Before I begin this thread I want to point out that I found a similar thread title whilst searching for threads with the subject matter that I would
like to share with the ATS community. However the conspiracy theory I am going to propose is different from the thread I found when I searched to see
if anyone else had proposed a similar theory. The thread I found has a similar title to this thread but a completely different conceptualization
involving said conspiracy. This thread was written in 2009 by Jesus Christ....umm literally.
Thread Author: Jesus H Christ
Date: posted on 7/12/2009 @ 09:52
Title: Is There A Lottery Conspiracy?
Personal Summary: OP proposes a conspiracy in regards to the apparent demographic involved in marketing lottery products. The OP seemingly surmises
that the more poor and uneducated demographic are the most prevalent customers and by the "what if" ideology they too can perhaps strike it rich, all
the while the rich are getting richer.
The aforementioned theory may or may not back up this theory that I would like to suggest to the members of ATS.
I have always had a theory in regards to how the Florida state lottery may be a conspiracy. More the "Big Jackpot" draw games in which winning would
make most peoples financial worries a thing of the past. Many states in the US have similar types of lotteries. Some states even go in together in a
super draw sometimes known as a "Power Ball" drawing.
I will post a few excerpts from a downloadable MS Word .doc from a site called polytech.us titled:
Work. I encourage you to read through it if you have the time as it delves into a lot of detail in regards to how a lottery works.
I plan to just grab the portions that I feel may back this theory up. I will add my content with each section where I feel there may be a
In the United States, 38 states and the District of Columbia (Washington, D.C.) have lotteries. A lottery is a form of gambling that is run by the
state. Most states have several different games, including instant-win scratch-off games, daily games and games where you have to pick three or four
The game with the biggest jackpot is almost always Lotto. This game usually involves picking the correct six numbers from a set of balls, with each
ball numbered from 1 to 50 (some games use more or less than 50).
Some states have joined together to run multi-state Powerball lotteries. Since so many people can play, they need a game with really large odds
against winning. In this multi-state lottery game, the winner has to pick the correct five numbers from a set of 50 balls, and they have to pick the
single correct number from a separate set of 36 balls. So the odds of picking the correct number in this game are:
36 x (50/5 x 49/4 x 48/3 x 47/2 x 46/1) = 76,275,360:1
Large jackpots tend to drive more ticket sales. If the prize is not large enough, ticket sales can decrease. On the other hand, if the odds
against winning are too great, ticket sales can also decline. It is important for each lottery to find the right balance between the odds and the
number of people playing.
This is the one portion that I feel may back up the theory Jesus Christ was surmising in that the "what if" marketing tactics pays for itself for all
intents and purposes and due to the targeted demographic, pays off.
Where Does A State Gets The Money To Pay The Winners (New York State used as example):
In order to guarantee that the funds for all of these payments are available, the New York Lottery buys special U.S. Treasury Bonds called STRIPS
(Separate Trading of Registered Interest and Principal of Securities). These are also known as zero-coupon bonds (see
Financial Pipeline: Zero Coupon or "Strip"
Bonds for more details about bonds).
A zero-coupon bond pays a certain amount of money when it matures. For instance, in March 2001, you could buy a zero-coupon bond that would be worth
$1,000 in 10 years for about $610. The longer the amount time before the bond matures, the less it will cost you today. A bond maturing in 25 years
for $1,000 would only cost about $260 today. If you did the math, you'd find out that if you invested the $260 at about 5.7-percent interest, in 25
years it would be worth $1,000.
When a winner claims his prize, the New York Lottery asks seven different bond brokers to quote a package of bonds that will pay each of the 25 future
yearly payments. They buy the bonds from the broker at the best price for the complete package. An investment bank holds the bonds, and each year when
one matures, the funds are automatically placed in the New York Lottery's cash account. The funds are transferred to the prize-payment account, and a
check is written for the winner.
Typically, the whole package of 25 bonds ends up costing the New York Lottery a little less than half of the jackpot amount.
Where Do Lottery Proceeds Go?:
Most U.S. lotteries use the proceeds to help with their education budget. For instance, between all of the different games the New York Lottery
runs, the total sales in 2002-2003 were about $5.4 billion. Of that, 57 percent was given out as prizes, 33 percent went to schools and the rest went
to expenses related to running the lottery (see
New York Lottery: Where the Money Goes for more details).
So if my calculation is correct, between 2002-2003 the NY state lottery expenses were over 6 million dollars. That is assuming that the above
percentages paid out and going to schools are accurate. I guess the cards and the "scratchy off" stuff isn't cheap. Going back to the 57% that was
paid out in jackpot prizes with the aforementioned bonds and being the bonds used to pay those winnings out "typically cost a little less than half of
the jackpot amount" where is that other 1.5ish billion dollars of the 57% paid out?
