# Lotto – Is it a Game of Chance Or a Game of Skill?

## Lotto! is a game of chance

The debate over whether Lotto is a game of chance or a game of skill is ongoing. While games of chance are characterized by random events, games of skill typically involve mathematical probability, psychological warfare, or strategies to improve one’s odds of winning. The definition of a game of skill differs from jurisdiction to jurisdiction.

## It involves a random draw of numbers

Unlike other games that involve a lot of guesswork, Lotto involves a random draw of numbers. Computers are programmed to randomly generate a set of numbers called pseudo-random numbers, based on a seed number. The seed number is generated by a real-time clock on the computer.

## It has pari-mutuel prizes

Lotto games use a pari-mutuel system to determine winners. Prize amounts are set based on the expected number of winners. Some prizes will be paid out on a pari-mutuel basis, and their amounts will be smaller. In some lotteries, the jackpot prize is the largest prize available. The prize structure in a pari-mutuel game is illustrated in Table 4.