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Are Lotteries Required to pay out 80% or more ?

Topic closed. 9 replies. Last post 9 years ago by Coin Toss.

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lotterybraker's avatar - pyramid
mississippi
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Posted: September 3, 2007, 4:09 pm - IP Logged

I may be wrong but I believe Casinos are required by law to pay out above 80 % of what they take in..is that correct..does anyone know that for sure..if it is true..are lotteries required to pay out a certain percentage of what they take in..and if not why arent they..

"Attention all Mathematicians: Check your degree at the door because when it comes to whole numbers you are the Amateur"

    Coin Toss's avatar - shape barbed.jpg
    Zeta Reticuli Star System
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    Posted: September 3, 2007, 6:17 pm - IP Logged

    When you see a sign that says "Our $1 slots pay 97.4%" that means that of every $1000 that goes into a $1 slot in that casino, 974 are paid back out. Don't forget, that's over the long haul- that same slot may not pay a jackpot for days and then pay all day long the next day- over the loing run it will prove to be 97.4% or whatever it is set at. 

    Each state with casinos has their own standard, but yes, they must pay out a certain amount. I think the lowest legal one is somewhere around 80%. (Another reason not to play in illegal joints.)

    In Nevada, when new slots or table games are introduced, they have to be apporved by the Nevada Gaming Commission, and can only have so much of an advantage for the house. They are put in varying casinos for a 90 day trial run, as a marketing and perfomance test.

    There was a progressive slot network set up that included several bars- those machines were all programmed never to hit the jackpot- but this was a bunch of bars, not casinos. No casino is going to risk its license to pull such a stunt. 

    In Vegas, royals on 25 cent vido poker pay $1199 so it's not taxed- when the river boats first opened, the same royal paid a lot less than $1199, baiscally just because the river boats figured they could get it on and the players weren't as "street wise". But then a lot of players who had been to Vgas started asking why they were getting shorted when they hit a royal.

    Don't forget, when these boats first opened, people were standing in line and buying boarding passes to go on a boat to gamble. Incredible - casinos charging admission. People should have refused to pay admission fees, but the casinos knew how bad those people wanted to play, and they had the only game in town.

    That percetnage is for slots only, no such rule could ever be set for table games - there's an expectation of what the game should hold, and life gets a little tough for the dealers if it doesn't, but there's no requirement that anytable game has to pay out so much.

    As for lotteries, I'm not sure but I don't think there's any such requirement for them, either - too many unknowns- how many will play, will a jackpot rollover or not, how many lower tier prizes will be paid, etc....

    On scratcher tickets it gives you the odds of winning anything at all,  so maybe there is some kind of standard for them (although most players would say baloney to that!).

    As for the number games, jackpot games, considering that when the lottery wants to expand a matrix they just go ahead and do it, I'd say there's no set pay out minimum.

    Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

    Lep

    There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

      lotterybraker's avatar - pyramid
      mississippi
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      Posted: September 3, 2007, 6:54 pm - IP Logged

      Thanks Coin Toss..I live a good Hours Drive from as many Casinos as I would like to go to in one nite..lol..but I dont go that often..when I go I like to play poker at a table..7 card stud..and shoot a little craps which I am not good at but love the game..

      "Attention all Mathematicians: Check your degree at the door because when it comes to whole numbers you are the Amateur"

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        Posted: September 3, 2007, 7:04 pm - IP Logged

        Most lotteries nowadays are required to pay at least 40-50% of sales. And no state pays any more than 80%.

        (insert signature here)

          CCHS13's avatar - chi jpeg.jpg
          Illinois
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          Posted: September 3, 2007, 11:19 pm - IP Logged

          Appreciate the info Coin Toss. Who would you say makes more, State Lottery's or Casinos?

          I know the state keeps their overhead way down

          And JimmySand9 over in Spain, El Gordo may be close to that 80%, from what I hear

          Men Lie Women Lie Numbers Dont

            Coin Toss's avatar - shape barbed.jpg
            Zeta Reticuli Star System
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            Posted: September 3, 2007, 11:58 pm - IP Logged

            Appreciate the info Coin Toss. Who would you say makes more, State Lottery's or Casinos?

            I know the state keeps their overhead way down

            And JimmySand9 over in Spain, El Gordo may be close to that 80%, from what I hear

            CCHS

            Just a pure guess, but I'd say casinos. More variety, more games, and a much greater expectation of winning something from the player's standpoint.

            In Vegas (or any casino town) a night out just may "pay for itself", there's always the chance of coming home with more than you spent (if you win AND you're smart enough to walk).

