Mega Jackpot: $266 Million

5/4/2010:

A quarter billion, please!

The Mega Millions Jackpot is swelling! This would be the best economic bailout ever!

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17 Comments on "Mega Jackpot: $266 Million"

escaped68
Member

Before new jersey had a lottery we would fill out #’s cards and send a helper to ny to buy the tickets. When he returned he woud give the tickets to whoever filled out the cards. There was 1 guy who went home early so his card was put in his time card slot. Someone would write that nights numbers on a message board for all to check. So, someone wrote his #’s,the wrong ones, on the board he came in and started to check his card.Now the fun began he started to sweat,shake and get pale all at once and we started to laugh. Boy was he pissed he didn’t talk to anyone for days. It was worth it,no it was priceless, he was one of the cheapest people i have ever met.

rag246
Member
rag246

Cool story bro

(seriously)

In response to escaped68 who said:
Before new jersey had a lottery we would fill out #’s cards and send a helper to ny to buy the tickets. When he returned he woud give the tickets to whoever filled out the cards. There was 1 guy who went home early so his card was put in his time card slot. Someone would write that nights numbers on a message board for all to check. So, someone wrote his #’s,the wrong ones, on the board he came in and started to check his card.Now the fun began he started to sweat,shake and get pale all at once and we started to laugh. Boy was he pissed he didn’t talk to anyone for days. It was worth it,no it was priceless, he was one of the cheapest people i have ever met.

MidnightRacer
Member

If there are 135,000,000 possible combinations from a lottery game and the jackpot reaches, say, $390,000,000, with a lump sum after tax payout of $175,000,000, someone buying every single combination could think that guarantees a $40,000,000 return – til they find out someone working at a car wash spent $1 to share the jackpot.

Agony of defeat

homeboken
Member
homeboken

Let’s say you can print a quick-pick with 5 chances per ticket in 1 second. At that rate, you would need 104 machines printing only your tickets for 3 straight days in order to cover every number combination.

In response to MidnightRacer who said:
If there are 135,000,000 possible combinations from a lottery game and the jackpot reaches, say, $390,000,000, with a lump sum after tax payout of $175,000,000, someone buying every single combination could think that guarantees a $40,000,000 return – til they find out someone working at a car wash spent $1 to share the jackpot.

Agony of defeat

MidnightRacer
Member

Soprano could do it.

In response to homeboken who said:
Let’s say you can print a quick-pick with 5 chances per ticket in 1 second. At that rate, you would need 104 machines printing only your tickets for 3 straight days in order to cover every number combination.

xyzpdq
Member
xyzpdq

Only $266 million? I don’t play until it’s over $350 million. (jk)

rag246
Member
rag246

Your chances of winning are 1 in 135,000,000 (says so on the back of the ticket). So in order to to make that one dollar worth the risk, the after tax net present value of the payoff has to be at least $135M.

As a rule of thumb, the after tax cash payout is around 40% of the nominal value of the lottery. So a little under $110M. So the ticket is still overvalued.

The break even point is about $340M (lottery face value). You are not far off.

That said, I know a guy who won $15M in the NJ lottery on a $5 dollar quick pick. Was that risk worth it? Academically, no. But tell that to him as he sails into the Florida straight on a tarpon run whenever he feels like it…

In response to xyzpdq who said:
Only $266 million? I don’t play until it’s over $350 million. (jk)

matt_72
Member

That $1 you invest in a ticket isn’t overvalued if everyone else in the office is putting in a dollar to buy a ticket. It is called suicide insurance. The office pool wins and you don’t put in your dollar, you are jumping off the nearest bridge!

In response to rag246 who said:
Your chances of winning are 1 in 135,000,000 (says so on the back of the ticket). So in order to to make that one dollar worth the risk, the after tax net present value of the payoff has to be at least $135M.

As a rule of thumb, the after tax cash payout is around 40% of the nominal value of the lottery. So a little under $110M. So the ticket is still overvalued.

The break even point is about $340M (lottery face value). You are not far off.

That said, I know a guy who won $15M in the NJ lottery on a $5 dollar quick pick. Was that risk worth it? Academically, no. But tell that to him as he sails into the Florida straight on a tarpon run whenever he feels like it…

Easy-E
Member

I read a story not long about an office pool. One guy who always plays wasn’t able to put in his dollar (out of cash or not in that day) so he arranged for someone pony up for him. They won the jackpot. The next morning he got a very terse demand to pay up as soon as he got in. He handed over the dollar he owed without a fuss, probably wondering why he was being such a dick about it, and his co-worker said to him “Congratulations you’re a millionaire”.

I wonder if he was hoping the guy would get pissed off a tell him to f*@& off and lose out on his share.

In response to matt_72 who said:
That $1 you invest in a ticket isn’t overvalued if everyone else in the office is putting in a dollar to buy a ticket. It is called suicide insurance. The office pool wins and you don’t put in your dollar, you are jumping off the nearest bridge!

hobposer
Member
hobposer

If i won that money i’d buy the W and rename it the MA

wpDiscuz