Why does the Mega Millions Jackpot not start at $40 mil?

Reply #40

ryanm — Wed, 26 Mar 2014 22:33:16 GMT

I've actually found THIS as a breakdown of the prize pool allocations on the California Lottery website:

-----------------------------------------------

Prize Levels Odds

Percentage of

Total Prize

Pool Allocated

All 5 of 5 + Mega

(Jackpot) 65.1540%

All 5 of 5 8.9780%

Any 4 of 5 + Mega 1.3520%

Any 4 of 5 1.8930%

Any 3 of 5 + Mega 0.9328%

Any 3 of 5 2.1350%

Any 2 of 5 + Mega 2.6008%

Any 1 of 5 + Mega 7.6144%

None of 5, Mega only 9.3400%

Totals... [ More ]

Reply #39

jjtheprince — Wed, 26 Mar 2014 18:51:42 GMT

That's exactly right, have to keep the starting JP low because it's WAY too easy to win.

Reply #38

Jon D — Wed, 26 Mar 2014 05:13:19 GMT

...and no matter how high the odds, 259M or whatever comes next, there will always eventually be some early wins on draws with low sales. Like tonight's MM JP win in NY on just the 2nd draw after reset at $20M. That's why they can't inflate the JP too much.

Reply #37

RJOh — Wed, 26 Mar 2014 01:11:01 GMT

Maybe you don't have the same options I have. If I don't like buying a $1 MM ticket to win $20M with odds of 1:258,890,850 of winning it I can buy a $1 OCL ticket to win $64M with odds of 1:13,983,316.

Reply #36

Coin Toss — Tue, 25 Mar 2014 23:27:45 GMT

For one answer for the question in the OP how about simply Whatever the traffic will bear?

The MUSL knows that even if millions of people threatened not to play MM until it upped the starting jp to $40M there would still be millions of others that would play it anyway, along with most of those who threatened not to play it but did.

Reply #35

noise-gate — Tue, 25 Mar 2014 22:37:01 GMT

Well l do care where it starts- the rest of your statement is semi brilliant, just as long as I am holding the winning ticket.

Reply #34

RJOh — Tue, 25 Mar 2014 20:32:28 GMT

I couldn't care less about where either game jackpot starts because I will only play when their jackpots and odds of winning are worth the price of of their tickets which is more than $100M. When they are less I have a choice of other games with similar jackpots with better odds.

Reply #33

Jon D — Tue, 25 Mar 2014 16:47:45 GMT

It's not difficult, it's easy. You want MM to arbitrarily raise the starting JP, well that money has to come from somewhere. Easiest way is to siphon off funds to float a dedicated jackpot reserve like PB does.

I have no idea why you would want to do away with MUSL.

I have no idea either. Where did that come from? I never said anything of the sort. MUSL exists as a non-profit to facilitate the multi-state jackpot game. I merely disagree with the marketing tactics used by MUSL and state lot... [ More ]

Reply #32

Gliter — Tue, 25 Mar 2014 16:32:59 GMT

I`m talking about euromillions jackpot not mega or pb.

12m over here is piss-poor, considering alot of countrys take part in it.

Reply #31

Teddi — Tue, 25 Mar 2014 16:10:21 GMT

You're making this needlessly difficult and obscuring a very simple way of funding a larger starting JP. They don't have to take it from the excess that would be defeating the purpose. everyone likes knowing what the real JP number is as opposed to the guesstimate.

But, if as you say, the JP is fully funded by draw 3, then have it funded by draw 4 instead and raise the starting amount. No one is winning by draw 4 now anyway, Not after they raised the odds.

And yes, no big surprise, I am... [ More ]

Reply #30

Jon D — Tue, 25 Mar 2014 15:42:40 GMT

Yes the revenue is higher, but the profit is the same, meaning they have to pay out the same percentage.(50%) Additional revenue taken in for the jackpot pool is always paid out to the winners.

Sure, they could do other things to pump up the starting MM JP, but that would require a rules change. They could add a dedicated jackpot reserve like PB has. They could roll over the excess, like take the extra $14M from the last big $400M JP and apply it to the base/reset starting JP, instead of payi... [ More ]

Reply #29

Teddi — Tue, 25 Mar 2014 15:12:12 GMT

I get what you're saying but MM is making more money now. Much more. There are a lot more rollovers than there used to be. No real reason why they can't take some of the additional money they are making from the increased number of rollovers and apply it to the starting JP. If they are indeed fully funded by draw 3 and people aren't winning until between draw 15 or more, they could start the JP at $20 million without batting an eye. They could even take it out of their advertising budget because... [ More ]

Reply #28

Jon D — Tue, 25 Mar 2014 15:03:44 GMT

Or maybe PB should start at $30M instead.

