Never ignore dark sides of playing, winning lottery

Call us party poopers, stick- in-the-muds or killjoys, but we’ll continue to count ourselves out of the recurring national frenzy over the race to waste hard-earned dollars on a 292.2 million-to-1 chance of amassing riches in multi-state lottery games.

The most recent frenzy played out the first half of this month, when much of the U.S. went gaga over the microscopically thin chance to win hundreds of millions of greenbacks in a series of record-setting Powerball lottery drawings.

That fever reached a crescendo earlier this week when the 44-state Powerball pot reached a record $1.6 billion, and three winners emerged Thursday from the midweek drawing of 4-8-19-27-34 and the Powerball 10. The three winners purchased tickets in California, Tennessee and Florida.

Lucky dogs they are indeed, you might instinctively think. But are they?

First, any notion of becoming instant billionaires was truly just a mirage. Such hopes sink more deeply and quickly with multiple winners. Want your money in a lump sum? The lottery automatically cuts your take by about 40 percent. Then ignore Uncle Sam at your own peril as he’ll stake claim to another 40 percent of your instant earnings. Let the greedy hands of local and state tax collectors in, and the actual winnings are but a fraction of the hyped advertised winnings.

The remainder then often gets irresponsibly squandered away, dashing hopes of long-term security. In fact, the National Endowment for Financial Education reports that about 70 percent of people who suddenly receive a windfall of lotto loot lose it all – and more – within a few years. More than a third end up in bankruptcy. Others have been victimized and even killed by predators over their newfound riches.

RESPONSIBLE WINNERS, PLAYERS

Winners of such prizes should heed the advice of financial analysts by taking annual payments instead of lump sums, investing a healthy chunk of it for future growth, spending it wisely, helping favorite charities and keeping a low profile to avoid scam artists or criminals.

Just as there are rules for handling winnings responsibly, those who entertain the notion of dropping down 2 bucks or 2,000 bucks for in-state and multi-state games need to keep responsibility foremost in mind. Those in poverty or near poverty not only are more likely to play the lottery than those with greater means, they also spend a larger percent of their money on these games of chance. Sadly, some forgo needed food in their children’s mouths for the elusive chance of instant fortunes.

That’s why Powerball, Mega Millions and other lotteries too often bring tremendous losses instead of tantalizing gains to those who can least afford them. Those dark sides of the game too often go ignored.

But as jackpots rise, the so-called Mount Everest effect rises as well. Much like the highest mountain on Earth, players find the 10-figure prizes too high to ignore. But also like Mount Everest, relatively few successfully conquer the game’s many hidden long-term dangers. Odds are strong that far too many of them will continue to stumble and suffer.

And that’s a bet you can count on.