Why winner of Powerball drawing will take home a fraction of the $750M jackpot

One lucky Powerball player could win a $750 million jackpot in tonight’s draw — but the actual payout could be just a fraction of that headline figure.

Tonight’s prize is the 10th largest in Powerball history, rolled over after no ticket matched all six numbers on Saturday.

If a winner emerges tonight they will have the choice to take a vastly reduced lump sum or the full figure spread out in annual payments over thirty years. 

Opting for a one-off figure, as almost all lottery winners do, will bring the prize down to $338.6 million before taxes. 

That would be reduced even further to $213,360,980 after paying a mandatory 37 percent federal tax. 

Even more would be shaved off that figure if you live in a state that applies a state tax to lottery winnings.  

Powerball tickets are sold in 45 states, the District of Columbia, Puerto Rico and the US Virgin Islands and taxes vary by region. 

For example, a New York resident would lose another 10.9 percent, leaving a net payout of $176.5 million — less than a quarter of the advertised jackpot. 

Why winner of Powerball drawing will take home a fraction of the 0M jackpot

One lucky Powerball player could win a $750 million jackpot in tonight’s draw — but the actual payout could be just a fraction of that headline figure.

Powerball lottery advertisement is displayed at a newsstand on July 12, 2023 in New York City - the last time it had a jackpot of $750 million

Powerball lottery advertisement is displayed at a newsstand on July 12, 2023 in New York City – the last time it had a jackpot of $750 million 

The $750 million jackpot advertised on billboards and at gas stations isn’t the cash the lottery has on hand to pay the winner. 

That figure represents what the prize would be if the pool were invested in Treasury bonds over 30 years — which is why higher interest rates today inflate the headline amount.  

For winners taking the lump sum, this means they are being penalized more than at any point in the last two decades.  

That could change if the Federal Reserve cuts interest rates, as hinted by chairman Jerome Powell. 

Choosing the annuity option provides one immediate payment, followed by 29 annual installments that grow 5 percent each year.

While eye-catching, the $750 million prize is not the largest in Powerball history.s every year. 

That was taken by a $2.04 billion single ticket in Altadena, California in November 2022.

There have also been five Powerball jackpots over $1 billion. 

A fascinating study from gambling site CSGO analyzed the most commonly drawn numbers in over 950 drawings between 2015 and 2023

A fascinating study from gambling site CSGO analyzed the most commonly drawn numbers in over 950 drawings between 2015 and 2023

Last January the winner of the $730 million jackpot cashed out a whopping $550 million. The lump sum was therefore 75 percent of the advertised jackpot

Last January the winner of the $730 million jackpot cashed out a whopping $550 million. The lump sum was therefore 75 percent of the advertised jackpot 

Of the roughly 239 times the Powerball has been won since 2003, the annuity method of receiving the full jackpot has only been chosen around five times, according to data from Powerball.net.

A fascinating study last year revealed the unluckiest, and luckiest, numbers that have led to jackpots in the past.

Experts from gambling site CSGO analyzed the most commonly drawn numbers in over 950 drawings between 2015 and 2023.

The number 13 is the least common – having been drawn only 51 times in the last eight years, the research found.

The number 61, however, was found to be the ‘luckiest’ number, having been picked 90 times over the period.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *