Welcome Guest
Log In | Register )
You last visited December 9, 2016, 4:13 pm
All times shown are
Eastern Time (GMT-5:00)

Return on Investment

Topic closed. 14 replies. Last post 5 years ago by Scratch-King.

Page 1 of 1
PrintE-mailLink
Avatar
NY
United States
Member #103217
December 31, 2010
96 Posts
Offline
Posted: August 26, 2011, 10:07 pm - IP Logged

I have read this somewhere and I want forum members to corroborate whether this understanding correct or not. In case of Scratch off lottery, 65% of the collection is paid out in terms of prizes. In case of draw type of lottery, it is around 40%. Which means chances of winning at least some amount with scratch off is better.

 

The only draw back of scratch lottery is you may be buying tickets with the hope of hitting jackpot(top prize) when the jackpot ticket might have been sold out but it has not been cashed out yet. Remember sometimes winners don't claim their prize anywhere from weeks to months. Other times retailer may still be selling tickets when it is called off, also there could be a week's lag from the time, winner coms forward to the time lottery updates their website. The other drawback of scratcher is payment in installments over long period of time which will reduce the value of dollar.

    redhot7's avatar - SetforLifeLogo
    California
    United States
    Member #112364
    June 17, 2011
    661 Posts
    Offline
    Posted: August 26, 2011, 10:34 pm - IP Logged

    In my experience, I got around 76% of my money back from scratch off. With lotto, I got less than 4%.

    Having said that, there is no difference with how the lottery pays scratch off or lotto prize for the same amount of dollars. Most scratch off prizes are less than 1 million dollars. Under most circumstances, prizes under 1 million dollars, either from scratch off or lotto, are paid in one lump sum.

      B$Rizzle's avatar - a4leds
      The Ville, FL
      United States
      Member #95879
      August 19, 2010
      1708 Posts
      Offline
      Posted: August 26, 2011, 10:42 pm - IP Logged

      I have read this somewhere and I want forum members to corroborate whether this understanding correct or not. In case of Scratch off lottery, 65% of the collection is paid out in terms of prizes. In case of draw type of lottery, it is around 40%. Which means chances of winning at least some amount with scratch off is better.

       

      The only draw back of scratch lottery is you may be buying tickets with the hope of hitting jackpot(top prize) when the jackpot ticket might have been sold out but it has not been cashed out yet. Remember sometimes winners don't claim their prize anywhere from weeks to months. Other times retailer may still be selling tickets when it is called off, also there could be a week's lag from the time, winner coms forward to the time lottery updates their website. The other drawback of scratcher is payment in installments over long period of time which will reduce the value of dollar.

      Keep in mind that most states have the "Top Prizes remaining" on their websites. Its always good to check this before buying scratchers. I do not play games with only one Top Prize remaining, simply because it may have already been sold

        Avatar
        NY
        United States
        Member #103217
        December 31, 2010
        96 Posts
        Offline
        Posted: August 27, 2011, 9:49 am - IP Logged

        Having said that, there is no difference with how the lottery pays scratch off or lotto prize for the same amount of dollars

         

        Did you mean to say that 65% of the money is distributed in prizes regardless of whether it is scratch off or regular lotto?

          Wooddrive's avatar - Lottery-046.jpg
          Delco PA
          United States
          Member #80104
          September 16, 2009
          194 Posts
          Offline
          Posted: August 27, 2011, 10:09 am - IP Logged

          my belief is that scratchers have better percentage and good for a few dollars ( instant gratification). the reality of it is that if your not in the right place, you're never gonna win the jackpot. there might be 5 grand prizes left in the game but if the packs are being sent across the state ( who knows, random) you have zero chance of hitting. 

          on the other hand, online games like powerball, odds= lol. 3,4 picks are where you might be able to make money by  reducing numbers and playing heavy on a straight number, imho. good luck!

            Todd's avatar - Cylon 2.gif
            Chief Bottle Washer
            New Jersey
            United States
            Member #1
            May 31, 2000
            23274 Posts
            Offline
            Posted: August 27, 2011, 12:48 pm - IP Logged

            <Moved to Instant ("Scratch-Off") Games forum>

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

              redhot7's avatar - SetforLifeLogo
              California
              United States
              Member #112364
              June 17, 2011
              661 Posts
              Offline
              Posted: August 27, 2011, 3:52 pm - IP Logged

              Having said that, there is no difference with how the lottery pays scratch off or lotto prize for the same amount of dollars

               

              Did you mean to say that 65% of the money is distributed in prizes regardless of whether it is scratch off or regular lotto?

              No. What I mean is that if you win like 100K from a lotto or a scratch off, the lottery is going to give the money to the winners the same way. A lump sum in this case.

                Avatar
                New Member

                United States
                Member #115882
                August 30, 2011
                5 Posts
                Offline
                Posted: August 30, 2011, 4:42 pm - IP Logged

                What you are really speaking of is the "Payback Ratio" of the instant games. This is the total value of all prizes divided by the total value of all tickets. This ratio varies depending on the price of the ticket and which state lottery is selling it.

                Generally speaking, the higher the price of the ticket, the better the payback ratio. Of the six states I follow, it ranges from a low of about 40% on a $1 ticket to as high as 90% on a $20 ticket. This ratio also changes slightly everyday depending on how many tickets and prizes are still available.

