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CA screws players

Topic closed. 15 replies. Last post 11 years ago by KyMystikal.

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Bradly_60's avatar - disney37
Atlantic Mine, Michigan
United States
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June 23, 2002
1614 Posts
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Posted: July 20, 2005, 10:05 am - IP Logged

California sold over 5.3 million tickets in last nights drawings.  They only gave out $508,855 is their so called pari mutual prize structure.  That's only a 9.6% return.  How can that be.  They have to give 50% out in prizes don't they.  I am pretty sure they didn't put 40.4% of their sales into the jackpot pool.  Anyone else see this.  Anyone else with answers?  I am sure glad I don't live in California

 

Brad

    johnph77's avatar - avatar
    CA
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    Posted: July 20, 2005, 11:26 am - IP Logged

    Reserved for rollovers?

    Blessed Saint Leibowitz, keep 'em dreamin' down there..... 

    Next week's convention for Psychics and Prognosticators has been cancelled due to unforeseen circumstances.

     =^.^=

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      Morrison, IL
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      Posted: July 20, 2005, 11:33 am - IP Logged

        They probably rolled over their match 5+0 prize amount for the next drawing because they had no match 5+0 winners.  I think that's what they do because it happened before and then the drawing after they had 2 match 5+0 winners and each of them got $203,000.

        RJOh's avatar - chipmunk
        mid-Ohio
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        Posted: July 20, 2005, 11:51 am - IP Logged

        According to New York and California lottery websites, each state contribute 32% of ticket sales to the jackpot which only leave 18% of tickets sales for the other prizes if the state keep 50% for themselves.  I assume each member state does the same, but that's the cost of having that big jackpot which every body seem to want.  If the states don't take the cost of running the lottery out of their 50% then less than 18% is left for the other prizes.

        RJOh

         * you don't need to buy more tickets, just buy a winning ticket * 
           
                     Evil Looking       

          Todd's avatar - Cylon 2.gif
          Chief Bottle Washer
          New Jersey
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          Posted: July 20, 2005, 3:23 pm - IP Logged

          Right on, RJOh.

           

          Check the State Lottery Report Card
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          Sign the Petition for True Lottery Drawings
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            Posted: July 20, 2005, 3:33 pm - IP Logged

            He's right. You can't have it both ways.

            (insert signature here)


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              Posted: July 20, 2005, 5:01 pm - IP Logged

              I don't believe CA screws their players, although NY Lotto does.

                Todd's avatar - Cylon 2.gif
                Chief Bottle Washer
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                Posted: July 20, 2005, 9:05 pm - IP Logged

                I guess you'll have to update your signature and add California to the "much better than NY Lotto" list.

                 

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

                 

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

                  dvdiva's avatar - 8ball

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                  Posted: July 20, 2005, 10:37 pm - IP Logged

                  I'm just wondering how much is in these state have in reserves for second tier prizes. I doubt that Washington could cover a Mega wheel and have the prize be even 1/2 without wiping out the reserves.


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                    Posted: July 21, 2005, 12:33 am - IP Logged

                    I hope that CA stops playing MM if they win the lawsuit. Besides, they screw CA players of winning MM by paying mainly less for pari-mutuel prizes.

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                      Morrison, IL
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                      Posted: July 21, 2005, 12:38 am - IP Logged

                        California's pari-mutuel prize law was created out of greed.

                        KyMystikal's avatar - 1457224010054
                        Florence, Alabama
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                        Posted: July 21, 2005, 1:02 am - IP Logged

                        I don't see why they just don't change the law? The only way pari-mutual is any good is if you're the only winner.

                        I love doubles and remember, it's just a game!!!!!!

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                          Morrison, IL
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                          Posted: July 21, 2005, 11:35 am - IP Logged

                            That's because California is chicken.

                            RJOh's avatar - chipmunk
                            mid-Ohio
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                            Posted: July 21, 2005, 2:39 pm - IP Logged

                            I'm just wondering how much is in these state have in reserves for second tier prizes. I doubt that Washington could cover a Mega wheel and have the prize be even 1/2 without wiping out the reserves.

                            Using the odds of 5/56+1/46, I calculated the amounts a state can expect to pay out using the standard payout amounts per 176 Millons tickets sold.

