The chance of winning a prize in a lottery or a game of chance based on the casting of lots.
The odds are infinitesimal, but a win can still be a life-changer, and the promise of it lures many people to buy tickets. Lottery marketers often use narratives about previous winners and their newfound wealth to inspire the aspirations of potential players, says consumer psychologist Adam Ortman of Kinetic319 advertising agency in Denver. The messages, he says, expertly tap into FOMO, the fear of missing out.
When it comes to claiming the grand prize, most states offer winners the option to take their winnings in a lump sum or in annual payments over time, commonly known as annuity payments. Choosing an annuity may make sense for some winners, who might want to invest the payouts and benefit from compound interest. But it also means that they’ll receive a smaller amount than the advertised prize, because federal and state taxes take a big chunk of the proceeds.
Lottery games are an important source of revenue for many states, but it’s worth considering how much of the money is spent on the games themselves and how much is left for other purposes. And anyone thinking about playing should review their finances and consider whether it’s something they want to indulge in, or if it’s becoming more of a compulsion than a joy. After all, gambling is addictive, and lottery play can be very expensive.
