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'Mirage' jackpots

Topic closed. 16 replies. Last post 2 years ago by nist7seven.

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Zeta Reticuli Star System
United States
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January 17, 2006
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Posted: February 9, 2015, 11:38 pm - IP Logged

From Yahoo Finance re: $450M PB jackpot:

But the huge jackpots like this week's $450 million prize are actually a mirage. To get that much, winners have to take payments over 30 years. However, winners rarely choose to do that. Instead, they take a smaller lump sum payment worth about one-third less than the advertised jackpot.

Most every one here at LP knows this but I just found the wording interesting.

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.

    Original Bey's avatar - Lottery-022.jpg

    Bahamas
    Member #133462
    September 30, 2012
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    Posted: February 9, 2015, 11:48 pm - IP Logged

    I love how media personalities go above and beyond to discourage people from playing the lottery and in the same breath they flaunt their tickets on air. If it's impossible to win why waste the dollar or two? They play with the same long shot hope that all of us do. So get off the darn high horse.

     

    They are speaking to the audience of casual players who come out of the woodwork when jackpots are high.

    "Everything works  ONCE!"

      hearsetrax's avatar - 0118

      United States
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      Posted: February 10, 2015, 5:56 am - IP Logged

      From Yahoo Finance re: $450M PB jackpot:

      But the huge jackpots like this week's $450 million prize are actually a mirage. To get that much, winners have to take payments over 30 years. However, winners rarely choose to do that. Instead, they take a smaller lump sum payment worth about one-third less than the advertised jackpot.

      Most every one here at LP knows this but I just found the wording interesting.

      yahoo still Lives !!?? Thud

        rcbbuckeye's avatar - Lottery-043.jpg
        Texas
        United States
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        October 23, 2007
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        Posted: February 10, 2015, 8:40 am - IP Logged

        I love how media personalities go above and beyond to discourage people from playing the lottery and in the same breath they flaunt their tickets on air. If it's impossible to win why waste the dollar or two? They play with the same long shot hope that all of us do. So get off the darn high horse.

         

        They are speaking to the audience of casual players who come out of the woodwork when jackpots are high.

        My wife never plays the lottery, but she won $100 in a superbowl pool so she's going to buy some PB tics tonite.

        It would probably be someone like her that will win.

        CAN'T WIN IF YOU'RE NOT IN

        A DOLLAR AND A DREAM (OR $2)

          IPlayWeekly's avatar - avatarmoney
          Columbus, Ohio
          United States
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          June 5, 2012
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          Posted: February 10, 2015, 9:10 am - IP Logged

          My wife never plays the lottery, but she won $100 in a superbowl pool so she's going to buy some PB tics tonite.

          It would probably be someone like her that will win.

          Yeah very true, it does seem like the casual player or a player that doesnt really play ends up winning.

            Original Bey's avatar - Lottery-022.jpg

            Bahamas
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            September 30, 2012
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            Posted: February 10, 2015, 9:17 am - IP Logged

            I agree with both of you. Casual players who don't over think as many of us do. In fact, when a poster on the main discussion forum suggested that only old or rich people win, I thought to respond with maybe he should study the habits of the retirees. When they play, where they play and how much they spend when they play. I think I will join a bingo club and follow along when they go to Publix - lol.

            "Everything works  ONCE!"

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              KCMO
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              February 7, 2015
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              Posted: February 10, 2015, 9:57 am - IP Logged

              I agree with both of you. Casual players who don't over think as many of us do. In fact, when a poster on the main discussion forum suggested that only old or rich people win, I thought to respond with maybe he should study the habits of the retirees. When they play, where they play and how much they spend when they play. I think I will join a bingo club and follow along when they go to Publix - lol.

              Casual player here and it didn't take me that longnto figure out difference between advertised jack pot and the cash option. Many people are not aware that the big money number is only an estimated one used for marketing purposes and cash option is the real jackpot. So lot of people think taxes are taken out of the big number.

                Drenick1's avatar - villiarna
                USA
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                Posted: February 10, 2015, 10:51 am - IP Logged

                Casual player here and it didn't take me that longnto figure out difference between advertised jack pot and the cash option. Many people are not aware that the big money number is only an estimated one used for marketing purposes and cash option is the real jackpot. So lot of people think taxes are taken out of the big number.

                I agree that many people believe that the advertised jackpot is what a winner receives. It doesn't help when the media starts showing examples of what you can buy using the entire advertised pre-tax amount. A lot of folks also don't know that the annuity payments are progressively weighted. The winner gets about 4 times at he end of their payments when compared to the first few which by that time has depreciated considerably due to many factors such as inflation and the value of the dollar.

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                  California
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                  Posted: February 10, 2015, 11:30 am - IP Logged

                  They don't have 'Mirage' jackpots in Canada and Europe. The advertised amount is the cash amount. They also pay zero taxes on lottery winnings.

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                    Massachusetts
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                    Posted: February 10, 2015, 12:15 pm - IP Logged

                    From Yahoo Finance re: $450M PB jackpot:

                    But the huge jackpots like this week's $450 million prize are actually a mirage. To get that much, winners have to take payments over 30 years. However, winners rarely choose to do that. Instead, they take a smaller lump sum payment worth about one-third less than the advertised jackpot.

                    Most every one here at LP knows this but I just found the wording interesting.

                    I usually slash the advertised jackpot by half to land at a ballpark figure of the true jackpot. I'm too experienced to fall for their gimmicks Twitch

                    That money's gone fo ever

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                      Indiana
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                      Posted: February 10, 2015, 12:49 pm - IP Logged

                      The Mirage is getting bigger to the size of $485 million!

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                        California
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                        Posted: February 10, 2015, 12:50 pm - IP Logged

                        The Mirage is getting bigger to the size of $485 million!

                        OMG.

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                          Wyomissing, PA
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                          Posted: February 10, 2015, 1:43 pm - IP Logged

                          The Mirage is getting bigger to the size of $485 million!

                          And there's no penalty for lottery officials being wrong. For example, the widely advertised Powerball jackpot of $600 million annuity, back in 2013, turned out to less when actually won at ~$590 million annuity. Not a huge difference, relatively speaking, but a difference nevertheless. I'm surprised Powerball lottery officials didn't pay the advertised amount (would have only cost them an additional ~$6 million), since some players, and at least one mainstream news article, noticed the discrepancy. I play Powerball and Mega Millions even less, in some part due to that. Lack of trust in the jackpot numbers being advertised...

                          I don't go into all that detail when discussing jackpots with friends, but simply explain that there's no penalty for lottery officials being wrong, and they have been at least once, and didn't pay out the full amount; deceptive advertising.

                          A simple, conservative, formula for what one winner will actually receive is 1/3 of the advertised amount, which accounts for the annuity factor, the inflated / fictional jackpot amount, and taxes.

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                            Oklahoma
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                            Posted: February 10, 2015, 2:50 pm - IP Logged

                            $485 million that is one mirage I would not mind Big Grin I bet the writer of the article probably grab some tickets too  Green laugh

                            I Love Pink & Green 1908

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                              Sweden
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                              March 20, 2014
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                              Posted: February 10, 2015, 3:56 pm - IP Logged

                              They don't have 'Mirage' jackpots in Canada and Europe. The advertised amount is the cash amount. They also pay zero taxes on lottery winnings.

                              I must correct you. Many countries including my country sweden have zero taxes, but some like Spain have 20% flat taxes. Euro millions is not offered in sweden but is multi-country lottery. A winner in spain recieves less cash than one in france.

                              Return of Investment, ROI 2014 20% | ROI 2015 20% | ROI 2016 14,45%