The Powerball jackpot for Saturday's drawing — $200 million — has once again grown large enough to draw new or infrequent players to ticket counters.
The most popular lottery games are normally the $1 and $5 games that offer chances at prizes ranging from a few bucks to $1 million. Those are the heavy hitters for most state lotteries, generating as much as half of total sales.
The customers start to change, though, when the multi-state Powerball game starts touting jackpots approaching $200 million. A review of sales data for 2007 shows that Powerball sells better in places where people make more money.
Consider the top 10 ZIP codes in North Carolina for Powerball sales, found in urban areas in Greensboro, Charlotte, Wilmington and Raleigh. The median incomes ranged from $26,655 to $53,517.
Then consider the top 10 ZIP codes for scratch-off games, found in Rocky Mount, Lumberton, Reidsville and Morganton. The median incomes ranged from $26,655 to $40,546.
Such figures are, at best, a rough measure of who plays the lottery. Analyzing ZIP codes only shows where tickets are bought, not necessarily who's buying them. The method also doesn't necessarily account for how many stores sell lottery tickets in a given ZIP code or how many interstates or major thoroughfares run through a ZIP code. And the census data on median income is nearly 10 years old.
But the idea that big jackpot games such as Powerball sell among people who are already financially comfortable is generally true of lotteries, said Philip Cook, a Duke University professor who has studied the lottery industry.
One theory as to why, Cook said, is that it takes a lot more money to get someone who already makes a decent living to dream about instant riches.
"The game has, of course, a jackpot that is big enough to inspire excitement among people who are already comfortable," Cook said. "That's something that the instant games don't do."
Lottery players have a magic number — how much would it take to retire, Cook said.
For Mike Anthony, 31, a pharmaceutical salesman, that number was right around Wednesday's jackpot of $173 million. Anthony rarely buys lottery tickets of any kind, but he stopped by the Fiddle Stix Citgo on U.S. 64 near Interstate 540 Tuesday to buy $10 worth of Powerball tickets.
"The pot gets high enough, it's worth a shot," Anthony said.
The odds of winning the big jackpot are one in 146 million. The odds for winning top prizes in instant games are generally better, but still stacked heavily against the player.
After Anthony left, the next customers to buy tickets at the store — both are meter readers by profession — bought scratch-off tickets and said they don't play Powerball much.
But it's hard to typecast a lottery player at a store such as the Fiddle Stix, which sits on major roads and highways, and is on the way home for a lot of people.
"It's not just one type of person," said Ann Lomison, the store's manager. Usually the only absolute is that players wait until the day of the drawing to buy tickets.
The lottery doesn't study the people who play its games, said Tom Shaheen, the lottery's director. He said the lottery hasn't picked up on major trends in players, other than they are almost always employed.
In Charlotte, Dipak Desai manages the Ballantyne Amoco. When the Powerball jackpot reaches six figures, he said, the lottery clientele changes.
In August, the last time the jackpot spiked, Desai's store had the 11th highest sales in the state — $32,794.
His regular lottery players are working-class customers, clerks and delivery crews and people with tool belts. When there's a big jackpot, he said, the suits come in to play.
"When the jackpot gets bigger," Desai said, "everybody becomes a player."
I hate to admit it... but I do get very angry when joe schmoe comes in and buys one ticket (because the jackpot is "high enough now") and wins after I have been playing for years on a regular basis.
I hate to admit it... but I do get very angry when joe schmoe comes in and buys one ticket (because the jackpot is "high enough now") and wins after I have been playing for years on a regular basis.
I know, I know.... that's called gambling.
ITS a funny thing here on City Island in the Bronx..when Powerball has a higher jackpot the I95 northbound to CT and New England is bumper tp bumper on the day of the drawning..
Quote: Originally posted by gocart1 on Mar 7, 2008
ITS a funny thing here on City Island in the Bronx..when Powerball has a higher jackpot the I95 northbound to CT and New England is bumper tp bumper on the day of the drawning..
Really? I don't think I'd say that. I live in Westchester and am on 287 and I-95 all the time, there's traffic, but I don't credit it to Powerball. I don't think you see the long lines you once saw 7 or 8 years ago either. Like everyone's been saying, some people won't even play unless it hits 200 million, but to be honest, I think it would take a 400+ million dollar jackpot to see lines out doors.
Quote: Originally posted by MissNYC on Mar 7, 2008
I have a question...I'm from NY, but lets say I go to CT to buy tickets and win, do I pay CT lottery taxes, or NY?
