$100m Whine

In America they like to do things big. Almost every day I see some form of competition offering millions of dollars in prizes. Americans like money like they like their fast food: Too much is never enough.

However, one of things that can be lacking in America some times is consumer protection that more liberal countries consider important. One such area that annoys me are big cash prizes offered by various companies as promotions, and of course the lottery.

My last post talked about $100,000,000 being offered by Noble Poker. Now that sounds like a lot of money, and it is of course. However here is the reality:

If you take the standard prize they pay $1m per year for 49 years, and then on year 50 you get $50m (or a family member if you are dead). Now that's still a nice prize, although the odds of winning it are probably as bad as the lottery because you have to make a final table and then get dealt a Royal Flush in spades using your two hole cards in the first 250 hands dealt.

But let's say you were lucky enough to win your likely pay out is $600,000 per year after tax. As nice as that is it is hardly the $100,000,000 that gets your attention. The other option they offer you is to take $25,000,000 as a lump sum which would probably be about $14,000,000 after tax. Again, a very nice prize, but still not $100m.

I just think that America needs to change the law so that prizes have to be advertised as they truly are. When McDonald's does their $1m prize promotions, they pay out over 25 years which means you could barely give up working.

I also think that prizes should not be taxed, especially winnings from a poker tournament. The government can make plenty of taxes taxing lottery ticket sales without taking half of people's winnings from them.

All that said I would not mind winning any of the above prizes.