Welcome Guest
You last visited April 25, 2018, 1:58 pm
All times shown are
Eastern Time (GMT-5:00)

# California - Highway Robbery in Progress

Topic closed. 35 replies. Last post 5 years ago by Stack47.

 Page 3 of 3
Kentucky
United States
Member #32652
February 14, 2006
7685 Posts
Online
 Posted: April 28, 2013, 5:06 pm - IP Logged

Whoa JKing- looks like you got your lunch handed to you there bud..
What's your response to this information?

Another player in another state could have won \$2 million playing the same five numbers with a \$3 PowerPlay ticket. Had two players spent \$4 playing the same five numbers in Cali, each ticket is worth \$650,000. The \$1.3 million winner not only had to beat those odds, but had to beat the odds against multiple winners. The Cali lottery officials will say it's because California regulations are different and many other Cali's regulations are different than in other states.

Since it only effects Cali PB players, they should know the prize for matching five numbers can be drastically different in every drawing before buying a ticket. It's almost the same argument of wanting to cash tickets anonymously in states with open record policies and demanding those policies be changed because of policies in other states.

United States
Member #116268
September 7, 2011
20244 Posts
Offline
 Posted: April 28, 2013, 5:17 pm - IP Logged

The laws of probability say that California would be perfectly safe having fixed prize amounts, nut the legislators apparently have some issue with it. Mayne they've got some completely illogical reason for having parimutuel payouts, or maybe they just can't grasp the math. California may be better than some other states, but there are definitely a lot of legislators who apparently don't understand science.

If I was in California I'd be paying attention to whether or not there were any 5+0 winners for the previous drawing or two. I don't play MM or PB at the starting jackpots anyway, so I'd make the chance of winning a bigger 5+0 prize a factor in deciding to play.

According to probability yes, but in reality (thanks to the fortune cookie incident) it has been proven that the same 5 numbers can be played (and win) dozens of times...

If you think about it, a person with a "hunch" could spend \$200. on 100 lines all the same numbers and set the state back \$100 million. ...

Of course its not likely, but neither was the fortune cookie incident.

NY
United States
Member #23835
October 16, 2005
3780 Posts
Offline
 Posted: April 28, 2013, 10:23 pm - IP Logged

"Of course its not likely, but neither was the fortune cookie incident."

There have been over a thousand powerball drawings. How many times have they had a result that was far from what they expected? If the fortune cookie incdent happened today it would cost the PB states about \$100 million more than they expect to pay out. That's about half of the profit they made in 3 or 4 days last November.

Every state has the option of making a parimutuel payout in the event of an anomalous result that has a very large number of winners. If one person played a combination 100 times and won the state probably would make the payout parimutuel, especially if the tickets were obviously bough together. Unless the guy who does that is a complete moron* he'd be collecting at least 2 shares of the jackpot, so even with a parimutuel payout he'd have a very nice payday.

* Whether they cover every powerball or not, playing the same 5 numbers on 100 tickets is probably a stupid idea precisely because the likelihood of a parimutuel payout means you probably wouldn't collect any more than if you  only bought 39 tickets. The other 61 tickets  would probably just  61 missed chances to win.

Chasing the Dream.
White Shores- California
United States
Member #136477
December 12, 2012
4966 Posts
Offline
 Posted: April 28, 2013, 10:51 pm - IP Logged

For educational purposes...

parimutuel betting is a form of betting in which bets are pooled together before an event and distributed amongst those who managed to bet correctly once the outcome has been determined. It is a common form of betting for sports events such as horse racing, and the practice is widespread throughout the world. In some cases, parimutuel betting may be the only legal form of betting available.

The parimutuel betting system was developed in France in the late 1800s, and the system has changed little since. Essentially, the participants in the system pool their funds in the hope of getting a larger return. Odds and potential returns are continuously calculated so that bettors can have an idea of how much money they stand to win; the amount of money is dependent on how much money is bet in total.

Once an event begins, no more bets are taken. The house typically takes a cut of the funds, and another percentage may be removed for purposes of taxation. The remainder of the pool is paid out at the close of the event. Bettors may stand to make a large sum of money, especially if they bet against long odds which turn out to win, but they can also lose their bet entirely by failing to predict the outcome of the race correctly.

** Did you knowreindeer like bananas?

Chasing the Dream.
White Shores- California
United States
Member #136477
December 12, 2012
4966 Posts
Offline
 Posted: April 28, 2013, 11:21 pm - IP Logged

For educational purposes...

parimutuel betting is a form of betting in which bets are pooled together before an event and distributed amongst those who managed to bet correctly once the outcome has been determined. It is a common form of betting for sports events such as horse racing, and the practice is widespread throughout the world. In some cases, parimutuel betting may be the only legal form of betting available.

The parimutuel betting system was developed in France in the late 1800s, and the system has changed little since. Essentially, the participants in the system pool their funds in the hope of getting a larger return. Odds and potential returns are continuously calculated so that bettors can have an idea of how much money they stand to win; the amount of money is dependent on how much money is bet in total.

Once an event begins, no more bets are taken. The house typically takes a cut of the funds, and another percentage may be removed for purposes of taxation. The remainder of the pool is paid out at the close of the event. Bettors may stand to make a large sum of money, especially if they bet against long odds which turn out to win, but they can also lose their bet entirely by failing to predict the outcome of the race correctly.

** Did you knowreindeer like bananas?

And...

In 2004, Gov. Arnold Schwarzenegger, as part of his redesign of California government, suggested that California join a multi-jurisdictional lottery. In June 2005, the Lottery Commission voted to join Mega Millions.[17]

California is unique among the 44 Mega Millions participants in that all nine prize levels for Mega Millions within its borders are always parimutuel, rather than each non-jackpot prize having a set value. This leads to different prize amounts for equivalent winners sold in California when compared to those sold in the other 43 jurisdictons. For example, the "advertised" second prize in Mega Millions is \$250,000; it is not unheard of for that prize level to pay over \$1 million to a California second-prize winner. The second prize pool within California frequently rolls; it is, in effect, a "secondary jackpot". Unlike the other Mega Millions members, California currently does not offer the Megaplier (perhaps because of its parimutuel prizes)..

Kentucky
United States
Member #32652
February 14, 2006
7685 Posts
Online
 Posted: April 29, 2013, 12:11 am - IP Logged

According to probability yes, but in reality (thanks to the fortune cookie incident) it has been proven that the same 5 numbers can be played (and win) dozens of times...

If you think about it, a person with a "hunch" could spend \$200. on 100 lines all the same numbers and set the state back \$100 million. ...

Of course its not likely, but neither was the fortune cookie incident.

The rules on an aggregate payoff vary from state to state.

From PA: "For any drawing, if prize liability exceeds the lesser of 300 percent of Mega Millions sales or sales plus \$50 million, then these prizes become pari-mutuel."

On the record MM drawing last year the total sales were \$31 million or enough for 372 \$250,000 payouts.The PB aggregate can't exceed \$25 million.

"Of course its not likely, but neither was the fortune cookie incident."

It's unlikely any of the small volume PB states will have five winners in one drawing, but it's still a risk. Add that to five other drawings with only one winner during a year and a state could show a significant loss.

 Page 3 of 3