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Why not just buy all the lottery tickets?

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Kaladin

Member
Here's the theory: At $2 a ticket and 1 in 292 million odds, you could seemingly buy every Powerball combination for "just" $584 million -- and still walk away with a massive profit.

The lump-sum jackpot payment is estimated to be about $868 million. That alone would give you a handsome $284 million profit if you bought every ticket. And since there are $92 million in lower-tier prizes, you'd win all of those too. And by flooding the system with all those tickets you purchased, the lump-sum value of the jackpot would rise by $200 million -- which you'd be guaranteed to get back.

That's a grand total of $1.2 billion in winnings, $576 million of which would be profit.

The best part: You can deduct the value of your gambling losses up to the amount of your winnings. So all but two bucks of what you spent on tickets would be tax-deductible.

Effectively that deduction means you'd wipe out any federal taxes owed on the first $584 million of your winnings.

Not so fast.....

By buying every combination, you'd guarantee yourself a victory, but you'd have just a 22% chance of buying the only winning ticket and keeping that jackpot all to yourself, according to Victor Matheson, professor of economics and accounting at the College of the Holy Cross in Massachusetts.

You'd have a better chance (33%) of sharing with one other person or even two other people (25%). You'd also have a 12% chance of sharing it with three people and a 6% chance of splitting your winnings with four others.

All it would take is one other winner to make your $584 million investment unprofitable.

But wait, there is more!

You have to buy Powerball tickets in person. That's a lot of transactions.

If you were able to buy one ticket every second, it would still take you more than nine years to buy every combination. And that's optimistic: You have to ensure that you buy every number just once -- not just 292 million quick-picks.

Even if you could deploy an army of people to buy all those tickets for you, it's still extremely unlikely that you'd be able to buy every ticket.

"Think about how many lottery ticket stations there are nationwide and how busy they've been, running nonstop over the past three days," said Matheson. "Even still, they were only able to sell 440 million tickets."

Buying every lottery combination has actually been tried once.

In February 1992, an Australian consortium tried to corner a $24 million Virginia Lotto jackpot. But the group was only able to purchase 2.4 million of the 7 million combinations before time ran out.

http://money.cnn.com/2016/01/11/new...r=fbCNN011116powerball-jackpot-win-guarantee/

Damn tempting to get a near $600 million loan, but I don't want to take my chances with not getting the right combination in time, and then someone else could win and fuck it all up even if you do win it.
 
Would the cost of buying the tickets be deductible from the winnings for tax purposes? If not, even if you were the sole winner, you would still find yourself in the hole after the federal govermnent takes roughly 39.6% of everything, nevermind what your state might come after.

Edit: Ah, missed it in the article. It is deductible (all but the winning ticket, apparently):

The best part: You can deduct the value of your gambling losses up to the amount of your winnings. So all but two bucks of what you spent on tickets would be tax-deductible. Effectively that deduction means you'd wipe out any federal taxes owed on the first $584 million of your winnings.
 

Palmer_v1

Member
There's also the risk that someone else picks the same numbers and you're stuck splitting the pot and losing money.

Edit: Nevermind. It covered that.
 

Kaladin

Member
And who would give you 600 millions?

An eccentric mad man who would do anything for the ultimate prize?

OneBillionDollars_DrEvil.jpg
 

RuGalz

Member
Even if you are the sole winner and there's no problem buying up the tickets, it's probably not worth the time and effort for someone who can come up with the money to buy the tickets to begin with.
 
Well that and it's also impossible to buy all of those hundreds of millions of tickets by yourself in the timeframe before the drawing. So in order to do so, you'd need to hire probably hundreds of people, which would also cost a good deal.

Then there's the issue of finding the winning ticket (since you'll have millions on hand), which could take you months to do yourself. Or, you could hire people to help you do it. That's more cash being paid out.

Even despite the odds someone else will win it with you, it's just not feasible.
 

Wheatly

Member
Well that and it's also impossible to buy all of those hundreds of millions of tickets by yourself in the timeframe before the drawing. So in order to do so, you'd need to hire probably hundreds of people, which would also cost a good deal.

Then there's the issue of finding the winning ticket (since you'll have millions on hand), which could take you months to do yourself. Or, you could hire people to help you do it. That's more cash being paid out.

Even despite the odds someone else will win it with you, it's just not feasible.

Then someone else also got the winning numbers and you need to split the winnings with them

"shit!"
 
You dont need to buy millions of tickets. 100k of different combinations is enough, as you get to pick more than 5 numbers

Also, a large sum of that 500 million goes towards the pot, no?
 

Drazgul

Member
Then there's the issue of finding the winning ticket (since you'll have millions on hand), which could take you months to do yourself. Or, you could hire people to help you do it. That's more cash being paid out.

And guards to clear those people after their shift so they haven't "accidentally" slipped the winning ticket into their pockets. And guards for the guards so they won't decide to just split the ticket. And so on.
 
Logistically I don't think you can even buy them all in the time it takes between lottery drawing unless you have a team of people helping you.
 

Dennis

Banned
"Hello, Bank of America? Yeah, I would like to get a loan for $600 million."

