Mega Millions Jackpot Hits $720 Million

Topline

The Mega Millions jackpot reached an estimated $720 million for its next drawing on Friday, the fifth-largest in its history, after the Powerball hit $1 billion this week—though the winners could receive less than half those amounts after paying required taxes.

The Mega Millions jackpot jumped to an estimated $720 million for Friday’s drawing.

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Key Facts

The winner has the option to receive the $720 million in 30 annual payments over 29 years, or as an up-front lump sum of $369.6 million.

A mandatory 24% federal tax withholding would reduce the lump sum earnings to $280.8 million, followed by a federal marginal rate as high as 37%—depending on the winner’s taxable income—reducing the lump sum to $232.8 million.

Lottery winnings are also subject to additional taxes in many states, from as low as 2.5% in Arizona (an estimated $9.2 million) to 10.9% in New York (an estimated $40.2 million), though some states don’t tax lottery winnings.

One ticket for Tuesday’s drawing won $4 million, while four others won $1 million, eight won $40,000 and 38 won $10,000—but nobody bought a ticket that matched all six numbers.

The jackpot previously eclipsed the $700 million mark earlier this year, before reaching an estimated $1.3 billion—the second-largest in the lottery’s history—in January.

Big Number

18.2 million. That’s how many winning tickets have been sold since the jackpot was last won on April 18.

Tangent

The Powerball jackpot jumped to an estimated $1 billion after no winner was selected on Monday, making it the seventh-largest in U.S. history. A mandatory federal tax withholding would reduce the lump sum payment from $516.8 million to $392.76 million, while a federal marginal rate as high as 37% would cut it down to $325.6 million.

Key Background

There are one in 302.6 million odds of winning the Mega Millions jackpot, while the odds of winning the Powerball—one in 292.2 million—are marginally better. The 13 largest jackpots from either lottery have occurred over the last 10 years, complemented by a decision to worsen the odds by increasing the pool of white balls to choose from. The Mega Millions jackpot has eclipsed $1 billion four times in the last four years, including a $1.5 jackpot—its largest ever—won in 2018. A winning ticket was last drawn on April 14, when a $476 million jackpot was won.

Further Reading

Not Just The Powerball—Mega Millions Jackpot Hits $640 Million, 7th Biggest Ever (Forbes)

Powerball Jackpot Rises To $1 Billion—Here’s How Much The Winner Would Take Home After Taxes (Forbes)

Both Powerball And Mega Millions Jackpots Top $500 Million—Here’s Why There Are So Many Giant Jackpots (Forbes)

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