« Stuff You Should Know

How Lotteries Work

2010-03-16 | 🔗

In this episode, Josh and Chuck discuss the history, practices and controversies of lotteries.

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welcome to stop. You should know how stuff works, that hey, Norton and barred Cast judge part job, but you should know to do this. It is certainly a current affair when those tablet judge hard copy. Remember that young artist around addressing some of the more thankfully not watch television at four thirty no job. I wouldn't know here in Georgia we had the thing called the Hope Grant. I think we still do not think so. We're like, if you keep a b plus average or more in high school. If you graduate, B, plus everything you can maintain through college, you get a free ride to a state school its funded by the lottery together came along after I was there. It was, It was started. Actually, when I went to college, I think it was the first year and that there have been turned into
the studies done on who's going to college and its general white upper middle class, kids, who are benefiting from the hope, scholarship and then its poor minorities, who are playing the Lotto air, in effect pudding, white, kids through college, who whose parents could otherwise pay for years that a lot of people of color attacks on the poor aunt, the Anti Robin Hood take from the poor and give to the rich bench. We talk about sums that church we get that otherwise yeah I've got a few forty Josh There is one studying California, where they have shown that the Racial and household income lines match up with how California's divided sure, as they have been disputed, MIA people saying there cook in the books area, though ask questions. I gotta have you played the lottery in the last month, but they dont say: have you bought fifteen
of tickets per day, right, yeah yeah, that's good points made only dive in there. I was reading a story, I think from CBS News Texas. In two thousand seven, they found the blacks and Hispanics play the lottery twice as much as white stew, regardless of class yes and scratch off tickets are apparently the crack cocaine of lottery in Texas. Is the first state to offer a fifty? Dollar scratch of ticket holy cow. You pay fifty bucks to her to have this thing. Have you ever gonna like little scratch off bender I have before and when you get in the grip of it, and you might happen either. There's no way out. Well is Massachusetts. One third of the cost to the gambling addiction hotline are from lottery players adequate. I'm surprised us the third actually yeah. It's like. Alcoholism in beer you can buy beer, you can buy liquor and a lot of state you if the buyer from estate store this. This
thing these are state run vice operations, basically near pretty much and the people have a real problem with them, but in other states does making so much cash offer these things that they aren't really do. A whole lot about it here and here's the other thing before we get on with just what the lottery is. We should talk about little more malfeasance, apparently very much money at all is going to pay through twelve education. Most lotteries go towards education right, that's how they college yeah saw going to college. They said that less than one percent in half of the states that play the lottery, gotTA, Katy, twelve, really and the other The key thing is they: they sell it to you as it is a benefit for education like all over the marketing, but the decision now many states restart Mckenna use it for whatever they want. According to their budget
like in Missouri when it started, I think that was like fifty two percent was forced to go towards education and now it's like thirty percent and they use it for budget shortfalls and whatever they need wow. Those rewrite the lawful, how a grim I know- that's really grimace Firstly, when you consider the people who are didn't blowing cash and scratch on tickets are lotto tickets and have like real gambling problem. You, sir, that's a controversy, and actually this problem goes back pretty far right to the sixteenth century. I believe you, Florence friends, I was in ITALY yeah, that's where the Lotto comes from, and I think that the term Lotto as based on law sleep, drawing lots game of chance. Luck, yes, right in the first Lotto that anybody is aware of where there was a cash prize. Giving out was the latter differentially. You wanna say let those differences Thank you and that was again in the sixteenth century. In ITALY,
and in the U S, we ve always had some maybe a little bit of a fever. For Otto Hemingway yeah, apparently the colony Virginia, was founded by raise money from lotteries, and there were two hundred lotteries permitted between seventeen forty four and the revolutionary war that funded roads. Libraries COL, bridges, churches now, a lot of homework for specific projects and Princeton in Colombia. Universities were built on a lot of money did. You know that I did in Latin. I can't remember what it what it is in Latin, but the crest for princeton- translates to dairy needs, a new parachute There are some days on the search she'll there who I know. If you have fifteen grand you can go to Ebay and by a lottery ticket with George Washington signature sweets where to go, so. I had no idea that lotteries where this entrenched in the founding of our country,
