Powerball Jackpot Reaches $1B a Week After Mega Millions Hits for $1.13B

Blog Details

Powerball Jackpot Reaches $1B a Week After Mega Millions Hits for $1.13B

The estimated $1 billion Powerball jackpot for Monday night's drawing is the fifth-highest payout in the history of the game. The approximate one-time cash option is $483.8 million. Prior to any potential state and federal taxes, both awards are listed.

Powerball has the potential to make someone else extremely wealthy less than a week after a fortunate player in New Jersey won a $1.13 billion Mega Millions jackpot, which is the eighth-largest lottery reward in US history and the fifth-richest Mega Millions victory.

Officials from the Multi-State Lottery Association, which oversees the three-time weekly game on behalf of its 48 participating member jurisdictions, reassured gamers on Monday morning that the $1 billion touted Powerball prize is real, despite the fact that it is April 1st, sometimes known as "April Fools' Day."   


"This is no April Fools’ Day joke. We have an advertised Powerball jackpot that’s hit $1 billion to kick off the month of April,” said Drew Svitko, Powerball chair and executive director of the Pennsylvania Lottery.


It's a thrilling moment to play Powerball. Regardless of your experience level, always remember to play wisely in order to maintain the enjoyment of the game. Svitko reminded players that all it takes to win is one ticket.

The drawing for Monday night takes place from the Florida Lottery studio in Tallahassee at 10:59 p.m. EST.  

Fortune Run

Since a single ticket sold in Michigan on New Year's Day claimed an annuitized prize worth $842.4 million, the Powerball jackpot has not been won. There have been 38 draws in a row since then without a single ticket matching the red Powerball and the five white balls. The probability that a ticket will match all six chosen numbers is still one in more than 292.2 million. 

But as the treasure chest expands and more people play and, hopefully, more of the 292,201,338 potential number combinations are covered, the chances of a Powerball jackpot winning increase.

In the Saturday drawing, four tickets that matched the five white numbers—12, 13, 33, 50, and 52—just missed taking home the grand prize. Each ticket was the winner of a $1 million second-tier prize in the game.

The $1 Power Play add-on, which would have doubled the prize to $2 million, was not chosen by any of the players. The $1 million second-tier prize can only be doubled, even though the Power Play landed on a 3x. The states with the $1 million winners were Pennsylvania, Louisiana, Illinois, and Michigan.

Eleven tickets earned $150K, while 55 tickets won $50K each in Saturday's drawing. The four white balls on those tickets matched the red Powerball. With the Power Play option, which quadrupled the reward, 11 people earned $150K.


How Much Is a Billion?

The jackpots that are advertised for Mega Millions and Powerball are based on a 30-year annuity. Should the winner choose to take the whole value, they will get 29 yearly dividends that increase by roughly 5% annually in addition to an instant payment.

The annuities are backed by investments made in a bond portfolio. A bond is a financial instrument that yields cash flow via interest and maturity. 

The announced Mega Millions and Powerball jackpots based on the 30-year annuity payoff are significantly bigger than they would have been in 2021 since the federal interest rate is still higher than it was a few years ago.    

The majority of Mega Millions and Powerball jackpot winners picked the cash option prior to the federal government raising interest rates in 2022 in an attempt to counteract growing inflation. This was because many of them thought prudent investing would surpass a fixed annuity of 5%. The decision is a little more complicated now. To put things in perspective, the cash option for a $1 billion Mega Millions prize in 2021 was $776 million, which is $292.2 million more than the cash option for tonight's jackpot. The one-time cash option may still make sense for an older person who doesn't have heirs or doesn't want to pass on the inheritance.