Not to mention the federal and/or state taxes the winner has to pay on the jackpot amount.
edit on 1/11/2012 by UberL33t because: (no reason given)
There are two main types of Lotto machines: gravity pick and air mix. The machines have a few things in common:
• They are designed and proven using statistical analysis to produce random combinations of numbers.
• The balls are always visible during the mixing and drawing process -- they never disappear inside tubes or chambers. This helps prevent tampering;
and since the drawings are televised live, it gives the viewer confidence that the drawing is not being fixed.
Notice the verbiage “helps prevent tampering” and live televised drawings “gives the viewer confidence that the drawing is not being
For those that don’t remember the movie starring John Travolta titled Lucky Numbers here’s a clip of the movie trailer for your viewing
Vid Description: Lucky Numbers Movie Trailer - A television weatherman scams a local lottery.
Starring: John Travolta and Lisa Kudrow
Yes this is Hollywood, but not an impossible feat and not too implausible when millions are at stake. I am not referring to an individual fixing it at
this point, who is going to benefit more the lowly “paaarball” purchaser, or the state? Although, there has to be a winner occasionally in order
to keep the façade going right?
My time is running short so I will get to the point of why I feel there is a conspiracy.
In Florida as I am sure there is in any state, on the date of the draw there is a cut-off point at which you can no longer purchase a lottery ticket.
When you purchase a lottery ticket it is a computer generated ticket by which you choose or have the computer randomly choose the numbers for you. In
which the cut-off is usually 30 minutes before the draw.
30 minutes would seem like sufficient enough time to query the computer to post a set of numbers that weren’t picked for the particular drawing. If
they want to extend and increase a jack-pot (advertisement in of itself) then this is how it could be done. Load the “fixed” balls with the
corresponding numbers and voila, instant rollover thus generating more revenue for the state.
Now, they have to occasionally have a winner. So this is where the conspiracy may go into the fantastical realm but I would be remiss if I didn’t
Most places you can buy a lottery ticket have surveillance systems (convenience stores, super markets, etc.). The computers are sophisticated enough
as is to tell what city and what location (store) a lottery ticket was purchased, presumably the exact time as well.
In the days before the draw and after already planning to have a winner with the next draw, TPTB could tap into said surveillance and by utilizing
facial recognition software they could more or less pick the winner. Which is why I think so many of the 90 year old grandmas win so frequently (being
facetious of course).
None the less, as theories go, what is your take ATS...are the State Lotteries fully legit and by the book?
edit on 1/11/2012 by UberL33t
because: (no reason given)
It's very interesting that NYC was mentioned. I caught the NY lottery in a scam, sent my proof to the state, that was 2 years ago and I have heard
nothing. Pick 10 is a NY Lottery game, where you pick 10 numbers between 1-80, every night 20 numbers are given. If any of your 10 numbers match, you
More than once, over a period of a couple of years. I found that a $500,000. winner, actually 2 with the same numbers on the same night, bought the
ticket at the same store....less than a block from Wall Street. I want to know....WHAT ARE THE ODDS OF THAT?
Can only speak for the game I play - the game is legit & there are patterns in the numbers. It may be a random pattern but if you go to your lottery
website & print out the past years numbers & stair at the numbers for say 4 months you will see patterns in the numbers like i did. I play a daily 5
number game & have gotten pretty good at picking numbers & im not really that great with numbers & am not really that lucky.
I could see a math wizard winning multiple lottery's but you do have to put the time in & track the numbers & find a system that works for you. Ive
bought many kinds of lottery systems (books,software) but best one I found was the one in my head.
edit on 11-1-2012 by BABYBULL24 because: (no reason given)
Nothing would surprise me when it comes to the lottery. It's actually one of my pet peeves. I used to work at an architectural firm that specialized
in public architecture (schools, community colleges, etc.). Turns out that the rules and regulations for obtaining any lottery money for the benefit
of schools were so strict that it was almost impossible to ever see any of it.
For years, those states have heard complaints that not enough of their lottery revenue is used for education. Now, a New York Times examination of
lottery documents, as well as interviews with lottery administrators and analysts, finds that lotteries accounted for less than 1 percent to 5 percent
of the total revenue for K-12 education last year in the states that use this money for schools.
In reality, most of the money raised by lotteries is used simply to sustain the games themselves, including marketing, prizes and vendor commissions.
And as lotteries compete for a small number of core players and try to persuade occasional customers to play more, nearly every state has increased,
or is considering increasing, the size of its prizes — further shrinking the percentage of each dollar going to education and other programs.
In some states, lottery dollars have merely replaced money for education. Also, states eager for more players are introducing games that emphasize
instant gratification and more potentially addictive forms of gambling...