will they the kind of fell out of favor. I am and probably in part because of the temperance movement in the nineteenth century, temperance and then in the twentieth century, but the mid twentieth century lotto fever could not be suppressed right in Relations ran out and arose like give me some tickets and New Hampshire led the way nineteen sixty four with its first state run lottery yeah of the twenty twentieth century. I mean I don't know, the lottery myself at all, but I definitely see the irresistible lure of adults are winning you millions of dollars. I don't know man, let's this out of the way. Would you want to win the lottery honestly? Then, if you know what's what's the minimum amount you'd have the wind to not just below it I'm gonna say no. I wouldn't want to either because
stress and anxiety and complications, and on this I want to make my wife keep it as simple as possible, and that would do that would just complicate everything. Definitely what can I can jerks jerk commander would workin yeah, I think you're kind of I don't have an uncle from Venezuela or do I write exactly well? I guess it's possible go wouldn't be saying he was my uncle, so I got here some money. I should invest in his coffee being feel right. Exactly are gonna get some nigerian general out of trouble right, the emails her so shock. I not necessarily want to win the Lotto either unless it was sitting vast amount that I couldn't possibly run through it and I probably go off and travellers over me. I am also one of those jerk off who thinks that, like working for your money is counted the thing to do chuck works for you now. I would feel like I think, I'll, be very unfulfilled. If someone is game, you call a cat right, yeah, that's
excellent point too, because it think about it. What say you did when a million dollars- let's say you one ten million dollars and looking into how that trickled down to almost nothing by the time it gets in your pocket but I'm so you want a million dollars in every couple years. You ve blown through it. I knew you ve done. Thing the earn that money right. So, therefore you can never get it back. It was applying what, if make ten million dollars writing a book or writing a movie or in business or in real estate right. You can make that back again, actually a few if you blow at all night, because you ve done something for you. Ve used your own wits in in skill, but with Loro now exists in a trip to easy street. That turns out to be how well that's why I appeal to so many people, except for the help, art and that's. Why did people see his attacks on the pork as it's like here?
and even the scratch of tickets. You now just a chance to win like a couple hundred bucks right. I said at the same time, though, do you have to where you have to add a little perspective to you, and I don't really play the louder like I said I have done some like scratch often receive their, but nothing more than like five or ten bucks right. I've got an occasional power ball occasional power. Ok I'll, admit that, but rarely but consider you and I are upper middle class white, guys, eighth, eighteen, forty nine! pretty much the entire countries based on whatever we want all of the focus groups to all the studies, all the pharmaceutical test, their based on us right right like we have it so ridiculously easy. Then I think it's entirely possible that were blinded to wine. People play the lottery. It are, you simply don't have a leg up,
if there's nothing, you can do if you're being kept down economically, socially or whatever there is this promise of. I can freely use a couple extra million bucks him. I don't care if some jackass does come out of the woodwork and says my uncle like it's easy to criticise people who play the larder your as stupid, right right, but at the same time I think that reveals a and a misunderstanding of where somebody's the end, then, of course there are just some jackasses who play the lottery because their border right just have old people who do have a gambling problem right, but I think that there is some promise of a lottery and I think that the state, is upon that through their lotteries gear. I mean it's easy for us to sit here and say: well, if you spend twenty five hundred dollars, you aren't scratch of tickets. If you had invested that right in a rough irae right, then you get the potentially have a retirement account and it's just shut up, you're out of them
and I can tell you the poor mentality is tough to break out of yes, I was, I was port, one point myself yeah it sucks and I was a lottery scratch or feed yeah natural, hello friends. I want to tell you about love book, the very easy way to personalize a book to someone you love in three easy steps. Logbooks helps customers express the sentiments that may be difficult to say out loud for some of us looking in anyone's particular direction, users can create characters that look just like themselves and the recipient right down to the outfits and accessories customers have the option to personalize each page as much as they like, but the express option creates a complete book with just a few clicks. Low book now offers a membership programme as well. You receive a free book when you sign up fifty percent off any additional books, unlimited free digital books and discounts on give trap and other products love books of the perfect gift for all occasions or just because so right now you can check out love books by going to lie.
