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Something stinks with Powerball

Topic closed. 33 replies. Last post 7 years ago by spy153.

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United States
Member #63763
August 7, 2008
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Posted: July 1, 2009, 7:14 pm - IP Logged

The only thing that stinks about Powerball is that I can't win a darn thing from it!

Obviously, you meant that in jest.  But here is the heart of the
matter:  Did you ever have a chance at all?  Or was even that an
illusion?  If the integrity of the drawing is compromised, then
you never had a chance, not in the slightest.


    United States
    Member #58528
    February 18, 2008
    710 Posts
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    Posted: July 1, 2009, 7:18 pm - IP Logged

    I read the text that you cut and pasted presumably from the
    Powerball website.  It gives a flimsy excuse about rising interest
    rates and inflation, and how that accounts for the greater difference
    between the annuitized prize and the cash option.
    It don't make no sense.  The interest rate and inflation is the
    same for Megamillions and all the other major state lotteries
    as it is for Powerball.  And yet, Powerball chooses to announce
    their jackpot amount in a way that makes their jackpot seem
    relatively 33% larger than the other lotteries.  It's deceptive
    advertising, plain and simple.  They need to appoint a lottery czar
    to look into this.

    Maybe you should contact the Powerball lottery about this issue.Maybe they will change their operation to suit your ideas of how they should operate.

      dopey7719's avatar - Lottery-049.jpg
      Midlands, SC
      United States
      Member #69698
      January 14, 2009
      303 Posts
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      Posted: July 1, 2009, 7:20 pm - IP Logged

      Obviously, you meant that in jest.  But here is the heart of the
      matter:  Did you ever have a chance at all?  Or was even that an
      illusion?  If the integrity of the drawing is compromised, then
      you never had a chance, not in the slightest.

      Wow....it's crossed my mind that something isn't right...but you've detailed it out.  You should email them, or send a letter or something.  Start a petition and I'll sign it.  It really makes my blood boil to think that I've never had a chance at all.


        United States
        Member #63763
        August 7, 2008
        40 Posts
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        Posted: July 1, 2009, 7:25 pm - IP Logged

        Maybe you should contact the Powerball lottery about this issue.Maybe they will change their operation to suit your ideas of how they should operate.

        No, but how about they appoint a House subcommittee to investigate?
        How about sweeping regulations affecting lotteries?
        You'll recall that Sanford the billionaire banker's recent downfall
        was instigated by a blog entry.  If these series of posts brings about
        the winds of change needed to stoke the fires needed to weed out
        corruption in the industry, let it be.  Let it be.


          United States
          Member #58528
          February 18, 2008
          710 Posts
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          Posted: July 1, 2009, 7:32 pm - IP Logged

          No, but how about they appoint a House subcommittee to investigate?
          How about sweeping regulations affecting lotteries?
          You'll recall that Sanford the billionaire banker's recent downfall
          was instigated by a blog entry.  If these series of posts brings about
          the winds of change needed to stoke the fires needed to weed out
          corruption in the industry, let it be.  Let it be.

          What a dumb idea!Haven't you ever noticed that anytime the US government gets involved in anything that the problem gets worse,not better?Its always been this way & always will be this way.

          The only Sanford that I ever heard of was an old black junkman on tv.


            United States
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            August 7, 2008
            40 Posts
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            Posted: July 1, 2009, 7:33 pm - IP Logged

            Wow....it's crossed my mind that something isn't right...but you've detailed it out.  You should email them, or send a letter or something.  Start a petition and I'll sign it.  It really makes my blood boil to think that I've never had a chance at all.

            Doesn't it?  Don't your insides just roil thinking about it?
            But I've said my piece.  Let other carry this fight over,
            which will be the hard part.  It's always 10% inspiration
            and 90% perspiration.


              United States
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              August 7, 2008
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              Posted: July 1, 2009, 7:38 pm - IP Logged

              What a dumb idea!Haven't you ever noticed that anytime the US government gets involved in anything that the problem gets worse,not better?Its always been this way & always will be this way.

              The only Sanford that I ever heard of was an old black junkman on tv.

              Whatever it takes to weed out the bad apples.

                Todd's avatar - Cylon 2.gif
                Chief Bottle Washer
                New Jersey
                United States
                Member #1
                May 31, 2000
                23260 Posts
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                Posted: July 1, 2009, 7:42 pm - IP Logged

                <Moved to Jackpot Games forum>

                Please post in the appropriate forum ... thank you.

                  rcbbuckeye's avatar - Lottery-043.jpg
                  Texas
                  United States
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                  October 23, 2007
                  5591 Posts
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                  Posted: July 1, 2009, 8:09 pm - IP Logged

                  Obviously, you meant that in jest.  But here is the heart of the
                  matter:  Did you ever have a chance at all?  Or was even that an
                  illusion?  If the integrity of the drawing is compromised, then
                  you never had a chance, not in the slightest.

                  Sooooooo,

                  Neal Wanles never had the slightest chance? I just don't believe they are cheating on these games, they don't have to. Look at the odds.

                  Look, I have also wondered why the difference between cash and annuity was different between PB and MM. But, if I win either one, I'm really not going to care too much because it's enough money to last me the rest of my life.

                  I work with a guy who every Tues and Fri asks me how much MM is up to. My answer everytime is I'm not sure and I don't care. All I know is that I won't sell another stick of furniture.

