Powerball is an American
lottery game offered by 45 states, the
District of Columbia
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
,
Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and unincorporated ...
and the
U.S. Virgin Islands. It is coordinated by the
Multi-State Lottery Association
The Multi-State Lottery Association (MUSL) is an American non-profit, government-benefit association owned and operated by agreement of its 34 member lotteries. MUSL was created to facilitate the operation of multi-jurisdictional lottery games, ...
(MUSL). From its inaugural drawing on April 19, 1992, until August 21, 2021, Powerball drawings were held twice a week (Wednesday and Saturday); a third weekly drawing (held Mondays) was added on August 23, 2021. Drawings are held every Monday, Wednesday and Saturday evening at 10:59 p.m.
Eastern Time
The Eastern Time Zone (ET) is a time zone encompassing part or all of 23 states in the eastern part of the United States, parts of eastern Canada, the state of Quintana Roo in Mexico, Panama, Colombia, mainland Ecuador, Peru, and a small por ...
, at
Florida Lottery
The Florida Lottery is the government-operated lottery of the U.S. state of Florida. , the lottery offers eleven terminal-generated games: Cash4Life, Mega Millions, Powerball, Florida Lotto, Pick 2, Pick 3, Pick 4, Pick 5, Fantasy 5, Cash Pop, ...
headquarters in
Tallahassee
Tallahassee ( ) is the capital city of the U.S. state of Florida. It is the county seat and only incorporated municipality in Leon County. Tallahassee became the capital of Florida, then the Florida Territory, in 1824. In 2020, the population ...
.
Since October 7, 2015, the game has used a 5/69 (white balls) + 1/26 (Powerballs)
matrix from which winning numbers are chosen, resulting in odds of 1 in 292,201,338 of winning a jackpot per play. Each play costs $2 or $3 with the Power Play option (originally, Powerball plays cost $1; when Power Play began, such games were $2). The official cutoff for ticket sales is 10:00 p.m. Eastern Time; some lotteries cut off sales earlier.
The drawings are held at the
Florida Lottery
The Florida Lottery is the government-operated lottery of the U.S. state of Florida. , the lottery offers eleven terminal-generated games: Cash4Life, Mega Millions, Powerball, Florida Lotto, Pick 2, Pick 3, Pick 4, Pick 5, Fantasy 5, Cash Pop, ...
's studio in
Tallahassee
Tallahassee ( ) is the capital city of the U.S. state of Florida. It is the county seat and only incorporated municipality in Leon County. Tallahassee became the capital of Florida, then the Florida Territory, in 1824. In 2020, the population ...
. Powerball's minimum advertised jackpot is $20 million (annuity); Powerball's annuity is paid in 30
graduated installments over 29 years, or winners may choose a lump sum payment instead (cash option). One lump sum payment will be less than the total of the 30 annual payments because with the annuity option each yearly payment is increased by 5%.
On November 8, 2022, Powerball produced the largest lottery jackpot in world history; the $2.04 billion jackpot was won by a single ticket sold in
Altadena, California
Altadena () ("Alta", Spanish language, Spanish for "Upper", and "dena" from Pasadena, California, Pasadena) is an unincorporated area and census-designated place in the Verdugo Mountains region of Los Angeles County, California, approximately 14 ...
.
The numbers were originally drawn in
West Des Moines, Iowa
West Des Moines is a city in Polk, Dallas, Warren, and Madison counties in the U.S. state of Iowa. A majority of the city is located in Polk County, a minority of the city is located in Dallas County, and small portions extend into Warren and M ...
, before moving to
Universal Studios Florida
Universal Studios Florida (also known as Universal Studios or USF) is a theme park located in Orlando, Florida. Primarily themed to movies, television and other aspects of the entertainment industry, the park opened to the public on June 7, 1990 ...
in
Orlando
Orlando () is a city in the U.S. state of Florida and is the county seat of Orange County. In Central Florida, it is the center of the Orlando metropolitan area, which had a population of 2,509,831, according to U.S. Census Bureau figures re ...
. Drawings moved to their current home in Tallahassee in 2012.
