Something stinks with Powerball

Reply #33

spy153 — Wed, 15 Jul 2009 16:29:00 GMT

Oh, I like you. I really do.

I too, understand their excuses but don't buy it. But realize this, we are a minority in this respect. Not many people care unless they win the jackpot. And then, they are shaking their heads and wondering what happened.

Just think of all the millions the Powerball winners are missing in the end compared to Mega Millions winners. But then too, that is the same thing as saying Just think of all the millions the small state pick 5 lottery winners are missing out... [ More ]

Reply #32

Jimhowlett — Wed, 15 Jul 2009 14:57:49 GMT

Wow,

Tookabath needs to go easy on the insults. That just opens you and your arguments to heightened scrutiny, at least on a message board. Not to mention you're not going to promote civilized debate with insults.

Reply #31

CountingMan — Wed, 15 Jul 2009 02:51:47 GMT

Look folks, the real reason that they advertise the annuity values is because it attracts more players than the Present Value. By the way, for those who don't know it, the amount advertised is the annuity value; how much you will have received at the end of a 29 year pay out period. The cash value is the present value of the 29 year pay out as of today, or what $50MM in 29 years is worth today; this is why for PB it is running about 50% of the annuity value.

I have run the analysis for... [ More ]

Reply #30

scorpio — Thu, 02 Jul 2009 19:46:48 GMT

truly an example of a wrong mistake

Reply #29

KY Floyd — Thu, 02 Jul 2009 15:47:02 GMT

Have you sent him the dunce cap yet, or is it permanently attached to your head? For anyone with a clue the information was all in Coin Toss' explanation but since that wasn't enough for you, I'll try to spell it out even more thoroughly.

Different lotteries pay their annuities on different schedules. Annuities earn interest. That means that how much the annuity pays is related to the interest rate, and how long the annuity earns interest. At the same interest rate an annuity that is paid out... [ More ]

Reply #28

scorpio — Thu, 02 Jul 2009 14:45:09 GMT

yeah,i saw that on a jeopardy question last night,quoted from the bible i think.

Reply #27

MaddMike51 — Thu, 02 Jul 2009 14:23:28 GMT

Call me a sinner because I LOVE money

Reply #26

scorpio — Thu, 02 Jul 2009 14:09:29 GMT

it seems pennsylvania wins most of the 5 of 5 jackpots.we are educating everyone highly with our taxes,and some of them become crooks into whatever financial area they can exploit,banks,lotteries,governments,etc..remember it's not money that is a sin,but the love of money.

Reply #25

DC81 — Thu, 02 Jul 2009 08:36:05 GMT

Complaining about this is silly. Powerball is paid over 30 years, MegaMillions over 25 years so of course MM has to put in more money into the front end to get to those advertised jackpots. Both annuities are from Treasury Bonds I believe and I'm not even going into how the annuity and especially the cash option is affected by T-Bill rates.

Powerball has less overall potential players (but A LOT MORE states and other places that would want their cut) than MM but now with even worse odds an... [ More ]

Reply #24

Coin Toss — Thu, 02 Jul 2009 03:45:26 GMT

tookabath

The only duce cap and confusion is yours for believing the advertised amount exists.

Told ya, each game has its own formula.

As has been mentioned in this thread, you're in a MM state so what do you care

Reply #23

rcbbuckeye — Thu, 02 Jul 2009 00:09:01 GMT

Sooooooo,

Neal Wanles never had the slightest chance? I just don't believe they are cheating on these games, they don't have to. Look at the odds.

Look, I have also wondered why the difference between cash and annuity was different between PB and MM. But, if I win either one, I'm really not going to care too much because it's enough money to last me the rest of my life.

I work with a guy who every Tues and Fri asks me how much MM is up to. My answer everytime is I'm not sure and I don't... [ More ]

Reply #22

Todd — Wed, 01 Jul 2009 23:42:16 GMT

Reply #21

tookabath — Wed, 01 Jul 2009 23:38:42 GMT

Whatever it takes to weed out the bad apples.

Reply #20

tookabath — Wed, 01 Jul 2009 23:33:45 GMT

Doesn't it? Don't your insides just roil thinking about it?

But I've said my piece. Let other carry this fight over,

which will be the hard part. It's always 10% inspiration

and 90% perspiration.

Reply #19

MaddMike51 — Wed, 01 Jul 2009 23:32:08 GMT

What a dumb idea!Haven't you ever noticed that anytime the US government gets involved in anything that the problem gets worse,not better?Its always been this way always will be this way.

The only Sanford that I ever heard of was an old black junkman on tv.

Reply #18

tookabath — Wed, 01 Jul 2009 23:25:48 GMT

No, but how about they appoint a House subcommittee to investigate?

How about sweeping regulations affecting lotteries?

You'll recall that Sanford the billionaire banker's recent downfall

was instigated by a blog entry. If these series of posts brings about

the winds of change needed to stoke the fires needed to weed out

corruption in the industry, let it be. Let it be.

Reply #17

dopey7719 — Wed, 01 Jul 2009 23:20:08 GMT

Wow....it's crossed my mind that something isn't right...but you've detailed it out. You should email them, or send a letter or something. Start a petition and I'll sign it. It really makes my blood boil to think that I've never had a chance at all.

Reply #16

MaddMike51 — Wed, 01 Jul 2009 23:18:34 GMT

Maybe you should contact the Powerball lottery about this issue.Maybe they will change their operation to suit your ideas of how they should operate.

