The lottery has always been a popular way for people to try to win a big sum of money. And for many people, winning the lottery could mean an immediate spending spree – fancy cars, luxury holidays, new homes – or it could pay off mortgages and student loans, allowing them to change their financial circumstances forever. But while dreaming about what you’d do if you won is all well and good, the reality is that unless you’re one of those lucky few who actually does win, it’s probably not worth buying tickets for.
The first lotteries were organized in the Low Countries in the 15th century to raise money for town fortifications and help the poor. They offered tickets for sale with a prize of cash or goods of unequal value.
When states took over the games in the early post-World War II period, they saw them as a painless form of taxation that would allow them to expand a range of social safety net services without having to raise taxes on the middle and working classes. It wasn’t long before states were experimenting with a variety of ways to attract ticket buyers, including super-sized jackpots that earn lottery games free publicity on newscasts and online.
Most lotteries involve the purchase of a ticket, which is sold for a small stake in a pool that will ultimately determine winners. Ticket prices vary, but a percentage is typically deducted for administrative costs and profit to the state or lottery sponsor. The remainder, if any, goes to the grand prize.
It’s not unusual for a drawing to reveal no winner, in which case the prize money carries over to the next drawing. That’s why it pays to buy more than one ticket – it increases your chances of winning by adding to the pool.
In addition to buying more than one ticket, some players also use a number strategy. For example, Harvard statistics professor Mark Glickman recommends picking numbers that are not significant to you or others (like birthdays). Another trick is to choose a sequence of digits such as 1-3-5-6-7, which tends to yield more winners than other combinations.
Regardless of what kind of numbers you pick, experts say that if you don’t treat the lottery as a bet and play it purely for entertainment, you might not end up losing your money. But it’s still important to remember that you are putting your money into an unpredictable game with uneven odds, so it is a gamble. NerdWallet is here to help you make smart decisions about how much you should spend on lottery tickets. Check out our articles on lottery strategies, and be sure to set up alerts for your favorite writers so you’ll be among the first to hear about their new work. It’s just a click away in the My NerdWallet Settings page.
