When I took my FINRA Series 3 exam to become a licensed commodity future broker, I had to learn quite a bit of regulation.  One of the more serious regulatory requirements surrounded the proper representation and disclosure of investment results.  In short, you can’t misrepresent the probability of making (or losing) money.  The New York lottery doesn’t seem to hold the same ethical standards.

Every morning I hear ridiculous phrases such as “If you get your sweatshirts tailored, you’re ready” in an attempt to get radio listeners excited at the prospect of winning millions of dollars.  Ridiculous as the ad’s proposition is, I imagine some previous lottery winner has thought of an even more absurd use of their money than getting old sweatshirts professionally fitted.

While anybody’s grandmother will tell you the chances of winning the lottery are “one-in-a-million”, the odds of winning the Mega Millions Jackpot are 1 in 175,711,536 to be more precise.  In fact: your chances of winning $2, a mere $1 gain on your initial investment, are 1 in 75.

Advertising probabilities by encouraging fantasies of riches will cost you more than a designation in the investment world.  It seems the same government, however, that promotes these stringent market regulations fancies it okay to lure individuals into gambling.

The lottery, or as it’s been called: “the stupidity tax”, can be innocuous if played every once in a while.  However, the thrill of chance often leads individuals down a much more dangerous path.  Even for the casual lottery player, tickets can add up.

At a time when Americans need their money more than ever, the government should think twice before blessing the deceptive practices of lottery advertisement.  If they require full and honest disclosure in the markets, why should it be any different for the lottery?

I am not for or against these particular advertisements themselves; merely, I find fault in inconsistency.

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