Saturday, November 18, 2017

Canada Lottery Revenue $100 billion: 37.5% or 3/8 Canadians play lottery

Canada Lottery Revenue $100 billion: 37.5% or 3/8 Canadians play lottery


Canada Lottery revenue of $100 billion a year
can provide $28,000/yr to each Canadian
living in poverty and those under poverty line.

Canadians who play lottery ranges from 25% to 50% of the entire population of 36 million (2016).

If we take the average of 1/4 and 1/2, this will result in 3/8 (0.375).

If we multiply 36 million by 0.375 (37.5%), this is be 13.5 million estimated lottery participation rate in Canada.

Odds of winning Lotto 6/49 Calculation by probability:

Formula: n!/[k!*(n-k)!]

where:
n is the number of alternatives
k is the number of choices.

49!/[6!*(49-6)!]

49!/[6!*43!]

6.08e+62/(720*6.04e+52)

6.08e+62/4.35e+55

13,983,816


Alternative caculation method:

49 × 48 × 47 × 46 × 45 × 44
----------------------------------
6 × 5 × 4 × 3 × 2 × 1

10,068,347,520 divided by 720

13,983,816


Therefore the Odds of winning is 1 in 13,983,816.

This is 7.15e-8

or 0.000007%

or 7% divided by 1 million



Comparing the number of Canadian lottery players of 13.5 million to the odds of winning of 1 in 13,983,816 for Lotto 6/49, and if each player just buys one ticket, AND given the assumption that each ticket is unique, then it is possible that one ticket will win in every draw.


CANADA Lottery Estimated Revenue


if the 13.5 million lotto players buy just one ticket and a ticket costs $3

Revenue = 13.5 million x $3

Revenue = $40.5 million

Starting jackpot price of Lotto 6/49 is $5 million

Revenue minus jackpot price = 40.5 million - 5 million

Revenue after jackpot price = 35.5 million ------ MINIMUM


in reality, lotto players actually buy more than one ticket,
so $35 million revenue is just a minimum

if on average lotto players buy 2 tickets, then

Revenue = 13.5 million x $3 x 2

Revenue = $81 million

Revenue after jackpot price = $81 million - $5 million

Revenue after jackpot price = $76 million  ---- this is just for Lotto 6/49


Lotto 6/49 is drawn twice a week, so there are 104 total draws in a year.

Yearly Revenue = $76 million x 104

Yearly Revenue = $8 billion


However, Canada lottery has many other forms of lottery games such as Lotto Max, $1000 a week for life and many others............so the revenue is close to maybe $100 billion a year.


DISTRIBUTION OF WEALTH:


The population of Canada under the poverty line is 10% or 3.6 million.

$100 billion/3.6 million

$28,000

If this $100 billion is equally distributed to Canadians living in poverty, then each will receive $28,000 a year.

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