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Thiel (1991) investigated whether reducing the odds of winning is won. They examined the results from 11000 lotto drawings
the jackpot can increase interest in lotto and thus increase sales. before making these conclusions.
According to theories in economics, it is generally expected that an Grusser at al. (2007) studied the addictive potential of lottery
individual will only invest money where his returns are significant. gambling. Their survey consisted of a pool of 171 active lottery
However, the lotto game seems to break this rule. In the late 80s players. A number of questions were administered to them to
in Washington, interest in the lotto game was declining and a question them about the how and why of lottery playing. It was
solution to relight the game was being sought. The operators could found that about 15% of their responders showed some signs of
either reduce the total number of balls (6/44 to 6/40) in order to addition behaviour. Petry (2003) observed that lotto players play
increase the chances of winning or increase the total number of more often compared to other types of gamblers and were more
balls (6/44 to 6/49) to reduce the odds of winning. likely to show grave alcohol and psychological disorders.
Previous work by Deboer (1990) had shown that reduction in Abrams and Garibaldi (2008) show why and how the lottery (i.e.
sales of lotto tickets were due to small jackpots which were not lotto) is a very poor investment and at the same time they give
sufficient to kindle the interest of the public. Thus the second idea out some impractical strategies on how to win the lottery. For
was chosen over the first one and was implemented in October example, they propose to buyout the lottery i.e., buying all the
1990. It was then shown that this move had increased lotto revenue possible combinations. If we consider the Mauritian loto, there are
by 37%. This work shows the surprising psychology of lotto 3838380 combinations and thus a player will need Rs76,767,600
players who prefer to have an infinitesimal chance of winning an to invest in the purchase of all the distinct combinations. In almost
astronomical amount rather than having a good chance of winning four years of operation, the jackpot has never reached this amount.
a much smaller amount. It can be observed that Loterie Nationale When the jackpot is going to be so high, there are going to be many
is following this strategy. This is perhaps the reason why the initial more players than the usual number and it is very likely that the
jackpot was placed at Rs12 M and huge bonuses are often added jackpot will be shared. This is a very poor strategy.
to the main jackpot to further increase it. The very long queues Even if the return can be positive in theory, we must bear in mind
at retailers during weeks of high jackpots are also proof of the that loto tickets can only be purchased at retailers and forms have
validity of such a strategic decision. to be filled out. Time and management of such an activity is enough
Novarro (2002) considered the advantages and disadvantages of to make it fail. Secondly, they suggest to players to open their own
earmarking revenues from lotto for specific activities. For example, lottery instead of playing Mega Millions or Powerball. The ideas
in Mauritius, 58% of loto revenues go into a government fund presented in the paper are interesting but the discussion is marred
known as the Consolidated Fund (Loterie Nationale, 2013). Money by their rigorous mathematical analysis based on calculus which
from this fund is then used for education, sports and cultural can easily distract the casual reader. However, the authors do
activities. He says that earmarking can lead to overspending while conclude that the lottery do not offer good investment opportunities
at the same time it guarantees minimum levels of funding for and it is wise to spend only a small amount of money in lottery
certain programs. Overall, it is suggested that earmarking can be and that too in a syndicate. A syndicate a large group of persons
a good strategy to get money for priority areas. Many states in joined together, each contributing a small amount, to play the
USA have used earmarking to get political support for operating loto. When there is a win (especially the jackpot), the winnings
a lottery. Earmarking is expected to become a more common and are shared. If the wins are too small, the money can be retained
popular strategy in the United States of America. back for re-investment.
Oster (2002) studied whether lotteries are exploiting players as Jorgensen et al. (2011) firmly believe that predicting loto numbers
the odds of winning are usually 1 in many millions. He also tried is a pointless exercise. They believe that it is absurd as the numbers
to answer the difficult question as to why people play the lottery. drawn are truly random. Their study studied the behaviour of loto
His results showed that sales of lottery tickets are not a simple players with respect to the choice of numbers. They found that
matter of the odds of winning and the jackpot amount. Sales are on average loto players have tendencies to avoid numbers that
also dependent on the time of the year and the time since which the have been drawn recently. This is called the gamblers fallacy.
