^The good news: lottery winnings are considered to be gambling winnings by the IRS, so you can deduct the cost of the lotto tickets and the 150,000 people x $10 per hour x 9 hours, or $13,500,000.
So if the cash payout is $700m, then you deduct the 225m (combinations) x $2 (per ticket), that leaves you with $250m. Then you reduce it by another $15m or so in labor charges, your taxable income would only be $235m.
Tax on $235m would be about $102m, so you’d be left with $133m. That’s how much you get to keep.
Edit: Just to be clear, I’m not claiming dibbs on riding S2000’s pony, I’m clarifying that the term is “dibbs” not “deebs”. Rides on the magic man’s pony are all yours (with his consent, of course).
So the marginal utility of $2 is so high for you that you’re not willing to give it up at a chance, regardless how small, at $200 million after-tax? Or, is the marginal utility of $200 million so small for you that it doesn’t interest you?
I’ve played a progressive slot because the expected return was positive. If the powerball was as well, I would play, with a limited bank roll of course. My pockets aren’t really deep enough to avoid The risk of ruin, so couldn’t expect it to be a profit making Endeavour. Not enough money or iterations to expect to come out ahead.
So with 1.5 billion, you could become a mega money manager, since you can take the annuity and still manage the assets, yes? I guess it’s tons and tons of muni bonds, baby!
And yet in all likelihood, some pinhead with no financial sense whatsoever will plop down $2 (or $200) and walk away with a couple hundred million. Granted, millions of other pinheads (myself included) will plop down their $2 (or $20 in my case) and walk away with nothing but the fun of having dreamed of the yacht, Bugatti Veyron, private jet, etc. You’ll still have your $2 though, so I guess it’s a win-win.