There's Only So Much I Can Do

One student responds to a question in three parts:

Question: The probability of winning Pick 3 Lotto is 1 in 1000. What is the probability of not winning?

Student: There is a 50/50 chance.

Question: If you play Pick 3 Lotto every day for a year, what is your chance of not winning?

Student: You have a 1 in 365 chance of winning.

Question: It costs $1 to play Pick 3 Lotto, and you if you win, you get $500. Do you think it's wise to play this game?

Student: Yes, you only spend $1 and there is a 50/50 chance you will win $500.