Lotteries

Lotteries are held in most countries around the world with a few exceptions in countries where gambling is outlawed. Some countries allow private lotteries while other only allowed government owned lotteries. Many countries have regulations that strictly regulates lotteries but that allows charities to run lotteries besides the state lotteries. Many of the biggest jack pots of all time are won in lotteries. The biggest lottery in the world is the spanish Sorteo Extraordinario de Navidad, AKA El Gordo. Other very big lotteries with big prizes include the Mega millions lottery in the united states and the Euromillions lottery played across Europe. The biggest jack pot paid out on mega millions was $390 million and the biggest Euromillions jackpot was $260 millions. There are however some important differences between the two lotteries which means that the Euromillions lottery actually paid their winners more than the mega millions lottery. This differences has to do with tax law and with how lotteries are constructed in Europe and in the United States. In Europe the prize is usually paid as a lump sum unlike in the united states where the prize is paid as an annuity. The $390 million jackpot only paid $233.1 million as the winners decided to get the money all at once instead as an annuity. The Euromillions prize of $260 million as a clump sum is already here worth more than the mega million jackpot but the differences doesn’t stop there. In Europe lottery winnings are tax free in most countries. The Lottery operator pay the tax or in many cases are owned by the government which takes the profit from the lottery. In the United States on the other hand you have to pay tax on your lottery winnings. The tax is a minimum of 25% and usually a lot more when winning a big jackpot. This means that a lottery win in the United states is worth even less and that the winners in the European lotteries end up getting a lot more money in the end even if the prize looks smaller on paper.

Lotteries are luck based games where the bank always have an edge. Information about the pay out ratio in a lottery should normally be provided by the lottery operator in most countries. The higher the pay out rate is the lower is the edge of the operator. It is common for the edge to be 10% or more. In countries with government lotteries it is also common that at least a part of the profit the lotteries generates is sent on to charities and youth sport.

It is important to realize that it is not possible to affect the probability of winning when playing lottery in any other way than by the number of tickets you buy. There are now tips or tricks to increase the odds of winning and all combinations of numbers are just as likely to appear however unlikely that might feel. This means that it is just as likely that 7 consecutive numbers are drawn in a lottery as 7 more diverse numbers. It therefore doesn’t matter which number you play on.