            With lottery it's watch the draw or however you get the results and all too often, "Oh well, another lotto "success",  try again next time."

            Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

            Lep

            There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

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              Kentucky
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              Posted: September 4, 2007, 12:07 am - IP Logged

              I may be wrong but I believe Casinos are required by law to pay out above 80 % of what they take in..is that correct..does anyone know that for sure..if it is true..are lotteries required to pay out a certain percentage of what they take in..and if not why arent they..

              Most state lotteries have financial reports on their websites and some break down the win percentage for each game. In Ohio for the fiscal year of 2006, the online games payoff percentage was 49.4%, the payoffs for scratch-offs were 66.2%, and all games included was 59%. The odds in Pick-3 are 1000 to 1 and the payoffs are $500 for $1 so the payoff percentage on one bet would be slightly less than 50%.

              "are lotteries required to pay out a certain percentage of what they take in"

              There might be exceptions in states that have pari-mutual payoffs, but in states with fixed payoffs, the payoff percentage would fluctulate because players pick their numbers and more money will be wagered on some combinations. It's possible a state could lose money if they had savvy Pick-3 players, but if that happened they might consider changing to a RNG draw and hitting the "U" key on the computer.

                computerhead723's avatar - lightbulb
                Buffalo
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                Posted: September 4, 2007, 2:51 am - IP Logged

                Most state lotteries have financial reports on their websites and some break down the win percentage for each game. In Ohio for the fiscal year of 2006, the online games payoff percentage was 49.4%, the payoffs for scratch-offs were 66.2%, and all games included was 59%. The odds in Pick-3 are 1000 to 1 and the payoffs are $500 for $1 so the payoff percentage on one bet would be slightly less than 50%.

                "are lotteries required to pay out a certain percentage of what they take in"

                There might be exceptions in states that have pari-mutual payoffs, but in states with fixed payoffs, the payoff percentage would fluctulate because players pick their numbers and more money will be wagered on some combinations. It's possible a state could lose money if they had savvy Pick-3 players, but if that happened they might consider changing to a RNG draw and hitting the "U" key on the computer.

                you  may  be  correct  but  I  know  not  one  person  so  far  this  year  I  know-of  has  hit  the  NY  pick-10 ....and  less  than  5  in  a   5yr. period  has  ever  hit  all  ten  /....somewhere  it  is  written  into  state  law  (and  well  hidden  that  scratch-offs  are  paid  with  75% loss ) that  means  75% of  all  tickets  are  a  loss and  25% winners ...

                (.heck  the  lottery  here  is  almost  a  $$ billion  a  day  state  wide  incuding  pick 3  and  4 -2x  a  day   and   video  gamming 7  days  a  week    and 40-  instant ticket -games are  on   sale  at  over  10,000 retail  stores !!!!  )who  can  keep  track  I  just  know  it  is  not  easy  to  win.....  if    ever.......... Dupe Alert

                  SirMetro's avatar - center
                  East of Atlanta
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                  Posted: September 4, 2007, 12:55 pm - IP Logged

                  The pay-outs are as defined by EACH Lottery's Charter

                  Same applies to Casino's as well as to the various machines.

                  For the more savy, when in Vegas, one may want to check out the Stratosphere where a few of the machines are tagged for payouts of 110% (at least per the Travel Channel). You will not find many machines like that, but those who hunt around, you can find a few decent deals.

                  For the facts, you have to look at the Charter that is on file for each state you are interested in. And you will have to look at EACH Charter for Each game your interested in playing.

                  People complain about the payouts and so forth, but they forget the sole purpose of EVERY State operated Lottery is to GENERATE more FUNDS for the State. The intent is to make the State wealthy, not the individual. If you believe anything other then that, your fooling yourself. The Lottery is NOT a charity. It never was ment to be a charity. Nor was it designed to make any one individual wealthy, that occurs thru shear luck, nothing more. 

                  Also the reason the States love the Lotteries is it gives total control to the State, unlike online casinos and gaming sites. And for those who have disdain for their elected officials, just keep this in mind. For each and every $1 (dollar) you spend on a State Run Lottery Product, your giving those same Politicians you dislike as much as $0.55 per dollar for them to waste/spend (depending upon the Game).

                    Coin Toss's avatar - shape barbed.jpg
                    Zeta Reticuli Star System
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                    Posted: September 4, 2007, 10:17 pm - IP Logged

                    Just a sidenote about The Stratosphere-  it's in a section of town between Fremont St (downtown Vegas) and the north end of the Strip (Shara) that the Vegas cops call Combat Alley and the Naked City. 

                    Be very careful in that area, especially at night.  

                    Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                    Lep

                    There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.