                Occasionally, if a game has one or two large jackpots still available after the majority of tickets have been sold, this payback ratio exceeds 100%.

                  Wooddrive's avatar - Lottery-046.jpg
                  Delco PA
                  United States
                  Member #80104
                  September 16, 2009
                  194 Posts
                  Offline
                  Posted: August 30, 2011, 5:11 pm - IP Logged

                  What you are really speaking of is the "Payback Ratio" of the instant games. This is the total value of all prizes divided by the total value of all tickets. This ratio varies depending on the price of the ticket and which state lottery is selling it.

                  Generally speaking, the higher the price of the ticket, the better the payback ratio. Of the six states I follow, it ranges from a low of about 40% on a $1 ticket to as high as 90% on a $20 ticket. This ratio also changes slightly everyday depending on how many tickets and prizes are still available.

                  Occasionally, if a game has one or two large jackpots still available after the majority of tickets have been sold, this payback ratio exceeds 100%.

                  lol, payback ratio exceeds 100%

                    Avatar
                    New Member

                    United States
                    Member #115882
                    August 30, 2011
                    5 Posts
                    Offline
                    Posted: August 31, 2011, 1:05 am - IP Logged

                    lol, payback ratio exceeds 100%

                    It does happen occasionally if a large jackpot is still available but the majority of tickets have already been sold. It simply means there is more available in prize money than the total number of tickets multiplied by their cost.

                    Obviously, no game would payback more than 100% at the outset. But as the tickets are sold and the prizes claimed, it is possible for this situation to arise. It would have to be a game that started with a high payback to start with, such as 80+%.

                    I calculate the payback ratio or percentage for six states so I've seen it first hand.

                    Of course, if it's only one remaining jackpot, there's is always the chance that the winning ticket has been sold but not yet redeemed. You can only calculate the payback based on the claimed prizes.

                      Avatar
                      NY
                      United States
                      Member #103217
                      December 31, 2010
                      96 Posts
                      Offline
                      Posted: August 31, 2011, 7:41 pm - IP Logged

                      Fellows,

                      My origional query was does lottery distribute the same amount in terms of prizes whether it is instant or regular lottery? I was told that number is 65%. Let me clarify this further let's say lottery prints $100 worth of tickets for a perticular game then the sum total of all prize money will be about $65. 35% of the money goes toward education, administration etc.

                        Avatar
                        New Member

                        United States
                        Member #115882
                        August 30, 2011
                        5 Posts
                        Offline
                        Posted: September 1, 2011, 1:24 pm - IP Logged

                        The percentage of sales distributed as prizes varies from state to state. In New York state, according to their latest full year results for their traditional lottery (doesn't include video gaming at casinos), they sold $6.76 billion in tickets and paid just under $4 billion in prizes. This works out to a little over 59% of revenue paid out in prizes.

                        This doesn't mean every game pays out 59% of its sales in prizes. Every game has a different payback percentage. The payback will vary in the regular number lottery games just like it varies in the instant ticket games, some higher than others. According to the New York lottery press release, Lotto only has a prize payback percentage of 40% vs 50% for most of its other draw games.

                        I guess the bottom line of your question is what has the better payback, the regular number games or the instant games, and the answer is usually the instant games. I can't tell you about New York for sure because they don't supply enough data for each game, but in the other states where I calculate the payback, even the $1 tickets usually payback at least 50% in prizes. Typically, you see a 70% to 80% payback on the $10 and up tickets.

                          RJOh's avatar - chipmunk
                          mid-Ohio
                          United States
                          Member #9
                          March 24, 2001
                          19830 Posts
                          Offline
                          Posted: September 1, 2011, 4:19 pm - IP Logged

                          Most states have on their websites some where the rules and regulations put in place when they estashlished their lotteries.  Most started out paying out 50% of sales in prizes, after all state lotteries were started as a way to raise money for the states.

                           * you don't need to buy more tickets, just buy a winning ticket * 
                             
                                       Evil Looking       

                            Avatar
                            NY
                            United States
                            Member #103217
                            December 31, 2010
                            96 Posts
                            Offline
                            Posted: September 1, 2011, 8:31 pm - IP Logged

                            NY lottery told me 65% of the collection is paid out in terms of prizes. I haven't yet clarified whether that % is same for instant as well as regular lotto.

                             

                            For $ 1 instant ticket, they usually print out 30 million tickets, not sure they are able to collect 30 million dollars as the games are closed out when all the top prizes are claimed. So there is lot of forcasting and estimation involved in it. granted that when they pull out games all the lower rank prizes will also seize to exist but it is the top few prizes that can have big effect on this payput %.

                              Avatar
                              New Member

                              United States
                              Member #115882
                              August 30, 2011
                              5 Posts
                              Offline
                              Posted: September 1, 2011, 8:59 pm - IP Logged

                              According to my calculation as stated in the earlier post, it's 59% for the traditional lottery games in NY. No matter if it's 59% or 65%, one things is clear; since the NY lottery commission states itself that the regular lottery draw games only payout 40% to 50% of sales in prizes, the only way they get to this higher overall level is through the higher prize payout percentages of the instant win games.