Cash WinFall Leak

A Quick Guide on How Lottery Become ATM

$ 6 Million

• http://www.masslottery.com/games/lottery/cash-winfall.html

How WinFall Lottery Works

• 46 pick 6• 2 - $2• 3 - $5• 4 - $150• 5 - $4,000• 6 - $MAX ( $500,000 - sales 60% )

JACKPOT

ROLLDOWN

• 2 - $2• 3 - $50• 4 - $1,500• 5 - $40,000• 6 - $MAX ( $200,000 - sales 60% ) • (Jackpot back to 500,000 after Rolldown)

Normal VS ROLLDOWNSame No. Normal ($) Rolldown ($)2 2 23 5 504 150 1,5005 4,000 40,000

?

Smallest Winning Probability

=

Other Probabilities=

=

=

=

Not Winning Probability

=----=0.831

Normal Expectation

==-1.20

1000000-2=999998

Rolldown Expectation

==2.46

Things Changed

• Nothing Change for small buyer• But for 100,000 up buyer• There are probability meanings• Every Rolldown they will gain

E(2.46)x100,000=246,000

What Does Retailer Do?

Earn? Draw?

∑𝑘=1

50000

𝑋𝑘 𝑁 (𝐸(∑𝑘=1

50000

𝑋𝑘) ,𝐷(∑𝑘=1

50000

𝑋𝑘))

∑𝑘=1

50000

𝑋𝑘 𝑁 (123000 ,153465.92 )⇒

Earn? Draw?

=0.112

Lottery – A Game of Probability