Book online dotcom, slash crush. You will receive a special twenty percent discount, that is it love book online. Dotcom, slash crush so are I do we really usually are tirades come toward the end, whether for some reason we front loaded this one? We ass a circular, how lotteries work? Yes, Josh! If you are playing a game with fifty balls with safety, ping pong balls and each one of us has the number your odds of winning is about sixteen million to one. Yet, if they just add one ball, do that so fifty one both fifty ass, it shoots up to about seventy six million to one right and the real reason. I don't play that is a fantastic calculation you there but- and I don't mean- criticise you surprisingly simple one- actually right. Yes, so if you have six numbers that you have to pick out of fifty balls, your initial chance is fifty two six or it's like. I think,
eight point three to one right right: you can go on down the line after one balls picked you over forty, nine five chances on and so on. So if you take it to these multiply and that's where you get that sixteen million no one chance, is there not play lotteries of one ball if they did than what would there be a one to one? especially if it was just one number and they told the added I'm a winning number is going to be sick at play that lottery so yeah. You also get power balls right, which are multi state lotteries. Nobody joined together in the most common one. Is you have to pick five numbers from a set of fifty balls sees at calculation? I just said, but then you are
They have to pick one power ball number out of thirty. Six does not apply that original calculation by thirty six in Europe to seventy six point: two: seven: five million the one chance yeah and lent like us. That's why don't play the lottery for real? I just out. I would never ever ever when its I'd rather spend that dollar on whenever cigarettes, vodka jerky anything Chuck Josh. Have you ever noticed them when you. Say when ten million dollars, what actually end up weathers. Like two point, five million to sticker yellow depends you're talking about you can, you can choose either a lump sum payments or pay me out over the next, whatever twenty five years, I think it usually is yet looks like from from this article, the best one to go with. If you pay
is the series of annual payments. Renewing, I disagree. Ok, explain! Well, I mean, I would think you could make you get about a five percent interest return. That way, and I think if you have a brain, you can get it better return than that by investing money and also, I think, if you die, doesn't that inside. For paying your next of kin anything. I know they do they everywhere. Oh, yes, Lotto windfall becomes part of your state does not. Actually, since you bring that up there, a little bit of advice if you ever do when a major lottery or any Lotto, First, you wanna do assign the ticket, because it's a insight. Whoever has it yeah turns it in is the winner, so you want to sign it. The next thing you to do is go talk to a lawyer before you go in to turning your ticket. Go! Get a lawyer yeah, to be standing on the stage with the big check without having like an accountant
or your via your side. These lawyers can assent, set up a trust in a state, all sorts of other stuff, and then you go in and you claim your winnings inhalation and take a chunk lawyers gonna take it but not as much as Uncle SAM, her near where this is the case, with everything, of course, Uncle SAM. It's gonna, take a time about twenty eight percent and fed taxes unless you, when millions of dollars and it's gonna, shoot up the thirty nine percent, which is the highest hacked bracket me up and then add a state and locals and you'll get about half of your money. And then, if you choose Sam, you get less anyway, so, like you said,
a ten million dollar lump sum. Payments after taxes would be not to have mill right, but you're done that's the way I would want to do it. You are done with the and knew it eyes payments right new year. Basically getting you start, I think it what one percent Vienna goes up a little bit each year because up a tenth of a percentage, your right, so you start off. If you went a million bucks, you start off with two hundred fifty k and then the last payment. It turns out to be five hundred k right and you get check every year and the way that this is paid for. There's the lotteries not just like ours and on this piled cash. Now they can do that and what they do actually is they deal with bond agents, bond brokers and they buy as Europe coupon bonds right so, like you, have a set price that you're paying for that day and in one year or ten years or whatever this things going to be worth a