Powerball members
![Powerball members map](https://upload.wikimedia.org/wikipedia/commons/1/17/Powerball_members_map.svg)
Powerball replaced
Lotto*America in April 1992;
Mega Millions
Mega Millions (originally known as ''The Big Game'' in 1996 and renamed, temporarily, to ''The Big Game Mega Millions'' six years later) is an American multi-jurisdictional lottery game; as of January 30, 2020, it is offered in 45 states, the D ...
replaced The Big Game 10 years later (See below for the evolution of the name ''Mega Millions''.).
Mega Millions and Powerball
Alabama
(We dare defend our rights)
, anthem = "Alabama"
, image_map = Alabama in United States.svg
, seat = Montgomery
, LargestCity = Huntsville
, LargestCounty = Baldwin County
, LargestMetro = Greater Birmingham
, area_total_km2 = 135,765 ...
,
Alaska
Alaska ( ; russian: Аляска, Alyaska; ale, Alax̂sxax̂; ; ems, Alas'kaaq; Yup'ik: ''Alaskaq''; tli, Anáaski) is a state located in the Western United States on the northwest extremity of North America. A semi-exclave of the U.S. ...
,
Hawaii
Hawaii ( ; haw, Hawaii or ) is a state in the Western United States, located in the Pacific Ocean about from the U.S. mainland. It is the only U.S. state outside North America, the only state that is an archipelago, and the only state ...
,
Nevada
Nevada ( ; ) is a state in the Western region of the United States. It is bordered by Oregon to the northwest, Idaho to the northeast, California to the west, Arizona to the southeast, and Utah to the east. Nevada is the 7th-most extensive, ...
, and
Utah
Utah ( , ) is a state in the Mountain West subregion of the Western United States. Utah is a landlocked U.S. state bordered to its east by Colorado, to its northeast by Wyoming, to its north by Idaho, to its south by Arizona, and to it ...
do not sell lottery tickets.
History
1988 precursor: Lotto America
Powerball's predecessor began in 1988; the multi-state game was known as
Lotto America
Lotto America is an American multi-state lottery game that began in 2017. It is operated by the Multi-State Lottery Association (MUSL). It takes its name from the original Lotto America, offered from 1988 to 1992. Lotto America was re-launched b ...
. The game, and name, were changed to Powerball on April 19, 1992; its first drawing was held April 22.
Dr. Edward J. Stanek was president of the Iowa Lottery and one of two men, along with Steve Caputo, who came up with the Powerball game.
Powerball begins
When it was launched in 1992 Powerball became the first game to use two drums. Using two drums to draw numbers from offers more manipulation by simultaneously allowing low jackpot odds, numerous prize levels and high overall odds of winning (as explained later, a ticket can win by matching only one number). The two-drum concept was suggested by Steve Caputo of the Oregon Lottery. The two-drum concept has since been used by ''The Big Game'' (now
Mega Millions
Mega Millions (originally known as ''The Big Game'' in 1996 and renamed, temporarily, to ''The Big Game Mega Millions'' six years later) is an American multi-jurisdictional lottery game; as of January 30, 2020, it is offered in 45 states, the D ...
) in the US, Australia's Powerball,
Thunderball in the
UK,
Eurojackpot
Eurojackpot is a transnational European lottery launched in March 2012. As of September 15, 2017, the countries participating in the lottery are: Croatia, Czech Republic, Denmark, Estonia, Finland, Germany, Hungary, Iceland, Italy, Latvia, L ...
and
EuroMillions
EuroMillionsgerman: Euromillionen or pt, Euromilhões is a transnational lottery that requires seven correct numbers to win the jackpot. It was launched on 7 February 2004 by France's Française des Jeux, Spain's ''Loterías y Apuestas de ...
.
Through 2008, Powerball drawings usually were held at Screenscape Studios in
West Des Moines, Iowa
West Des Moines is a city in Polk, Dallas, Warren, and Madison counties in the U.S. state of Iowa. A majority of the city is located in Polk County, a minority of the city is located in Dallas County, and small portions extend into Warren and M ...
. The drawings' host was longtime Iowa radio personality Mike Pace, who had hosted MUSL drawings since Lotto America began in 1988. In 1996, Powerball went "on the road" for the first time, holding five remote drawings at the
Summer Olympics in Atlanta. A few weeks later, Georgia became the only jurisdiction to leave Powerball (Maine, which joined MUSL in 1990, left when Powerball began). In August 1996, Georgia joined the then-new ''The Big Game'', then the other major U.S. lottery group. It planned to sell tickets for ''both'' games for the rest of 1996; but within days Georgia was removed from MUSL, not to return until the 2010 cross-sell expansion.
