Lottery firm says its 'most-prized' secrets have been taken

A key executive of a company that works with more than 40 state lotteries in the U.S. orchestrated a "massive theft" of its most-prized secrets before he resigned to accept a position with a rival company, his former employer ...

Has winning the lottery jackpot become too difficult?

The UK's National Lottery recently added more balls to its Lotto machines, meaning that the chances of winning the jackpot are smaller. Has this ruined the fun? Do the lower odds mean that the vast majority of weeks are likely ...

How lottery insider allegedly fixed jackpots

Eddie Tipton, a computer expert and the Multi-State Lottery Association's security director, allegedly rigged a lottery jackpot by installing a software program known as a rootkit on a computer that would pick the winning ...

page 1 from 3

Lottery

A lottery is a form of gambling which involves the drawing of lots for a prize.

Lottery is outlawed by some governments, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of regulation of lottery by governments. At the beginning of the 20th century, most forms of gambling, including lotteries and sweepstakes, were illegal in many countries, including the U.S.A. and most of Europe. This remained so until after World War II. In the 1960s casinos and lotteries began to appear throughout the world as a means to raise revenue in addition to taxes.

Lotteries come in many formats. For example, the prize can be a fixed amount of cash or goods. In this format there is risk to the organizer if insufficient tickets are sold. More commonly the prize fund will be a fixed percentage of the receipts. A popular form of this is the "50–50" draw where the organizers promise that the prize will be 50% of the revenue.[citation needed] Many recent lotteries allow purchasers to select the numbers on the lottery ticket, resulting in the possibility of multiple winners.

The purchase of lottery tickets cannot be accounted for by decision models based on expected value maximization. The reason is that lottery tickets cost more than the expected gain, so one maximizing expected value should not buy lottery tickets. Yet, lottery purchases can be explained by decision models based on expected utility maximization, as the curvature of the utility function can be adjusted to capture risk-seeking behavior. More general models based on utility functions defined on things other than the lottery outcomes can also account for lottery purchase. In addition to the lottery prizes, the ticket may enable some purchasers to experience a thrill and to indulge in a fantasy of becoming wealthy. If the entertainment value (or other non-monetary value) obtained by playing is high enough for a given individual, then the purchase of a lottery ticket could represent a gain in overall utility. In such a case, the disutility of a monetary loss could be outweighed by the combined expected utility of monetary and non-monetary gain, thus making the purchase a rational decision for that individual.

This text uses material from Wikipedia, licensed under CC BY-SA