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anonymous3 comments on Lotteries: A Waste of Hope - Less Wrong

28 Post author: Eliezer_Yudkowsky 13 April 2007 05:36AM

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Comment author: anonymous3 07 September 2007 12:33:41AM 0 points [-]

Some data on gaming the system (gambling) i.e. not following a value investing model.

- $500B/yr wagered into national lotteries - 10M compulsive gamblers in USA > # of alcoholics - The USA was founded on monies attained from a state\national lottery: The revolution in the 1700's financed by similiar methods: Washington DC was financed by a lottery - From 1790 to 1860 24 of 36 states sponsored government-run lotteries. 1894 it was banned. Reintroduced by State of New Hampshire in 1964, now there are 38 states with state-sponsored lotteries - over 500 casinos across the USA - Poll in 1971: 615 of Americans gamble, wagering $47.4B annually - 1989 71% were wagering $246B - 1992 $330B being wagered - 1995, studies show 95% of Americans gamble: 82% play the lottery: 75% play slot machines: 50% bet on dogs & horses: 44% on cards: 34% on bingo: 26% on sports events: 74% frequent casinos: 89% approved of gambling. - gambling expenditures exceed the amount spent on films, books, amusements, music, entertainment combined. - 1993 people spent $400B legally, $482B in 1994 & over $500B in 1999 - 10% of all money earned by America is thrown away in gambling each year.

CONCLUSION: we are a nation of gamblers. can be speculated that based on the above trends the recent increase in market volume & market volatility is due to this gambling culture & mentality.