On November 2, 1997, the
annuity
In investment, an annuity is a series of payments made at equal intervals.Kellison, Stephen G. (1970). ''The Theory of Interest''. Homewood, Illinois: Richard D. Irwin, Inc. p. 45 Examples of annuities are regular deposits to a savings account, ...
was changed from 20 to 25 yearly payments; the cash option was added.
In 1998,
Florida
Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...
was given permission by its government to participate in a multi-state game. It was set to offer Powerball; but in early 1999, new governor
Jeb Bush
John Ellis "Jeb" Bush (born February 11, 1953) is an American politician and businessman who served as the 43rd governor of Florida from 1999 to 2007. Bush, who grew up in Houston, was the second son of former President George H. W. Bush ...
prevented Florida from joining since he believed Powerball would hurt the existing Florida Lottery games. In 2008, Governor
Charlie Crist finally allowed Florida to join MUSL, on January 4, 2009.
On March 7, 2001, an optional multiplier (called ''Power Play'') was added, allowing players to multiply non-jackpot winnings by up to five by paying an extra $1 per game. A wheel was introduced to select the ''Power Play'' multiplier for each drawing (the next year, the ''1x'' was removed from the ''Power Play'' wheel.)
2009: Florida became host to drawings
With the start of Powerball sales in Florida on January 4, 2009 (with its first drawing on January 7), the matrices changed to 5/59 + 1/39 (adding four white ball numbers and dropping three red balls). This changed the jackpot probability from 1:146 million to 1:195 million; the overall probability became 1:35.
Based on statistical projections, the average jackpot win increased from $95 million to $141 million. Over 3.5 million additional prizes were expected to be won yearly due to the change in probability. The starting jackpot increased to $20 million, with minimum rollovers of $5 million. The jackpot contribution increased from 30.3% to 32.5% of total sales. The Power Play option was modified; second prize, usually $200,000, was given an automatic 5x multiplier, making the 5+0 prize $1 million cash. The bonus second prize if the jackpot exceeded its previous record by $25 million, triggered only twice, was eliminated with the 2012 format change.
The conditions for Florida joining Powerball included a move of the live drawings from Iowa to
Universal Studios
Universal Pictures (legally Universal City Studios LLC, also known as Universal Studios, or simply Universal; common metonym: Uni, and formerly named Universal Film Manufacturing Company and Universal-International Pictures Inc.) is an Americ ...
in
Orlando
Orlando () is a city in the U.S. state of Florida and is the county seat of Orange County. In Central Florida, it is the center of the Orlando metropolitan area, which had a population of 2,509,831, according to U.S. Census Bureau figures re ...
. The three hosts rotating announcing duties from Universal Studios were Tracy Wiu, Elizabeth Hart and Scott Adams (MUSL headquarters remained in Iowa, where its other draws are held). The wheel that was used to determine the Power Play multiplier was retired when the drawings moved to Florida; a
random number generator
Random number generation is a process by which, often by means of a random number generator (RNG), a sequence of numbers or symbols that cannot be reasonably predicted better than by random chance is generated. This means that the particular outc ...
(RNG) was used until the 2012 format change.
Arkansas
Arkansas ( ) is a landlocked state in the South Central United States. It is bordered by Missouri to the north, Tennessee and Mississippi to the east, Louisiana to the south, and Texas and Oklahoma to the west. Its name is from the O ...
became the 33rd MUSL member on October 31, 2009, the last to join before the 2010 cross-sell expansion. The
Ohio Lottery
The Ohio Lottery is a state lottery run by the Ohio Lottery Commission. Its games consist of scratch tickets; Pick 3, Pick 4, Pick 5 ("numbers games"); Rolling Cash 5, Classic Lotto, Keno, Lucky for Life, Mega Millions, and Powerball.
The Lotter ...
added Powerball on April 16, 2010, it joined
Mega Millions
Mega Millions (originally known as ''The Big Game'' in 1996 and renamed, temporarily, to ''The Big Game Mega Millions'' six years later) is an American multi-jurisdictional lottery game; as of January 30, 2020, it is offered in 45 states, the D ...
