I was recently asked what I would do if I won a lottery payout on the order of $250 million. Having already considered such a situation, I responded that I would seek to rid myself of the money quickly, probably by donating the entire amount to a reputable charity. Generosity is not at the root of this decision.
Logistical issues
Managing an amount of money on the same scale as $250 million is not a trivial task. The tax implications alone would almost certainly require the assistance of an experienced tax lawyer. Since I have no existing relationship with an experienced tax lawyer, I would have to expend considerable effort to find one that I believed was skilled and trustworthy. I would then have to expend additional effort to acquire a reasonable understanding of the advice provided both to ensure that I could adhere to it and to reduce the risk of being deceived. Periodically, I would have to expend effort to ascertain my considerably more complex financial state and respond to it. This time could be better spent enjoying the life that I have built over time.
Social issues
I found a number of stories, one of which cites a research study of multiple cases, that suggest that lottery winners often experience considerable difficulties as a result of their winnings.
Powerball Winner Says He’s Cursed
8 lottery winners who lost their millions
Lottery wins no guarantee of health or long-term wealth
The articles above may or may not be representative of the population of lottery winners. Regardless, each suggests considerable difficulties that resulted from winning. In several of the cases cited, the winners were overwhelmed by requests by friends and family for financial assistance. Even if requests from existing acquaintances can be tamed, evaluating the sincerity of individuals seeking new relationships is likely to be a formidable challenge. I would prefer to be able to incorporate new people into my life without perpetually questioning their intentions.
Distinction from earned income
Consider some of the differences between money that has been earned over time and money that has been acquired in bulk by chance. It is considerably less likely that friends and family will feel entitled to money that I have earned over time or that they will feel resentment if such funds are not shared with them. Since I had to expend effort to earn money over time, it is less likely that I will spend it frivolously and eventually regret my decisions. The relatively constant rate at which my income increases over time allows me to gradually become accustomed to managing progressively larger amounts.
Conclusion
Consider the possible outcomes of gambling. Gambling will most likely result in a net loss. If it results in a net gain, it is unlikely to be of a life altering order of magnitude. If it is of a life altering order of magnitude, there is a significant chance that the net effect will be negative.
Interesting additional information
The brief article linked to below discusses some of the myths associated with lotteries.
The Real Lottery Winners: A Number of Myths About the MegaMillions and Powerball Lotteries