provide amount of money right. So I continue years. If you bought a two hundred, sixty dollar Bonn, I'm sorry, twenty five years, I would be about a thousand dollars right, that's how it works and what the Lotto does, as they contact about usually seven bond dealers to find out who has the best rates and they are, they purchase a package of twenty five bonds cover your pay out right and then once the bond matures they get the money, they transfer it to you and you get it back then the page and that usually ends are causing than this package of bonds about half of the jackpot, which is about what you get when you get a lump sum, so it doesn't really matter to them either way you having said about, eighty percent of people choose the lump sum I can- and I am not surprised by that along here and George actually another's other states too,
one of those when for life deals where there is no one saw em you get like fifty thousand dollars a year for thirty years, or something like that and that's the prize, there's no like Withall room and how you accept it yet others they give you a choice, not a no win for life as a specific game. Oh it is ok, yes, alike. Play when for life that that's your prize? Was some states? Don't give you a choice there like we give out lump sum re, give out a new test or you can choose Boeing, he chooses to choose when you buy the lottery ticket yet,
New York. You gotta choose when you buy it, but most other states is like once you ve wanted they let you choose yeah, pretty cool chuck. Did you know there's two types of Lotto machines I do now. I didn't before. I think olives ever seen as the air mix machine same here think that's the use and channel to action use another did by the way the EU was Jack. Row is the old friend of mine from tv production while and he was picked- is the lottery pottery guy? How it looks really getting a dress? You mean just up yeah, he's a nice guy and he's a nice guy using AIR Max machine right, and that is the one where you see the ping pong balls floating around in the air. It like magic, and indeed they opened the little door in and one at a time the little ping pong ball, slides up the shoot always visible its key.
Never have a ping. Pong ball through is a tool that you can't see through. That's bad news: it is it inspired. Its annual, also notice that a lot of drawings are live, Yacu, which is kind of a big thing to varying port I mean you suspect, they're alive. I guess if you don't believe that the moon landing was real. You probably aren't by in that the lot of drawings are live yeah. We should mention a couple of other security measures in Oregon. It's actually overseen by the state police and the detective attends each drawing right, but those critical Basel, usually wade ahead of time. Why, before and after why are going to talk about pencilling, it will soon be evil. Six fix is what it's called John Travolta and nineteen. Eighty four Travolta was it a movie care member? I think it was, What you got to do with it, then he was in a movie about ok, I think there's loosely base and I think it was like a negation of that
a famously nineteen. Eighty, the Pennsylvania lottery was rigged by I got him Nick Perry. He was the John Crow of Pennsylvania. The time he's the announcer and he got together with an art director and said: hey you. Can you forgot away to wait? These bald, except for a three of them, are, are two of them foreign six, three of them are- are two of them foreign, six right in that way, we know that only combinations afford six will come up and I think, there's a combinations and a triple digit drawing and they did it, but they Mina they got. Greedy him got caught. Was the art director name, Phoebe, buffeted no Sheena Travolta movie His name was Joseph Buck and he was pinched along with Perry and then some Mama
people they had in on the scan. This ice linger up. They are basically they ended up that the cops were alerted to the fact that there was a very skewed amount of numbers bought for six and for and when it came up six execs than they had all these people clamouring for winnings. Yet we should look I think that just the fact that it came at sixty six alone ready for you, I rather that's the number of the beast, support for stuff. You should and the following message comes from e trade investing your money, should require moving mountains. No matter how much or how little experience you have. A trade makes investing simpler and for a limited time, get one hundred dollars. When you open a new account with just five thousand dollars all about helping your money work hard for you for more information, visit e trade, dot com, slash, learn more. He trade, Securities, LLC
number as Ipc. You know they were. There are tried and convicted and Perry. I think some of the other so the mountain he went to jail to spur couple years, then the halfway house and then he's on probation. So not only the deal for him. I guess I did he get to keep the money none. They got up so yeah they're, using an air mixed machine and since then Aramis machines are still used. Obviously they use em, your buddy uses it on the news, but machine great out, isn't he doesn't take home policy that night before bed now, but we could get a scam together with them. We should try it That is what yeah, anyway, the other type of Otto machine that generally used. That's viewed as more secure, largely because that nineteen eighty scam is the gravity.
