Modest Proposal : Give Us All a Better Shot at the Lotto : Divide the take to give many substantial payouts while while still building big jackpots.

The recent $58 million Lotto jackpot on its face is evidence of the need for Lotto reform. There is a better way to serve the bettors, and even the state.

Consider this. Each Lotto jackpot could be divided into two pools. If, say, $4 million were bet, each pool would consist of $2 million. But if no one selected the six correct numbers, one pool would have to pay out equally to all those who picked five correct numbers. If no one picked five, then go to four, and so on. Meanwhile, the other $2 million pool would carry over and be added to the next Lotto game, just as is done in today’s system.

The benefits of this proposal are obvious. There are more chances to win and more winners. Thus when people realize that their chances of winning a substantial sum are increased immeasurably, there’ll be more people interested in playing Lotto, to the benefit of all of the people of the state.

The winning sums will be less outrageous and obscene, less corrupting and more realistic. Yet at the same time, the carryover pool serves those who seek to win big. (Surely a winner would be just as excited and gratified with $29 million as he would be with $58 million)

There’s a further matter that needs to be addressed. Should a winner die before he’s received all of his 20 annual payments, the unreceived amount constitutes an asset of his estate for which the IRS wants its death tax now. Yet a person entitled to receive millions of dollars over the years will not have on hand the money with which to pay the death tax on the receivables. A way to eliminate this tragedy is to alter the Lotto rules such that in the event of a winner’s death his estate may elect to receive a lump sum distribution of the unpaid winnings, paid out according to accepted accounting and IRS rules similar to those often used in the case of songwriters entitled to future royalties.

Implementing these proposals would make the lottery more appealing to all while eliminating some unpleasant side effects.