(along with New York) years earlier, when ''The Big Game'' added ''Mega Millions'' to its name.
2010 cross-sell expansion
In March 2009, it was reported that
New Jersey
New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...
, already a Mega Millions member, sought permission to join Powerball. Shortly after, discussions were revealed about allowing each US lottery to offer both games. On October 13, the Mega Millions consortium and MUSL reached an agreement in principle to cross-sell Mega Millions and Powerball. In November, MUSL signed an agreement to start streaming Powerball drawings online.
On January 31, 2010, the date of the cross-sell expansion, Mega Millions and MUSL each added lotteries; eight Powerball members added Mega Millions by May. The Montana Lottery joined Mega Millions on March 1, 2010. Nebraska added Mega Millions on March 20, 2010, Oregon followed on March 28, 2010, Arizona joined Mega Millions on April 18, 2010, Maine added Mega Millions on May 9, 2010, Colorado and South Dakota joined Mega Millions on May 16, 2010. The U.S. Virgin Islands joined Mega Millions in October 2010.
Before the agreement, the only places that sold both Mega Millions and Powerball tickets were retailers straddling a border; one retailer on the
Sharon, Pennsylvania
Sharon is a city in western Mercer County, Pennsylvania, United States. The city, located along the banks of the Shenango River on the state border with Ohio, is about northeast of Youngstown, about southeast of Cleveland and about northwest ...
/
Masury, Ohio
Masury is a census-designated place (CDP) in Trumbull County, Ohio, United States. The population was 2,618 at the 2000 census. It is part of the Youngstown– Warren– Boardman, OH- PA Metropolitan Statistical Area.
History
The commu ...
border sold both Mega Millions (via the
Ohio Lottery
The Ohio Lottery is a state lottery run by the Ohio Lottery Commission. Its games consist of scratch tickets; Pick 3, Pick 4, Pick 5 ("numbers games"); Rolling Cash 5, Classic Lotto, Keno, Lucky for Life, Mega Millions, and Powerball.
The Lotter ...
) and Powerball (
Pennsylvania
Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
) before the agreement and continued to be the only retailer to sell tickets for both lotteries.
Illinois
Illinois ( ) is a state in the Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolitan areas include, Peoria and Rockf ...
joining Powerball on the expansion date, it became the second multi-jurisdictional lottery game (after Mega Millions, which Illinois already participated in) whose drawings were carried nationally. Both games' drawings were simulcast via
Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
cable
superstation WGN-TV through its national
WGN America
WGN America was an American subscription television network that was owned by the Nexstar Media Group, and was the company's only wholly owned, national cable-originated television channel. The channel in its final form under the WGN branding ra ...
feed. WGN-TV aired Illinois Lottery drawings nationally from 1992 to 2015 after acquiring broadcast rights from Chicago's Fox
owned-and-operated station WFLD
WFLD (channel 32) is a television station in Chicago, Illinois, United States, airing programming from the Fox network. It is owned and operated by the network's Fox Television Stations division alongside Gary, Indiana–licensed MyNetworkTV ...
in 1988, which took the rights from WGN-TV in 1987. Powerball drawings were aired on WGN-TV and WGN America on Wednesday and Saturday immediately following the station's 9:00 p.m. (
Central Time) newscast with the Mega Millions drawings being aired Tue and Fri evenings after the newscast. WGN served as a default carrier of Mega Millions or Powerball where no local television station carries either multi-jurisdictional lottery's drawings.
On March 13, 2010, New Jersey became the first previous Mega Millions-only member (just before the cross-selling expansion) to produce a jackpot-winning Powerball ticket. It was worth over $211 million in annuity payments; it was sold in
Morris Plains. On May 28, 2010, North Carolina became the first previous MUSL member (just before the cross-selling expansion) to produce a jackpot-winning Mega Millions ticket; that jackpot was $12 million (annuity).
On June 2, 2010, Ohio won a Powerball jackpot; it became the first lottery selling ''either'' Mega Millions ''or'' Powerball (when 2010 began) to provide a jackpot-winning ticket for its newer game. The ticket was worth a $261 million annuity; it was sold in
Sunbury. Ohio's second Powerball jackpot-winning ticket, sold for the June 23, 2010 drawing, was part of another first; since Montana also provided a jackpot winner for that drawing, it was the first time a jackpot was shared through lotteries which sold competing games before the cross-selling expansion, as Montana sold only Powerball before the expansion date.
