This is reflected in a decrease in the "profit expectancy", and accordingly, in a group bet in the frameworks offered by the respondents, the profit expectancy is significantly lower than the profit expectancy that would have been obtained from the direct investment of the purchase funds in the lottery, not through the respondents. This is because, in fact, the cost of lottery tickets for the purchase of a subscription through the respondents is much higher than the cost of those tickets purchased directly from the lottery (as noted, only 17% – 65% of the amount invested is used to purchase lottery tickets). In addition, in the event of a win, 10% of the prize goes to certain respondents; and in addition, the tax liability for winning a group participation through the respondents' services is expected to be higher.
- Given the amount of the fees and the low rate of the subscription fee used to purchase lottery tickets and the additional difficulties mentioned above, it can be said that the respondents' customers pay more, and even if the chance of any win increases, in terms of the expected winnings they receive much less, and certainly in terms of profit expectation.
Let us take, just for the sake of illustration, an offer that appeared on the website of respondent 7. The offer included the delivery of 80 lottery tables, in a group of 40 participants. The price required for participation in this program is NIS 34.80 per participant. This is participation in a lottery with a prize of NIS 5,000,000. In a simplistic way, it can be said that for each participant, two tables are purchased (80 tables to be distributed to 40 participants) and the prizes are distributed among all the members of the group.
For the sake of example, let's assume that the chances of winning are 0.001%. If the amount of the win is NIS 5,000,000, and 80 lottery tables are purchased - the chance of any win indeed increases from 0.001% to 0.08%, and the expectation of winning for the entire group is NIS 4,000 .