If that's not bad enough, some of the state lotteries are starting to become privatized.
Of course, the question of how much lotteries contribute to education has been around for years. But the debate is particularly timely now that at
least 10 states and the District of Columbia are considering privatizing their lotteries, despite assurances decades ago that state involvement
would blunt social problems that might emerge from an unregulated expansion of lotteries. These trends fly in the face of marketing campaigns that
often emphasize lotteries’ educational benefits, like a South Carolina lottery slogan, “Big Fun, Bright Futures,” or an ad campaign in North
Carolina featuring a thank-you note passed through schools and signed “The Students.” The New York Lottery’s Web site includes the tagline,
“Raising billions to educate millions.”
Promotions like these have taken root. Surveys and interviews indicate that many Americans in states with lotteries linked to education think their
schools are largely supported by lottery funds — so much so that they even mention this when asked to vote for tax increases or bond authorizations
to finance their schools.
The entire thing makes me sick, and it all needs to end — and the promoters and profiteers punished and flogged into the streets.
And that's my theory....
edit on 1/11/2012 by Ex_CT2 because: (no reason given)
It was PA and the person was Nick Perry. My neighbors were related to him. And were always so proud to have him as a family member. Until....
I can even vaguely remember some odd joke about him having water on the balls. I can't remember exactly how it goes though......
oh there are conspiracies concerning lotteries alright
the main one being it's actually a secret tax on stupidity and cupidity
it's also used to launder money
i once saw the numbers for pick 3 as i was falling asleep and wrote them down
alas as i was a neophyte then i only played them a couple of times and stopped [didn't know i needed to keep at it for at least a fortnight]
No its not a conspiracy. I actually work in the industry. In fact I am very much inside of the industry. I cant tell you more than that for privacy
reasons. Let me explain to you. The State governments do not actually manage the lottery. There are three publically traded companies that operate
state lotteries in the US. GTECH, Scientific Games and Interlot. The various games in a state are divided up in several differrent contracts. The
"pick six" type games are refered to as "Online" games. The scratch off tickets are "printed" games and there is a catagory of games called
"video" that include the Keno type games you find in bars and bowling allys. Some states even run video operations that really are just casinos.
West Virginia being one of those. One of the three companies will have the contract for a specific catagoy of game in a single state. So for instance
in the state of South Carolina Interlot runs the online games while Scientific Games prints the scratch off tickets. Some states may award all of
their games to a single company like Texas with GTECH. Its a very competative business and the margins for the companies are very thin. For instance
on a 1 dollar scratch off ticket the company that prints them only makes about 4 cents.
The way the games work is rather interesting. The Online and video games are not controlled by the state. They are controlled by the company that runs
them. The State picks an Auditor to handle the drawings for numbers but the operating company manages ticket sales via their computer terminals at
each retailer. The idea that security cameras are used to pick a winner is way out there. The terminals themselves are conected to what is called a
GMU via secured encrypted communications networks. The GMU system is esentially a database that stores the picked numbers with a bar code (on the
little slip of paper you get your numbers on). The drawing is heavily monitored and that is how cheating is recognized. The industry is also heavily
controlled by associations and regulatory commissions.
There have been situations in the past that cheating has occured. Its always someone on the inside and its by and large detected and punished. For the
record if you work for one of the operating companies or the state lottery commision you cannot play the lottery. Its not a conspiracy by the
Now all this being said marketing is done by area with the highest ticket sales if a "poor" area registers large sales then yes they will receive
the most marketing. Typically however the average lottery customer is retired and middle class.
Very interesting indeed, thank you for your insightful reply.
It makes since that the lottery would be controlled by a third party entity such as the companies you mention complete with audits and all the
securities in place to thwart any cheating. However, their are plenty of industries that are fully regulated and corruption still somehow
I am still not completely convinced however as i think there were portions of your post that left plenty of room for corruption. Not that I plan to
beat a dead horse either mind you, but I plan to do a little research into those third party companies that you mentioned in your post. The Chairman
and CEO of Scientific Games (A. Lorne Weil) looks like an interesting character.
Just out of curiosity, what is your take on what some of the other posters have mentioned regarding the apparent influx of all these people suddenly
hitting the lottery more than once?
If you inject wax into a ball that has numbers written on the outside, you can rig the outcome for gravity balls. Boil water, inject wax into the
ball, put the number you want down, wait till wax flows to number, take out, let dry and repeat the same to other balls. I would feel better if i
could inspect every ball that goes into the machine. Unfortunately you cain't inspect the balls. NO balls inspections here, only at the airport they
I didnt say that there was no room for corruption. The regulations absolutly put plenty of possiblities for that to happen in place. I said it was not
a conspiracy. Its a business. Its a business that by default is a vendor to government and thus open to all the problems that entails.
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