In general, any taxable income is taxed in the state in which the income was generated. If you earn or win money in Connecticut, CT has the right to collect income tax on it, and they will (assuming they know about it). Your state of residence also has the right to tax your incoem, regardless of where it comes from. The good news is that the tax you pay to another state will be credited against the taxes you pay to other states. The bad news is that with a jackpot win your tax rate in NY would be higher than the rate in CT. That means the net effect is that you'd pay the same amount as if you only paid NY taxes, though some of the money would go to CT instead of NY. If you lived in the city, you'd also pay the NYC tax. As always, if you were to find yourself in a position where the answer really mattered it would be a good idea to consult with a tax professional
Quote: Originally posted by lmatlaw on Mar 7, 2008
Right on, KY Floyd! It boggles my mind why even $10 Million wouldn't be enough to satisfy anybody.
Sure $200 Million is incredible, but the logic of why it doesn't make sense to wager at lower levels escapes me. I'd be happy with any jackpot.
In the case of Powerball it's a minimum of $15 Million. Yeah, I could be OK with that.
The logic behind only playing for higher jackpots is really simple. The odds are exactly the same for a $15 million jackpot as they are for a $50 million, $100 million, or $500 million (if it ever gets that high) jackpot. If you aren't going to play regularly the sensible strategy would be to make your occasional plays when the jackpot is high. Even for a regular player, the sensible choice would be to concentrate your plays on higher jackpots. If you're going to spend $100 on 100 chances at a jackpot, would you rather spend it on 100 chances at $15 to $25 million, or 100 chances at $50 to $100 million?
Quote: Originally posted by KY Floyd on Mar 7, 2008
The logic behind only playing for higher jackpots is really simple. The odds are exactly the same for a $15 million jackpot as they are for a $50 million, $100 million, or $500 million (if it ever gets that high) jackpot. If you aren't going to play regularly the sensible strategy would be to make your occasional plays when the jackpot is high. Even for a regular player, the sensible choice would be to concentrate your plays on higher jackpots. If you're going to spend $100 on 100 chances at a jackpot, would you rather spend it on 100 chances at $15 to $25 million, or 100 chances at $50 to $100 million?
Regardless of the jackpot size, you CANNOT WIN if you don't play. Would you be unhappy if you only won $15 Million?
And while the odds are the same regardkless of the jackpot, there are more tickets wagered at the higher jackpots thus diminishing your chances of holding the winning ticket.
Quote: Originally posted by lmatlaw on Mar 7, 2008
Regardless of the jackpot size, you CANNOT WIN if you don't play. Would you be unhappy if you only won $15 Million?
And while the odds are the same regardkless of the jackpot, there are more tickets wagered at the higher jackpots thus diminishing your chances of holding the winning ticket.
I know I wouldn't be unhappy to win $15 million. I'd would take winning that amount in a heartbeat.
Quote: Originally posted by lmatlaw on Mar 7, 2008
Regardless of the jackpot size, you CANNOT WIN if you don't play. Would you be unhappy if you only won $15 Million?
And while the odds are the same regardkless of the jackpot, there are more tickets wagered at the higher jackpots thus diminishing your chances of holding the winning ticket.
Quote: Originally posted by lmatlaw on Mar 7, 2008
Regardless of the jackpot size, you CANNOT WIN if you don't play. Would you be unhappy if you only won $15 Million?
And while the odds are the same regardkless of the jackpot, there are more tickets wagered at the higher jackpots thus diminishing your chances of holding the winning ticket.
In general a wiser gambler pays close attention to the "expectation value" which is the ratio of potential reward to odds and risk.
Powerball only approaches casino odds when it reaches $200 million. (Right now the Powerball expectation value, adjusting for the probability of multiple winners) is about 0.86.
I usually buy a ticket when it's small, for the hell of it, but I play more when the jackpots are larger.
On a few occassions both Powerball and Megamillion have exceeded expectation values of 1, but only on the largest historical jackpots.
KY Floyd: If you aren't going to play regularly the sensible strategy would be to make your occasional plays when the jackpot is high. Even for a regular player, the sensible choice would be to concentrate your plays on higher jackpots.
I just did a thought-provoking calculation. It's based on the Pick 3, but applies to any lottery.
Your chance of winning is better if you buy 10 tickets for a single drawing than if you spend the same money buying a single ticket for each of 10 drawings. So, in terms of maximizing your money's potential, it makes more economic sense to save your money until the jackpot reaches a desired expectation value and spend it all at once.
lmatlaw: there are more tickets wagered at the higher jackpots thus diminishing your chances of holding the winning ticket.
As I think lmatlaw is saying here: this does not, however, take into account the possibility you might have to share the jackpot with someone else. As more tickets are bought, the odds of this increase. I don't know how to take this factor into account. Does anyone?
I won't play anything but blackjack or poker in a casino. I like to say I'm not a gambler. But maybe I am, just a little. Despite this analysis, I just can't imagine there being any chance to win millions and staying out of it. Just that itty-bitty chance adds so much spice to life.
Will go to at least $350 million until I hit it. I will not play again until the second prize goes up to like $2 million or whatever it is. What level does it need to get in order for that to happen? What is the record? Thought like $300 million something.
