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Horse Racing
Breakage (payouts rounded down) 2%
State Taxes (most states)  17%

Sports Betting

Betting $11 to win $10 on your favorite football team is one of the best bang-for-your-buck gambles you can find.

See Bad Bets at and The Wizard of Odds.

Lotteries Example: NJ Lottery (609) 599-5800 Pick-6: Rules: Select 6 numbers from a list of 49. (It was changed from 46 to 49 several years ago.) 6 Numbers drawn at random. Prize pool will be equal to 50% of the gross dollars wagered. (39% goes to education the rest for administrative costs.) Payout Result Odds % of pool Av. Amt. 6 out of 6 1:14 Mil 68% Jackpot 5 out of 6 1:54,201 10% $2,700 4 out of 6 1:1,032 11% $56 3 out of 6 1:57 11% $3.00 Jackpot value is estimated based on expected sales and contracted annuity interest rate. There will be a total "roll forward" of each prize pool tier if there are no winners. Jackpot is payed out in 30 yr. annuity. A cash payout is what the cost of the 30 yr. annuity would be; about 50%. So Jackpot would have to be $28M for a $14M cash payout for even odds (assuming you didn't have to share with another winner). Federal Income tax 27% Big Games: In New Jersey it requires 5 out of 50 plus 1 out of 36 to win the jackpot. Odds are 1:76 M

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last updated 2 May 2002