Questions tagged [lottery]

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109
votes
20answers
30k views

Are lottery tickets ever a wise investment provided the jackpot is large enough?

If the odds of winning a lottery jackpot are one in 292 million, and the jackpot prize is expected to be greater than than $1 billion, does this make a lottery ticket a wise investment? I know there ...
72
votes
11answers
17k views

Won the lottery - how do I keep the money?

Sadly only a hypothetical question, but here it goes: If you suddenly gained a large sum of money (several million $/€/whatever) by winning the lottery, some inheritance or anything else, how could ...
37
votes
9answers
14k views

How does gambling (like buying a lottery ticket) differ from investing?

Investors seeking a higher return on their investments may invest in things that they know have a higher risks associated with them. Greek bonds have higher interest rates, and banks charge more ...
17
votes
4answers
2k views

Is taking a lump sum from a lottery or other prize always preferable to taking the payment plan?

Every time a big money contest or lottery is advertised, their big "jackpot" prize is always really a payment plan - something like $50,000 a year for the next twenty years. Is it ever preferable to ...
7
votes
3answers
7k views

Are lottery winnings taxed based on the ticket date or the redemption date?

Suppose I purchase a lottery ticket today (Dec 14, 2015) and win $25K. If I wait a few weeks and redeem the ticket after Jan 1, are the taxes due based on income in this year (2015) or next year (2016)...
5
votes
3answers
711 views

Is playing the lottery worth it in the same way that insurance is?

I was reading this question, and it made me wonder - If insurance is worth the expected loss because of the catastrophe that it could prevent, can playing the lottery be worth the expected loss ...
5
votes
4answers
96k views

If someone lives in one state and purchases a winning lottery ticket in another, where should they file their winnings?

If you've been paying attention (at least in the US) for the past couple days, you are aware of the Mega-Millions lottery drawing that is coming up which is conservatively estimated at $500m $640m! At ...
5
votes
0answers
142 views

Donating winning lottery ticket to 501(c)3 Private Foundation: cost-basis deduction + full tax free redemption for foundation?

US 501(c)3 Private Foundations are typically controlled by the primary donator, so that is a nice perk, but in exchange for that perk I realize the tax deductions for donating are significantly ...