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Powerball Evades Lucky Winners Once Again, Jackpot Swells to an Impressive $900 Million
The Powerball Jackpot’s Alluring Odds
The Powerball jackpot’s enticing odds of only one in 292.2 million are deliberately designed to create massive prizes that attract a larger number of players. This strategy has proven successful for the Multi-State Lottery Association (MUSL), the operator of Powerball. In October 2015, Powerball underwent a revamp that involved reducing the number of red Powerballs from 35 to 26 while increasing the number of white balls from 59 to 69. As a result, the chances of a ticket matching all six numbers lengthened from approximately one in 175.2 million to one in 292.2 million.
The Impact of Bigger Jackpots
Lottery officials assert that larger jackpots naturally attract more players, and the increased ticket sales generate greater benefits for Powerball’s 48 participating lotteries. Powerball is played in 45 states, along with Washington, DC, Puerto Rico, and the US Virgin Islands.
The $900 Million Powerball Jackpot
Following the absence of a winning ticket matching the six drawn numbers—2-9-43-55-57, and the red Powerball, 18—the Powerball jackpot rolled over for the 37th consecutive time on Saturday night. The upcoming draw is scheduled for Monday, July 17, at 10:59 p.m. EST, and it will take place at the Florida Lottery draw studio in Tallahassee. The cutoff time for ticket purchases varies by jurisdiction but typically occurs approximately an hour before the live drawing.
The estimated jackpot for Monday’s Powerball draw is an astonishing $900 million, with a one-time cash option of $465.1 million. This jackpot now ranks as the third-largest prize in Powerball history and the seventh-largest lottery jackpot in US history. The two highest all-time Powerball jackpots were a $2.04 billion prize won on November 7, 2022, and a $1.586 billion jackpot hit on January 13, 2016.
There have been six lottery jackpots in US history that exceeded $1 billion before taxes. If no Powerball ticket matches the six numbers in tonight’s draw, it is highly likely that the current jackpot will become the seventh 10-digit lottery prize.
Impact of Interest Rates on Powerball and Mega Millions
While higher interest rates typically do not benefit consumers, they do favor Powerball and its primary competitor, Mega Millions. This is because these lotteries advertise their jackpots based on the winner opting for a 30-year annuitized payout.
The annuitized payments for Powerball and Mega Millions are backed by bonds supported by the US Treasury. With the current federal interest rate surpassing 5%, the annuitized jackpots of these lotteries are significantly higher than they would be if interest rates were lower or at 0%, as was the case in 2021.
If a winner claims the $900 million Powerball jackpot on Monday, they will have the choice of receiving the $465.1 million pre-tax cash option or opting for the full $900 million spread over the next 30 years. If the annuity option is selected, the winner will receive an immediate payment followed by 29 annual payments that increase by 5% each year, as explained by MUSL. However, the $465.1 million cash option would be reduced by around $172 million due to federal taxes. Furthermore, the final prize amount may also be subject to state taxes based on the winner’s residency.
Mega Millions Soars to $640 Million
In addition to Powerball, Mega Millions is gearing up for a life-changing jackpot of its own. With no ticket matching the six drawn numbers on Friday night, the Mega Millions jackpot has reached an impressive $640 million.
Mega Millions has gone through 25 consecutive draws without a jackpot winner. The next draw will take place on Tuesday at 11 p.m. EST from the WSB-TV studios in Atlanta.
