Powerball is a multi-state lottery game. Since there are multiple states, the prizes are large. As I write this, the Grand Prize is $203 million. Now I know that the lottery is a tax on people who don’t understand math. (I play by buying one $2 ticket, because I get hours of entertainment out of daydreaming what I would do if I won, and hay, it’s only $2. Cheaper than the movies, or even a book.)
I was looking at the prizes and odds, and noticed something odd: California, even though they are playing the same game, awards different prizes. Check this out:
Match | win | win in California |
5 numbers and powerball | $203 million | $203 million |
5 numbers | $2 million | $212,409 |
4 numbers and powerball | $50,000 | $9,062 |
4 numbers | $100 | $399 |
3 numbers and powerball | $100 | $197 |
3 numbers | $7 | $7 |
2 numbers and powerball | $7 | $8 |
one number and powerball | $4 | $5 |
powerball | $4 | $4 |
As you can see, the prize structure takes money from the larger winners and redistributes them to the smaller winners. Matching 5 numbers without the powerball, or 4 numbers with the powerball in California means that 85% to 95% of your winnings will be confiscated (by the time you pay taxes) and the majority of that money will be given to the “less fortunate” people who matched fewer numbers.
It’s a metaphor for the entire state.