Despite the uneasiness of many to begin with, I know of no disputes or complaints from people who have bought Powerball tickets online via the insurance model, won and not been paid. As you can imagine, this scenario would effectively close down their website as they rely solely on the trust factor. The insurance model means that you will not be buying “official” tickets, but what do you care if you get paid your millions at the end of the day!
• Even the one-time cash option, about $308 million, won't go entirely in your pocket. It is subject to federal, state and local taxes, these days a little less than half taken out — state and local tax rates vary — long before you can think of moving Bermuda or a similar tax haven. (The new tax law that went into effect this year does make the federal tax rate less, falling to 37% from the previous 39.6%.)
Lotto America was the first lottery game offered by MUSL. In 1987, six states and the District of Columbia banded together, since, on their own, they could not create jackpots into the tens of millions of dollars that had become commonplace in the most popular single-state lottery games. MUSL's first game was called "Lotto America" even though only those seven jurisdictions took part. The first Lotto America drawing was in 1988.
Generally, Powerball players do not have to choose cash or annuity unless they win a jackpot (then they usually have 60 days to choose.) Exceptions include Florida and Missouri; the 60-day "clock" starts with the drawing, so a jackpot winner who wishes to take the cash option needs to make immediate plans to claim their prize. New Jersey and Texas require the cash/annuity choice to be made when playing; in New Jersey, an annuity ticket can be changed to cash after winning, while in Texas, the choice is binding (when the cash option was introduced in 1997, all Powerball players had to make the choice when playing. This regulation was phased out by 1999.) All Powerball prizes must be claimed within a period ranging from 90 days to a year, depending on where the ticket was bought.
The annuity factor, or the cost to fund an annuity prize, is another key component. The annuity factor is made up of interest rates for securities purchased to fund prize payments. The higher the interest rates, the higher the advertised Grand Prize. You might not realize that an economic reality like interest rates impact even the Powerball jackpot, but they do!
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The structure of the draw is one which regular lottery players will be very familiar with; players must pick 5 regular numbers from a pool with a total of 69 numbers and in addition to these regular number picks, you also choose one bonus ball (known as the Powerball) from a pool of 26. These two pools of numbers are mutually exclusive and remain completely separate throughout the drawing procedure. In order to jackpot the US Powerball, you need to match all 5 regular numbers and the Powerball. Do this and you are instant Powerball millionaire – it’s as simple as that!
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