Topline
The Powerball jackpot rose to $516 million—the fourth-biggest lottery prize of the year so far—after no tickets matched all six numbers drawn on Wednesday night, although the eventual winner will take home a much smaller payout after taxes and deductions.
The Powerball jackpot prize soared above $500 million after Wednesday night’s drawing.
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Key Facts
The six numbers drawn on Monday night were 11, 13, 14, 21, 65 and Red Powerball 19.
If a winner emerges in the next draw, they can choose between taking the $516 million split across 30 annual installments or a one-time cash prize of $212.6 million—the preferred pick for most winners.
If the cash prize is claimed, the winnings will first drop to $161.6 million after a mandatory 24% federal withholding.
The winner would likely face a federal marginal rate as high as 37%, depending on their taxable income, further reducing the winnings to around $133.9 million.
If the winner chooses the installment option, their annual payouts of $17.2 million would drop to around $10.8 million after the 37% federal marginal rate is applied.
Depending on where they reside, the winner could face additional taxes, as some states, such as New York, tax lottery winnings at 10.9%, while others, such as Texas, Florida, and California, don’t.
Can Lottery Players From U.K. Win The Powerball Jackpot?
Earlier this year, the Powerball Jackpot was expanded to include players from the U.K. for the first time. Officials have said this will lead to “faster-growing jackpots,” with additional ticket sales adding to the prize pool. If a U.K. player wins the jackpot, they can only receive the prize in 30 annual installments, as they don’t have the option to choose a one-time cash payout. The Powerball jackpot prize currently advertised by the U.K. National Lottery is £265 million ($350 million). While this appears significantly lower than the $516 million jackpot shown for U.S. ticket buyers, British lottery officials say it reflects the estimated amount a winner would receive over a 30-year period, “after exchange rates and UK tax requirements have been taken into account.”
What To Watch For?
The next Powerball drawing is set to take place on Saturday night. Before that, on Friday night, the Mega Millions lottery will hold a drawing for a $364 million jackpot prize.
Surprising Fact
To win the big prize, a Powerball ticket buyer must overcome abysmal odds of 1-in-292.2 million. This is worse than the Mega Millions jackpot’s already poor odds of 1-in-290.4 million.
further reading
Illinois Powerball Player Wins $1 Billion Jackpot—Here’s What They Will Take Home (Forbes)
Mega Millions Ticket Buyer From Florida Wins $800 Million—Here’s What They Could Take Home (Forbes)
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