Looks like the cash jackpot for MM & PB is going backwardsPrev TopicNext Topic

• pickone4me

  

  Wisconsin
  United States
  Member #104,957
  January 23, 2011
  1,153 Posts
  Offline
  Nov 7, 2013, 10:22 am

  ▲▼

  Looks like the cash jackpot for MM & PB is going backwards.  I sure won't play until the cash jackpot reaches at least 100 million.  Maybe people are tired of seeing there money going to commiefornia.
• Todd

  

  50

  Chief Bottle Washer

  New Jersey
  United States
  Member #1
  May 31, 2000
  27,938 Posts
  Online
  Nov 7, 2013, 10:38 am

  ▲▼

  The cash amount is the cash amount.  It doesn't go backwards; it is the only thing that is constant and directly based on ticket sales.

  What you are seeing is the annuity amount getting better, because of better interest rates and Mega Millions going to a 29-year (30 payment) annuity with a 5% annual increase.

  So the cash amount just keeps increasing based on actual ticket sales, and the annuity is calculated based on whatever cash is in the pot.

  Lots of people base their ticket purchase decisions on the amount in the cash pot, there is nothing wrong with that.  But you need to understand that the cash value is not calculcated based on the annuity.  It is the exact opposite:  the annuity amount is calculated based on the cash on-hand (and estimated to be on-hand just before draw time).

  If the cash value is not high enough for you, then maybe you should complain that not enough people are buying tickets. 

   

  Check the State Lottery Report Card
  What grade did your lottery earn?

   

  Sign the Petition for True Lottery Drawings
  Help eliminate computerized drawings!
• pickone4me

  

  Wisconsin
  United States
  Member #104,957
  January 23, 2011
  1,153 Posts
  Offline
  Nov 7, 2013, 12:45 pm

  ▲▼

  Thanks for explaining all that.
• RJOh

  

  100

  mid-Ohio
  United States
  Member #9
  March 24, 2001
  20,272 Posts
  Offline
  Nov 7, 2013, 7:55 pm

  ▲▼

  In many states, the cash values of the local games are completing with the cash values of the multi-states games when they reset so it natural that fewer people are going to buy MM and PB tickets when the same money can be won with better odds.  For example Ohio's Classic Lotto(6/49) has a jackpot of $50M/$25M cash with odds twelve or more times better than those of MM or PB.

   * you don't need to buy every combination, just the winning ones * 

         
  
• SeattleJoe

  

  Washington
  United States
  Member #148,659
  November 8, 2013
  6 Posts
  Offline
  Nov 8, 2013, 12:18 pm

  ▲▼
  In response to Todd

  Quote: Originally posted by Todd on Nov 7, 2013

  The cash amount is the cash amount.  It doesn't go backwards; it is the only thing that is constant and directly based on ticket sales.

  What you are seeing is the annuity amount getting better, because of better interest rates and Mega Millions going to a 29-year (30 payment) annuity with a 5% annual increase.

  So the cash amount just keeps increasing based on actual ticket sales, and the annuity is calculated based on whatever cash is in the pot.

  Lots of people base their ticket purchase decisions on the amount in the cash pot, there is nothing wrong with that.  But you need to understand that the cash value is not calculcated based on the annuity.  It is the exact opposite:  the annuity amount is calculated based on the cash on-hand (and estimated to be on-hand just before draw time).

  If the cash value is not high enough for you, then maybe you should complain that not enough people are buying tickets. 

  Yes you are right on. But the biggest driver of the advertised jackpot is interest rates. The higher they go the larger the annuity is. In fact if interest rates were to double you'd see a 600million jackpot but only a 100million cash value before taxes. So at some point it would make more sense to take the annuity instead of cash if interests rates were much higher. In fact low interest rates from the FED have inflated cash values in the last decade relative to the annuity.
• whiteballz

  

  Nutley, New Jersey
  United States
  Member #131,052
  August 1, 2012
  904 Posts
  Offline
  Nov 9, 2013, 12:58 am

  ▲▼
  In response to pickone4me

  Quote: Originally posted by pickone4me on Nov 7, 2013

  Looks like the cash jackpot for MM & PB is going backwards.  I sure won't play until the cash jackpot reaches at least 100 million.  Maybe people are tired of seeing there money going to commiefornia.

  NJ and FL were winning every other drawing a few months ago.

  .
• LottoBoner

  United States
  Member #124,487
  March 14, 2012
  7,021 Posts
  Offline
  Nov 17, 2013, 10:35 pm

  ▲▼
  In response to pickone4me

  Quote: Originally posted by pickone4me on Nov 7, 2013

  Looks like the cash jackpot for MM & PB is going backwards.  I sure won't play until the cash jackpot reaches at least 100 million.  Maybe people are tired of seeing there money going to commiefornia.

  I agree.  However I think its only a figure of speech.

  Previously They would both grow slow and then at a certain point take off.

  Then when PB increased price PB would grow decent and take off right away, while MM was growing like a snail.

  Now with the increase Matrix in MM, it seems, BOTH

  PB and MM are growing pretty much at the same rate,  No race. As if they are both taking a slow leisureley saunter in the grass.
• THRIFTY

  

  100

  NEW YORK
  United States
  Member #90,531
  April 29, 2010
  13,286 Posts
  Offline
  Nov 18, 2013, 2:36 pm

  ▲▼
  In response to Todd

  Quote: Originally posted by Todd on Nov 7, 2013

  The cash amount is the cash amount.  It doesn't go backwards; it is the only thing that is constant and directly based on ticket sales.

  What you are seeing is the annuity amount getting better, because of better interest rates and Mega Millions going to a 29-year (30 payment) annuity with a 5% annual increase.

  So the cash amount just keeps increasing based on actual ticket sales, and the annuity is calculated based on whatever cash is in the pot.

  Lots of people base their ticket purchase decisions on the amount in the cash pot, there is nothing wrong with that.  But you need to understand that the cash value is not calculcated based on the annuity.  It is the exact opposite:  the annuity amount is calculated based on the cash on-hand (and estimated to be on-hand just before draw time).

  If the cash value is not high enough for you, then maybe you should complain that not enough people are buying tickets. 

  Lottery players will be spending more money in states games than Mega Millions and Powerball. You play against less people in state games with better odds to win.