Powerball is up to $1.3 Billion ($806M cash)

[Ad Orientem]

Yes, I stood in line along with the other sheep waiting to be sheered and dropped my $3 on a ticket. I know I know... it's a racket. But for a few bucks WTH.

[Ad Orientem]

No. But since we are indulging in minor vices here, I will admit to being tempted by a really nice looking Partega maduro cigar ($12).

[Ad Orientem]

Wow! Nobody won last night. This is getting crazy.

[Tortoise]

I bought a $2 ticket yesterday. Sometimes manias are fun!

[Pointedstick]

And since I imagine far less then 100% of households buy lottery tickets every year, the actual yearly spending for the households that do is likely much higher. It's just like people say--a tax on stupid people, or those who can't do math.

[Libertarian666]

And since I imagine far less then 100% of households buy lottery tickets every year, the actual yearly spending for the households that do is likely much higher. It's just like people say--a tax on stupid people, or those who can't do math.

It's still better than what they spend even more money on.

"Smokers in New York State earning less than $30,000 a year spent spent 25% of their income on cigarettes, according to a new study from the Public Health and Policy Research program of RTI, a nonprofit institute. Even more surprising, they paid nearly 40% percent of New York's cigarette tax revenue.

"This extraordinary stat reminds me of another extraordinary stat: That households earning less than $13,000 a year -- so,  considerably poorer than the population ACS studied -- spend a shocking 9% of their money on lottery tickets. "

http://www.theatlantic.com/business/arc ... es/262627/

(But I'm sure I'm being elitist to think that if poor people spent their money more wisely, they wouldn't be as poor.)

[Cortopassi]

For I think the 4th time in 10 years, I have gotten a lottery pool together at work.  About 15 people (mainly all degreed engineers, like me) put $10 in each.

We won $11 last time.

This time we are winning it all...

Sure, it's a stupid tax.  Engineers better than almost anyone else understand the odds.  But it allows for a few days of daydreaming "what if?"  Good entertainment for only $10 every now and then!

[Reub]

I was on a cruise in the Caribbean for the past 10 days and was hoping that no one would win until I got home and purchased the winning ticket.

So what is the best way to invest my future winnings?

[stuper1]

So what is the best way to invest my future winnings?

Math education for the poor.

[Fred]

They were taking up a pool at the office today. It required $6 to get in and there were 20 people so far, so I guess we're talking about 60 tickets.

At first I said no thank you but then I thought of a story I heard not long ago about somebody who passed on a similar pool and when his co-workers hit the jackpot he was the only one left. Thinking how awful that would be I changed my mind.

[Libertarian666]

The annuity number is over $1.5 billion now, with more than 24 hours to go.

[dragoncar]

So would you guys invest in the PP or what?  That's 3 tons of gold bars (and as we all know you can fondle the cube, but it will not respond... unless you spend a few hundred thousand on animatronics)

[Greg]

I'd buy the state of Wyoming and call it Gregland. Only people named Greg are allowed access to it. Also I will have a large border around it so only Greg's (and the feds if need be), can come in to inspect and then leave.

[Libertarian666]

So would you guys invest in the PP or what?  That's 3 tons of gold bars (and as we all know you can fondle the cube, but it will not respond... unless you spend a few hundred thousand on animatronics)

Yes, I would invest most of the take in the PP. Of course, some of the logistics would get interesting. For example, I don't think putting in a single order to buy $150,000,000 of an index fund would be a good idea. 

[Tortoise]

So would you folks take the lump-sum cash payment or the annuity?

I think I would take the annuity as a form of insurance against my own stupidity. It would give me more time to figure out how to manage ridiculous amounts of money. It would also mean most of the money would be paid to me long after the initial attention and craziness die down, which is nice.

[Cortopassi]

Since it is so much, an annuity might be interesting.  But there's always the concern of what's the state of the lottery system/country/etc over the next 30 years and might it somehow disappear or be changed enough that you don't get what you're owed.  I suspect the chances of that are small.

[Libertarian666]

So would you folks take the lump-sum cash payment or the annuity?

