Subduction Zone
Veteran Member
The lottery is never an investment. At least no one with a huge payoff. It takes a huge amount of available cash to turn it into an investment. That did happen once in the US. A group of investors got together and started following state lotteries all around the US. When they found one that Had acquired a value So that buying every possible ticket would still give a payout greater than the investment they did just that. They tried to buy all of the tickets. They did not quite succeed at getting all of the tickets because there was a bit of a breakdown in one buying operation, but they were "lucky" they did manage to win with the huge number of tickets that they had bought. I think that they ignored one possibility. That is there was a good chance that someone else could have won too. That would have cut their winnings in half.All that's needed to calculate the probability of winning the lottery, is the amount of balls in each draw, and the range of numbers to choose from. Once you know that, and the size of the maximum payout, you can make an objective decision about the relative value of your cash investment in a ticket, against the potential reward. There is absolutely nothing subjective about any of that. Buying a lottery ticket is rank bad value, and not a decision you could possibly justify using reason alone. How is it that you Sheldon, with your avowed passion for reason, are unable to see this?
But as I pointed out, buying a lottery ticket for me, which is about three or four a year max, is merely cheap entertainment. A slot machine can be addictive. They are programmed to pay out regularly, not enough to make up for your investment, but just enough to keep a person putting money into the beast. The people behind those have human psychology down to an art form.
Aah, found the story about the investors. They managed to buy 5/7 of all possible tickets and won. If they took the monthly pay out they still "lost". I am not sure if a discounted one time payout was possible. That would have likely have been a win if they could do that:
Virginia lottery figure spells out role of Australian investors - UPI Archives
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