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Why does the Mega Millions Jackpot not start at $40 mil?

Topic closed. 40 replies. Last post 3 years ago by ryanm.

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Jon D's avatar - calotterylogo
Los Angeles, California
United States
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January 5, 2011
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Posted: March 25, 2014, 11:42 am - IP Logged

I get what you're saying but MM is making more money now. Much more. There are a lot more rollovers than there used to be. No real reason why they can't take some of the additional money they are making from the increased number of rollovers and apply it to the starting JP. If they are indeed fully funded by draw 3 and people aren't winning until between draw 15 or more, they could start the JP at $20 million without batting an eye. They could even take it out of their advertising budget because God knows with the huge JP amounts that are happening frequently now, the tickets sell themselves.

Yes the revenue is higher, but the profit is the same, meaning they have to pay out the same percentage.(50%) Additional revenue taken in for the jackpot pool is always paid out to the winners.

Sure, they could do other things to pump up the starting MM JP, but that would require a rules change. They could add a dedicated jackpot reserve like PB has. They could roll over the excess, like take the extra $14M from the last big $400M JP and apply it to the base/reset starting JP, instead of paying it out to the winner. All that requires a rules change.(I wonder how the players/winners would feel about that)

Personally, I'm against all these marketing methods to artificially pump up the JP, that obfuscate the real value of the prizes. Especially for a public fundraising lottery.

And I know you're against one of the biggest marketing methods to pump up the JP: the advertised annuity JP instead of the lump sum cash value. I think they should just eliminate it for multi-state jackpot games. Then the MM would start at $5M and PB at $10M.

    Teddi's avatar - Lottery-008.jpg

    United States
    Member #142499
    May 13, 2013
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    Posted: March 25, 2014, 12:10 pm - IP Logged

    Yes the revenue is higher, but the profit is the same, meaning they have to pay out the same percentage.(50%) Additional revenue taken in for the jackpot pool is always paid out to the winners.

    Sure, they could do other things to pump up the starting MM JP, but that would require a rules change. They could add a dedicated jackpot reserve like PB has. They could roll over the excess, like take the extra $14M from the last big $400M JP and apply it to the base/reset starting JP, instead of paying it out to the winner. All that requires a rules change.(I wonder how the players/winners would feel about that)

    Personally, I'm against all these marketing methods to artificially pump up the JP, that obfuscate the real value of the prizes. Especially for a public fundraising lottery.

    And I know you're against one of the biggest marketing methods to pump up the JP: the advertised annuity JP instead of the lump sum cash value. I think they should just eliminate it for multi-state jackpot games. Then the MM would start at $5M and PB at $10M.

    You're making this needlessly difficult and obscuring a very simple way of funding a larger starting JP. They don't have to take it "from the excess" that would be defeating the purpose. everyone likes knowing what the real JP number is as opposed to the guesstimate. 

    But, if as you say, the JP is fully funded by draw 3, then have it funded by draw 4 instead and raise the starting amount. No one is winning by draw 4 now anyway, Not after they raised the odds. 

    And yes, no big surprise, I am actually for the JPs making sense, like the euromillions. What you see should be what you get. I have no idea why you would want to do away with MUSL. If you're against them, then you have the alternative of individual state lotteries.

      Gliter's avatar - Lottery-029.jpg
      New Member

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      March 16, 2014
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      Posted: March 25, 2014, 12:32 pm - IP Logged

      I`m talking about euromillions jackpot not mega or pb.

      £12m over here is piss-poor, considering alot of countrys take part in it.

      Good things come to those who wait.

        Jon D's avatar - calotterylogo
        Los Angeles, California
        United States
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        Posted: March 25, 2014, 12:47 pm - IP Logged

        You're making this needlessly difficult and obscuring a very simple way of funding a larger starting JP. They don't have to take it "from the excess" that would be defeating the purpose. everyone likes knowing what the real JP number is as opposed to the guesstimate. 

        But, if as you say, the JP is fully funded by draw 3, then have it funded by draw 4 instead and raise the starting amount. No one is winning by draw 4 now anyway, Not after they raised the odds. 

        And yes, no big surprise, I am actually for the JPs making sense, like the euromillions. What you see should be what you get. I have no idea why you would want to do away with MUSL. If you're against them, then you have the alternative of individual state lotteries.

        It's not difficult, it's easy. You want MM to arbitrarily raise the starting JP, well that money has to come from somewhere. Easiest way is to siphon off funds to float a dedicated jackpot reserve like PB does.

        I have no idea why you would want to do away with MUSL.

        I have no idea either. Where did that come from? I never said anything of the sort. MUSL exists as a non-profit to facilitate the multi-state jackpot game. I merely disagree with the marketing tactics used by MUSL and state lotteries to obfuscate the real value of prizes and games.