2012 format change
On January 15, 2012, the price of each basic Powerball play doubled to $2, while PowerPlay games became $3; the minimum jackpot doubled to $40 million.
A non-jackpot play matching the five white balls won $1 million. The red balls decreased from 39 to 35.
The drawings were moved from Universal Studios Orlando to the Florida Lottery's studios in Tallahassee. Sam Arlen began his tenure as host in 2012, with Laura W. Johnson served as Arlen’s co-host.
These changes were made to increase the frequency of nine-figure jackpots; a Powerball
spokesperson
A spokesperson, spokesman, or spokeswoman, is someone engaged or elected to speak on behalf of others.
Duties and function
In the present media-sensitive world, many organizations are increasingly likely to employ professionals who have receiv ...
believed a $500 million jackpot was feasible (it became a reality within the year,) and that the first $1 billion jackpot in US history would occur by 2012 (though it didn't occur until 4 years later.) Less than three months after the Powerball changes, Mega Millions' jackpot reached $656,000,000 despite remaining a $1-per-play game.
The random ''Power Play'' multiplier was retired for a set, fixed dollar amount payout.
The $25 million rollover "cap" (creating larger 5+0 prizes) was eliminated.
California joined on April 8, 2013; it has never offered the ''Power Play'' option, as all payouts in California Lottery drawing games, by law, are
parimutuel
Parimutuel betting or pool betting is a betting system in which all bets of a particular type are placed together in a pool; taxes and the "house-take" or "vigorish" are deducted, and payoff odds are calculated by sharing the pool among all winnin ...
. Mega Millions, which became available in California in 2005, offers its ''
Megaplier'' in its other 45 jurisdictions.
On January 22, 2014, the variable Power Play option returned (2x-5x) for multiplying non-jackpot prizes.
In October 2014,
Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and unincorporated ...
joined Powerball; the first mainly Spanish-speaking jurisdiction offering the game; as of 2016 it had not joined Mega Millions.
2015 format change
On October 4, 2015, the Powerball format changed again; the white-ball pool increased from 59 to 69 while the Powerball pool decreased from 35 to 26. While this improved the chance of winning any prize to 1 in 24, it also lengthened the jackpot odds to 1 in 292,201,338.
[ The 4+1 prize became $50,000; the 10x PowerPlay became available in drawings with a jackpot of under $150 million.] Three months later, the format produced a $1.5 billion jackpot, double the previous record, after 20 consecutive rollovers.
2020 COVID-19 adjustments and 2021 provisional removal by Idaho
On April 2, 2020, the Powerball starting jackpot amount was temporarily reset from $40 million to $20 million with the annuity option, with at least a $2 million rollover for each drawing without a jackpot winner, due to the COVID-19 pandemic in the United States. This was done to enforce social distancing
In public health, social distancing, also called physical distancing, (NB. Regula Venske is president of the PEN Centre Germany.) is a set of non-pharmaceutical interventions or measures intended to prevent the spread of a contagious dis ...
and discourage crowding of selling venues for large jackpots, and to account for lower interest rates.
On March 10, 2021, following Powerball's move to expand its operations in Australia later that year and in the United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
in 2022, the Idaho Legislature
The Idaho Legislature consists of the upper Idaho Senate and the lower Idaho House of Representatives. Idaho is divided into 35 legislative districts, which each elect one senator and two representatives. There are no term limits for either ...
voted overwhelmingly to end the state's participation in the lottery after more than 30 years. State lawmakers cited fears of outside revenue being generated from the foreign involvement as reasons behind the vote. The removal would have taken place when non-US jurisdictions were allowed to join in August 2021, but was rendered moot when the expansion was put on hold.
On May 23, 2021, Powerball announced that starting on August 23, 2021, draws would occur on Monday, in addition to Wednesday and Saturday. All other features remain the same. Michele Lyles became the third regular hostess of the Powerball drawings serving alongside Arlen and Johnson. Beginning in 2022, Randy Trainor serves as a substitute host if neither Arlen, Johnson or Lyles are available.
