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How does your payout structure look vs the alternative of saving and buying lottery tickets with equivalent payout odds? That is, relative to a two-legged finan
by RhysU 6y ago
How does your payout structure look vs the alternative of saving and buying lottery tickets with equivalent payout odds? That is, relative to a two-legged financial equivalent how expensive is Yotta?
- adammoelis 6y agoIs the alternative you're referring to here saving money and using the interest generated to buy traditional lottery tickets?
- RhysU 6y agoYes, presumably it should be more efficient because this company is not taking a cut. Saving less and using the remainder to buy tickets is another possibility. No need to wait until the tickets are interest financed.
- adammoelis 6y agoI think we would be the better option on an EV basis than going that route. The lottery takes an absurd cut since they are a monopoly. It's pretty much the worst EV gamble you can make. If you factor in taxes, annuity present values, odds of splitting prizes, The lottery takes around 50% as their cut.
- RhysU 6y agoThe EV is overwhelmingly driven by savings and interest. The variance is from the lottery. Remember, the "product" is the variance people experience. Buy enough lotto tickets to match the (appropriately normalized) variance Yotta provides. Then calculate whether full-amount-in-Yotta or lotto+residual-savings has higher EV.
- jonfw 6y agoThe lottery takes an incredibly high cut
- RhysU 6y agoAlso, even though this may be legal it strikes me as morally sketch. Enough so that I am back here an hour later to relate how much it bothers me. I applaud your ability to work through the regulatory environment, but I hope this endeavor fizzles. I want an adult populace that saves because it is the sensible thing to do, not because it is a game. Educate, don't trick and skim from, people.