It certainly appears to be a win/win situation on first appearances, although I’m not entirely sure. He claims the market value to be $180,000 but he’s a little coy about what he actually paid although he does imply that it cost him around £250,000 according to the number of entries required to make it a viable proposition. So let’s examine some scenarios:
Scenario A
He only receives a dozen entries. He either sells the house for $180,000 as planned leaving him $70,000 out of pocket but with a new job that presumably has a higher salary. Alternatively he treats the property as an investment for the future and stays put. Everyone gets their $100 back although the seller is a loser.
Scenario B
He gets 2500 entries, sells the house, and enjoys a larger salary. One person makes an instant profit of $249,900 and the seller wins. BUT 2499 people lose $100.
Scenario C
No doubt the one he might be angling for…5000 people enter. He sells the house and enjoys a larger salary plus a nice tidy bonus of $250,000. One person makes an instant profit of $249,900 and the seller wins big time. **BUT **4499 people lose $100.
And then there’s Scenario D
He’s investigating by the authorities for running what is, essentially, a pyramid scheme. He spends three to five years in free accommodation provided by the state and **ALL **entrants get their money back. Once released, he still has to sell his house although it’s unlikely that the new job position would remain open. The seller loses big time.
Or Scenario E
He’s investigating by the gaming authorities of Idaho state for running an unauthorised lottery. He attempts to plead that it is a game of skill which, if his plea fails, could see him spend 6 months in free accommodation provided by the state and a fine of $1000. All contestants get their money back, and he still has to sell his house. The seller loses.
Whichever way you look at it, someone loses out.