2022 delay
The scheduled November 7, 2022 drawing of the record-breaking $2.04B jackpot was delayed due the incomplete security protocols regarding ticket sales at an unnamed lottery until the next day at 8:59 a.m. EST. Prior to the November 7 delay, there had been delays on April 9 and October 19 in 2022. The Minnesota Lottery announced later that day that it had been responsible for the delay.
Official International Resellers
The Lottery Office
The Lottery Office is the official reseller of US Powerball in Australia.
Playing the game
Basic game
The minimum Powerball bet is $2. In each game, players select five numbers from a set of 69 white balls and one number from 26 red Powerballs; the red ball number can be the same as one of the white balls. The drawing order of the five white balls is irrelevant; all tickets show the white ball numbers in ascending order. Players cannot use the drawn Powerball to match one of their white numbers, or vice versa. Players can select their own numbers, or have the terminal pseudorandomly select the numbers (the name for this varies by state, but most are called some variation of "quick pick", "easy pick", etc.).
In each drawing, winning numbers are selected using two ball machines: one containing the white balls and the other containing the red Powerballs. Five white balls are drawn from the first machine and the red ball from the second machine. Games matching at least three white balls or the red Powerball win.
Two identical machines are used for each drawing, randomly selected from four sets. The model of machine used is the Halogen, manufactured by Smartplay International of Edgewater Park, New Jersey
Edgewater Park is a township in Burlington County, New Jersey, United States and a northeastern Delaware Valley suburb of Philadelphia. As of the 2010 United States Census, the township's population was 8,881, reflecting an increase of 1,017 (+ ...
. There are eight ball sets (four of each color); one set of each color is randomly selected before a drawing. The balls are mixed by a turntable at the bottom of the machine that propels the balls around the chamber. When the machine selects a ball, the turntable slows to catch it, sends it up the shaft, and then down the rail to the display. (The Florida Lottery was considering switching to a random number generator
Random number generation is a process by which, often by means of a random number generator (RNG), a sequence of numbers or symbols that cannot be reasonably predicted better than by random chance is generated. This means that the particular outc ...
in 2019 for its in-state drawings; it is unknown whether Powerball was affected.) If the onsite location is unavailable, as was the case during Hurricane Michael
Hurricane Michael was a very powerful and destructive tropical cyclone that became the first Category 5 hurricane to make landfall in the contiguous United States since Andrew in 1992. It was the third-most intense Atlantic hurricane to m ...
, a backup machine is located at MUSL headquarters in Iowa. The drawings are supervised by Carol & Company, CPA.
The double matrices and probabilities in the game's history:
†''Power Play'' was introduced in 2001.
‡10× available if jackpot is under $150 million.[
While Mega Millions and Powerball each have similar jackpot odds despite having a different double matrix (Mega Millions is 5/70 + 1/25), since Powerball is $2 per play, it now takes $584,402,676 (not counting Power Play side bets) on average to produce a jackpot-winning ticket.
]
Power Play
For an additional $1 per game, a player may activate the Power Play option. Activating it multiplies lower-tier winnings (base prize $50,000 or less) by up to 5, or 10 when the jackpot is under $150 million. Power Play is drawn separately from the 6 numbers. The 5+0 prize is automatically doubled to $2 million if Power Play is activated.
The dilemma for players is whether to maximize the chance at the jackpot or increase lower-tier winnings. If a player selects a fixed amount of money to spend on tickets at a certain time, the player will give up one guess of the winning set of numbers every two times this player activates Power Play in respect of one of the purchased tickets.
Power Play, when it began in 2001, was drawn with a special wheel. In 2006 and 2007, MUSL replaced one of the 5× spaces on the Power Play wheel with a 10×. During each month-long promotion, MUSL guaranteed that there would be at least one drawing with a 10× multiplier. The promotion returned in 2008; the ball landed in the 10× space twice. After being absent in 2009, the 10× multiplier returned in May 2010 (after the Power Play drawing was changed to RNG.) The promotion was extended for the only time, as the 10× multiplier was not drawn until June 12, 2010. The second prize 5× guarantee continued; the 10× applied to all non-jackpot prizes, as in previous promotions.
Power Play's success has led to similar multipliers in other games, most notably ''Megaplier'', available through all Mega Millions
Mega Millions (originally known as ''The Big Game'' in 1996 and renamed, temporarily, to ''The Big Game Mega Millions'' six years later) is an American multi-jurisdictional lottery game; as of January 30, 2020, it is offered in 45 states, the D ...
members except California. The 2012 Powerball changes resulted in all eight lower-tier levels having "fixed" Power Play prizes.