Actually, if they were honest and based the JP on actual base revenue collected, they would start MM at $10M and PB at $20M. But they go for the marketing bump of a larger starting JP to speed up the rate of increase of sales. MM has a slightly higher annuity factor, but PB has a dedicated jackpot reserve, so the PB JP is more inflated than MM.(and they run a JP deficit longer

Reply #27

Teddi — Tue, 25 Mar 2014 15:01:12 GMT

What you fail to put into your comment is that 12 million euros equals 12 million euros. $15 million does not equal $15 million. If we're lucky, maybe we'll see $5 million.

So it isn't the same thing at all. 12 million euros is even still WAY ahead of our $40 million PB starting jackpot.

You're comparing apples and oranges. Just because they are both fruit don't make them the same thing. It's not about greed, it's about arithmetic.

Reply #26

Gliter — Tue, 25 Mar 2014 13:34:48 GMT

Euromillions starts at 12m, we have about 9 countries take part.

One word Greed

Reply #25

Shelby Mustang — Tue, 25 Mar 2014 11:38:52 GMT

LOL yeah I understood the question, but they would not let it stay at a $1 drawing then, that's why. Also if it's not a question whether or not one would refuse the 15 mil they why does it matter if it started at a higher amount

Reply #24

Shelby Mustang — Tue, 25 Mar 2014 11:36:15 GMT

LOL You're right and wrong I am not worth anywhere near 5 million and neither is anybody else who's a member on this site, including you

Reply #23

ryanm — Tue, 25 Mar 2014 02:47:33 GMT

If that's the case, then Mega Millions should start at $20 million, but keep the minimum $5 million increases, especially seeing as the Mega Millions annuity is larger than the Powerball annuity given any cash jackpot, because MM's payments increase by 5% each year in contrast to PB's 4%.

Reply #22

noise-gate — Tue, 25 Mar 2014 00:53:20 GMT

Well that explains it. Thanks.

Reply #21

rcbbuckeye — Tue, 25 Mar 2014 00:52:51 GMT

The cash option is actually the REAL jackpot, not the annuity. They take the cash amount and invest it to achieve the annuity.

Yes they advertise the annuity. Simply marketing. Those that study the lotteries understand how it works.

Reply #20

Jon D — Mon, 24 Mar 2014 19:36:29 GMT

Why? Simple. One is $2 and the other is $1 per play.

Remember Powerball when it was $1? Starting JP was only $20M.

The base sales for PB are almost twice that of MM, but only because the ticket price is twice as much. MM actually sells more tickets, but less revenue because of the lower $1 price.

The games are also structured differently with prize share percentages, etc. Such that PB Jackpot is not fully funded until the 5th or 6th draw, whereas MM is fully funded by the 2nd or 3rd dra... [ More ]

Reply #19

rowlettewheel — Mon, 24 Mar 2014 19:34:09 GMT

screw the amounts starting point what I HATE is the cash option crap ..HALF!! both games do that ,plus the dam taxes...

please return to your normal thread ...thank you

Reply #18

LottoMetro — Mon, 24 Mar 2014 18:44:16 GMT

I agree, but they look at it as the player has more choices. Those loyal to MM who feel $2 is too much will simply revert to playing their state lotteries, at least until the jackpots reached record sizes.

Both PB and MM are supervised/marketed by MUSL; however, Mega Millions is actually separate from Powerball and changes to the game are approved by the Mega Millions Group lotteries. MUSL and the Mega Millions Group apparently has differences, which is the reason they are separate. I recentl... [ More ]

Reply #17

mrcraft — Mon, 24 Mar 2014 18:27:03 GMT

My thoughts is that they should merge the two and create a single national lottery. I don't know the politics behind it all, but my understanding is they are both administered by the MUSL.

- $2 per line, start at $50 million, bonus balls at ~15-18, white balls at ~70-75, and 3 draws per week (Tues, Thurs, Sat)

I think the rollovers will be larger and quicker to reach frenzy levels; easier to get your $2 back than PB presently; and potentially more revenues with increased sales generated by... [ More ]

Reply #16

LottoMetro — Mon, 24 Mar 2014 18:13:29 GMT

It all boils down to sales, sales, sales, and cost.

