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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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WilliamJohns's avatar - Trek HAND3.gif
United States
Member #83649
December 12, 2009
27 Posts
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?

    Coin Toss's avatar - shape barbed.jpg
    Zeta Reticuli Star System
    United States
    Member #30470
    January 17, 2006
    10392 Posts
    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.


    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.

      United States
      Member #23835
      October 16, 2005
      3501 Posts
      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
        United States
        Member #2987
        December 10, 2003
        832 Posts
        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.