My rule for Powerball is I only play myself when it hits $100 million. My only reason for that rule is I don't want to spend too much on the lottery. The lottery pool I run at work plays every week, so I also participate through that.
Quote: Originally posted by lmatlaw on Mar 7, 2008
Regardless of the jackpot size, you CANNOT WIN if you don't play. Would you be unhappy if you only won $15 Million?
And while the odds are the same regardkless of the jackpot, there are more tickets wagered at the higher jackpots thus diminishing your chances of holding the winning ticket.
I hope you meant to say that your chances of having the only winning ticket are diminshed. That's true, but even for jackpots at or near record levels the chance of multiple winners is fairly low. For jackpots in the 50 to 150 million range the chance is much less than the chance of a single winner. Even for the recent $275 million MM jackpot there was only 1 winning ticket despite all of the numbers being birthday numbers. Even if there had been 4 winners (I think the record for MM or PB is 3) that would have been almost $69 million each. Last time I checked, that's nearly 3 times as much as what you'd get as the only winner of a $25 million jackpot.
The only thing illogical about spending your entire ticket budget on jackpots of $100 million or more is that the most likely outcome will always be that you lose more than you win.
Quote: Originally posted by PrisonerSix on Mar 8, 2008
My rule for Powerball is I only play myself when it hits $100 million. My only reason for that rule is I don't want to spend too much on the lottery. The lottery pool I run at work plays every week, so I also participate through that.
I don't think that is a bad idea. Sometimes I play when the jackpot is low and sometimes I play when it's high. It really depends on my budget for the week/month.
Quote: Originally posted by ThatScaryChick on Mar 8, 2008
I don't think that is a bad idea. Sometimes I play when the jackpot is low and sometimes I play when it's high. It really depends on my budget for the week/month.
Thank you. Since I already participate in a pool, which costs me $4 every 2 weeks/payday, I don't think it's worth it to spend more to play myself. I don't want to go overboard with it. Sometimes, I might buy a Powerball on a whim even if it's below $100 million. Sometimes I just feel lucky so I buy one, but I haven't been yet.
Quote: Originally posted by PrisonerSix on Mar 8, 2008
My rule for Powerball is I only play myself when it hits $100 million. My only reason for that rule is I don't want to spend too much on the lottery. The lottery pool I run at work plays every week, so I also participate through that.
In some ways I would rather the $15 million than $100 million or more. Then you won't see me on world news today. $15 million after a record jackpot win would be even better.
Quote: Originally posted by KY Floyd on Mar 7, 2008
"Lottery players have a magic number — how much would it take to retire, Cook said.
For Mike Anthony, 31, a pharmaceutical salesman, that number was right around Wednesday's jackpot of $173 million."
Yeah, it would be so very difficult to retire on the after-tax cash from a jackpot of only $50 million.
What makes me "angry" is that it is idiots like this who have no concept of the true value of money who win. I could retire on $1 million easily, especially in my current area.
Quote: Originally posted by sirbrad on Mar 9, 2008
What makes me "angry" is that it is idiots like this who have no concept of the true value of money who win. I could retire on $1 million easily, especially in my current area.
I agree, on could retire on a million if they aren't going to try to live like millionaires.
A million after taxes put into a standard Money Market account bringing in a measley 5% per year would still give you a yearly income of around $50,000.00 before taxe... I'd say that's enough as long as you don't live anywhere with a high standard of living. Personally I would have to put it in to the stock market where it would not only earn atleast 8% per yea, but you would also be bringing in dividends (rolled over or not)... $1million sounds real good...
I agree, on could retire on a million if they aren't going to try to live like millionaires.
I think you have to take into consideration that those wanting the maximum that is possible are thniking beyond yesterday? They might be thinking about a life of Luxury for generations to come? They might be thinking that there is more to life then sitting in the backyard and polishing their new extended-bed pickup truck. They might be thinking that with a hundred million dollars, they don't have to "retire", but can go on to become some one great, some one who can create company's, thus creating jobs for Americans who need employment. Some one who can employ parants, so their children can play around on the internet. Some one who might be thinking, gee, I could contribute a couple of million to the Make A Wish foundation, and bring joy to some one besides myself. It might be some one who wants to pay for multi-million dollar cancer care for their grannys and/or grandpa. Some one might be wanting more then $4M or $5M (after taxes) to buy more then a refrigarator or trackor with brakes. It is just possible, for those without limited imaginations, a hundred million, after taxes, would be a without limits!
Quote: Originally posted by ThatScaryChick on Mar 9, 2008
Looks like nobody won the jackpot and now it's about $230 million.
In the real world, it is NOT even close to $230 million. That is an imaginary number, dreamed up by accountants on some future interest rate 30 years from now. Also, that is a number that does not take into consideration any taxes or other burdens. It is a pie in the sky, a flash of light that brings the fish to the lure. The more light, the more fish.
