An Expected Utility Theory

A lottery is an illegal form of gambling which involves the random drawing of specific numbers for a monetary prize. While some governments ban lottery outright, others endorse it as far as planning a state or national lottery. Even so, it is very common to see some level of regulation of lottery law by most jurisdictions. The amount of revenue generated by lottery sales, and thus its proceeds, are used for funding public programs such as education, health care and other necessities.


There are many different kinds of lotteries such as the lotto, the scratch lottery, the progressive slot machine and instant win lotteries. A national lottery in the US requires millions of dollars prize money in order to participate. One can also opt to buy tickets that give you better chances of winning in the jackpot prize than the regular lotteries. There are even a few lotteries that have tie-ups with other organizations so that individuals who buy multiple tickets would stand a better chance of winning a bigger prize.

Lottery games are played across the world in numerous countries. They may all have their own unique system of conducting the draw and there are similarities in the rules and properties. A few lotteries however, have differences in their mechanics, which are often blamed on sloppy mathematics, lack of effective marketing strategy or the presence of a particular number of lotto players in a community. Researchers have been involved in studying these discrepancies to come up with an expected utility theory which postulates that lottery games are mostly driven by expectations and motivations. This theory has been proven useful in helping lottery game players anticipate their chances of winning.