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Slots MEGABUCKS! An MGM Winner!

Discussion in 'Slots' started by seneca7, Nov 5, 2013.

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  1. seneca7

    seneca7 Low-Roller

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    From the MGM Grand Twitter feed:

    MGM Grand Hotel [email protected] The MEGABUCKS slot machine paid one lucky winner $12,463,144 this morning! #WINatMGM RT if you could use 12 million dollars.

    Can you imagine....Now THAT is a hand pay!
     
  2. scottydoog

    scottydoog Low-Roller

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    I believe they get it paid over 10 years or something, is that correct??
     
  3. ex507

    ex507 Low-Roller

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    Wow! Congrats to the winner... I could really use some of this money ^^
     
  4. WrongWayWade

    WrongWayWade VIP Whale

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    It's paid out over 25 years, and of course, subject to income taxes.
     
  5. Sin City Sinner

    Sin City Sinner Low-Roller

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    Even still, that's about 6 grand a week for 25 years. I'd be fine with that!
     
  6. thecarve

    thecarve Misanthrope

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    Does that mean you have to come back every year and tip the attendant?
     
  7. smartone

    smartone VIP Whale

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    That means the "industry standard" tip @ $100/$1,000 the W-2 attendant should get $1.24 million!!! Paid in cash or you could work out a deal with her over 30 years!!!
     
  8. Aftermath

    Aftermath Low-Roller

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    I see what you did there.... :evillaugh
     
  9. sco5123

    sco5123 VIP Whale

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    Hmm...no lump sum? That's not interesting.

    I like the idea of getting paid over 25 years because then that is guaranteed income but it's certainly not as exciting.

    In fact, I found myself getting envious until you said it's not a lump sum. Then I thought well it could have been anything paying them over 25 years. And 25 years is way too long to be getting paid. That's not fair.

    The elusive jackpot has lost some of it's allure. haha
     
  10. dankyone

    dankyone VIP Whale

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    It is my understanding you can usually take a lump sum but it is based on the net present value of the jackpot (and probably calculated with an unfavorably/unrealistically high discount rate.) This would knock the value down by more than half, almost half again for the taxes, so you would be left with less than $3 million on your $12mm jackpot.

    I would take the money upfront anyway.
     
  11. DeMoN2318

    DeMoN2318 The DERS

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    Yea...its just like the PowerBall...
     
  12. sco5123

    sco5123 VIP Whale

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    lump sum vs annual payments is a very difficult decision. If you got paid everything, lump sum would be my answer. And there are just way too many years on the annual payments!
     
  13. Packer Backer

    Packer Backer Low-Roller

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    Is the Industry standard 10% for tipping on a hand pay???
    I always thougt 2.5 - 5% was more the norm. $25 to $50 dollars on a 1000 win.
     
  14. woodsie

    woodsie Low-Roller

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    It's a pretty easy decision if you just look at the discount rate they are using to determine the NPV of the win for lump sum payment.

    Compare that to your own assumptions about long term returns and then throw a little extra consideration for the inherent benefits of cash on your side of the table and then proceed accordingly.

    I guess running the tax impact of both scenarios would be wise as well. Either way an educated choice could be made.
     
  15. Julie888

    Julie888 High-Roller

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    So if you die before the 25 years does your family inherit?

    I'd be afraid to take it over 25 years because the casino may go broke.

    Doubt I'll ever have this decision except in my day dreams.
     
  16. smartone

    smartone VIP Whale

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    Ohhh God NO... there was a thread on tipping hand-pays recently that got lots of activity. I recently had the good fortune to hit a Royal (my first and only one) for $2K. I was at the bar-tops and when the lady came and took my info and then came back and paid me, I tipped her $20... I also tipped the bartender (who has rooted me on very nicely for several years) $50.

    Later that evening I asked another bartender who I know well, what those in the industry consider "standard"... he told me $100 per $1000 win is what is "generally" given. Everyone on this site thought that was WAY high (me too), but of course consider the source... someone on that side is gonna say something high.
     
  17. Kickin

    Kickin Flea

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    Exactly, on all counts. If it works like the lotto which it probably does, the discount rate is easy. They use the zero curve, i.e. spot rates for each zero coupon bond annually. So if its a 20 year payout, its effectively the same as putting the lump sum amount into 20 different zero coupon bonds with maturities from 1 to 20 years inclusively.

    In the current rate environment those are next to nothing, and a low discount rate is good for you if you win and take a lump sum. Lower discount rate = higher NPV.

    There are tax considerations, since you're paying on the lump sum and on most types of capital gains you realize by investing it. But you're still better off taking the lump sump given how low spot rates are along the zero curve. Plus you can always just mimic the cash annuity with your lump sum if you really wanted to, but still give yourself all the optionality of having full control of your money.

    If you know what you're doing, you're always better off taking the lump sum. If you're worried you might blow through all the money or really worried you can get easily duped then that's a different story.
     
  18. Smo

    Smo Mr. Las Vegas

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    The 'Industry Standard' for a hand pay tip is 1%. If you wish to give more, that is ok as well. :evillaugh
     
  19. scottydoog

    scottydoog Low-Roller

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    I would most definatly take the lump sum, for one I am UK resident, so NO TAXES. 25 years is waaaay too long, 10 years would be a different story. I mean 25 years, it is pretty much 1/3 of your (usefull!!) life, and who knows what will happen in even 10 years never mind 25!
    But I will continue my ritual of $21 every night before I go to bed.
     
  20. Sonya

    Sonya Supreme Queen of VMB

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    Please don't forget to send your favorite Message Board Admin her 15% gratuity. :wink2:
     
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