Powerball jackpot increases to $1.5B on strong sales
Samir Akhter, the owner of Penn Branch Liquor, exchanged money for Powerball tickets, Saturday, in Washington. (AP Photo/Alex Brandon)
DES MOINES, Iowa » The world’s largest lottery jackpot has grown to $1.5 billion because of continuing strong Powerball ticket sales.
Lottery officials increased their estimate of the huge jackpot for the second day in a row today because of immense interest in the prize.
The record-breaking Powerball jackpot could grow yet more before Wednesday’s drawing if ticket sales continue to exceed expectations. Officials reassess the jackpot estimate daily.
No one matched all six Powerball numbers Saturday night, leading to the enormous prize.
The odds of matching all six numbers to win the jackpot are one in 292.2 million.
The $1.5 billion prize would be paid in annual payments over 29 years. Or the winner could opt for a lump-sum payment of $930 million.
Whoever wins will have to pay 39.6 percent of the prize in federal income taxes, and any state taxes. Lottery officials expect at least 80 percent of the 292.2 million number combinations will be purchased before Wednesday’s drawing. That increases the chances — but doesn’t guarantee — that someone will win the jackpot.
18 responses to “Powerball jackpot increases to $1.5B on strong sales”
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Sin has a way of fueling itself.
Great return on investment, spend $292 million to buy all possible combinations and win $1.5 billion! Anybody in?
You won’t win $1.5 billion. Assuming you live in a state that doesn’t tax lottery winnings if you took the lump sum your take home would be a little over $500 million. And if you have to share that prize you’d probably be out hundreds of millions of dollars more.
Powerball Payouts
Under the terms of the lottery, I don’t think Hawaii residents would be eligible to collect anything, but California exempts winnings from state taxes, so the annual after federal tax net there would be $37.5 million. Annual loan payments on a $292 million sum would be $17 million. Even if the $1.5 billion were split with one other person, the annual return would still exceed 20 percent and continue for 30 years. But, yes, there’s always higher risk associated with such rewards.
Actually Hawaii residents can play but they have to buy their tickets in a state that sells them. $37.5 million after taxes? I come up with $31.03 million ($1.5 billion/29 years X 60%). Not sure how you’re getting your $17 million annual loan payments. How many years and at what interest rate? Also each ticket is $2, not $1. I can’t find a single number you provided that’s correct.
17/292=5.8%, not 20%
Morimoto, that’s because you did not click on the link provided. Also, to compute monthly payments, there are many online calculators. the one I used assumed a 4.5 percent interest rate over 30 years, the same duration as the lottery annuity.
Palani, I didn’t even see the link as it’s not so obvious under this new commenting format. Anyways I’ve see that link before and what it doesn’t tell you is that if you decide to keep all of the money, most of it will be taxed at the 39.4% federal tax rate. The 25% withheld is just what’s withheld before you receive any payment, not the final tax burden if you keep it all. Actually it’s 30 annual payments, not 29 so the amount per year at a 39.4% fed tax withholding would be about 30 million after taxes. You also didn’t address the fact that each ticket is $2, not $1. Double your $17 million to $34 million annually you need to pay for the loan and compare that to the $30 million you’d receive if you won, that’s $4 million short a year. And of course that’s assuming you don’t have to share the prize because if you do you’re really screwed.
Winning a lottery means relinquishing your privacy.
Some states allow winners to remain private and anonymous.
Another ignorant comment from you but it’s expected.
Another? I ain’t keeping track.
Biggest Ponzy scheme ever. States were hurting for tax money as bureaucrats are wasting it faster than it comes in. They direct the lottery bureaucrats to change the computer formula to ensure only unpicked numbers are selected, ensuring more people buying tickets, more state money. Like leading fish to the net for capture.
If I won that Lottery I would donate $20 million of it to UH Athletics…………………………………..NOT!!!!! LOL!
If I won that Lottery I would donate $20 million of it to…..grants for first-five year professors and graduate students who teach. And I’d offer to double that if the UH administration cut administrative salaries by 10% across the board and used that money to boost first-five year professors and graduate student teaching pay.
Let’s fund the stuff that gets our students actual educations and jobs.
More like 20 cents.
I would never donate more than ten thousand to each entity. That way, they won’t be splurging it on a fancy car for the CEO.
Guess have to get on my golf cart and mosey down the hill about a half a mile to purchase 3 tickets. Bought two the last time a only got 1 number. If I win will spend the rest of my life on a cruise ship. Not mega ship but one about 1,200 passengers. Been on 20 ocean and 1 river cruises.