The Rise of Lottery Jackpots: A Brief Overview
Lottery jackpots have been in the spotlight recently, and for good reason. Currently, the Mega Millions lottery is anticipating a massive payout of around $1.15 billion for its upcoming drawing on Friday. Such large sums not only make headlines but also drive many hopeful participants into convenience stores, dreaming of extraordinary possibilities beyond our planet.
Despite the fact that the country has seen numerous 10-figure jackpots in the past, there’s something thrilling about crossing that billion-dollar mark. Jonathan D. Cohen, author of “For a Dollar and a Dream: State Lotteries in Modern America,” questions the potential numbing of excitement. He asks, “What happens when $1 billion becomes commonplace and loses its charm?” Moreover, he contemplates, “How much wealth can one individual truly need?”
Looking to the future, Mega Millions plans to increase ticket prices from $2 to $5 starting in April. This price hike is part of a broader effort to generate better odds for jackpots and create more frequent high-stakes winnings.
A Historical Perspective on Lotteries
Lotteries have long been a part of human history, stretching back over 4,000 years. Cohen highlights in his book that in ancient Rome, emperors and nobles hosted lotteries at banquets, awarding prizes that ranged from valuable artifacts to enslaved individuals. By the 1400s, lotteries were utilized in Europe to fund public projects like city defenses.
In the American colonies, sweepstakes became a means to fund the Revolution against Britain, with figures like Thomas Jefferson lending support to the concept. He viewed lotteries as a voluntary tax for those willing to participate. However, due to concerns over fraud and the negative impacts on vulnerable populations, lotteries fell out of favor in the 1800s. It wasn’t until the 1960s that many states revisited lotteries as a solution to budget deficits without increasing taxes, leading to a resurgence of interest.
The Evolution of Mega Millions
Mega Millions, which began in 1996 as “The Big Game” involving just six states, was created to compete with Powerball. Originally, the starting jackpot was set at $5 million. If adjusted for inflation, that amount would nearly double today. In today’s dollars, the starting prize could have also purchased a rare copy of the U.S. Constitution or even covered Michael Soroka’s $9 million contract with the Washington Nationals for the upcoming season.
In stark contrast, the potential winnings from Friday’s Mega Millions drawing could afford a Major League Baseball team; while the Nationals might be too costly, Forbes recently valued the Miami Marlins at approximately $1 billion. Additionally, Taylor Swift’s successful Eras Tour grossed over $1 billion for the first time in history as of the end of 2023.
What Contributes to Increasing Jackpots?
Today, Mega Millions and its competitor Powerball are available in 45 states, along with Washington, D.C., and the U.S. Virgin Islands, while Powerball’s reach extends to Puerto Rico. Recent statements from Mega Millions indicated that the goal of raising ticket sales and adjusting odds could lead to an increase in winners, even as jackpots continue to climb.
High-stakes games tend to captivate players despite slimmer odds, as larger jackpots generate heightened media interest, boost ticket sales, and attract new players to the game. Lowering the odds by increasing the range of numbers has resulted in smaller chances of winning. Consequently, this has led to larger, rollover prizes, a trend that Cohen suggests is likely to persist.
He notes that the first billion-dollar jackpot was recorded in 2016, and the trajectory of rising jackpots seems set to continue.
However, Cohen warns against the narrative of the unfortunate lottery winner, like Andrew “Jack” Whittaker Jr., who suffered greatly after winning a record Powerball jackpot in 2002. Despite his troubles, Cohen asserts that most winners don’t face such dire consequences. “Even if we may be reluctant to admit it, many of us hold onto the idea of meritocracy — that luck doesn’t equate to deserving wealth,” he states. Yet research indicates that “lottery winners tend to be happier, healthier, and wealthier than the average person.”