Reality is almost every one, even the pig farmers who has no goals higher then a new pig pen for his piglets, will choose the cash value. BEFORE taxes that is $113.600M. Again, since those tickets have not been bought, there is no real cash. Then come the tax man, right after the kiss on the cheek and the at on the shoulder, you are down to around $80M. Remember, give to to the tax man, or give it to charity, you don't have it; some one else does. Then there is the imfamous tax advisers that will circle faster then sharks. They tell you to get tax advise. Once because you don't know what you are doing. Two, they want their percentage. They WILL get their percentage. This is not a playground for joe down the street, this is the field for the big guns. Big guns, mean big expenses.
So, no it is NOT $230, at best, it will 25% of that. That is closer to the real world.
I wasn't accounting for taxes or any of that. I was just stating what the jackpot is reported to be, which is 230 million. Of course if you take the cash option it won't be that.
Quote: Originally posted by ThatScaryChick on Mar 9, 2008
I wasn't accounting for taxes or any of that. I was just stating what the jackpot is reported to be, which is 230 million. Of course if you take the cash option it won't be that.
Ahhh. That is precisely what the Lottery Directors want you to see. They want you to see the $230M. They do not want you to even think about what the real amount will be. The diamond doesn't shine as well when it is under a spot light. One winner in 2007, did not choose the cash option, and I am convinced their poor knowledge of the English language contributed to that decision. As soon as the lottery throws the lure into the lake, I immediately cut it down to 25%. That is what I plan to win. I do not plan to win something that I know does not, and will never exist.
It is also why their $15M jackpot, that really results in $6M take home is not enough for me. I would settle for that ammount, but it is NOT my goal to win only $6M. I want, at least, a deposited amount of $40M minimum - after deductions. I have no plans for an extended-bed pickup. I will buy the car my chauffer wants to drive and has a comfortable backseat.
Quote: Originally posted by MeFirstYouLast on Mar 9, 2008
Ahhh. That is precisely what the Lottery Directors want you to see. They want you to see the $230M. They do not want you to even think about what the real amount will be. The diamond doesn't shine as well when it is under a spot light. One winner in 2007, did not choose the cash option, and I am convinced their poor knowledge of the English language contributed to that decision. As soon as the lottery throws the lure into the lake, I immediately cut it down to 25%. That is what I plan to win. I do not plan to win something that I know does not, and will never exist.
It is also why their $15M jackpot, that really results in $6M take home is not enough for me. I would settle for that ammount, but it is NOT my goal to win only $6M. I want, at least, a deposited amount of $40M minimum - after deductions. I have no plans for an extended-bed pickup. I will buy the car my chauffer wants to drive and has a comfortable backseat.
MeFirstYouLast, we're not stupid! None of us are being manipulated by the lottery. We comment on current jackpot levels using the published jackpot amount knowing full well that if we take cash that'll decrease the amount by half right off the bat. And of course we're adults who file taxes every year, so we know what the tax burden will be. WE KNOW WHAT THE REAL AMOUNT WILL BE.
Go to usamega.com, the sister site to this one, and find the game you're interested in and click on Jackpot Analysis for all the breakdowns of each jackpot if you really wanna know. Good luck!
Quote: Originally posted by LuckyLilly on Mar 9, 2008
MeFirstYouLast, we're not stupid! None of us are being manipulated by the lottery. We comment on current jackpot levels using the published jackpot amount knowing full well that if we take cash that'll decrease the amount by half right off the bat. And of course we're adults who file taxes every year, so we know what the tax burden will be. WE KNOW WHAT THE REAL AMOUNT WILL BE.
Go to usamega.com, the sister site to this one, and find the game you're interested in and click on Jackpot Analysis for all the breakdowns of each jackpot if you really wanna know. Good luck!
Thank you Lilly! I am glad someone understands what I'm saying and knows that I'm not stupid. I was just stating the published amount not the detailed amount.
I agree, on could retire on a million if they aren't going to try to live like millionaires.
Tntea and Sirbrad,
You really can retire on $1,000,000? To be truly honest, living in California I couldn't-but I could live much more comfortably, because I would then be able to put away enough for retirement but still work (at a job that i liked not one that income would force me to be tied to.) The good news is, I would only need about 4 to 5 million to not work at all. I still have a ways to go before I could even think about retiring. but no I don't need $150 or even $20 million.
God please let me prove to you that winning the lottery won't spoil me.
Quote: Originally posted by ThatScaryChick on Mar 9, 2008
Thank you Lilly! I am glad someone understands what I'm saying and knows that I'm not stupid. I was just stating the published amount not the detailed amount.
Never said you were stupid. Maybe you're self analysing too much?
What I did say was the annuity amount is a fanasty and never was and never will be. So why quote a fantasy? Maybe because it is easier to dream about a fantasy then about reality? When you're dealling in hundreds of millions, the difference is major.
