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The biggest weakness in a safe or a lock is that it's meant to be opened. If you know how the insides work, it makes it easier to open. Is this true of the lottery? Is there such a thing as "inside trading" among lottery corporate? You guys know more about the system then anybody else. How easy would it be for you to ensure a winning ticket for a friend, etc. If a lotto insider wanted to, would he/she be able to successfully generate a winning ticket after the numbers are drawn? | I love this question. Thank you for asking it. The lottery industry operates like Las Vegas. In other words, the whole thing is governed by an extreme separation of duties and access controls. Every lottery has a security division that exists for the sole purpose of catching crooks - both internal and external. It's virtually impossible to "rig" a drawing or generate a winning wager post-draw without collusion on the part of at least five or six people. And even then, it would take a miracle to get past audits, system checks, etc. I'm not saying that people haven't tried, regardless. I'm not even going to say that it hasn't happened. I will say it's a one-way ticket to federal prison, though. |
Do you know of any situation like this that has happened? | I know of one situation in another state where an employee got caught trying to rig orders on instant tickets by working with a friend who was a night shift clerk at a convenience store. They got caught and did two years apiece. |
Extreme hypothetical here. Let's say someone has figured out a way to transmit information into the past from the future. They bide their time, wait for a big win to come along, perhaps in Canada where no tax is taken off the winnings. Then they get greedy and try to take two wins, maybe three or four. Maybe hand guaranteed winning numbers to family. I assume the extreme improbability of such an event would get someone's attention. I guess what I'm working up to, is there any sort of protocol in place to attempt to deal with information gained from the future, or for dealing with a time traveler? Would it even be illegal? | No. There is no protocol for this - legal or otherwise. If you figure it out, you're in the clear. |
Has anyone ever won a high tier prize and not ever come to claim it? Do you get to see people claiming their money/ their reactions? How did you even get into this industry in the first place? Do you play the lottery yourself? | Yes. It happens all the goddamn time. You wouldn't believe how often, actually. Yes, I get to see people claiming money on occasion. I've seen it all: poker face, tears, hysterics... and one guy who busted out in a full-on dance routine that would have shamed even Michael Jackson. I fell into my job. Seriously. It was an accident. I was in the right place at the right time. I used to buy instant tickets on occasion. I can't play as an employee. I will probably play occasionally again if I ever leave the industry. |
What stops you from buying tickets at a corner store, and then having a friend or family member claim winnings if they're big? | Nothing, really. I'm sure this has happened. But if you get caught benefiting from a win like that... bad news. |
Are you allowed to buy lottery tickets? | No. I don't know of a single state that allows lottery employees to buy tickets. |
Is the lottery just a tax on poostupid people? | As far as being a tax on poostupid people, I hear that argument all the time. The truth is that people from all walks of life play lottery games. If anything, the most frequent players are older retired folks who don't have anything else to spend their money on - not poor people. |
Any interesting stories of fraud you can tell us about? | Dozens. You'd be shocked at how often retailers steal tickets from players by telling them that their ticket isn't a winner. A few states have even gone so far as to set up an undercover team that specializes in catching these people. What they do is present retailers who players have complained about with "marked" tickets and then have them arrested when the retailer comes in to claim the prize. It's a big program in California. They've caught a lot of people. I've also seen several cases where a retailer is mass producing draw game wagers and re-selling them overseas on the Internet for huge mark-up - sometimes as much as 1000% of face value. That's a quick path to prison, too. And then, of course, we get idiots who do everything they can to make losing tickets look like winners hoping to get an idiot convenience store clerk to "sight validate" the ticket instead of scanning it in the system to see if it's a win. We discourage the hell out of that behavior. Clerks should never pay out based on a ticket they THINK is a winner. I will never understand why they don't just scan the damn things. |
It's funny that you wrote about this tonight. Not sure if you caught Dateline NBC but Chris Hansen did a special where he had an undercover crew go into retailers, present 3 tickets (2 losers and 1 winner say $7500) and see what the retailer would do. Some of them would tell them that they won a big prize, others would say "All losers" or "You won $5!" then they would turn around and try to claim the prize for themselves. Needless to say Chris Hansen would walk in and say "Why don't you have a seat right there..." It was a great special to watch, did you catch it? | That special is part of the reason I started this thread. It was actually the second time Hansen has done a piece on retailer scams. The first one sent a shockwave through the industry and caused several lotteries to create programs due to outcry from players following the revelation that people steal things. |
