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Does it Pay to Buy the Pot in the Canadian 6/49 Lotto? Implications for Lottery Design

Steven D. Moffitt, William T. Ziemba

arXiv 5 Jan 2018 · Econometrics · publishedWilmott (2019) · 1 citations (OpenAlex)

arXiv:1801.02959 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Despite its unusual payout structure, the Canadian 6/49 Lotto is one of the few government sponsored lotteries that has the potential for a favorable strategy we call "buying the pot." By buying the pot we mean that a syndicate buys each ticket in the lottery, ensuring that it holds a jackpot winner. We assume that the other bettors independently buy small numbers of tickets. This paper presents (1) a formula for the syndicate's expected return, (2) conditions under which buying the pot produces a significant positive expected return, and (3) the implications of these findings for lottery design.

Citation extraction

18
references
31
in-text mentions
18
distinct cited
6
self-citations
6,450
main-text words

appendix boundary found by appendix_command · 90% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Moffitt, S. D. and Ziemba, W. T (2017) A Method for Winning at Lotteries self0.9416483%
2Ziemba, W. T., Brumelle, S. L., Gautier, A., and Schwartz, S. L (1986) Dr Z's 6/49 Lotto Guidebook self0.69351100%
3Walker, I (2008) Chapter 22 - how to design a lottery0.64422100%
4Stern, H. and Cover, T. M (1989) Maximum entropy and the lottery0.51121100%
5Thaler, R. H. and Ziemba, W. T (1988) Anomalies: Parimutuel Betting Markets: Racetracks and Lotteries self0.51121100%
6Ziemba, W. T (1995) Collection of Dr. Z Columns on Racing, Lotteries, Sports and Casino Gambling self0.51121100%
7Clotfelter, C. T. and Cook, P. J (1990) On the economics of state lotteries0.40511100%
8Johnson, R. and Klotz, J (1993) Estimating hot numbers and testing uniformity for the lottery0.40511100%
9Joe, H (1987) An ordering of dependence for distribution of k-tuples, with applications to lotto games0.40511100%
10Chernoff, H (1981) How to beat the massachusetts numbers game0.40511100%

Showing the top 10 of 18 scored citations.