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50 cents on the dollar paid back in winnings

Topic closed. 3 replies. Last post 7 years ago by johnph77.

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Connecticut
United States
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December 12, 2009
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Posted: January 24, 2010, 5:20 pm - IP Logged

Do all the lottery games pretty much pay back 50 cents for each dollar taken in?

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    Zeta Reticuli Star System
    United States
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    January 17, 2006
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    Posted: January 24, 2010, 6:25 pm - IP Logged

    If you're getting 50 cents on the dollar from comparing cash option to annuity, that's not how it works.

    There was a thread about this once and the way it works is the advertised amount does not exist. That amount is what the annuity would pay over a specified number of years.

    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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      NY
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      October 16, 2005
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      Posted: January 24, 2010, 7:28 pm - IP Logged

      I'm pretty sure the question is clearly asking about what percentage of the ticket cost goes back to players as prizes. About 50% has been fairly standard, though some games pay a bit more.

      That's a convenient statistic, and I'll often say that your long term results will probably be losing half of your money, but that's an optimistic simplification. Smaller jackpot games may vary, but while PB and MM  put about 50 cents on the dollar into the prize pool, almost 40 cents on the dollar goes towards the jackpotand the 2nd place prize. That leaves about 10 cents on the dollar for prizes with odds that aren't high enough that even over a lifetime there's only an extremely slim chance of winning. For many games the exceedingly likely result hapening to most players is that they lose 90% of the money they bet.

        johnph77's avatar - avatar
        CA
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        December 10, 2003
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        Posted: January 25, 2010, 1:59 pm - IP Logged

        Pretty much so, except for the aforementioned jackpot games, which are less. Pick 3, Pick 4 and other fixed-amount games are generally geared for 50% payout percentages. Some jurisdictions up that to 60%. Rule of thumb is that 50% of wagers are returned to the players, 15% cover the cost of running the game and 35% goes to the jurisdictions as profit.

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

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

         =^.^=