MM puts 32.577% of ticket sales towards the jackpot. That $8.3 million starting cash jackpot after the recent win? Deficit. Sales were $18,035,251 which means the jackpot was only funded with roughly $5,875,344. Powerball can afford higher starting jackpot because 1) higher ticket price yet comparable sales, and 2) they have a reserve pool which deducts 2% to pad deficits. MM may have a reserve too, I don't remember.

Yes, early wins can b... [ More ]

Reply #15

whiteballz — Mon, 24 Mar 2014 17:48:23 GMT

even at $2 per ticket, I don't think Powerball makes any money if the jackpot is won at the default amount of $40 million. Which does happen sometimes and when it does they lose money. I think the people who run PB start the jackpot at $40 million and hope no one wins the base amount. If too many win the jackpot at the default amount you'd better believe they'd change the format or go out of business.

Don't quote me on this, but I read somewhere on this forum, that Powerball doesn't become pr... [ More ]

Reply #14

noise-gate — Mon, 24 Mar 2014 16:19:49 GMT

For a JP with these odds? Of course its an insult in my opinion, and opinions are like noses, everyone has one.

PB is $2.00 with a better starting JP, so why can't MM raise their's? They may say it only cost a buck..but once again take a look at the odds compared to that of PB...hope you get my drift.

Peace.

Reply #13

RJOh — Mon, 24 Mar 2014 15:53:19 GMT

How can the starting jackpot be an insult to anyone who is willing to buy a ticket when the jackpot is $15M? If you don't like the starting jackpot, don't start playing until it reaches the amount you would be willing spent a dollar for a ticket.

Reply #12

noise-gate — Mon, 24 Mar 2014 14:16:24 GMT

The question is not whether one would refuse $15 mil Shelby, its why it cannot start at $25-$30 mil given the odds

Reply #11

noise-gate — Mon, 24 Mar 2014 14:08:27 GMT

Thanks for your response fja- but you know as well as l that the price structure was put in before people did not balk at the starting rate or the appeal of the JP.So the question remains.

Reply #10

Drenick1 — Mon, 24 Mar 2014 12:33:03 GMT

$5 million in the bank would work for me as well! I would still keep my day job (mother/housewife).

Reply #9

rcbbuckeye — Mon, 24 Mar 2014 12:21:31 GMT

Cash value on 15 mil is about 8.3 mil. About 5 mil after all the taxes are paid.

Instant retirement for me.

I'm ok with that.

Reply #8

Drenick1 — Mon, 24 Mar 2014 12:14:57 GMT

Winning a $15 million jackpot does not equate to having $15 million in the bank. The cash option after all taxes are factored in would leave the winner with roughly $5 million. You may not be worth anything close to $5 million but I am willing to bet there are some L.P. members who are.

Reply #7

Shelby Mustang — Mon, 24 Mar 2014 11:29:01 GMT

Yeah I'd hate to see the MM price to go up to $2 buck, or rather $3 with the megaplier. What wrong with 15 million? Nobody on here has that amount of money, it's money than any of us here make in a year, and my final question is If it was you that won the 15 million...would you be calling it paltry?Me? I'd take it and shut my mouth and consider that I was the luckiest person on earth. My philosophy is that any jackpot is a is worth winning, its more than we'd ever earn on our own... [ More ]

Reply #6

sully16 — Mon, 24 Mar 2014 10:37:06 GMT

Yep

Reply #5

fja — Mon, 24 Mar 2014 10:28:39 GMT

You answered your own question- The public is not baulking at the new format.....my guess is that their next move is $2 per ticket, and then they will raise the starting price to grease the skids....

Reply #4

four4me — Mon, 24 Mar 2014 05:30:15 GMT

When they change the matrix they also change the starting jackpot amount.

Reply #3

mypiemaster — Mon, 24 Mar 2014 04:43:51 GMT

Greed!!!.

Reply #2

noise-gate — Mon, 24 Mar 2014 04:39:03 GMT

..Thanks, your thoughts are profound... l think.

Reply #1

onlymoney — Mon, 24 Mar 2014 04:30:37 GMT

because

Why does the Mega Millions Jackpot not start at $40 mil?

noise-gate — Mon, 24 Mar 2014 04:10:43 GMT

If PB can do it- why not MM?

What is the issue- anyone know?

By now the powers that be must know that the public is behind this new format- why not show their true colors by starting above the paltry $15 mil? The starting price is an insult..IMHO compared to PB.

Thoughts