By: Lim Chan

October 23, 2025

You might have heard that the lottery jackpot has grown to a staggering $1.8 billion in September 2025. As tempting as it is, I chose not to buy a ticket. It’s not because the odds are astronomically low; my reasons are based on a personal economic perspective.

Distribution

The lottery’s motto is, “The more people play, the higher the jackpot.” While that’s technically true, it omits a key detail: only about 50% of Powerball ticket revenue goes into the prize pool.

Monopoly

Since only half of the revenue is allocated to the prize pool, the system retains the other half. After subtracting operating costs and retailer commissions, a massive profit remains. You might wonder why a private company couldn’t launch its own lottery and replicate this model. The answer is that U.S. laws prohibit private lottery gaming, ensuring that only the government is the sole entity allowed to monopolize profits from this practice.

Taxes

Even after the government-run lottery system profits from half of the ticket revenue, it still gets another cut: taxes. The lucky winner is subjected to the highest tax bracket of 37%.

In Conclusion

I’m not telling anyone not to buy a ticket. I’d be ecstatic if a friend or family member won; it would be life-changing. However, I firmly believe my money is better spent elsewhere than on a $2 Powerball ticket that supports this unfair, money-grabbing, monopoly practice.