I worked at a small grocer that sold lotto tickets and our machines made these stupid sounds whenever a winning ticket was processed. I asked my boss if we could turn it down, but he said their lotto ticket license could be revoked because it could aid ticket stealing. Is this common? | Yes. This is very common, in fact. That sound is loud and obnoxious for a reason. :) |
What is the best strategy to win the lottery? Or am I better off just not playing at all? Do you know what happens to most lottery winners? Do they go crazy and spend it irresponsibly or do most of them end up being smart? | It all comes down to odds. In my state, for example, we have several daily draw games that have relatively low set jackpot amounts but the chance of winning is exponentially higher than the rolling jackpot games. As far as scratch (also known as instant) games go, stay away from $1 and $5 games. Everyone buys them, so the chance of winning a top tier prize is low, and the top tier prizes are normally not enough to warrant playing. You've got a good chance of winning big on $10 games if your state sells them. Nobody buys those. I don't even know why some states even bother with them, honestly. |
What about the $2 and $3 ones? | Anything is better than the $1 games. Those are designed to be low-return impulse buys that you win one out of twenty times. You'll never win enough to make playing them worth it over the long term. |
What about the $5 instants with top prizes of around 2 million (California's Set for Life or something)? | All of the "set for life" games are pretty damn cool, if you ask me. Low odds but it really does set you up for life. |
When a scratch ticket claims that there are "win for life winners" or there are "10 $2 million prizes" do they actually have those already printed? I always think that they will wait until the last second to print those then distribute them. I mean it would be bad for business if all grand prizes were won at the start. Also, do they continue to print tickets as they go along or all tickets for a game printed at once, distributed and that's that? | The lottery usually has a designated liaison or a team of some kind that works with the jurisdiction's instant ticket vendor to come up with the art, prize structure, etc. (Lotteries don't print the games themselves. This is done at a high security location owned and operated by an outside vendor. That's a world all on its own.) The game is printed all at once. It isn't done in phases and a game's prize structure doesn't change once it's set. In other words, it is possible for the top prizes from a game to be claimed within the first few weeks after a game ships. Speaking of shipping, scratch games are almost always shipped from the vendor to some sort of distribution facility owned by the lottery for which the game was printed. Tickets are shipped out to lottery retailers from there. Every instant ticket game has a set expiration date (usually printed right on the ticket) and some states have laws requiring that the lottery to post information about which prizes have already been claimed on their website and/or at their office(s). Most people never think to check this, though, and they just keep buying even after all "top tier" prizes have been claimed. Most lotteries have a set monthly or quarterly schedule for new instant games. That's all relative to the size of the state and how popular instant tickets are there. There are only a handful of companies in the world that print instant tickets both because it's incredibly expensive to do and because trust is paramount in the lottery industry. The two largest and most trusted printing operations are owned by Scientific Games and GTECH, which also happen to be two of the most popular draw game vendors. |
What about distribution? Does someone know where the top tier winning tickets will end up? How do they spread them out so that all of the best ones don't end up at the same liquor store on the corner? | No. The vendor knows which packs contain the high tier winners. The lottery doesn't. And vice versa for where the packs are shipped. As long as that balance is preserved, everything is kosher. |
Am I being a complete boob when I play these? | Chances are, yes. But then again, you could pop a $1,000,000 winner one day when you least expect it. I just had a chat with a guy a few weeks ago who stopped to buy a newspaper at a gas station, decided to get an instant while he was at it, and ended up walking away with $500,000. Paid off his house, car, and credit cards. |
Someone told me that the best time to play a new scratch off game was RIGHT after the game comes out. Why would that be? | Your best shot at winning a high tier prize is in the first week or so after a game launches because a lottery doesn't pull an instant game out of stores just because all of the high tier prizes have been claimed. They get pulled when they expire. Otherwise, the lottery simply lets the game sell through. |
Also, what software platform do you use? | Can you be more specific about your question regarding software platform? |
You could write a book on it, but it's largely speculation? Wut? | Coughjustsayingspeculationtocovermyassit'sactuallytruecough* |
What is your state's policy if a valid, winning ticket was sold to an illegal alien? IE do you have to be a US Citizen or valid resident to win? | In our state, you have to provide proof of identification and we have to be able to run a debt check on you in order to pay a prize. Taxes, etc. must be paid as well. In other words, I don't think an illegal alien would be able to claim. |
A debt check? For what reason? | Most states require a debt check in case the person trying to claim the ticket owes a debt to the state. (Court fees, child support, etc.) If they owe, the debt is subtracted from the win and the winner receives the difference. |
