I created a startup hijacking the psychology behind playing the lottery to help people save money. We’ve given away over $2 million in cash prizes and a Tesla Model 3 in the past year. AMA about lottery odds, the psychology behind lotteries, or ab...
Hi! I’m Adam Moelis. I'm the co-founder of Yotta, a free app that uses behavioral economics to help people save money by making saving exciting.
For every $25 deposited into an FDIC-insured Yotta account, users get a recurring ticket into our weekly random number drawings with chances to win prizes ranging from $0.10 to the $10 million jackpot. Even if you don't win a prize, you still get paid over 2x the national average on your savings (we currently offer a 0.2% savings bonus).
Taking inspiration from savings programs in other countries like Premium Bonds in the UK, we’re on a mission to put state-run lotteries that often act as and are described as a “tax on the poor” out of business while improving the financial health of Americans through evangelizing the benefits of “prize-linked savings accounts” here in the US. A Freakonomics podcast has described prize-linked savings accounts as a "no-lose lottery".
As part of building Yotta, I spent lots of time studying how lotteries (Powerball & Mega Millions) and scratch tickets across the country work, consulting with behind-the-scenes state lottery employees, and working with PhDs on understanding the psychology behind why people play the lottery despite it being such a sub-optimal financial decision.
Ask me anything about lottery odds, the psychology behind why people play the lottery, or about how a no-lose lottery works.
Proof a user actually won a Tesla Model 3 using Yotta: https://www.youtube.com/watch?v=Ry3Ixs5shgU