lotto game had started on that country. Sales were higher during the Gamblers often have the impression that numbers that have not
last weeks of each month and throughout December. Secondly, he been drawn out for a long time is due. Surprisingly, they also
observed that sales increases as the jackpot increases, confirming found that gamblers who avoid using numbers drawn in recent
the work of Thiel (1991), but he added that sales increase more if weeks tend to over-predict the chances of numbers that are on
the odds are also improved. Thirdly, people are very likely to buy streak (numbers that have been drawn multiple times in the last
tickets for future draws when these are available. People love to few draws). This is called the hot hand fallacy. They conclude
be involved in the drawing. In Mauritius, players can buy tickets with the idea that gamblers who fall prey to both types of fallacies
for up to six weeks. Oster (2002) concludes that lotteries do not generally have to spend 1.2 EUR more on each week to win.
in fact exploit consumers but it does indeed provide them with Websites for playing the lotto online abound on the internet. Some
fun and hope. of the most well-known websites are onlineloto.net (onlineloto.
A Halo Effect is said to happen when after a high jackpot is net, 2013) and thelotter.com (thelotter.com, 2013). Both websites
won, the sales of lotto tickets in unexpectedly high for the next allow players to play the worlds most popular lotto games online.
draw. Matheson and Grote (2005) confirm that the Halo Effect Such games include the Euro Millions Lottery, UK National
does exist and it is mainly due to the fact that those who win either Lottery, Mega Millions Lottery, Canada 649 Lottery, New York
large or small amounts will have a huge tendency to spend some Lottery Irish Lottery and the Powerball Lottery. It might seem
of their winnings on the next draw. They also acknowledge that unbelievable but some websites do even allow players to play
this may also be due to the huge publicity that follows a large the lotto game online without having to pay anything (FreeLotto,
award. They also recognised that the boost in sales might due 2013), (BoxLotto, 2013). Apparently, the money comes from
to players who have been playing the game as the jackpot was sponsors placing their adverts on these websites.
rising continuously and then cannot stop playing once the jackpot
Most of these lotteries can also be played by using a mobile phone. be used to increase the odds of winning the jackpot. Many other
Players may simply play by sending a text message which contains resources exist on the Internet but most of them are commercial
the numbers or they can use a mobile application installed on a products and none of them provide any implementation codes or
smart phone to pick their numbers and then send it through the detailed statistics about the winners (Titchmarsh, 2006).
internet (UK National Lottery, 2013), (Mobile Lottery, 2013). An
average person keeps his mobile with him for about 14 hours in III. Are the Loto Balls Drawn are Random?
one day and mobile phones outnumber computers by a factor of Since its inception, there have been doubts by the Mauritian
three (MobiLotto, 2013). It is estimated that the mobile gaming population that perhaps the balls are not being drawn randomly.
market was worth over $23 billion in 2013 (Infogile, 2013). The loto balls are arranged in a pre-determined order every week
Gail Howard, a stock broker, turned lottery guru, was the first and the balls are then drawn out by the loto machine. Some people
person to bring in publicly the idea of filters (Smart Luck, 2013). think that the balls may be of different weights that may influence
She is considered as the inventor of the most successful lotto the results while others think that wear and tear can affect the
system in the world. She has written many books on the lotto game. balls over time. The draw is witnessed by members from the
The full wheeling (or Multiple) game is considered a poor strategy Gambling Regulatory Authority, members of Lottotech Ltd and
as it also contains many highly unlikely combinations (Bawagan, general members of the public. The draw is also shown on TV
2006). He proposed some new filters and explained how they could every Saturday.
balls from the fourth column are grossly over-represented. [4] Loterie Nationale. 2013. Notre Enterprise. [ONLINE]
Consecutive numbers show the highest deviation. Combinations Available: http://www.loterienationale.mu/loto/comment-
having no consecutive numbers were expected to be picked out jouer.
