70% of the winners lose everything within a few years, they are threatened by a bunch of problems
The record lottery jackpot of BGN 11.7 million was won in Sliven with a slip for BGN 1.20 last Thursday. But there has been a debate for years over whether it’s luck or a curse.
A study of several universities in the United States, where the biggest money is in the lotteries, shows that 70% of those who win big money lose everything in two to three years.
“It’s such a shock that people are not ready for it. This is the curse of the lottery, because in most cases, the lives of the winners get worse, not better, “said Don McNay, who earns his living as a financial advisor to lottery winners.
As early as 1978, three researchers from Northwestern University and the University of Massachusetts were trying to study two desperate groups for their level of happiness. One is the recent winners of the state lottery, who took between $ 50,000 and $ 1 million, and the recent victims of catastrophic incidents, who are paraplectic and even quatroplectic (without limbs). In the interviews, the two groups were asked how much they enjoyed ordinary activities such as talking to a friend, watching TV, having breakfast, laughing at a joke or receiving a compliment. And after analyzing the results, they were surprised to find that this brings more joy to the victims than to the lucky ones.
The average score of those with money was 3.33, and of those hit by life 3.48 out of 5 maximum.
Everything is due to the so-called hedonic meat grinder
or hedonic adaptation. It has to do with how we can go back to the things we enjoyed in the past.
“Eventually, the emotion of winning the lottery will pass. Everything that has come into their lives because of money just dies, and they get used to it much faster. And they don’t pay any more attention to him. On top of that, sometimes it leads to quite complex life situations, “the study said.
In other words, everything brings joy while it is new, shiny, but then it becomes part of everyday life. Some psychologists have come to the conclusion that anything that goes beyond a person’s limit of happiness can lead to unhappiness.
Thus, in 2018, the study of the National Bureau of Economic Research appears, which proves that winning the lottery does not affect happiness.
“There is no evidence that winning the lottery brings more happiness in the long run,” said Professor Daniel Cesarini, one of the study’s authors.
The lottery is generally considered a soft gamble that is not addictive, unlike casinos, rubbing coupons and so on. That is why it is preferred to be a state monopoly. There are very few people who release a ticket every draw. Most of them have been playing with constant numbers for years. The investment in one is about 5 leva, which is completely affordable. This is not a huge investment. And all over the world the maximum is two circulations per week. Sometimes there is only one.
The tradition of lottery games dates back to ancient China. During the Han dynasty between 205 and 187 BC, such activities were used to finance the construction of the Great Wall. The Book of Songs describes a game of drawing a tree that closely resembles modern drawing. In Europe, the first data are from the Roman Empire, and then played mainly silver tableware.
The first lotteries in Europe to offer money for a ticket appeared in the 15th century. Various cities do so to raise funds for fortress walls or to help the poor. In the Belgian city of Ghent on May 9, 1445, a draw was made with 4,304 tickets and prizes of 1,737 florins (today about 200,000 euros). It was for the construction of the fortress wall. In the 17th century, something was completely normal. Thus, the Dutch state lottery Staatsloterij was founded in 1726 and is still active today. Even the word lotto comes from the Dutch lotto, which means destiny.
Digital games are appearing in Italy. The first lottery there was in January 1449. It was held in Milan and organized by the Golden Ambrosian Republic to finance the war with the Venetian Republic. Then in Genoa, people started betting on the names of the members of the Grand Council, which are drawn publicly – 5 out of 90 every six months. And when people wanted to play more often, they started replacing names with numbers. This is how something similar to modern digital games appears.
The Bulgarian sports totalizator started its activity on May 12, 1957 with Toto 1. On December 29 is the first draw of “6 of 49”, his most popular game. The jackpot has been piling up since 1991, when no one hit a six.
According to various studies, the side effects on the lives of the winners can be reduced to:
Stress
In general, this is the biggest killer in the world. And a big profit brings an incredible amount. Usually the big money goes to people who rely only on their luck and not on some system.
There are 120 millionaires in the history of the Bulgarian lottery. And only once the big profit was with a slip for an amount of over BGN 100. The last lucky one has invested BGN 1.20, which shows that he was not looking for the big profit.
The stress comes after you realize that the bird of fortune has actually landed right on your shoulder. Which can even lead to a heart attack. Others develop mental disorders.
The next stress comes from hiding. Sometimes it is difficult to remain anonymous. In some lotteries it is mandatory to show up with a check, but there is also the option to remain anonymous after part of the amount. In Bulgaria, this obligation was dropped with the latest changes in the Gambling Act, when the lottery regained its monopoly on digital games.
