Could a data scientist set up his own lottery business?

Illegal in most jurisdictions, there is no reasons why governments keep a monopoly on lotteries, redistribute only a tiny fraction of the collected fees to winners (making it far worse in terms of return, than playing on the stock market or at the casino). If lotteries were managed by private companies, there would be far more winners and a much better distribution of the earnings, among winners. Among the most qualified people to run such companies are data science entrepreneurs. These people are also experts in designing pricing strategies for gambling and other games where chance plays a role, and where forecasting science is required to set up prices (based on predicted returns), such as horse race or sport bets - also illegal in US, wondering why.

Sport bets

Especially with consumer review websites popping up everywhere, users could easily check which lottery companies to trust or not to trust.

Anyway, here's a potential solution, for a data scientist desperate to find a job (there are far more numerous than people think), to create a legitimate lottery business, inspired by the way Japanese Pachinko works:

  • Create an online lottery where participation does not involve money, but instead tokens; tokens are just numbers containing encrypted data and can be used only once (thus tokens are entirely digital)
  • When you win, you get more tokens
  • Have a business partner create, possibly in a different country, a business that exchanges tokens for dollars - entirely online (e.g. the user provides online the number associated with his token, and money is transferred to his Paypal account). In short, tokens are some sort of digital currency, but used only for your lottery or gambling business. And never advertise it as a currency!

Would this be enough to bypass US regulations on lotteries? Any other suggestions to make it legal are appreciated.

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Well the idea is really great and the only concern here is the jurisdiction and the laws of gambling differs from one state to another. However, creating a lottery which deals with token is a nice concept no doubt, but in order to gain popularity you need a real money lotto system. I think this post https://www.lottosignals.com/magazine/knowledge/how-to-play-lottery... would definitely help you out.


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