82.46 times out of 195 loto drawings. However, we see that such [5] WLA. 2013. World Lottery Association. 2013. Highlights.
combinations occurred only 73 times, giving a negative deviation [Online] Available: http://www.world-lotteries.org.
of 11.47%. Combinations having one pair of consecutive numbers [6] Loterie Nationale. 2013. Notre Enterprise. [Online]
came out much more often than was expected, with a positive Available: http://www.loterienationale.mu/notre-entreprise/
deviation of 16.42%. Both these values are significantly high. This historique.
might be due to the fact that the balls are always arranged in a [7] Defi Plus. 2013. Defi Media Ltd, 2013. [Online] Available:
certain order in the loto machine and most of the balls have their http://www.defimedia.info. [Accessed 21 May 13]
consecutive number just above them but no definite conclusion [8] Mauritius Lotteries. 2013. Loterie Verte. [Online] Available:
can be made with only 195 draws. http://www.lottery.gov.mu/eng/products_history.html.
[9] MTC. 2013. The Mauritius Turf Club. [Online] Available:
http://www.mauritiusturfclub.com/.
[10] Haruvy, E., Erev, I., Sonsino, D.,"The Medium Prizes
Paradox: Evidence from a Simulated Casino", Journal of
Risk and Uncertainty, 22, pp. 251-261, 2001.
[11] Koning, R. H., Vermaat, T.,"A Probabilistic Analysis of
the Dutch Lotto.University of Groningen, Research report,
2002.
Fig. 1: Number of Counts for Each Frequency [12] Petry, N. M.,"A comparison of treatment-seeking pathological
gamblers based on preferred gambling activity", Addition,
It is also wise to consider the frequency graph of the balls to get an 98, pp. 645-655, 2003.
idea of their dispersion. Fig. 1 shows such a graph. For example, [13] Thiel, S. E.,"Policy, participation and revenue in Washington
there are 3 balls that have appeared 37 times, 1 ball 30 times and state lotto", National Tax Journal 44 (2), pp. 225-235,
2 balls 21 times in the loto drawings. The mean frequency of all 1991.
the 40 balls is 29.25 (195*6/40). The graph is a distorted normal [14] Deboer, L.,"Lotto Sales Stagnation: Product Maturity or
distribution. This is likely to be so because we are considering Small Jackpots?", Growth and Change, 21, pp. 7377,
only a small number of draws. Balls 22, 13 and 36 have been 1990.
very unpopular while balls 15, 17 and 31 have been the most [15] Novarro, N.K.,"Does earmarking matter? The case of state
regular balls. Balls 26 have come out exactly 21 times and so on. lottery profits and educational spending", SIEPR discussion,
Overall, we argue that these statistics show that the loto game is pp. 2-19, 2002.
a fair game and that the draws can be trusted. [16] Oster, E.,"Dreaming Big: Why Do People Play the Power-
ball?", Thesis, Harvard University, 2002.
IV. Conclusion [17] Matheson, Grote,"Victor M. &Grote K., 2005. Examining
The loto game has kindled a passion in the life of many Mauritius the Halo Effect in Lotto Games, Working Papers 0513,
because it has made their dream of becoming rich instantly true. College of the Holy Cross, Department of Economics,
Many people are unaware that the odds of winning the jackpot is 2005.
very small but the fact that there are regular jackpot winners make [18] Grusser, S. M., Plontzke, B., Albrecht, U., Morsen, C. P.,"The
them believe that they may also win very soon. Many people play addictive potential of lottery gambling", Journal of Gambling
the loto simply because it brings some fun and is for them a form Issues, 19, pp. 1929, 2007.
of entertainment. In this paper, we have shown that the loto results [19] Abrams, A., Garibaldi., S.,"Finding good bets in the lottery
are fair and that the balls drawn are drawn randomly. However, and why you shouldnt take them", Mathematical Association
for the time being, there seems to be a small inclination towards of America, 23 June 2008.
numbers in the third column and a pair of consecutive numbers. [20] Claus BjrnJrgensen, Sigrid Suetens, Jean-Robert Tyran,
But, it is quite early to conclude whether the results are completely "Predicting Lotto Numbers, pp. 11-10, University of
fair or biased as the number of drawings is still low. And as the Copenhagen, 2011.
number of drawings grows, we shall then be in a better position [21] Online Loto (2013), [Online] Available: http://www.
to comment on the randomness of these famous balls. onlineloto.net/
[22] Lotter (2013), [Online] Available: http://www.thelotter.
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