All over this blog are quotes of retiring on the $10M or $15M, and people being folloish or crazy to want more. That tells me that there are a lot of people looking into the brightness and acting like deer. Or to be blunt, fish going after the lure. They see $15M and their brain does not register $6M. That is precisely why a lot of lottery winners go bankrupt. They don't deal in the real numbers, only the fantasy. When the real runs out, they are not prepared for it.
Tell your kid you are going to let them stay out of school all week, then only let them out one day. Even your kids know that 25% was not a true week. The reality is what counts, not the fantasy. Unless you are blinded by the lure!
Quote: Originally posted by MeFirstYouLast on Mar 9, 2008
Never said you were stupid. Maybe you're self analysing too much?
What I did say was the annuity amount is a fanasty and never was and never will be. So why quote a fantasy? Maybe because it is easier to dream about a fantasy then about reality? When you're dealling in hundreds of millions, the difference is major.
All over this blog are quotes of retiring on the $10M or $15M, and people being folloish or crazy to want more. That tells me that there are a lot of people looking into the brightness and acting like deer. Or to be blunt, fish going after the lure. They see $15M and their brain does not register $6M. That is precisely why a lot of lottery winners go bankrupt. They don't deal in the real numbers, only the fantasy. When the real runs out, they are not prepared for it.
Tell your kid you are going to let them stay out of school all week, then only let them out one day. Even your kids know that 25% was not a true week. The reality is what counts, not the fantasy. Unless you are blinded by the lure!
I haven't seen negativity like this in LotteryPost ever... This site is a very up beat community of folks expressing their interests, concerns, and wishes... Just an idea but you may want to take a look at this thread first (MeFirstYouLast): "Why are you here ??" - you can find it under active topics. Apologies all around if I'm off base here - Pogo
I haven't seen negativity like this in LotteryPost ever... This site is a very up beat community of folks expressing their interests, concerns, and wishes... Just an idea but you may want to take a look at this thread first (MeFirstYouLast): "Why are you here ??" - you can find it under active topics. Apologies all around if I'm off base here - Pogo
So disagreement is frowned upon? Everyone agrees with you or they don't belong?
Thats not a lottery group, that is China.
I am here because I can be. To bring diversity. To not get in line and say Baaaah whenever some one speaks holy words. I commited a crime by being negative; by pointing out that there is no annuity and never will be! Because I point out the dream planned with $15M will never be $15M! The truth is too serious, or is being corrected too serious? My thinks the ego can only handle those that agree with you.
Every one stand in a circle give love to each other. Every one agree Then, lets grab the sheets and place them over our head. It makes the mean boogy man go away! Love, love, love. Even when it is a fantasy. Have a happy life, Alice.
Quote: Originally posted by lottocalgal on Mar 9, 2008
Tntea and Sirbrad,
You really can retire on $1,000,000? To be truly honest, living in California I couldn't-but I could live much more comfortably, because I would then be able to put away enough for retirement but still work (at a job that i liked not one that income would force me to be tied to.) The good news is, I would only need about 4 to 5 million to not work at all. I still have a ways to go before I could even think about retiring. but no I don't need $150 or even $20 million.
God please let me prove to you that winning the lottery won't spoil me.
Yes one million and 5% interest I could retire EASILY and never touch the principal. $50,000 a year with the rest compounding. In PA that is A LOT of money. Of course I would prefer about $3 million and up. I don't even make $20,000 a year by choice, and I am doing great. I could make about $30,000 or more if I wanted to work more, but I prefer to enjoy life with more free time and less money. Which is why the lottery would truly be a dream come true, as it would allow me to do more work that I love and create employment opportunities for others.
I agree, on could retire on a million if they aren't going to try to live like millionaires.
The average income in my area is $10,000 to $35,000. So I would be doing pretty good. I have no need for 20 cars, boats, vacations, or a million dollar house. However I could still live VERY well, and A LOT better than I do now. $2 million and up I would be the wealthiest person in my area and with the most free time.
Even those who make about $75,000 a year are never seen outside, and their homes are completely dark after 9 pm in those wealthier areas. Get what I am saying? My home would be the only one to have lights on up until 3 am or longer.
"So, no it is NOT $230, at best, it will 25% of that. That is closer to the real world."
Maybe so, especially with inflation; even though the lottery does increase its annuity payment each year. However the lottery does pay out $230 million either way, but just doesn't like to say that 25% and more will go to the greedy IRS.
Quote: Originally posted by sirbrad on Mar 10, 2008
"So, no it is NOT $230, at best, it will 25% of that. That is closer to the real world."
Maybe so, especially with inflation; even though the lottery does increase its annuity payment each year. However the lottery does pay out $230 million either way, but just doesn't like to say that 25% and more will go to the greedy IRS.
"Taxes are what you pay to live in a civilized society."
--Not Unknown, I just don't know who said it.