I think I would take the annuity as a form of insurance against my own stupidity. It would give me more time to figure out how to manage ridiculous amounts of money. It would also mean most of the money would be paid to me long after the initial attention and craziness die down, which is nice.

I'd take the cash, because I trust my own money management skills more than I do the government's.

[Xan]

So would you folks take the lump-sum cash payment or the annuity?

I think I would take the annuity as a form of insurance against my own stupidity. It would give me more time to figure out how to manage ridiculous amounts of money. It would also mean most of the money would be paid to me long after the initial attention and craziness die down, which is nice.

I'd take the cash, because I trust my own money management skills more than I do the government's.

Yes, particularly the state government, which is a currency user.

[Libertarian666]

So would you folks take the lump-sum cash payment or the annuity?

I think I would take the annuity as a form of insurance against my own stupidity. It would give me more time to figure out how to manage ridiculous amounts of money. It would also mean most of the money would be paid to me long after the initial attention and craziness die down, which is nice.

I'd take the cash, because I trust my own money management skills more than I do the government's.

Yes, particularly the state government, which is a currency user.

Any government. Actually, the fact that the US government can print paper money makes me less confident, not more confident in their money management skills.

Especially if they owed me $1 billion. They might be able to pay the later installments with a postage stamp.

[Cortopassi]

I guess a lump sum is better, then you can more quickly convert 25% to gold which "may" hold its value better over 30 years...

[Libertarian666]

I guess a lump sum is better, then you can more quickly convert 25% to gold which "may" hold its value better over 30 years...

Yes, with that much money even 25% in gold would protect you against anything short of another Chixulub asteroid.

[Tyler]

Yes, with that much money even 25% in gold would protect you against anything short of another Chixulub asteroid.

I'd take the lump sum of $800mm and put it in the PP.  But I'd melt down the $200mm in gold, mint my own coins with Harry Browne's mug on the face, and pay for everything with them.  Keep the change. 

[Mountaineer]

Yes, with that much money even 25% in gold would protect you against anything short of another Chixulub asteroid.

I'd take the lump sum of $800mm and put it in the PP.  But I'd melt down the $200mm in gold, mint my own coins with Harry Browne's mug on the face, and pay for everything with them.  Keep the change. 

Good plan.  I'd take the lump too.  Invest in a transmutation machine so I could turn the gold into paper money - much lighter. 

... M

[Tortoise]

So this latest Powerball mega-jackpot got me thinking about the morality of gambling.

It's never made complete sense to me why gambling is considered immoral by so many religious folks, at least in the U.S. My guess is that the biggest reason religious taboos against gambling exist is because of its historical association with excess and addiction. Many people can't control themselves when they gamble, so they gamble away their whole paycheck. That's considered immoral. Many people also drink excessively when they gamble, leading to fights and other unruly behavior. That's also considered immoral. Prostitution often occurs in association with gambling. Again, that's considered immoral.

But what about occasional gambling in moderation--as a form of simple entertainment? Is there still a religious taboo against it, and if so, why?

Is it possible that there's an even deeper and more subtle reason why religious taboos against gambling exist, and that it has to do with the moralistic view that wealth should be a reflection of hard work and thrift--and not blind chance?

If I occasionally buy a $2 lottery ticket at the gas station or gamble a moderate amount of money in Vegas once or twice a year because it's fun--not because I desperately hope it'll make me rich--I honestly don't feel like I'm being immoral. I see no moral problem with it whatsoever. It's simple entertainment--nothing more, nothing less. Unpredictability is fun. It's the basis for a lot of comedy and different kinds of entertainment.

Any thoughts?

[dualstow]

I pretty much agree with your explanations, Tortoise. The only thing I would add is that once I saw a self-professed Satanist on a talk show. He claimed to have the power to "alter probabilities." I don't know how common that claim is, but I can't imagine it's doing any favors for gambling's reputation in the eyes of those who already consider it a sin.

Btw, I bought two tickets while traveling this week. Lots of fun. The first three numbers on my ticket were a match.