Louder machine right here has a thing work. Well, it uses like kind of rubbery balls that are heavy right with two paddles, that spin in opposite directions. That mix the balls right. There's no air involves a ping pong balls is no waiting. The balls and others, and that is virtually the same thing- is in an air pick. Ball causes an optical sensor, so high technical and then Bam six numbers one after other right and if you want, if you pick them you want, I imagine, like I said I don't play. I don't even want to win, but I'm and that's a very surreal moment when you looked down at your ticket scissors, all those numbers it would just a bit. It's really difficult for your book.
And you see that you're in, except that that's what it seeing here, we still when I worked at in New Jersey at the restaurant ways to pull. That's really, though, item ever play that much we pour money. The waiters, wood and we'd by like a hundred tickets, unite though in five dollars now all agree to split it and yet by the restaurant burnt down. If we were not gonna make, it was at mixed Kelly notices in New Jersey, store unity. If you want to read about waters- and we also have an article called how to play the lottery tips and guidelines is pretty and death in adding redounded Rio. It is in depth other tips yeah. What we can't it's could there be, Others, like a wheeling tracking, like basically paying attention numbers, have different people do in pooling. As it is how many members there should be in a pool of the probable one fifteen, it's a large commercial,
all right, no more than a hundred make sure that Europe, the people who are organizing a reputable, etc, etc. I bet that again messy look at these spreadsheets yet. So if you are interested in playing a lotta and you tricks, we want judge, you know, in time, been lotteries on how stuff works that come in handy search bar and there. You will also find, in my experience the first time, I've ever seen the phrase hotter than a two dollar, oh used in an article of sight, you'll find that by typing lottery in handy search bar has therefore that camp, which brings us of course, to listener. This. Indeed, the part this is only gonna call this. I can't believe this happened mail. This is from
and they said this. My wife and I married in LAS Vegas recently in one of those amazing LAS Vegas channels. It wasn't eight two kilos inspired spur of the moment, sort of thing we planned for several months and you guys actually played a part in our evening. I remember this year with us to explain before he left I'd, crafted a perfect wedding night playlist on my ipod I've. Also Several of your pod cast to listen to you on the flight because he's a big tall guy needs to fly. Apparently we hope that after the ceremony, what what is it being tall had to do with painting the fly lace, as he gets really comfortable in the sea in Europe I gotcha forget, is not afraid of flying to these salary, I got so after the ceremony in dinner. We retreated to our lux sweet in the Trump Hotel, ordered a bottle of champagne. Nice cute up
based on my ipod and plugged into the room, Syria and slipped into the inner room, jacuzzi thirty. First up our green, then Solomon, Burke, cat power, Elvis Costello and then Chacha Chuck introducing the stuff. You should know buddy it's nothing worse than tat power. Mr I had realized. The shuffle feature would shuffle everything on the ipod, not only the songs, you're wondering we actually let it play and that's the story of how you took part in our wedding night. I believe that makes us your official stuff. You should now podcast newlyweds. He s was a good for you that's for then it may be the only way they circulate betters if they conceived during one of our Pike S right and it was the show on like the bottom- is in Utah we'd have legal claim on their baby earlier. Have an awesome wedding night stood now. Actually you guess is keep that you yourself the great yeah
You have a story about winning the lottery and how it either uplifted your life, ruined your life or made you cognisant of the phrase hotter than a tutor fiscal put in an email and send it to stuff podcast house to work, that calls for more on this, and thousands of other topics isn't how stuff works are com. What moorhouse have words check out? Our blogs on the House of Lords back Home homepage brought you by the reinvented two thousand twelve Camry. It's ready or you text. They will be here before you know it everybody but relax, because each in our black as your one stop tack shop, their tax pressure, experts, certified and train and eighteen are black, has up front transparent pricing, which means you know the price before
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Transcript generated on 2020-01-28.