Playing the lottery helps the economy
Just when you thought that the only person who will benefit from a winning lottery ticket is you – and of course those long lost family members who crawl out of the woodwork when they hear that you’re rich – it turns out that the lottery as a whole, such as Mega Millions, is really good for the economy.
How much does the state benefit?
There is a not-so-well-kept secret that the government receives 35% of all lottery ticket purchases. Although there may be some skeptics out there who believe that – just like tax – the money that is given to the state does not positively affect them directly, there is nevertheless a lot of good that is done from the government’s perspective with all this extra income. Although the public does not have a direct say in where the money gets spent, there is nevertheless a very transparent structure in place where any interested party can enquire about it. And of course, the media would be all over any irregularities like swarm of bees to a honey factory.
Does price affect how much people play?
Just several years ago, the price of the Powerball went up. This caused a bit of a ruckus with both lottery players and experts alike who were not only upset that it cost more to play, but also assumed that it would have a negative effect on the overall sales of tickets. However, the exact opposite happened, much to the surprise of all these experts who had predicted a drastic decline in sales.
Not only are many more players partaking in the lottery than ever before, the government has seen a huge cash injection into its coffers. And of course, there are also the hundreds of new millionaires, who further boost the economy due to their increased spending power. Just look at all the millionaires created by Mega Millions.
Funding social projects
Just this past November, the Powerball lottery jackpots in Louisiana recorded dramatic rise of 7% (equated to $9 million) – the biggest in over a decade. This has had a positive impact on the state as a whole, as the additional revenue generated for the state can be used to fund a range of projects to increase jobs, further education or care for the needy.
What prompts these ticket sales?
A lot of research has been conducted in the area of what drives players to buy tickets – and the findings are quite obvious. If a large jackpot prize is announced, then there is a big spike in ticket sales. Larger jackpot prizes at Mega Millions always sees a spike in ticket sales. However, when a lesser prize is announced, players are more reticent to part with their hard earned money. This in turn has an effect on how much income the state will generate from ticket sales. It is therefore in the state’s best interest that jackpot prizes are kept at a compelling enough level in order to entice enough players to participate.
Although the state does channel a large portion of the revenue gained from lottery ticket sales into well-meaning projects, there is no real way to plan for exact figures. This is due to the fact that lottery sales are cyclical and can therefore not be predicted with any certainty.
There are many great reasons to play the lottery. The obvious benefits are the ability to change one’s life forever, with several million dollars finding its way into your bank account. But there are also the reasons beyond self-gratification. Every ticket bought helps the state further education – and other great initiatives – in the country, making it stronger and more competitive for the future.