Anyways if you are smart about the way you use your money, you can practically get it all back during tax season.
I hate to admit it... but I do get very angry when joe schmoe comes in and buys one ticket (because the jackpot is "high enough now") and wins after I have been playing for years on a regular basis.
I know, I know.... that's called gambling.
"Lottery players have a magic number — how much would it take to retire, Cook said.
For Mike Anthony, 31, a pharmaceutical salesman, that number was right around Wednesday's jackpot of $173 million."
Yeah, it would be so very difficult to retire on the after-tax cash from a jackpot of only $50 million.
Right on, KY Floyd! It boggles my mind why even $10 Million wouldn't be enough to satisfy anybody.
Sure $200 Million is incredible, but the logic of why it doesn't make sense to wager at lower levels escapes me. I'd be happy with any jackpot.
In the case of Powerball it's a minimum of $15 Million. Yeah, I could be OK with that.
I know. I don't understand how people feel they can't retire on jackpots unless they are higher then $150 million.
ITS a funny thing here on City Island in the Bronx..when Powerball has a higher jackpot the I95 northbound to CT and New England is bumper tp bumper on the day of the drawning..
Really? I don't think I'd say that. I live in Westchester and am on 287 and I-95 all the time, there's traffic, but I don't credit it to Powerball. I don't think you see the long lines you once saw 7 or 8 years ago either. Like everyone's been saying, some people won't even play unless it hits 200 million, but to be honest, I think it would take a 400+ million dollar jackpot to see lines out doors.
Wow 200 Million! A person can fullfill their dreams and then some. glta
I have a question...I'm from NY, but lets say I go to CT to buy tickets and win, do I pay CT lottery taxes, or NY?
In general, any taxable income is taxed in the state in which the income was generated. If you earn or win money in Connecticut, CT has the right to collect income tax on it, and they will (assuming they know about it). Your state of residence also has the right to tax your incoem, regardless of where it comes from. The good news is that the tax you pay to another state will be credited against the taxes you pay to other states. The bad news is that with a jackpot win your tax rate in NY would be higher than the rate in CT. That means the net effect is that you'd pay the same amount as if you only paid NY taxes, though some of the money would go to CT instead of NY. If you lived in the city, you'd also pay the NYC tax. As always, if you were to find yourself in a position where the answer really mattered it would be a good idea to consult with a tax professional
The logic behind only playing for higher jackpots is really simple. The odds are exactly the same for a $15 million jackpot as they are for a $50 million, $100 million, or $500 million (if it ever gets that high) jackpot. If you aren't going to play regularly the sensible strategy would be to make your occasional plays when the jackpot is high. Even for a regular player, the sensible choice would be to concentrate your plays on higher jackpots. If you're going to spend $100 on 100 chances at a jackpot, would you rather spend it on 100 chances at $15 to $25 million, or 100 chances at $50 to $100 million?
Regardless of the jackpot size, you CANNOT WIN if you don't play. Would you be unhappy if you only won $15 Million?
And while the odds are the same regardkless of the jackpot, there are more tickets wagered at the higher jackpots thus diminishing your chances of holding the winning ticket.
I know I wouldn't be unhappy to win $15 million. I'd would take winning that amount in a heartbeat.
In general a wiser gambler pays close attention to the "expectation value" which is the ratio of potential reward to odds and risk.
Powerball only approaches casino odds when it reaches $200 million. (Right now the Powerball expectation value, adjusting for the probability of multiple winners) is about 0.86.
I usually buy a ticket when it's small, for the hell of it, but I play more when the jackpots are larger.
On a few occassions both Powerball and Megamillion have exceeded expectation values of 1, but only on the largest historical jackpots.
KY Floyd: If you aren't going to play regularly the sensible strategy would be to make your occasional plays when the jackpot is high. Even for a regular player, the sensible choice would be to concentrate your plays on higher jackpots.
I just did a thought-provoking calculation. It's based on the Pick 3, but applies to any lottery.
Your chance of winning is better if you buy 10 tickets for a single drawing than if you spend the same money buying a single ticket for each of 10 drawings. So, in terms of maximizing your money's potential, it makes more economic sense to save your money until the jackpot reaches a desired expectation value and spend it all at once.
lmatlaw: there are more tickets wagered at the higher jackpots thus diminishing your chances of holding the winning ticket.
As I think lmatlaw is saying here: this does not, however, take into account the possibility you might have to share the jackpot with someone else. As more tickets are bought, the odds of this increase. I don't know how to take this factor into account. Does anyone?
I won't play anything but blackjack or poker in a casino. I like to say I'm not a gambler. But maybe I am, just a little. Despite this analysis, I just can't imagine there being any chance to win millions and staying out of it. Just that itty-bitty chance adds so much spice to life.
Will go to at least $350 million until I hit it. I will not play again until the second prize goes up to like $2 million or whatever it is. What level does it need to get in order for that to happen? What is the record? Thought like $300 million something.
