Powerball Jackpot Reaches $1B a Week After Mega Millions Hits for $1.13B
The anticipated $1 billion Powerball jackpot for Monday night's drawing is the fifth-richest prize in the history of the game. T he one-time cash option costs about $483.8 million. Prior to federal and perhaps state taxes, both awards are awarded.
Powerball has the potential to make someone else extremely wealthy less than a week after a fortunate player in New Jersey won a $1.13 billion Mega Millions jackpot, the eighth-largest lottery reward in US history and the fifth-richest Mega Millions win.
Officials with the Multi-State Lottery Association, which runs the three-weekly Powerball game on behalf of its 48 participating member jurisdictions, informed gamers Monday morning that the $1 billion touted prize is real because it's April 1st, also known as "April Fools' Day."
"This is no April Fools’ Day joke. We have an advertised Powerball jackpot that’s hit $1 billion to kick off the month of April,” said Drew Svitko, Powerball chair and executive director of the Pennsylvania Lottery.
“This is an exciting time to play Powerball. Whether you’re a frequent or new player, please remember to keep the game fun by playing responsibly. It only takes one ticket to win,” Svitko reminded players.
The drawing is held from the Florida Lottery studio in Tallahassee on Monday night at 10:59 p.m. EST.
The Jackpot Run
Since a single ticket sold in Michigan won an annuitized jackpot worth $842.4 million on New Year's Day, T he Powerball jackpot has not been won. There hasn't been a single ticket that matches the red Powerball and five white balls in 38 straight drawings since then.
There is still a one in over 292.2 million chance that a ticket will match the six drawn numbers. However, as more players join and, presumably, more of the 292,201,338 possible number combinations are covered, the chances of a Powerball jackpot winning get marginally better as the treasure chest expands.
Four tickets that matched the five white numbers—12, 13, 33, 50, and 52—just missed the top prize in the Saturday drawing. Each ticket won $1 million, the second-tier reward in the game.
The $1 Power Play add-on, which would have doubled the prize to $2 million, was not chosen by any of the players. The $1 million second-tier prize can only be doubled, yet the Power Play landed on three times. Illinois, Louisiana, Michigan, and Pennsylvania were the states where the $1 million wins were made.
In addition, there were 55 tickets that won $50,000 and 11 tickets that won $150,000 in Saturday's drawing. The crimson Powerball and four white balls matched the tickets. The Power Play option tripled the reward for the 11 who earned $150K.
How Much Is a Billion?
The prizes announced by Mega Millions and Powerball are based on a 30-year annuity. If a winner chooses to accept the whole value, they will get an instant payout in addition to 29 yearly installments, which will rise by roughly 5% year.
Through investments in a bond portfolio, the annuities are secured. Bonds are debt securities that produce cash flow through interest and maturity.
The advertised Mega Millions and Powerball jackpots based on the 30-year annuity payout are significantly bigger than they would have been in 2021 since the federal interest rate is still higher than it was only a few years ago.
The majority of Mega Millions and Powerball jackpot winners opted for cash before the Fed raised interest rates in 2022 to combat growing inflation because they thought prudent investing would outperform the 5% fixed annuity. The decision is a little trickier today.
To get a better idea, a $1 billion Mega Millions jackpot in 2021 has a $776 million cash option, which is $292.2 million higher than the cash jackpot option for tonight. The one-time cash alternative can nevertheless make sense for an elderly person without heirs or who does not wish to pass on the inheritance.
