John Piper: Seven Reasons Not To Play the Lottery

From desiringgod.org

Seven Reasons Not to Play the Lottery


Seven Reasons Not to Play the Lottery

Americans now spend more than $70 billion dollars annually on lotteries. That’s more than the combined spending on books, video games, and movie and sporting-event tickets. Lotteries are legal in 43 states.

“That’s more than $230 for every man, woman, and child in those states — or $300 for each adult,” reports The Atlantic.

I agree with the report that this is a great shame on our nation. From time to time, the Powerball or Mega Millions lotteries rise to unusually high numbers and get fresh attention in the news (tonight’s and tomorrow’s drawings are announced as $140 million and $400 million).

Here are seven reasons, among others, I have often rehearsed to make the case that you should not gamble with your money in this way.

1. It is spiritually suicidal.

“Those who desire to get rich fall into temptation and a snare and many foolish and harmful desires which plunge men into ruin and destruction. . . They have pierced themselves with many a pang” (1 Timothy 6:7–10).

2. It is a kind of embezzlement.

Managers don’t gamble with their Master’s money. All you have belongs to God. All of it. Faithful trustees may not gamble with a trust fund. They have no right. The parable of the talents says Jesus will take account of how we handled his money. “They went and worked” (Matthew 25:16). That is how we seek to provide for ourselves (1 Corinthians 4:12; 1 Thessalonians 4:11; Ephesians 4:28)

3. It’s a fool’s errand.

The odds of winning are nearly 176 million-to-one. You take real money and buy with it a chance. That chance is so infinitesimally small that the dollar is virtually lost. 175,999,999 times. The smaller amounts paid out more often are like a fog to keep you from seeing what is happening.

4. The system is built on the necessity of most people losing.

Lotteries are simply another form of gambling (without any of the glamor and glitz of Las Vegas, of course). The “house” controls the action; the players will all eventually lose.

5. It preys on the poor.

According to the International Business Times, the lottery supports and encourages “yet another corrosive addiction that preys upon the greed and hopeless dreams of those trapped in poverty. . . . The Consumerist suggested that poor people in the U.S. — those earning $13,000 or less — spend an astounding 9 percent of their income on lottery tickets. . . making this ‘harmless’ game a ‘deeply regressive tax.’”

6. There is a better alternative.

A survey by Opinion Research Corporation for the Consumer Federation of America and the Financial Planning Association revealed that one-fifth (21 percent) of people surveyed thought the lottery was a practical way to accumulate wealth. We are teaching people to be fools.

If the $500 a year that on average all American households throw away on the lottery were invested in an index fund each year for 20 years, each family would have $24,000. Not maybe. Really. And the taxes on these earnings would not only support government services, but would be built on sound and sustainable habits of economic life.

7. For the sake of quick money, government is undermining the virtue without which it cannot survive.

A government that raises money by encouraging and exploiting the weaknesses of its citizens escapes that democratic mechanism of accountability. As important, state-sponsored gambling undercuts the civic virtue upon which democratic governance depends. (First Things, Sept., 1991, 12)

So, if you win, don’t give from your lottery winnings to our ministry. Christ does not build his church on the backs of the poor. Pray that Christ’s people will be so satisfied in him that they will be freed from the greed that makes us crave to get rich.

Why You Need Maths (and Maths Teachers)

One of the complaints that Maths teachers hear more than any other subject is “But we will never use that in real life.” Nobody ever says that about Shakespeare or quantum physics, which is strange.

So here’s an example where a bit of thinking about maths could save a motza in real life.

A number of online betting companies are currently offering huge prizes for correctly guessing the final make-up of the AFL ladder- that is getting all the teams in the right position at the end of the season. One ad that I saw is offering a prize of $100 million for a $5 bet.  Wow! What a deal!

Hold on, let’s consider the odds. We will assume that at the beginning of the season all teams have an equal probability of standing in any position on the ladder. Although some teams are more likely to fill the top 4 or the bottom 4 you really have no way of knowing in advance the possible effects of injuries or even disciplinary action by the AFL over drug use or salary cap infringements.

There are 18 teams in the AFL. That means that the number of ways that the ladder can stand at the end of the season are:

18x17x16x15x14x13x12x11x10x9x8x5x4x3x2x1= 6400000000000000 (rounded off, but the odd digit here makes no difference). Remember those classes on combinations and permutations?

That means if you place one bet you have a 1 in 6400000000000000 chance of winning.

And the odds being offered are 100 million to 5 or 20 million (20000000) to 1.

So let’s knock off a few zeroes to find out what the margin is for the bookmaker on this competition:  6400000000000000 to 20000000 or 320,000,000 to 1.

In other words the scale is stacked 320,000,000 times in favour of the bookie.

To put that in words:

  • the odds of winning are astronomically remote 1 in 6.4 x10^15
  • the payout is so ridiculously stacked in favour of the bookie that even if every combination is covered by a $5 bet, they pay out the $100 million but rake in 320 million x $5 or 1600 million
  • to make sure that their payout is capped they limit the number of bets a single person can make and also stipulate that if more than one person picks the final result, they share the prize.
  • Even if all 20 million (give or take) people in Australia take up the opportunity and put on the maximum number of bets (say 20 each) that is still only 400 million bets and the probability of the bookies paying out is still only 1 in 15 million.

That is why you need to pay attention to your maths teacher. The bookie did and that’s why he drives a Lexus when you drive an old Ford.