Can you "invest" in the lottery?
March 31, 2012 9:07 AM Subscribe
The recent Mega Millions lottery got me thinking: why don't wealthy individuals/corporations ever attempt to buy out the lottery?
The recent $640 million jackpot, according to the AP
: "amounts to a $462 million lump sum and around $347 million after federal tax withholding. With the jackpot odds at 1 in 176 million, it would cost $176 million to buy up every combination. Under that scenario, the strategy would win $171 million less if your state also withholds taxes."
So seriously, why is this never tried? I realize that $176 million is a lot
of money, but for those that do have it, you're talking about a pretty great return on investment.