How is the payout of large jackpots usually structured? Does the lottery "own" the money it pays out, or does the Lottery itself have debt and borrows money to finance the winning payouts? | This is a complicated question. For in-state games, the lottery "owns" the money. It's taken from sales. For multi-state games (Mega Millions and Powerball), payouts on the big jackpots are covered across all of the participating states. It's a complicated process that I'm not entirely familiar with, as I don't work in finance. |
If the winner is given the option of taking a discounted, lump-sum payment versus an annuity or monthly payments, what discount factor does the lottery use to determine the lump-sum payment? | Most of the time, you have the option of either an annuity or a lump sum. Most people take the lump sum. Annuities seldom make sense - and there's always the chance that you could die in a freak accident. Your win isn't transferable to an heir in most states. |
Are income taxes automatically deducted or do you offer some sort of tax planning advice to the winner? | Taxes are pulled up front. You still have to report at the end of the year but - at least in my state - you're issued an income statement to use. |
Do you offer any sources for financial/legal planning to the winners to utilize after winning, such as CPAs, lawyers, or financial planners? | We provide players with general advice on what to do next. We're not allowed to recommend specific people or firms, though. Most people head straight to a financial planner, surprisingly. |
As a Computer Engineering student, I never understood the idea of how an algorithm could be completely (100%) random. It does not make much sense. If someone is writing an algorithm it must not be random because it was written by a rational human being with the idea of producing something completely random. But that does not mean it is random to the person who wrote the algorithm. If someone knew the algorithm why would they not be able to predict the results? | Without delving too deep into industry secrets that could probably get me sued or killed, I will say that you are absolutely correct in that an algorithm alone is never completely random. And that's why there's more to it than just a software algorithm. There's also specialized hardware involved that would leave your jaw hanging were I to explain how it actually works. It has to do with time, white noise, and an absolutely incredible control environment. () I'm only half-joking. Anyone who thinks that organized crime isn't still involved in the lottery industry on some level is a complete fool. This is another topic I could probably write a book on. |
You had me at "jaw hanging". elaborate a little? | I've only seen the inside of a draw game machine once. But the process by which the numbers are drawn gave me a bit of a nerdgasm. Without going into too much detail (again, trying to avoid a lawsuit), the design of the machine is nothing short of brilliant. It's a sophisticated combination of toggling hardware, RNGs, and algorithms all working in an elaborate sequence to kick out a random data set. The science behind it is crazy. |
Are you familiar at all with the 666 scandal in the PA lottery back in the early 80's? How did something like that happen, and what would prevent it from happening again? | Never heard of it before. Way before my time. I'll have to do some research. |
Care to explain more about why they're so incompetent? | They got blown to bits in an audit. They were told to fix their operation. They categorically failed to do so and as a result other lotteries across the country have had to deal with intense public relations fallout. |
What is the easiet type/brand of lottery to win? If you were allowed to play which would you play and how often? | It's all about the odds. In my particular state, I'd be playing the $10 instant games. I'd also be playing two of our draw games, which have low relative jackpots but high payout rates. |
Why can't we buy lotto tickets online? | That's almost entirely a result of two things: politicians who stand on the anti-gambling soapbox to get votes from the religious right and tribes who spend millions lobbying against it because they know it will kill their casinos. |
Twenty, or so years ago, a friend (who's good at math) said to me that if one were to get an organization together with the funds to bet all the possible numbers on a big drawing, a tidy profit was assured. Then (years later) I heard that this was actually done. An organized group had tickets pre-filled-out and went to multiple stores and bought every possible number combo, on a big multi-state drawing, and their strategy worked. Then lotteries have altered their drawings since then. Do I remember this correctly, or is it urban-myth? | It's possible, I suppose. I've never heard about this before but if it did happen, the game was flawed. The lottery industry operates on the same "house always wins" model as Las Vegas. A few people take home the big jackpots here and there but in general, lotteries are designed to generate revenue. |
What are your thoughts on the state having a monopoly on lotteries? | Not all states have monopolies on lotteries. It really depends on each state's own laws, whether they have a strong tribal presence, whether they have an independent gambling commission or other regulatory boards, etc. To answer your question, I don't personally believe that any state should be able to hold a monopoly on gambling. |
So what percentage of lottery winnings actually goes to the school system? And how is that money distributed to the schools? Do they just choose schools who need it most, or is it based on where the ticket was bought? | Beneficiaries vary from jurisdiction to jurisdiction. I work for an education lottery. The percentage that goes to them changes every year, it seems. And the school system here is a pile of crap, so they just burn it, anyway. It's sad. As far as which schools get the money - that's not a decision we make. I have no idea how it's divvied up. |
