Whether you like to play the Powerball or the Mega Millions, there are several things to consider before playing. You should also know that there are some tax implications involved in playing the lottery.
Powerball
Probably the most popular lottery game in the United States, Powerball has nine prize tiers. To win the jackpot, players must match all five white balls plus the Powerball.
The prize is worth a pretty penny, but how can you win? The answer is simple: you need to be prepared and have a winning plan in place.
The Powerball lottery is organized by the Multi-State Lottery Association (MSLA) in the District of Columbia and is offered in 45 states and territories. Puerto Rico and the US Virgin Islands are also participants in the game.
The Powerball drawing takes place every Saturday at 10:12 pm CT. You can watch the drawing live online or on TV. Powerball tickets are available for purchase at participating retail outlets and online. Ticket prices vary by state.
The most popular way to play is through group play. This allows players to share the costs of playing the lottery and increases the chances of winning.
The odds of winning the jackpot are 1 in 292 million. The prize is worth $750 million, making it the fourth largest Powerball jackpot in lottery history.
Mega Millions
Known as the “Mega Millions” lottery, this American lottery game has been in operation for nearly two decades. It is a multi-state lottery offered in 45 states, as well as in the District of Columbia and the U.S. Virgin Islands. In the past, the jackpot has exceeded the billion dollar mark three times in its history.
To win the Mega Millions jackpot, you need to pick five of six numbers from a total of 70 balls. The jackpot starts with a base prize of $40 million, and it escalates after each drawing. The odds of winning the jackpot are one in 302,575,350. The multiplier that the Mega Millions lottery uses can affect your chances of winning.
The Mega Millions drawing is held every Friday evening at 11 p.m. EST. The drawing is held at the WSB-TV studios in Atlanta, Georgia. The drawing machine is manufactured by Smartplay International and uses counter-rotating arms to randomly mix the balls.
In addition to the jackpot, there are several lower prize tiers. If you match four of the six numbers and the gold “Mega Ball,” you’ll win $4. If you don’t match the five numbers, but you match the gold Mega Ball, you’ll win a second prize of $250,000. You can also choose to play a Just the Jackpot wager, which does not allow you to win lower prize tiers.
Tax implications
Whether you’re playing the lottery for the first time or you’re planning to win, it’s important to understand the tax implications of lottery winnings. Having a plan and a financial advisor can help you minimize your tax burden. Depending on the prize, you may receive your winnings in a lump sum or in multiple payments.
Most states withhold taxes automatically on lottery winnings. If you live in a state that taxes lottery winnings, your prize money may be subject to a higher rate. For example, New York City taxes lottery winnings up to 8.82%.
If you’re planning to receive your winnings in a lump sum, you’ll need to determine how much you owe to the state. This includes any interest owed on unpaid installments. If you’re receiving your prize in installments, you’ll also need to account for annual payments.
Some jurisdictions dedicate proceeds from lottery sales to public education. The money generated through legal gambling is also a significant source of revenue for movie theaters, amusement parks and other legal gambling venues.