Would the prize structure for MM & PB be changed?Prev TopicNext Topic

• gatorsrok

  

  Jacksonville
  United States
  Member #153,799
  March 26, 2014
  818 Posts
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  Mar 3, 2019, 3:09 pm

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  Putting aside the politics behind a 70% income tax rate on income in excess of $10M, would it make sense to even play the PB or MM given the astronomical odds against winning and your jackpot take home being drastically reduced because a 70% tax rate?  You can always play your state lottery which is usually cheaper and has better odds at a less impressive top prize.

  Alternatively, would the annuity option become more favorable or should PB and MM be changed to offer greater lower tier prizes like $5M or $2M instead of gigantic top prizes that will go mostly to taxes (especially if you live in NY or CA).  Just curious on everyone's thoughts.
• oate

  

  United States
  Member #193,169
  October 22, 2018
  489 Posts
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  Mar 3, 2019, 3:50 pm

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  Personally I do not play PB or MM because of the ridiculous odds and relatively puny prizes in California with our pari-mutuel payout system. But I don't think higher taxes on jackpots would much deter the typical player from playing, so I don't think the people who run PB and MM would have any incentive to change the prize structures. Even as the odds on these games have gotten worse and worse over the decades people still play. (BTW, California does not tax lottery prizes won in-state. Only federal taxes apply.)

  Only my hairdresser knows for sure.