Possible Reasons for Lottery Participation

The world is reflecting how the covid-19 has changed the lifestyle. People are using an app to order groceries; children are learning in a digital classroom, confined in their room. Remote working, once a privilege of senior managers, has become an office norm. A spokesperson of the World Lottery Association, an international body representing world, national and provincial lottery, states the damage the industry faced at the beginning of the pandemic. Lockdown, coupled with the strict norm of social distance, prevented lottery players worldwide from indulging in their favorite pastime. Like other sectors requiring points of contact, the revenue of the lottery took a plunge. In this scenario, online lottery websites like sagame1688 thrived with new customers and more revenue.

Buying a lottery ticket is not a coherent investment decision, but many people buy at least once a year. Besides the financial reward, a lottery ticket buyer gets an element of emotional happiness before the result. It is not always about winning a jackpot but the enjoyment of the game. The lottery game has a utility value, which most often ends before the result.

The average return of lottery

The average return of the lottery is just around 50%, lower than that of casino games like blackjack, poker, and horse race betting. Though lottery is not a rational investment vehicle, but it is the most extensive form of gambling, with a large patron base. As of 2015, the sale of European lottery stood at approximately €80 billion, with average spending of €100 per person on lottery tickets annually.

Various explanations

Many economists come with various explanations for wide-ranging lottery games and participation. Some advocate it is an opportunity to improve one`s socioeconomic status at a meager cost. Others advocate lottery is the only available opening when there are no other options to improve a person`s socioeconomic status or lifestyle. A school of economists suggests that deprived and poor people buy more lottery tickets and spend a significant portion of their income. Most lottery ticket buyers are aware of their slim chance of winning, but some overweight their winning prospect.

The expectation, the non-financial factor, is the propelling factor for lottery participation. Players experience an array of emotions before and after the draw. Hope for a better lifestyle, fun, and exhilaration is the positive emotions before the draw; the social bonding when playing the online lottery with friends and family is another factor. Positive emotion may linger even after the draw if the person wins an insignificant amount, even if it is lower to the purchasing price of the lottery ticket.

Not a logical investment plan

Though purchasing a lottery ticket is not an effective investment plan, many people participate in the lottery draw. There are two prevailing justification for this extensive participation. The first lottery is a low cost opportunity to enhance one`s socioeconomic status when there are no other alternatives to improve the lifestyle. Second players emphasize the slim chance of winning a jackpot. The first clarification suggests that lottery participation is predominant in the low-income group, but the lottery actually takes place across the income division. The second theory also has fallacy as most sagame1688 lottery participants have a reasonable expectation of the outcome.