The Canadian 6/49 Lotto, despite its unusual payout structure, is one of the few government sponsored lotteries that has the potential for a favorable strategy we call "buying the pot." By "buying the pot" we mean that a syndicate buys one of each ticket in the lottery, ensuring that it holds a...

This paper discusses the state of the art in research in racetrack and lottery investment markets. Market efficiency and the pricing of various wagers is studied along with new developments since the Thaler and Ziemba (1988) review. The weak form inefficient market approach using stochastic...