Mega Millions Lottery Tickets, Megamillions, Megamillion, Mega Million, Powerball Lottery Tickets, Powerball Tickets and Powerball Online Logo

Mega Millions Lottery Tickets Megamillions Megamillion Mega Million Powerball Lottery Tickets Powerball Tickets and Powerball Online

Buy Mega Million Lottery Tickets
Powerball
Powerball Lottery
Powerball Online
Powerball Tickets
Lottery
Mega Millions Lottery
How to Play
Mega Millions
Megamillions
Lottery Tickets
Mega Million

QUESTION: It has been reported that the wealthy don't play state lotteries unless the jackpot grows enormous, at which point probability theory says the game may become a good bet. How good? What's the theory here?

ANSWER: A fair bet is one where the "expected winnings" exceed the ticket price, says Williams College economist Victor Matheson. For example, a recent Powerball jackpot reached $260 million with odds of winning at roughly 1 in 120 million. So multiply the $260 million by 1/120 million and you get at least $2 expected winnings for the $1 ticket.
But, but, but... Powerball, Mega Millions and most others pay out over 20 to 30 years, devaluing the winnings. For the recent Powerball drawing, for example, this reduces the jackpot from $260 million to just under $150 million. Now the expected value of a ticket is $150 million x 1/120 million +.25 (for lower tier prizes) = $1.50, which still exceeds the price of the ticket.