Family pressure
Everyone has experienced it on their backs when they become a little richer or more popular. Immediately there are relatives, friends, friends you have not seen for years. Some need help, a loan, to fix their lives. Then they just disappear.
A textbook example of this is Canadian Sharon Tirabashi, who earned $ 9.5 million. In just 9 years, everything disappears. He gives 1 million to his parents. Another 1.75 million goes to siblings. He pays rents to a bunch of friends, lends to others. And some of them just disappear after receiving the amount. “Money is the root of all evil,” Tirabashi said today.
Bad investments
Most people who win the lottery are quite financially illiterate. And throw themselves into various unprofitable investments. It is very nice to buy a big house, but in the end you forget that you need enough money to maintain it. The tax is also huge. Or the latest model of sports car, which requires huge sums for gasoline and even oil change.
An example is David Edwards, who earned a net $ 295 million from Powerball in 2001. He bought a house in a gated community, traveled by private jet, took over $ 1 million worth of cars, watches, rings and more. In the end, he managed to squander everything and currently lives in a garage.
Bad advisers
Managing large sums requires constant attention and almost daily work. This leads to wrong decisions.
For example, hiring a financial advisor who also does not have enough experience with such amounts. That’s how Gloria Mackenzie lost her money, earning an incredible $ 590 million. He and his son hire a financial consultant who is his friend. After losing a lot of money, he started suing him. Because of 10 million losses. “The money brought an income of 0.02-0.08%, which is insane. In the end, they charged 2 million commissions, “explains her lawyer. “To have a friend who is experienced in transactions, but what is his responsibility?”, Added the lawyer.
Scam attacks
After winning a large sum of money, it is quite easy to be discovered by all sorts of Nigerian princes, businessmen from Kazakhstan and other fraudsters.
Combined with almost complete ignorance of the financial markets and how to make investments, luck can very quickly become a nightmare once you come across a scammer.
One of the best examples of this is the case of Abraham Shakespeare, who in November 2006 won $ 31 million from the Florida lottery. A woman who introduces herself as Doris Moore, who wanted to write a book about him, immediately appears. Ultimately, it provides full access to the money that is disappearing. He then kills him to cover his tracks.
Attract the criminal contingent
This phenomenon is completely normal when it comes to big money. Shakespeare is not the only victim of crime. And many others have been robbed, abducted and even killed after winning. Even from their loved ones.
In 2005, Jeffrey Dampier and his ex-wife earned $ 20 million. He was then abducted and killed by his brother-in-law and her friend. His body was found in the boyfriend’s van with $ 1,500 in his pocket.
There are no data in Bulgaria for such serious crimes against the lucky ones. Before November 10, 1989, the lottery headquarters were in the Sports Palace. And it was normal for people with “non-earnings”, as the term was under socialism, to wait for the winners and offer them the amount directly, after which they managed to legalize their money. These were bartenders and waiters at sea, who have amassed quite a lot of money from foreign tourists.
There are doubts today that there are attempts to launder money from lottery winnings, but there is no evidence of this.
Leaving home
Relocation is another serious problem. Especially when it comes to the lucky one from a small town. So he just has no way to remain anonymous in any way. You can’t count the pennies until yesterday, and after a few days you sit in the restaurant and order calmly or you show up with a new car.
True, the big city gives you more opportunities to cover yourself, but on the other hand, everything you are used to and tranquility go away forever. And again comes the stress.
Breaking up families
According to recent research, most of those who win the jackpot get a divorce within 6 years of winning.
That’s what happened to the British Roger and Lara Griffiths, who earned 1.8 million pounds. They are buying a house, a private school for children, cars. The money scandals soon began and eventually split.
There is another version of this problem. A Michigan man won the jackpot before his divorce was finalized. And so his ex-wife gets $ 15 million out of nothing.
The way out is not to change anything
Everyone is adamant that the only salvation from the crash of the jackpot is not to change anything in your life. An example is an American of Bulgarian origin – Philip Chipev, who on September 21, 2019 won $ 80 million from Powerball.
He played numbers regularly, but he almost missed this edition. However, at the last moment he leaves the store, he buys a ticket and throws it in the truck with which he earns his living. Then he forgets about him. He only remembers when his sister calls and explains that someone from Michigan has won big money.
As soon as he received the award, he explained that he would not celebrate because there was a new course the next morning. To this day, the 56-year-old Philip has not gotten off the wheel. His only acquisition – a big home for his family. And it continues to work.
However, such examples are very few, because it is human nature to fall apart after receiving money from nothing. But luck in most cases does not bring anything good.
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