Over the course of its history, numerous myths have arisen about the U.S. lottery, its operations, and various games; myths that often proliferate throughout the media.
Unfortunately, these tales can often be misleading for players who are uncertain about the underlying truths. So, let’s take a look at some of the most common lottery myths and examine how they have been debunked.
1. The U.S. lottery is a form of taxation
First, let’s look at the definition of tax according to the United States Census Bureau. “Taxes are compulsory contributions exacted by a government for public purposes…” By definition, U.S. citizens have no option when it comes to paying taxes, and they can, in fact, be penalized for not doing so. Playing the lottery, on the other hand, is completely voluntary. Whether players make a one-off lottery ticket purchase or play regularly, it is their individual choice to do so.
2. Very few people benefit from the lottery
In the U.S., various lottery games are currently played in 45 states as well as District of Columbia, Puerto Rico, and the U.S. Virgin Islands. All residents of those states/areas benefit from the lottery whether they play the games or not. Each state/area decides how it will spend its lottery revenue to best benefit its residents. For example, many states, including Florida, Georgia, New Mexico, and South Carolina, use their lottery revenue to benefit education. Other states, including Arizona, Connecticut, and Michigan, use part of their lottery revenue to support healthcare. Pennsylvania uses its lottery revenue to benefit older residents. The breakdown of proceeds from lottery ticket sales looks roughly like this:
- 65% goes to winners.
- 24% goes to public beneficiaries.
- 6% goes to retailers.
- 5% covers lottery administration.
It’s also worth bearing in mind that although not everyone wins a life-altering lottery prize, millions of players throughout America win every day. This is what makes the lottery a fun and exciting form of entertainment that American people love.
3. No one can be sure that lottery drawings are conducted fairly
In an age of scams and deep fakes, it’s understandable that people are growing more and more mistrustful. However, one thing that lottery players can rely on is that lottery drawings are not only conducted fairly, but they are carefully monitored and very closely scrutinized. To give you an example of the security measures in place for major lottery drawings, here’s a peek behind the scenes of the Powerball drawings, which are held in the Florida Lottery draw studio in Tallahassee.
- Lottery drawing machines and balls are kept in a double-locked vault that is sealed and alarmed.
- Opening the vault requires a Lottery Association official with a special key, a Lottery security officer with the alarm disarm code, and an independent accountant with a second key. All these are needed to open the vault.
- Each ball is weighed, measured, density tested, and X-rayed in a state lab before each drawing. The results are then compared to statistical analysis.
- Each verified ball set is generally used for two to four years before being taken out of circulation. While in use, they are tested every year.
- Drawing machines and ball sets are randomly chosen before each drawing.
Mega Millions drawings are held at WSB-TV in Atlanta, Georgia. The same security measures are in place for the drawing machines and ball sets for this game.
4. Nobody ever wins the lottery twice
You may have more chance of being struck by lightning than you do winning the lottery, but there’s no mathematical law saying that if you do hit the lottery jackpot, you can’t win again. Several people have won the Lottery multiple times. These include:
- Evelyn Adams: During the 1980s, this New Jersey resident scooped up a total of $5.4 million in two lottery wins in less than four months.
- Mary Riedel: This lucky lady won the Ohio Lottery twice in 2014. Her first win was $50,000 in the 40th Anniversary Millions. Four months later, she won again. This time, $100,000 on a Hot 100,000 scratch card.
- Robert Hamilton: Also in 2014, this Indiana resident won $1 million on a Cash Spectacular Scratch-off game. Just a few months later, he won $1 million again with another ticket.
- Duane Ketterman: In 2022, Duane won $18,000 in the Maryland Lottery's Racetrax game. Just the next month, he won $30,785 in the same game.
5. Your odds are better with smaller lottery jackpots
Many people think that larger jackpots have longer odds than smaller ones. However, this is not the case. For example, the odds of winning the Powerball are 1 in 292,201,338. Those odds remain the same whether the jackpot is $400 million or $1.5 billion. You can improve your odds slightly by playing smaller lottery games that offer better odds.
6. Playing the same numbers improves your odds
Many dedicated lottery players will tell you that they play the same numbers every drawing. Although they may consider their selected numbers lucky, playing the same numbers every game does not improve their odds. U.S. lottery numbers are drawn randomly at every drawing, so even if you play the same numbers every time, the chances of your lucky numbers coming up are just the same as any other set of numbers. What’s more, roughly 70%-80% of Powerball players opt for Quick Pick tickets. Believe it or not, the same percentage of winning entries are Quick Picks. So it doesn’t matter whether you play your own chosen numbers or you let the computer randomly pick them for you; your odds of winning are still the same.
7. It’s always better to take the long-term annuity payment when you win
It’s a common notion that it’s better to take the long-term payout when you win a lottery jackpot. The idea is that you will have a secured yearly income for up to thirty years, and the taxes may be lower. But it’s something that each individual should consider carefully for two reasons. The first is that by not taking the lump sum, you’re missing out on a great opportunity for financial growth from investment. The second is that if you do not outlive your annuity payments. Your heirs will be responsible for the remaining tax payment.
8. Most lottery winners end up losing all their money
Every week, one in eight Americans buy a lottery ticket. Many rumors are circulating throughout the media about previous lottery winners who are now dead broke. These stories often crop up more frequently when the lottery prize is particularly big. However, it is not the case that most lottery winners end up bankrupt or miserable. Most people who hit the jackpot remain anonymous and get on with their lives.
9. All lotteries are equal
Whether you choose to embrace or dismiss the lottery, you may be under the misapprehension that all lottery games are equal. This is not the case. Although your odds of winning a single lottery game remain the same regardless of the prize, the odds of winning different games vary, as do the average jackpot size and the cost to enter. Being aware of the different odds for different games allows you to be more selective when it comes to getting the best chance to win.
10. “I had an email saying I’ve won the lottery, and all I have to do is pay a fee.”
Lottery scams are unfortunately prevalent. That is sadly not a myth. Every day, innocent people receive emails or text messages from people who claim to be lottery representatives but are, in actual fact, criminals trying to con people out of money. Most of the scams are very similar and have the following traits:
- They claim the recipient has won a large amount of money
- They offer to release the winnings in return for:
- A sum of money
- Some personal information, such as a SSN or bank details
If you get this kind of message, it can be easy to feel excited about winning a large amount of money in the first instance. But stop for a moment and ask yourself, “Have I entered a lottery?” Because no one will enter your name in a lottery without your permission. Even if you have entered a lottery, if it is legitimate and you have won, no one will ever ask you for your personal information or any amount of money.
You should never believe a person who claims you have a guaranteed prize. Legitimate lotteries offer no guarantees. You should also never pay processing fees, commissions, or insurance to claim a lottery prize.
Playing the lottery has become a popular pastime for many Americans because it is entertaining and provides a low-cost opportunity to make a dream come true. Playing responsibly is an important part of participating. Also, knowing the truth behind these common lottery myths will stand you in good stead. Happy playing!
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