My rule for Powerball is I only play myself when it hits $100 million. My only reason for that rule is I don't want to spend too much on the lottery. The lottery pool I run at work plays every week, so I also participate through that.
I hope you meant to say that your chances of having the only winning ticket are diminshed. That's true, but even for jackpots at or near record levels the chance of multiple winners is fairly low. For jackpots in the 50 to 150 million range the chance is much less than the chance of a single winner. Even for the recent $275 million MM jackpot there was only 1 winning ticket despite all of the numbers being birthday numbers. Even if there had been 4 winners (I think the record for MM or PB is 3) that would have been almost $69 million each. Last time I checked, that's nearly 3 times as much as what you'd get as the only winner of a $25 million jackpot.
The only thing illogical about spending your entire ticket budget on jackpots of $100 million or more is that the most likely outcome will always be that you lose more than you win.
I don't think that is a bad idea. Sometimes I play when the jackpot is low and sometimes I play when it's high. It really depends on my budget for the week/month.
Thank you. Since I already participate in a pool, which costs me $4 every 2 weeks/payday, I don't think it's worth it to spend more to play myself. I don't want to go overboard with it. Sometimes, I might buy a Powerball on a whim even if it's below $100 million. Sometimes I just feel lucky so I buy one, but I haven't been yet.
Todd:
What is the rule on roll-over for PowerBall? Something to do with a pervious maximum, then it only goes up a small percentage?
The best place to go for information about Powerball — including that question — is USA Mega.
That question is answered on the Powerball FAQ page there. You'll see it if you scroll to the bottom. (Plus check out the other info!)
While continuing to be educated ... when will that magic maximum number be reached?
Just win it Mylollipop, just win it!
In some ways I would rather the $15 million than $100 million or more. Then you won't see me on world news today. $15 million after a record jackpot win would be even better.
What makes me "angry" is that it is idiots like this who have no concept of the true value of money who win. I could retire on $1 million easily, especially in my current area.
I could retire on less than $150 million easily.
I agree, on could retire on a million if they aren't going to try to live like millionaires.
A million after taxes put into a standard Money Market account bringing in a measley 5% per year would still give you a yearly income of around $50,000.00 before taxe... I'd say that's enough as long as you don't live anywhere with a high standard of living. Personally I would have to put it in to the stock market where it would not only earn atleast 8% per yea, but you would also be bringing in dividends (rolled over or not)... $1million sounds real good...
Looks like nobody won the jackpot and now it's about $230 million.
I think you have to take into consideration that those wanting the maximum that is possible are thniking beyond yesterday? They might be thinking about a life of Luxury for generations to come? They might be thinking that there is more to life then sitting in the backyard and polishing their new extended-bed pickup truck. They might be thinking that with a hundred million dollars, they don't have to "retire", but can go on to become some one great, some one who can create company's, thus creating jobs for Americans who need employment. Some one who can employ parants, so their children can play around on the internet. Some one who might be thinking, gee, I could contribute a couple of million to the Make A Wish foundation, and bring joy to some one besides myself. It might be some one who wants to pay for multi-million dollar cancer care for their grannys and/or grandpa. Some one might be wanting more then $4M or $5M (after taxes) to buy more then a refrigarator or trackor with brakes. It is just possible, for those without limited imaginations, a hundred million, after taxes, would be a without limits!
In the real world, it is NOT even close to $230 million. That is an imaginary number, dreamed up by accountants on some future interest rate 30 years from now. Also, that is a number that does not take into consideration any taxes or other burdens. It is a pie in the sky, a flash of light that brings the fish to the lure. The more light, the more fish.
Reality is almost every one, even the pig farmers who has no goals higher then a new pig pen for his piglets, will choose the cash value. BEFORE taxes that is $113.600M. Again, since those tickets have not been bought, there is no real cash. Then come the tax man, right after the kiss on the cheek and the at on the shoulder, you are down to around $80M. Remember, give to to the tax man, or give it to charity, you don't have it; some one else does. Then there is the imfamous tax advisers that will circle faster then sharks. They tell you to get tax advise. Once because you don't know what you are doing. Two, they want their percentage. They WILL get their percentage. This is not a playground for joe down the street, this is the field for the big guns. Big guns, mean big expenses.
So, no it is NOT $230, at best, it will 25% of that. That is closer to the real world.
I wasn't accounting for taxes or any of that. I was just stating what the jackpot is reported to be, which is 230 million. Of course if you take the cash option it won't be that.
Ahhh. That is precisely what the Lottery Directors want you to see. They want you to see the $230M. They do not want you to even think about what the real amount will be. The diamond doesn't shine as well when it is under a spot light. One winner in 2007, did not choose the cash option, and I am convinced their poor knowledge of the English language contributed to that decision. As soon as the lottery throws the lure into the lake, I immediately cut it down to 25%. That is what I plan to win. I do not plan to win something that I know does not, and will never exist.
