The Odds of Winning a Lottery
Whether you play Powerball, Mega Millions, or the local state lottery, it’s hard to deny the allure of winning. But if you want to have a realistic chance of success, it’s important to know the odds and understand how to manage your money, explains NerdWallet’s Christine Chartier.
While the chances of winning a lottery jackpot are very low, you can improve your odds by playing more frequently and by buying Quick Picks, which are numbers picked randomly by the computer. It’s also a good idea to choose numbers that aren’t related to significant dates or personal information, such as birthdays or anniversaries, Glickman says. That’s because when people select their favorite numbers, they tend to stick with them over time — and those numbers have less of a chance of matching with other players’ selections.
Lotteries have a long history, stretching back to the ancient Romans who used them to distribute items like dinnerware as prizes for special events. In colonial America, lotteries played a role in raising funds for private and public projects, including canals, churches, and colleges. Benjamin Franklin even sponsored a lottery to raise funds for cannons to defend Philadelphia against the British during the American Revolution.
These days, 44 states and the District of Columbia run their own lotteries. But there are six states where you can’t buy tickets, including Alabama, Alaska, Hawaii, Mississippi, Utah, and Nevada — which is probably not a surprise to anyone who has driven down the Las Vegas strip. The reasons why vary, but studies have found that lotteries are disproportionately popular in areas with lower incomes and minorities, and can lead to gambling addictions.
In addition, the prize amounts on offer in a lottery can be quite large, and some people are so desperate to win that they’re willing to make large financial sacrifices to do so. And if you don’t treat the lottery as an investment, you may be making it harder for yourself to save for other things that are more important in life.
Regardless of whether you play the lottery or not, it’s important to keep in mind that there are other ways to raise money, like fundraisers, that don’t have such troubling side effects. It’s also worth remembering that lottery plays can be expensive, and the odds of winning a jackpot are extremely low. Purchasing a ticket can end up costing you thousands of dollars in foregone savings over the long run if you play regularly, Glickman warns. NerdWallet writers are not financial planners and should not be considered advisors. But they can help you with your finances by sharing their knowledge and experience. Visit their My NerdWallet Settings page to see all of our writers and follow them on Twitter. 2019 NerdWallet, Inc. All rights reserved. Terms of Use.
