Two machines are used in each Mega Millions drawing. The model used for Mega Millions is the Criterion II, manufactured by Smartplay International of Edgewater Park, New Jersey. The balls are moved around by means of counter-rotating arms which randomly mix the balls. Individually, the five white balls, several seconds apart, drop through a hole in the bottom of the mixing drum.
In Georgia, New Jersey, and Texas, players must choose, in advance, whether they wish to collect a jackpot prize in cash or annuity. Georgia and New Jersey winners can change an annuity ticket to cash should they be eligible for a jackpot share; however, the choice is binding in Texas. The other Mega Millions members allow the cash/annuity choice to be made after winning (usually 60 days after claiming the ticket), although in Florida the 60-day "clock" starts with the drawing in which the jackpot prize was won.
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.

On January 15, 2012, the price of each basic Powerball play doubled to $2, while PowerPlay games became $3; the minimum jackpot doubled to $40 million.[13] A non-jackpot play matching the five white balls won $1 million. The red balls decreased from 39 to 35.[14] The drawings were moved from Universal Studios Orlando to the Florida Lottery’s studios in Tallahassee. Sam Arlen served as host, with Alexa Fuentes substituting.

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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.
Mega Millions' second-largest jackpot, $648 million, was for the December 17, 2013 drawing. Two winning tickets, one each from California and Georgia, were sold. The holder of the Georgia ticket claimed the next morning; they selected the cash option, which amounted to $173,819,742.50 before withholdings. The holder of the California ticket claimed on January 3, 2014. (The California ticket holder received an equal share, but potentially a larger cash-option amount, as California lottery winnings are exempt from state income tax)."[3][4][5][15] [16]
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!

When it was launched in 1992 Powerball became the first game to use two drums. Using two drums to draw numbers from offers more manipulation by simultaneously allowing high jackpot odds, numerous prize levels and low overall odds of winning (as explained later, a ticket can win by matching only one number). The two-drum concept was suggested by Steve Caputo of the Oregon Lottery. The two-drum concept has since been used by The Big Game (now Mega Millions) in the US, Australia's Powerball, Thunderball in the UK, Eurojackpot and EuroMillions (unlike most two-drum games, Euromillions selects two numbers called "Lucky Stars" from the 2nd drum; jackpot winners must make a total of seven matches).[citation needed]
Rules vary according to the applicable laws and regulations in the jurisdiction where the ticket is sold, and the winner's residence (e.g. if a New Jerseyan wins on a ticket bought near their workplace in Manhattan). Mega Millions winnings are exempt from state income tax in California; while Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington state, and Wyoming do not have an income tax. On the other hand, some residents of New York City and Yonkers, New York pay three levels of income tax, as these cities levy income taxes.
Thanks to Giant Lottos, you don’t have to live in the US to play in the USA Mega Millions. Just purchase your USA Mega Millions tickets online at Giant Lottos, choose 5 numbers between 1 and 70 and 1 Mega Number between 1 and 25, and if you match all 6, you’ll be an instant winner! The USA Mega Millions is drawn twice a week on Tuesdays and Fridays, which gives you two chances every week to hit the jackpot.
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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