                  If you have that much distrust, why even bother to play?

                    Coin Toss's avatar - shape barbed.jpg
                    Zeta Reticuli Star System
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                    January 17, 2006
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                    Posted: July 1, 2009, 11:45 pm - IP Logged

                    tookabath

                    The only duce cap and confusion is yours for believing the advertised amount exists. 

                    Told ya, each game has its own formula.

                    As has been mentioned in this thread, you're in a MM state so what do you care?

                    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.

                      DC81's avatar - batman39
                      MI
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                      August 31, 2007
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                      Posted: July 2, 2009, 4:36 am - IP Logged

                      Complaining about this is silly. Powerball is paid over 30 years, MegaMillions over 25 years so of course MM has to put in more money into the front end to get to those advertised jackpots. Both annuities are from Treasury Bonds I believe and I'm not even going into how the annuity and especially the cash option is affected by T-Bill rates.

                      Powerball has less overall potential players (but A LOT MORE states and other places that would want their cut) than MM but now with even worse odds and like I said, Powerball's annuity is for 30 years which helps it get higher advertised jackpots than MM, last time they were at comparable amounts which is recently, it took PB one less roll to roughly get where MM is now. IF PB changed to 25 years also then the jackpots would be similar but then PB would probably end up dropping the initial advertised jackpot to make up for it or it would rise a bit slower and the cash option would probably drop right along with it since none of the states involved participate in this game just to break even or just for the tax revenue a winner MIGHT generate, the odds the winner being in your state is a lot lower than MM also even before you get to the game odds.. 30 states, the District of Columbia and the Virgin Islands compared to 12 states that make up Mega Millions. Yeah, there's good reason why PB's annuity is on a longer term and the lump sum is lower, on top of both of those things going hand in hand.

                      It's almost 4:30am and this probably doesn't make sense but whatever. Hopefully some point has been made.

                      You can't predict random.


                        United States
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                        December 12, 2004
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                        Posted: July 2, 2009, 10:09 am - IP Logged

                        it seems pennsylvania wins most of the 5 of 5 jackpots.we are educating everyone highly with our taxes,and some of them become crooks into whatever financial area they can exploit,banks,lotteries,governments,etc..remember it's not money that is a sin,but the love of money.


                          United States
                          Member #58528
                          February 18, 2008
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                          Posted: July 2, 2009, 10:23 am - IP Logged

                          it seems pennsylvania wins most of the 5 of 5 jackpots.we are educating everyone highly with our taxes,and some of them become crooks into whatever financial area they can exploit,banks,lotteries,governments,etc..remember it's not money that is a sin,but the love of money.

                          Call me a sinner because I LOVE money!


                            United States
                            Member #9579
                            December 12, 2004
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                            Posted: July 2, 2009, 10:45 am - IP Logged

                            yeah,i saw that on a jeopardy question last night,quoted from the bible i think.

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                              NY
                              United States
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                              October 16, 2005
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                              Posted: July 2, 2009, 11:47 am - IP Logged

                              Allow me to alleviate your state of confusion by showing you
                              two recent real-life examples:

                              Last month:

                              1.  When Neal Wanless, that kid from SD, won the Powerball $232M
                              jackpot, he received "a one-time cash prize of $118 million".

                              Four months ago:

                              2.  When the group of Chubb insurance employees won the Megamillions
                              $216M jackpot they got the "cash option of $137 million".

                              Both of the cash amounts above are lump-sum (non-anuity), pre-tax.
                              Now do the math:

                              Powerball:

                              $118M divided by $232M = 50.9%

                              Megamillions:

                              $137M divided by $216M = 63.4%


                              The Megamillions winner got $19M more than the Powerball winner
                              despite the announced jackpot for the Powerball drawing being
                              $16M more than that of the Megamillions drawing.

                              Have I spelled it out sufficiently for you?
                              Now go put on a dunce cap and sit in your corner.

                              Have you sent him the dunce cap yet, or is it permanently attached to your head? For anyone with a clue the information was all in Coin Toss' explanation but since that wasn't enough for you, I'll try to spell it out even more thoroughly.

                              Different lotteries pay their annuities on different schedules. Annuities earn interest. That means that how much the annuity pays is related to the interest rate, and how long the annuity earns interest. At the same interest rate an annuity that is paid out more slowly will earn more interest, so the total payments will  be higher. At different interest rates annuities with the same payment schedule will earn different amounts of interest.

                              Pay special attention to this part, because you clearly didn't understand the first time, when it was explained clearly in Mad Mike's post: the powerball annuity makes smaller payments in the beginning,  and larger payments later on. That means that as payments are made there's more money still earning interest, which means that more interest is earned. How much interest is earned depends on how much cash is invested, and at what interest rate.

                              Here's something that wasn't explained in previous posts, and requires some knowledge (or at least intelligence) on the part of the reader to figure out. Interest rates change over time, and when a company offers to pay an annuity they have to guess whatfuture rates will be, and how much money they can earn with the cash used to fund the annuity. Since the PB amd MM annuities have diferent payment schedules you're completely wrong in thinking that interest rates are the same for both of them. Assuming the dunce cap hasn't slid down over your eyes, you can easily see the same thing by looking at  rates for CD's at your local bank.

                              I do agree that advertising the annuity value is deceptive, since allprizes are determined by the amount of cash that is available forpaying prizes.