27 January 2006

A tax on stupidity

The Times wonders about the value of the National Lottery:
"As a gamble the lottery game is a cruel joke. Casinos typically pay out more than 97 per cent of money staked. With Premium Bonds you actually get to keep your stake, plus an average of 3½ per cent, in prize money per year; small wonder the Government doesn’t promote them. The lottery payout? Fifty per cent.
And these pathetic returns are so skewed to the jackpots that the average player receives far less than that, even over a lifetime. If you bought ten tickets a week for 50 years, your chances of winning one jackpot in that time would be less than 1 in 500. You would almost certainly lose about 80 per cent of your cumulative stake...
But it goes to good causes, right? Well, if you want to give 28p to a good cause chosen by the lotterycrats, buy a £1 lottery ticket. Or you could give £1 directly to a charity of your choice — that’s £1.28, with gift aid.
Nor is the lottery much of a tax. The operator, Camelot, raised £4.77 billion in 2004-05, of which it and the retailers shared equally the last 10 per cent: £477 million. The Inland Revenue, over the same period, raised £380 billion at a cost of less than 1 per cent of the money raised."

You would be far better off doing the pools.

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