Last time it was hacked? | The lottery I work for has been around for decades and we've never had a significant "hack" of our gaming system. Our website has been defaced twice, however. |
Verification? | I'd prefer not to say which state I work for or what I currently do. (Not sure my boss would be happy about this thread.) It'd be kind of hard to make this up, though. If you can think of a way for me to verify myself, please let me know. |
Message a mod with a pay stub? | My pay stubs are all electronic but I'll work on making this happen. |
Whats up with the second chance draw on scratchers? Does anybody actually win those prizes and how do they select the winners? | Yes, people DO win. The point of those drawings is to keep players interested in playing even if they don't win anything from the game itself. Those drawings are just as controlled as any other - at least in my state. |
Here, lottery machines are set up with a customer-facing monitor *and a sound output so that it's never in doubt.* So it would announce "You've won $5,000,000!" to everyone within earshot?! | In most states, if you win over a certain amount ($20,000 in mine) the system doesn't tell you how much. It simply says, "Take this ticket straight to a lottery office." If you ever see that message at a terminal in a store, you know you just won a life-changing amount of money. |
Wow! I can't believe nobody has asked: What should you do if you win? I know I would be equal parts happy and paranoid. Do I call a lawyer first? Or an accountant? Put the ticket in a safe deposit box? | I'm surprised that nobody has asked this, too. Sign the back of the goddamn ticket. DO THIS. Keep it somewhere that you know is safe until you claim. (Safe, etc.) Seek the advice of an accountant, investor, etc. |
Maybe you aren't the one to answer this, but: If one were to win the lotto, what right to privacy do they have? Do I have to have my stupid picture taken and name published? | Your win is public information in most states because the money is coming from a government agency and it was, at some point prior to you receiving it, considered public money. |
I know someone who has bought more scratch offs than I care to even think about. She lives on a fixed income and spends a significant portion of it on these tickets. She truly believes that this is her way out of poverty. And I'm torn because it seems to be her only chance of getting enough money to live comfortably. The irony of it is that the system she's counting on to get her out of poverty is only helping to perpetuate it. Last week I saw her win $25 on a $1 ticket (she almost exclusively plays $1 tickets) only to turn around and buy--I kid you not--25 more $1 tickets with it. And that makes the situation even more sad, because even when she wins she quickly squanders all of it away trying to win even more. Yes, she obviously has a gambling problem, and I've tried talking to her about it, at which point she becomes defensive and says that she just plays for fun. I've tried to explain about probability and how the lottery isn't some system you can invest in, and it's soul crushing every time because it feels like I'm trying to kill her dream of finally getting out of poverty. This is someone I love very much who I feel is being exploited by this system. It seems that she wins just often enough to keep her playing, meanwhile she's either unable or unwilling to account for her losses. I guess I'd just like your take on this. How do you respond to the argument that the lottery is a system that exploits people of low income (and by extension people who aren't well educated/may be prone to superstitions/addictions)? Thanks for your time | I've never believed that lotteries are exploiting anyone, myself. People are going to gamble whether we exist or not. |
I heard a rumor that the lower the number on a scratch off the more likely you are to win. is this true? also in Pennsylvania the machine scans it but doesnt make any sound. however every single time i have lost i was offered my ticket back. is that protocal for PA? | No. Not true. And yes, clerks should always give you your ticket back regardless of whether it's a winner. If they don't, there's a good chance that it's a winner and they're trying to steal it from you. Always get your ticket back. |
What kind of algorithm do you use for number generation? | This is one of the few questions asked here that I simply won't answer for legal reasons. Sorry. |
I'm surprised, after reading through your responses, nobody has straight up asked this. | Yes. Occasionally. Just for fun. Maybe a few bucks a month at most? |
All things considered, moral/statistical/your personal insight, if you left the industry, would you play the lottery? | |
Would buying a roll of a new scratch off game increase the chances of a profit or grand prize? | Most states sell their games in shrink-wrapped packs, not rolls. Retailers are the ones who put them on rolls in some jurisdictions. As to your chances of winning, I can tell you that every pack of instant tickets does contain at least a few winners. The amounts vary wildly, however, so it's possible to buy an entire pack and lose a lot of money. |
Has anybody been denied a win, even though the have the ticket/scratch card, because of some absurd reason? | I've seen people lose incredible amounts of money to debt checks. In one case, a guy lost a full $250,000 to back child support. No joke. That was probably the most absurd situation. |
If I ever win the lottery, can I remain anonymous? | You can claim via LLC in many states. Or you could work out a deal with a lawyer to have them claim on your behalf. |
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