Reply #15

tookabath — Wed, 01 Jul 2009 23:14:18 GMT

Obviously, you meant that in jest. But here is the heart of the

matter: Did you ever have a chance at all? Or was even that an

illusion? If the integrity of the drawing is compromised, then

you never had a chance, not in the slightest.

Reply #14

dopey7719 — Wed, 01 Jul 2009 23:03:22 GMT

The only thing that stinks about Powerball is that I can't win a darn thing from it

Reply #13

tookabath — Wed, 01 Jul 2009 23:02:17 GMT

After Madoff and AIG and the housing debacle and collapse of Wall St

investment banks, you just can't take anything for granted anymore.

I refuse to believe that just because Powerball is a huge and

long-established organization and brand, that everything is

just fine and dandy. There has to be a greater level of scrutiny

and transparency. Shine some daylight on them, and let's

see the critters scampering out of the shadows.

Reply #12

tookabath — Wed, 01 Jul 2009 22:44:14 GMT

Anyway, the greater concern is that there's something not quite right

about Powerball's auditing methods. It threatens the very integrity

of Powerball drawings.

Reply #11

tookabath — Wed, 01 Jul 2009 22:38:13 GMT

I read the text that you cut and pasted presumably from the

Powerball website. It gives a flimsy excuse about rising interest

rates and inflation, and how that accounts for the greater difference

between the annuitized prize and the cash option.

It don't make no sense. The interest rate and inflation is the

same for Megamillions and all the other major state lotteries

as it is for Powerball. And yet, Powerball chooses to announce

their jackpot amount in a way that makes thei... [ More ]

Reply #10

MaddMike51 — Wed, 01 Jul 2009 22:26:13 GMT

From the Powerball website:

WHY HAS THE CASH JACKPOT GONE DOWN?

Actually, it is the annuity jackpot that has gone UP. Most people assume that we start with the annuity, but we really start with the cash jackpot. In the Powerball game, thirty cents of every dollar sold goes into the cash jackpot pool. The difference between the cash jackpot and the annuity jackpot depends on how much we can make in interest earnings. The more interest that we can make, the higher the annuity jackpot

Reply #9

tookabath — Wed, 01 Jul 2009 22:20:48 GMT

Allow me to alleviate your state of confusion by showing you

two recent real-life examples:

Last month:

1. When Neal Wanless, that kid from SD, won the Powerball $232M

jackpot, he received a one-time cash prize of $118 million .

Four months ago:

2. When the group of Chubb insurance employees won the Megamillions

$216M jackpot they got the cash option of $137 million .

Both of the cash amounts above are lump-sum (non-anuity), pre-tax.

Now do the math

Reply #8

Coin Toss — Wed, 01 Jul 2009 21:59:19 GMT

tookabath

From your post:

1. The Powerball Actual Cash Value is only 50% of their

Estimated Jackpot , whereas for other major lotteries,

the percentage is between 60% to 70%. Huge difference.

For example, a Powerball estimated jackpot of 100M is

is equivalent to a Megamillions estimated jackpot of 75M.

Highly deceptive.

Do some searches here at LP and one of the things you'll learn is no matter what the advertised jackpot is, that money does not physically exist. That a... [ More ]

Reply #7

tookabath — Wed, 01 Jul 2009 21:06:12 GMT

If your speculation turns out to be true, it'll be a litmus test

to see how quickly they respond by correcting the error.

That is, a test to see if indeed these industry execs pay

attention to LP as some have surmised.

Reply #6

RJOh — Wed, 01 Jul 2009 21:04:03 GMT

Probably for the same reasons you are concerned about a game not played in your state.

Reply #5

tookabath — Wed, 01 Jul 2009 20:55:35 GMT

If you're in OH, why are you reading a thread about a game not played in your state

Reply #4

RJOh — Wed, 01 Jul 2009 20:54:30 GMT

If you're in CA, why are you concerned about a game not played in your state

Reply #3

CARBOB — Wed, 01 Jul 2009 20:50:46 GMT

Winning numbers are not official until confirmed by the

auditing firm of Harvey, Covington Thomas, LLC.

But then click on the link Old Numbers on the top-right area.

In the bottom box, it states:

Every attempt is made to ensure that this list of numbers is

accurate, the official winning numbers are recorded in the

official draw files as certified by an independent accounting

firm. Winning numbers are not official until confirmed by the

auditing firm of LWBJ, LLP.

Reply #2

x1kosmic — Wed, 01 Jul 2009 20:44:53 GMT

I've called the one with Harvey, Covington and Thomas, it's real.

Reply #1

tookabath — Wed, 01 Jul 2009 20:36:35 GMT

*Actually, I meant KPMG (another Big 4 auditor), not PWC.

Something stinks with Powerball

tookabath — Wed, 01 Jul 2009 20:33:50 GMT

A handful of major things stink to high heaven with Powerball:

1. The Powerball Actual Cash Value is only 50% of their

Estimated Jackpot , whereas for other major lotteries,

the percentage is between 60% to 70%. Huge difference.

For example, a Powerball estimated jackpot of 100M is

is equivalent to a Megamillions estimated jackpot of 75M.

Highly deceptive.

2. Go to the Powerball website and click on the link

Powerball Numbers on the top left. In the box on the botto... [ More ]