a blessing if one of your man won

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                            United States
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                            December 30, 2002
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                            Posted: October 19, 2005, 9:33 am - IP Logged

                            Powerball for Dec 25, 2002 when Jack Whittaker won:
                            Instead of taking the $314.9 million jackpot as an annuity, Whittaker opted for a single payment of $170 million. After taxes, he got $113.9 million.
                             
                            Powerball Jackpot for Wed, Oct 19, 2005:
                            $340,000,000 annuity
                            $164,400,000 cash                                                                                                                                 

                            It seems to me that Jack's was the bigger jackpot by $6 million. This is not a record jackpot - yet. You can only compare the cash used to buy the annuities, since the 2005 annuity has been fiddled with, with  balloon payments on a 30 year schedule (an Enron accountant would be proud of the chicanery), not equal payments on a 25 year schedule. 

                             

                            Roll Eyes

                            For the millionth time, the record is not based on the cash option.  Somebody help me.

                            I respectfully disagree, unless you show that the cash in this drawing would produce more money using the same annuity as in the 2002 drawing.  Obviously using the same annuity would produce more money for $170 million than $164 million.  The most you can say is that $340 million is the largest prize to date under the new 30 year balloon annuity. I would agree with that statement. 

                            With 5 more years to invest the cash, of course the 30 year will seem larger, and better for advertising purposes.  The point is sort of academic anyway - they are both enormous sums of money and the winner will take the cash.

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                              New Mexico
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                              Posted: October 19, 2005, 9:46 am - IP Logged

                              Seems to me every state ought to shoot for the pride of paying the highest salary on record to the director, or head of their lottery agency.  States ought to compete to be the ones paying the head chief kahuna more than other states. 

                              Easy enough to accomplish.  States ought to be paying their lottery director salaries based on an annuity.  Yeah, the guy only makes ten grand a year this year.  But fifty years from now he'll be in tall cotton. 

                              Give those lottery directors an opportunity to cash in on the kinds of benefits they're offering the players.  They get to say they're making a humongous salary, highest paid among the best.

                              Meanwhile, they can go along getting by on the amount they get this year by cutting corners.  The prestige of being the highest paid ought to carry them through.

                              It hangs together, all singing from the same songbook.

                              `````````````````````````````````````````````````

                              In a discussion atmosphere where one person wins 170 million before taxes, and some hypothetical person might win 165 million before taxes, but where recognizing the 165 million as a smaller amount than the 170 million is intellectual dishonesty, I'd say all bets are off.

                              The problem is they used that lottery income to teach people math and made them read George Orwell's Animal Farm.  Throws all manner of monkey wrenches into a discussion of this sort.

                              Jack

                              Absorb the good, ignore the bad, weigh the ugly.

                              It's about number behavior.

                              Egos don't count.

                               

                              Dedicated to the memory of Big Loooser