It is also why their $15M jackpot, that really results in $6M take home is not enough for me. I would settle for that ammount, but it is NOT my goal to win only $6M. I want, at least, a deposited amount of $40M minimum - after deductions. I have no plans for an extended-bed pickup. I will buy the car my chauffer wants to drive and has a comfortable backseat.
MeFirstYouLast, we're not stupid! None of us are being manipulated by the lottery. We comment on current jackpot levels using the published jackpot amount knowing full well that if we take cash that'll decrease the amount by half right off the bat. And of course we're adults who file taxes every year, so we know what the tax burden will be. WE KNOW WHAT THE REAL AMOUNT WILL BE.
Go to usamega.com, the sister site to this one, and find the game you're interested in and click on Jackpot Analysis for all the breakdowns of each jackpot if you really wanna know. Good luck!
Thank you Lilly! I am glad someone understands what I'm saying and knows that I'm not stupid.
I was just stating the published amount not the detailed amount.
Tntea and Sirbrad,
You really can retire on $1,000,000? To be truly honest, living in California I couldn't-but I could live much more comfortably, because I would then be able to put away enough for retirement but still work (at a job that i liked not one that income would force me to be tied to.) The good news is, I would only need about 4 to 5 million to not work at all. I still have a ways to go before I could even think about retiring. but no I don't need $150 or even $20 million.
God please let me prove to you that winning the lottery won't spoil me.
Never said you were stupid. Maybe you're self analysing too much?
What I did say was the annuity amount is a fanasty and never was and never will be. So why quote a fantasy? Maybe because it is easier to dream about a fantasy then about reality? When you're dealling in hundreds of millions, the difference is major.
All over this blog are quotes of retiring on the $10M or $15M, and people being folloish or crazy to want more. That tells me that there are a lot of people looking into the brightness and acting like deer. Or to be blunt, fish going after the lure. They see $15M and their brain does not register $6M. That is precisely why a lot of lottery winners go bankrupt. They don't deal in the real numbers, only the fantasy. When the real runs out, they are not prepared for it.
Tell your kid you are going to let them stay out of school all week, then only let them out one day. Even your kids know that 25% was not a true week. The reality is what counts, not the fantasy. Unless you are blinded by the lure!
Self analysing? Whatever. Judging by your posts, you take things too seriously and are a downer. I'm done.
I haven't seen negativity like this in LotteryPost ever... This site is a very up beat community of folks expressing their interests, concerns, and wishes... Just an idea but you may want to take a look at this thread first (MeFirstYouLast): "Why are you here ??" - you can find it under active topics. Apologies all around if I'm off base here - Pogo
So disagreement is frowned upon? Everyone agrees with you or they don't belong?
Thats not a lottery group, that is China.
I am here because I can be. To bring diversity. To not get in line and say Baaaah whenever some one speaks holy words. I commited a crime by being negative; by pointing out that there is no annuity and never will be! Because I point out the dream planned with $15M will never be $15M! The truth is too serious, or is being corrected too serious? My thinks the ego can only handle those that agree with you.
Every one stand in a circle give love to each other. Every one agree Then, lets grab the sheets and place them over our head. It makes the mean boogy man go away! Love, love, love. Even when it is a fantasy. Have a happy life, Alice.
Of course nobody won, I didnt play on Saturday. When I play then I will win, I'm just takin it easy now, waitin for record levels.
"Gee Brain, what do you want to do tonight?"
"The same thing we do every night, Pinky—Try to take over the world."
Yes one million and 5% interest I could retire EASILY and never touch the principal. $50,000 a year with the rest compounding. In PA that is A LOT of money. Of course I would prefer about $3 million and up. I don't even make $20,000 a year by choice, and I am doing great. I could make about $30,000 or more if I wanted to work more, but I prefer to enjoy life with more free time and less money. Which is why the lottery would truly be a dream come true, as it would allow me to do more work that I love and create employment opportunities for others.
The average income in my area is $10,000 to $35,000. So I would be doing pretty good. I have no need for 20 cars, boats, vacations, or a million dollar house. However I could still live VERY well, and A LOT better than I do now. $2 million and up I would be the wealthiest person in my area and with the most free time.
Even those who make about $75,000 a year are never seen outside, and their homes are completely dark after 9 pm in those wealthier areas. Get what I am saying? My home would be the only one to have lights on up until 3 am or longer.
"So, no it is NOT $230, at best, it will 25% of that. That is closer to the real world."
Maybe so, especially with inflation; even though the lottery does increase its annuity payment each year. However the lottery does pay out $230 million either way, but just doesn't like to say that 25% and more will go to the greedy IRS.
"Taxes are what you pay to live in a civilized society."
--Not Unknown, I just don't know who said it.
Anyways if you are smart about the way you use your money, you can practically get it all back during tax season.