                            MATCH  PLAYING ODDS    EXPECTED WINNING COMBOS  PRIZE AMOUNTS    PAY OUT          PERCENT
                            5/5+B  1 : 175711536    1                      JACKPOT            $56,227,691.52    32.0
                            5/5+0  1 : 3904701      45                      $250,000          $11,250,000.00     6.4
                            4/5+B  1 : 689065        255                    $10,000            $2,550,000.00      1.5
                            4/5+0  1 : 15313        11475                  $150              $1,721,250.00      1.0
                            3/5+B  1 : 13781        12750                  $150              $1,912,500.00      1.1
                            3/5+0  1 : 306          573750                  $7                $4,016,250.00      2.3
                            2/5+B  1 : 844          208250                  $10                $2,082,500.00      1.2
                            1/5+B  1 : 141          1249500                $3                $3,748,500.00      2.1
                            0/5+B  1 : 75            2349060                $2                $4,698,120.00      2.7

                            Total winning combinations 4,405,086  TOTAL PAYOUT $88,206,811.52 = 50.2% OF TICKETS SALES

                            The above chart shows if everything goes normal (no fortune cookies event), the states that pays out the standard amounts should only have to pay out the 50% over time.  I think they all have some kind of cap that limits their payout if the unexpected happens.

                            RJOh 

                             * you don't need to buy more tickets, just buy a winning ticket * 
                               
                                         Evil Looking       

                              johnph77's avatar - avatar
                              CA
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                              December 10, 2003
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                              Posted: July 24, 2005, 3:34 am - IP Logged

                              ryanm -

                              A pari-mutuel lottery payout system is only good if you're the person running it or taxing it. P-M takes all the risk out of a lottery and puts all the liability on the bettor. In a P-M lottery system the State cannot lose.

                              If you've ever been to a horse race and placed a bet, you've participated in a pari-mutuel gambling system. But, in any such system, the circumstances are different. You'd have trainers, jockeys and other employees to pay, animals to feed, and owners looking at the bottom line. Then there are the taxes and a profit margin for the track taken out of the betting pool. And tracks are private property, privately operated, and can charge admission fees. But a knowledgeable bettor can still profit in a pari-mutuel racing atmosphere by reading, absorbing and correctly interpreting as much information as possible - racing forms, newspapers, inside journals, all the tools available. The best can make a living from it.

                              But you can't do that in a lottery. Unless you're a proponent of that theory, past performances mean nothing. There are no training exercises and times to report. There are no newspaper columnists publicizing an upcoming lottery. No one in the newspapers will predict the outcome of a lottery, as they will in the more important horse races. And the state's cut of the lottery is a whole lot larger than their tax rate at the tracks. I'm willing to state that there are very few people earning any sort of income playing the lottery as is possible by playing the horses or dogs - unless you're selling lottery systems.

                              But I've gone off topic. California's pari-mutuel lottery payouts were mandated to transfer all of the risks associated with the lottery to the bettors. Period. The powers that be have decreed that a certain percentage of the take (gross) will be regarded as taxes and will be spent on educational projects, a certain amount will be targeted for administrative expenses of all kinds, and the remainder (a hard percentage, take note) will be expended as prizes. Even free tickets can be and are considered part of the prize pool and percentage. Even the Pick 3 in CA pays out on a pari-mutuel basis. Heck, CA doesn't care how many Pick 3 777 Straight tickets people purchase - if it hits they're still not going to pay the betting pool any more than the law allows. And if so many tickets were purchased that it means paying each bettor $10.00 for a $1.00 bet on a 777 Straight win then that's all that bettors are going to get.

                              And it's not just confined to California. Any state with a game that regularly pays out on a pari-mutuel basis takes no risk. Any state with a game that can revert to a pari-mutuel payout system under certain conditions is transferring a larger share of the risk to the bettors and keeping a larger share of the overall betting pool for itself when and if those conditions occur.

                              As you probably can deduce, I'm not a real fam of lottery pari-mutuel systems.....

                              gl

                              j

                              Blessed Saint Leibowitz, keep 'em dreamin' down there..... 

                              Next week's convention for Psychics and Prognosticators has been cancelled due to unforeseen circumstances.

                               =^.^=