        And yes my goals for the lottery are different than the lottery industry.(and maybe many here) I think the lottery should be limited. The government shouldn't be in the gambling business. The lottery public funding should be nice to have, not need to have. They shouldn't be expecting and going after increasing revenue and market share year after year. That's just my opinion. Others are free to disagree.

          RJOh's avatar - chipmunk
          mid-Ohio
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          Posted: March 25, 2014, 4:32 pm - IP Logged

          I couldn't care less about where either game jackpot starts because I will only play when their jackpots and odds of winning are worth the price of of their tickets which is more than $100M.  When they are less I have a choice of other games with similar jackpots with better odds.

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

            noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
            Bay Area - California
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            December 12, 2012
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            Posted: March 25, 2014, 6:37 pm - IP Logged

            I couldn't care less about where either game jackpot starts because I will only play when their jackpots and odds of winning are worth the price of of their tickets which is more than $100M.  When they are less I have a choice of other games with similar jackpots with better odds.

            Well l do care where it starts- the rest of your statement is semi brilliant, just as long as I am holding the winning ticket.

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
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              Posted: March 25, 2014, 7:27 pm - IP Logged

              For one answer for the question in the OP how about simply "Whatever the traffic will bear?"

              The MUSL knows that even if millions of people threatened not to play MM until it upped the starting jp to $40M there would still be millions of others that would play it anyway, along with most of those who threatened not to play it but did.

              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.

                RJOh's avatar - chipmunk
                mid-Ohio
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                Posted: March 25, 2014, 9:11 pm - IP Logged

                Well l do care where it starts- the rest of your statement is semi brilliant, just as long as I am holding the winning ticket.

                Maybe you don't have the same options I have.  If I don't like buying a $1 MM ticket to win $20M with odds of 1:258,890,850 of winning it I can buy a $1 OCL ticket to win $64M with odds of 1:13,983,316.

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

                  Jon D's avatar - calotterylogo
                  Los Angeles, California
                  United States
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                  Posted: March 26, 2014, 1:13 am - IP Logged

                  ...and no matter how high the odds, 259M or whatever comes next, there will always eventually be some early wins on draws with low sales. Like tonight's MM JP win in NY on just the 2nd draw after reset at $20M. That's why they can't inflate the JP too much.


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                    Posted: March 26, 2014, 2:51 pm - IP Logged

                    That's exactly right, have to keep the starting JP low because it's WAY too easy to win.

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                      Morrison, IL
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                      May 13, 2004
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                      Posted: March 26, 2014, 6:33 pm - IP Logged

                      Yes the revenue is higher, but the profit is the same, meaning they have to pay out the same percentage.(50%) Additional revenue taken in for the jackpot pool is always paid out to the winners.

                      Sure, they could do other things to pump up the starting MM JP, but that would require a rules change. They could add a dedicated jackpot reserve like PB has. They could roll over the excess, like take the extra $14M from the last big $400M JP and apply it to the base/reset starting JP, instead of paying it out to the winner. All that requires a rules change.(I wonder how the players/winners would feel about that)

                      Personally, I'm against all these marketing methods to artificially pump up the JP, that obfuscate the real value of the prizes. Especially for a public fundraising lottery.

                      And I know you're against one of the biggest marketing methods to pump up the JP: the advertised annuity JP instead of the lump sum cash value. I think they should just eliminate it for multi-state jackpot games. Then the MM would start at $5M and PB at $10M.

                      I've actually found THIS as a breakdown of the prize pool allocations on the California Lottery website:

                      -----------------------------------------------

                      Prize Levels Odds
                      Percentage of
                      Total Prize
                      Pool Allocated
                      All 5 of 5 + Mega
                      (Jackpot) 65.1540%
                      All 5 of 5 8.9780%
                      Any 4 of 5 + Mega 1.3520%
                      Any 4 of 5 1.8930%
                      Any 3 of 5 + Mega 0.9328%
                      Any 3 of 5 2.1350%
                      Any 2 of 5 + Mega 2.6008%
                      Any 1 of 5 + Mega 7.6144%
                      None of 5, Mega only 9.3400%
                      Totals 100.0000%

                      -----------------------------------------------

                      Since the prize pool is 50% of sales, it follows that out of every $1, 32.577 cents goes to the jackpot.  The states sold $35,550,088 of tickets for last Friday's draw and last night's draw combined, bringing the cash jackpot to ~$11.58 million.  The "guaranteed" cash jackpot for last night was $11.1 million, so the MM jackpot WAS fully funded despite it being only the second draw in the run.

                      ---