Lotto has been in the news for celebrating 25 years of operation. So what have we learned in that time? Not much, it seems, considering the myths and misinformation.
A recent Northern Advocate article listed the luckiest Lotto stores. This is a myth as there is no such thingas a lucky outlet. It is true that if more people buy tickets at a shop then, on average, they are more likely to sell a First Division prize, but this in no way improves the chances of an individual winning.
The same article reported that one is the luckiest number. But there is no such thing as a lucky number. Every number has an equal chance of coming up.
Of all the money gambled, 56 per cent is returned in prizes. Another 20 per cent goes to charity and the rest goes in tax and operating costs. If a person spends $10 on tickets in week one, on average they will win $5.60. If this is reinvested the next week the return is $3.14, then $1.76 and 98 cents. So after four weeks a stake of $10 will become 98c.
Many buy tickets because they feel they are supporting charities and this is correct. But if you spend $10 a week for 50 weeks then charities will get only $100 of the $500 you have gambled. If instead you gave $10 to charity each week, and added the tax rebate you would receive on an average income, charities would receive more than $700.
So what happens to those who have a huge win? All are happier to begin with, but research in Britain found three-quarters of the big winners were broke or dead within a couple of years. Fast cars, drink and being ripped off by conmen were usually to blame.
Big wins frequently result in social problems. What do you do when you meet your friends at the pub? Do you shout continuous rounds? Or do you just buy a round when it is your turn and be known as a cheapskate? Do you give up your day job and get bored?
Some suggest that, rather than a few big prizes, there should be a lot of smaller prizes. Alas, human nature is to blame for rejecting this idea. The promoters know that the larger the top prize, the more tickets will be purchased.
By all means keep buying tickets, but just remember your chances of a First Division win are only one in four million per line. Surely there are better ways of becoming happy.
