US Powerball
The World's Biggest
Ever Lottery Jackpot

The US Powerball has an optional add-on called the Powerplay that lets players win larger than normal prizes. It gives players the chance to take home prizes far larger than they would otherwise be able to. For example, the 5x Powerplay boosts the division 3 prize from USD$50,000 to USD$500,000.

The Powerplay number is drawn at random before each US Powerball draw.

The Powerplay number corresponds to how many times prizes are multiplied. For example, the 3x Powerplay means that prizes are multiplied by three times.

Some Powerplay numbers are more likely than others to be randomly chosen prior to each draw, as shown below:

The Powerplay feature has the following conditions:

• Powerplay does not apply to the lotto Powerball jackpot prize
• The 10x Powerplay is not available when the jackpot is over USD$150 million
• The 2nd division prize with Powerplay will always be USD$2 million, no matter which Powerplay number is drawn

Double Play is an optional feature that gives US Powerball players an extra chance to win prizes. The odds of winning prizes are the same for each division as they are for the primary US Powerball draw, however the prizes differ. The Double Play jackpot is also different to the main US Powerball draw, with a set-in-stone jackpot of USD$10 million on offer for each Double Play draw.

Double Play draws take place three times each week, after the main US Powerball draws on Mondays, Wednesdays and Saturdays.

The Double Play feature is currently offered only in the following 14 US jurisdictions: Colorado, Florida, Indiana, Maryland, Michigan, Missouri, Montana, New Jersey, Pennsylvania, Puerto Rico, South Carolina, South Dakota, Tennessee, and Washington. It’s possible that additional states will offer Double Play in future.

US Powerball jackpot winners are required to make a choice to determine how they wish their prize to be paid. There are two available options: annuity and lump-sum. When jackpots are advertised before a draw, they are estimates based on forecast ticket sales for the draw. Only once all ticket sales have been finalised will the exact jackpot prize amount be known. Both payment options are subject to US federal and state taxes.

Annuity

This is when the jackpot winner elects to take one immediate payment, much smaller than the total jackpot prize. Then, once a year for the next 29 years they then receive another payment, until the entire prize is paid. The payment they receive each year is 5% bigger than the previous year’s payment. For the annuity, the lottery authorities invest the jackpot prize money, and use the investment returns to fund the winner’s ongoing annual payments. Due to this investment, the total of the 30 annuity payments will always be larger than the lump-sum payment option. The total value of the annuity option will be close in total size to the advertised amount (less taxes and depending on how many tickets are sold).

The advantage of the annuity is that not only do you receive a larger prize overall, but the annual payments can be a way of forcing winners to be more conservative with their winnings. This can help ensure winners don’t blow through all of their prize money in a short period of time.

Lump-sum payment (cash option)

For the lump-sum option, the winner receives one single payment. The lump-sum will generally be equal to the amount that would have been invested to fund the 30 incremental payments, had the winner selected the annuity option. This means that the lump-sum option will be smaller than the annuity. The upside is that the winner gets to receive their entire prize immediately, instead of over 29 years. This is by far the option most US Powerball jackpot winners choose.

The advantage of the lump-sum option is that winners don’t run the risk of ill health or death before they can enjoy their full prize. They also have more funds up front with which to invest themselves and potentially eclipse the annuity prize amount.

US lotto Powerball jackpot wins are subject to both federal and state income taxes. How much tax you pay will depend on which state the winning ticket was purchased in, as each state has its own income tax rate. Taxes on lottery jackpot winnings can be significant. However, given that the minimum US Powerball jackpot is worth USD$20 million and can reach into the billions, there’s no reason taxes should prevent winners from enjoying the best life has to offer for the rest of their days.