Is it possible to use gambling as a investment strategy?
Does putting $10 each week on a lottery ticket represent a good strategy for retirement?
Let's check the odds on a few favourite games
By looking at the odds of winning various gambling games we can assess if these represent a good investment with a high opportunity for payoff
Poker Machines
The odds of winning the top prize on a poker machine is 1 in 9,765,625
You may think this sounds like pretty sweet odds considering that the top prize is pretty darn big. But sadly, you would be mistaken.
Let's compare the odds to another possible life event - Getting hit by lightning and dying
It may surprise you, but you are 6 times more likely to get get struck by lightning a die than win the top prize on the poker machine.
Fancy yourself a track person?
A flutter on the horses on Melbourne Cup day may make for some good fun, but sadly, once again this does not make a good investment.
Let's consider the 'quinella' - this is picking the 1st and 2nd horses correctly, this does payout handsomely should your gamble payoff with $200 the reward for your $1 bet. But the real odds of winning this are 1 in 132.
You may well say 'that is pretty good, that could happen to me'
But would you say the same about being injured after falling less than 1 metre in the next 4 weeks? No? Well, once again you would be mistaken! You are twice as likely to fall and injure yourself in the next 4 weeks than win the 'quinella'
But I need a kick of adrenalin you say!
There are lots of investment friendly ways to get your adrenalin fix!
- Go see a horror movie!
- Watch a space shuttle launch
- Go watch drag racing
- Visit your local hospital and learning the finer points of open heart surgery
- Visit a nude beach and give your speedos some time off!
- Go Karting
- Take an L-Plater for driving lessons
Put your money somewhere safer than a poker machine
Many options exist to place your money from term deposits to savings accounts. Taking some time out to investigate the right options for you is worth the time spent. A financial planner may also be of use to help you plan your strategy to out perform your pokie odds!