"What for? Oh, lottery tickets"

*click*
 

luoapp

Member
Even if you are the sole winner and there's no problem buying up the tickets, it's probably not worth the time and effort for someone who can come up with the money to buy the tickets to begin with.

We are talking about risk-free 50% profit rate with a $584 million investment tied up for about 2-3 month. That's probably the best investment one can do.
 

egruntz

shelaughz
Could you possibly and practically accomplish this in the amount of time required between drawings? So how much time does it take to fill out a single ticket, and how long would it take to fill out that many?
 

Angry Grimace

Two cannibals are eating a clown. One turns to the other and says "does something taste funny to you?"
1) Because if even 1 other person won you'd lose a catastrophic amount of money.
2) It is physically impossible to buy 292 million lottery tickets in every single combination.
3) You don't get to be the kind of person who can spend $600,000,000 on things by gambling $600,000,000
 
This happened in Ireland in the 90s

http://www.independent.co.uk/news/how-to-make-a-killing-on-the-lottery-1322272.html

It is perhaps not the easiest way to make a million, but for Stefan Klincewicz, 45, a half-Polish accountant, it worked. His 28-strong syndicate purchased the winning ticket for the pounds 2.2m jackpot in the Irish lottery four years ago in a dramatic sting.

Mr Klincewicz devised the plot in a Dublin pub in 1990 in anticipation of a rollover jackpot, when the prize swells to record levels. As soon as it came up, his team of ticket buyers tore across Ireland.

Although Irish lottery chiefs recognised that sales had increased dramatically, and started to shut down terminals the day before the draw, the syndicate bought up 80 per cent of the total 1.94 million ticket number combinations.


Mr Klincewicz, who knows Stefan Mandel, head of the Australian syndicate allegedly considering a sting on the British lottery this week, said yesterday that he would not even attempt such an operation on this week's pounds 40m jackpot.

"It's incredibly risky. The problem from a statistical point of view is that there should be seven, eight or nine winners in Saturday night's draw," he said.


"The United Kingdom lottery has been designed to stop this sort of thing going on, so that even if you buy all the tickets, the risk is still enormous. Whereas with the Irish lottery, there was also a pounds 100 prize for matching four numbers which mean investors were always going to get a 75 per cent return."

After his coup, Mr Klince-wicz laid out the game-plan for the perfect lottery plot. First, the Irish syndicate raised the money to cover the tickets, and passed it on to a firm of accountants to bank. It then set up offices in a central location to co-ordinate the ticket-buying. Pay- slips were collected in batches from shops over a period of a week in an attempt to prevent a sudden influx. They were filled out at headquarters, and the syndicate started recruiting teams of ticket-buyers. "You don't advertise for people. You just get them by word of mouth," Mr Klincewicz said.

A selection of hotel rooms were then booked across the country, and the money for the tickets put into banks nearby. The job of getting tickets inputted then began and the syndicate lay bets of nearly pounds 900,000 in two days before it was stopped by officials. "You choose machines where you don't get in the way of other people who are buying tickets," Mr Klincewicz said.

The lottery organisers became suspicious when they noticed shops normally selling less than pounds 1,000 worth of tickets daily suddenly recording sales of pounds 15,000 in a morning.

Once the tickets were purchased they were taken back to the headquarters and kept in secure storage. "When you've got the ticket, you just sit back and enjoy the show," Mr Klincewicz said. But the biggest risk for any syndicate, is whether regular players will also have come up with the winning combination through luck.

Although Mr Klincewicz's syndicate - which included a barrister, business executives and a roof contractor - had the winning ticket, it was still forced to share it with another winner, leaving it with Irpounds 568,682, although it scooped another Irpounds 400,000 from mopping up secondary prizes.

Mr Klincewicz has subsequently set up a series of other syndicates from his parent company, that bears the logo "A chance to Dream".
 
You dont need to buy millions of tickets. 100k of different combinations is enough, as you get to pick more than 5 numbers

Also, a large sum of that 500 million goes towards the pot, no?

I don't understand how your math works.

You can pick upto 12 numbers and 2 bonus numbers. Which reduces the tickets needed, significally. The normal is 5 numbers+1 bonus

What? You can pick more than the 6 numbers per ticket?
 

RuGalz

Member
We are talking about risk-free 50% profit rate with a $584 million investment tied up for about 2-3 month. That's probably the best investment one can do.

You are still going to have to hire thousands of people to buy tickets and hope no one screws up. It's not completely risk free.
 
It's fucking paper slips or digital. Unless noone else has Internet and they drain all the paper they can't "buy all the tickets".

No, you're misunderstanding. Nobody is saying buy every ticket from every person in the country. They're saying buy every possible combination of numbers that could be called from 1 to 70 or whatever the upper number is.

That's where the risk comes in -- there will likely be other people winning with the same numbers you have.
 

Stumpokapow

listen to the mad man
You dont need to buy millions of tickets. 100k of different combinations is enough, as you get to pick more than 5 numbers

Also, a large sum of that 500 million goes towards the pot, no?

It's pretty hilarious that you have a comically large user tag for what amounts to calling Kickstarter a scam and you're in a lottery thread getting excited about the lottery, which is by definition a scam.
 
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