State lotteries have become a significant source of revenue for states, raising $17.6 billion in profits for state budgets in the 2009 fiscal year (FY) with 11 states collecting more revenue from their state lottery than from their state corporate income tax during FY2009. Lottery policies within states can have conflicting goals. Given that instructions are passed down from state legislatures, lottery implementation is often expected to be carried out with reduced advertising and funding while still producing the same amount of revenue. This issue led states to look for loopholes in the system. Massachusetts, for example, had its advertising budget dramatically cut, and therefore started using free-play coupons as money to pay for advertising. This led to an IRS investigation into alleged non-reporting of income because the IRS considered the coupons to have monetary value.
^ Jump up to: a b Prizes are uniform in all Mega Millions jurisdictions, with the exception of California (where all prizes, including the jackpot, are pari-mutuel; payouts are based on sales and the number of winners of each prize tier.) All other Mega Millions members' second through ninth prizes are set amounts, although in rare cases they can be reduced.
US Powerball is without a doubt the biggest lottery game in the world! Powerball set a world record when it awarded a $1.58 billion jackpot prize in January 2016 to three lucky winners. Powerball came close to breaking that record when it awarded a $758.7 million jackpot in August 2017. Previous huge jackpots include the $590.5 million jackpot awarded in May 2013 and the $564.1 million prize awarded in February 2015. Play Powerball online right now for the chance to become the next big American lottery winner!
Reflecting common practice among American lotteries, the jackpot is advertised as a nominal value of annual installments. A cash value option (the usual choice), when chosen by a jackpot winner, pays the approximate present value of the installments. Mega Millions' previous format began on October 19, 2013; its first drawing was three days later. The current version of Mega Millions uses a 5/70 (for the white balls) plus 1/25 (for the "Mega Ball") double matrix to select its winning numbers.
Before the January 31, 2010 cross-sell expansion, Mega Millions was the only multi-jurisdictional lottery whose drawings were carried nationally, instead of airing only on stations in participating jurisdictions. Chicago-based cable superstation WGN-TV simulcast Mega Millions drawings on its national WGN America feed immediately following WGN's 9pm (Central Time) newscast. Following the cross-sell expansion, WGN also began airing Powerball drawings nationally. WGN served as a default carrier of both major games where no local television station carried either multi-jurisdictional lottery's drawings. Both drawings were removed from WGN America in late 2014 when it ceased carrying WGN's newscasts.
The minimum jackpot prize is a $15 million annuity disbursed in 30 payments over 29 years which is something many people would elect to do.The 30 annuity payments are not equal but based on an increasing rate schedule. For example, the first annual gross annuity payment on the base $15 million jackpot would be approximately $267,000 while the final payment would be approximately $834,000.
These lotteries offered the "Just the Jackpot" option upon the format change: Georgia, Hoosier Lottery, Kansas, Massachusetts, Nebraska, New Jersey, New Mexico, New York, Ohio, South Dakota, Texas, Virginia, Wisconsin, and Wyoming. Kentucky has since added "Just the Jackpot", with other lotteries potentially adding it. Not known is whether a second series of playslips would be printed for lotteries offering "Just the Jackpot" beginning after the October 28, 2017 format change.
Other winners in excess of $250 million: On December 25, 2002, Jack Whittaker, president of a construction firm in Putnam County, West Virginia, won $314.9 million ($428 million today), then a new record for a single ticket in an American lottery. Whittaker chose the cash option of $170 million, receiving approximately $83 million after West Virginia and Federal withholdings.
Unlike Hot Lotto, which used a random number generator during most of its run (including the December 2010 drawing whose jackpot was "won" by Eddie Tipton, a MUSL employee), Lotto America is drawn using physical ball machines and numbered balls. One machine draws the five main numbers while another is used to draw the "Star Ball". As of September 1, 2018, none of these drawings have been made available to the viewing public; these drawings are believed to be held in Tallahassee, Florida, even though Florida does not participate in the game.
Mega Millions players have the option to activate a multiplier, called Megaplier, in 45 of its 46 jurisdictions; it is functionally similar to Powerball's Power Play; except the latter cannot multiply second prize by 5. (Neither Megaplier nor Power Play are offered in California because its state penal code distinguishes between a "lottery" in which the bank cannot be "broken", and a "banked game" whose bank theoretically could be broken; only a "lottery" was authorized by the state Lottery Act.) By adding $1 to a basic Mega Millions game, to $3, a player has an opportunity to multiply any non-jackpot prize by 2, 3, 4, or 5. The Megaplier is drawn by the Texas Lottery (before the cross-sell expansion on January 31, 2010, it was the only lottery to offer Megaplier), which is drawn by a random number generator (RNG). The odds for each Megaplier possibility are not uniform.
*a tip to know whether the website you are looking at actually buys lottery tickets online or follows the insurance model is to check the wording that they use. If you see the words “Play” then you can be confident it is a company that has agents and buys your tickets physically, if you see the words “Bet” you can be sure it is following the insurance model and you are placing a bet on the outcome of a lottery.