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I found it incredible that players "making less than $30,000 spend 13%" of their income on the lottery. That's completely absurd, given the odds of winning. I

I found it incredible that players "making less than $30,000 spend 13%" of their income on the lottery. That's completely absurd, given the odds of winning. I found sitting and spending a million dollars on an online lottery simulator stopped any hope of winning the lottery quite quickly. Even as an engineer it can be hard to get a feel for tiny odds until you sit there and repeatedly spend $1000 with nothing in return.

Maxburn 4y ago
I view lotteries as taxes on those that don't understand probability and money investing. That fits with those making that low of a salary. It's predatory, just like payday and title loans.
- CamelCaseName 4y ago
  This is often repeated, but perhaps players understand all that very well. Perhaps it is the condescending observer[0] who says "lotteries are a tax on stupidity" who does not understand the player's utility function. [0] (not OP specifically, but in general)
- acuozzo 4y ago
  > I view lotteries as taxes on those that don't understand probability and money investing. I did too until I realized what the purchasers of losing lottery tickets receive in exchange for their money: hope. They're purchasing the high of hoping for a better future; an escape into the dreams of riches.
  - Maxburn 4y ago
    I don't know if false hope is helping anyone.
- Retric 4y ago
  The fantasy of winning has non zero utility to players. Spending 2$ on a 400+ Million dollar prize can be fun up until the moment know you actually lost. I enjoy the experience enough to delay checking the numbers and thus savor the experience for significantly longer. Similarly I don’t particularly feel the need to regularly play as the occasional ticket is enough to keep the near zero possibility of a future win alive. Never playing on the other hand kills the fantasy. So in terms of what value I personally get from ~8$/year, lottery tickets are awesome.
forinti 4y ago
I rarely play the lottery. If I were to throw away 13% of my income, I would try a different game: buy random stocks. I would just choose a random stock, not even looking at anything other than the ticker, buy it and sit on it.
Retric 4y ago
That’s a little deceptive as most lotteries have small prizes. A regular player loses something like 2/3 to 3/4th of every dollar they spend. Those small prizes may just be a dopamine hit to keep people playing, but they do mean money spent is noticeably larger than money lost.
elliekelly 4y ago
It is absurd but for a lot of these people the lottery is their “best bet” at getting out of their current financial situation. Consider too that modern lotteries are structured to give you enough of a dopamine hit that you want to keep playing. So maybe one-half or one-third of time you “win” back your $1 or $5 bet. I wonder whether those small-potato lottery prizes are factored in to their calculation of a player’s “income”.

Maxburn 4y ago

I view lotteries as taxes on those that don't understand probability and money investing. That fits with those making that low of a salary. It's predatory, just like payday and title loans.

CamelCaseName 4y ago
This is often repeated, but perhaps players understand all that very well. Perhaps it is the condescending observer[0] who says "lotteries are a tax on stupidity" who does not understand the player's utility function. [0] (not OP specifically, but in general)
acuozzo 4y ago
> I view lotteries as taxes on those that don't understand probability and money investing. I did too until I realized what the purchasers of losing lottery tickets receive in exchange for their money: hope. They're purchasing the high of hoping for a better future; an escape into the dreams of riches.
- Maxburn 4y ago
  I don't know if false hope is helping anyone.
Retric 4y ago
The fantasy of winning has non zero utility to players. Spending 2$ on a 400+ Million dollar prize can be fun up until the moment know you actually lost. I enjoy the experience enough to delay checking the numbers and thus savor the experience for significantly longer. Similarly I don’t particularly feel the need to regularly play as the occasional ticket is enough to keep the near zero possibility of a future win alive. Never playing on the other hand kills the fantasy. So in terms of what value I personally get from ~8$/year, lottery tickets are awesome.

forinti 4y ago

I rarely play the lottery. If I were to throw away 13% of my income, I would try a different game: buy random stocks. I would just choose a random stock, not even looking at anything other than the ticker, buy it and sit on it.

Retric 4y ago

That’s a little deceptive as most lotteries have small prizes. A regular player loses something like 2/3 to 3/4th of every dollar they spend. Those small prizes may just be a dopamine hit to keep people playing, but they do mean money spent is noticeably larger than money lost.

elliekelly 4y ago

It is absurd but for a lot of these people the lottery is their “best bet” at getting out of their current financial situation. Consider too that modern lotteries are structured to give you enough of a dopamine hit that you want to keep playing. So maybe one-half or one-third of time you “win” back your $1 or $5 bet. I wonder whether those small-potato lottery prizes are factored in to their calculation of a player’s “income”.