Why do lotteries only give out millions to one lucky winner?

Question

I would buy tickets more often, I would think they'd sell more, if more draws were made to allow more people to win and share the millions offered.

Answer 1

Unfortunately your idea, while it seems sensible, flies in the face of reality and research.

When the jackpots get to crazy amounts like over $200m, there are people lining up to buy tickets.  The buying frenzy gets on the news, and people will even cross state lines to buy.

Fact is, years of research and study have conclusively shown that the larger the rollover, the more tickets are sold.  In fact ticket sales appear to grow exponentially with the size of the jackpot.

People in America also realize that unlike many foreign lotteries the government severely taxes the winner, and that the prize advertised is actually a lie, because it is not the actual amount that will be won.  So players expect to be ripped off by both the lottery and the government when they win.

Because the role of the lottery is to sell more tickets, that ultimately raise more money for charity, both major US lottery companies have actually increased the odds of winning within the past few years.  By doing so they know that there will be more rollovers, and hence more sales.

Personally, I'd be happy with an easier to win million dollar prize, where that was the actual money you won tax free.  The government could tax the ticket sales, rather than the prizes.  But apparently this would hurt sales, so it's never going to happen.