On January 19, 2014, PowerPlay was modified; it used 30 balls with the following distribution:
*2x(15)
*3x(9)
*4x/5x: 3 each
On October 4, 2015, PowerPlay changed again, using 42 or 43† balls as follows:
*2x(24)
*3x(13)
*4x(3)
*5x(2)
*10x(1)†
† 10x available when jackpot is under $150 million.
Double Play
A Double Play option is available in 13 states and Puerto Rico. For an additional $1, players may reuse their Powerball numbers in a second drawing with a different prize structure held approximately 30 minutes after the main drawing. A Powerball ticket with the Double Play option costs $3; if both the Power Play and Double Play options are chosen the total cost is $4.[
]
Prizes and odds
Payouts as of October 7, 2015:
Overall odds of winning a prize are 1 in 24.87.
Former prizes/odds (January 19, 2014 – October 3, 2015):
Overall odds of winning were 1 in 31.85.
All non-jackpot prizes are fixed amounts (except in California); they may be reduced and paid on a parimutuel basis, with each member paying differing amounts for the same prize tier, if the liability exceeds the funds in the prize pool for any game member.
Jackpot accumulation and payment options
Jackpot winners have the option of receiving their prize in cash (in two installments; one from the winning jurisdiction, then the combined funds from the other members) or as a graduated annuity
In investment, an annuity is a series of payments made at equal intervals.Kellison, Stephen G. (1970). ''The Theory of Interest''. Homewood, Illinois: Richard D. Irwin, Inc. p. 45 Examples of annuities are regular deposits to a savings account, ...
paid in 30 yearly installments. The pre-tax amount of the first annuity payment is approximately 1.505% of the jackpot amount. Each annuity payment is 5% higher than in the previous year to adjust for inflation.
The advertised estimated jackpot represents the total payments that would be paid to jackpot winner(s) should they accept the annuity option. This estimate is based on the funds accumulated in the jackpot pool rolled over from prior drawings, expected sales for the next drawing, and market interest rates for the securities that would be used to fund the annuity. The estimated jackpot usually is 32.5% of the (non–''Power Play'') revenue of each base ($1) play, submitted by game members to accumulate into a prize pool to fund the jackpot. If the jackpot is not won in a particular drawing, the prize pool carries over to the next drawing, accumulating until there is a jackpot winner. This prize pool is the cash that is paid to a jackpot winner if they choose cash. If the winner chooses the annuity, current market rates are used to calculate the graduated payment schedule and the initial installment is paid. The remaining funds in the prize pool are invested to generate the income required to fund the remaining installments. If there are multiple jackpot winners for a drawing, the jackpot prize pool is divided equally for all such plays.
MUSL and its members accept all investment risk and are contractually obligated and liable to the winner to make all scheduled payments to annuity winners. If a jackpot ticket is not claimed, the funds in the prize pool are returned to members in proportion to the amount they contributed to the prize pool. The members have different rules regulating how unclaimed funds are used.
When the Powerball jackpot is won, the next jackpot is guaranteed to be $20 million (annuity). If a jackpot is not won, the minimum rollover is $10 million. The cash in the jackpot pool is guaranteed to be the current value of the annuity. If revenue from ticket sales falls below expectations, game members must contribute additional funds to the jackpot pool to cover the shortage; the most likely scenario where this can occur is if the jackpot is won in consecutive drawings.
Because of the COVID-19 pandemic in the United States and resulting drop in ticket sales plus the falling interest rates on which annuity prizes were based, Powerball administrators reduced the minimum starting jackpot to $20 million, and the minimum increase to $2 million when the previous jackpot is not won.
Claiming prizes
A winning ticket must be claimed in the jurisdiction in which it was purchased, regardless of residence. The minimum age to play Powerball is 18, except in Nebraska (19), and Arizona, Iowa, Louisiana and Mississippi (21).
Generally, Powerball players do not have to choose cash or annuity unless they win a jackpot (then they usually have 60 days to choose). Exceptions include Florida
Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...
and Missouri
Missouri is a state in the Midwestern region of the United States. Ranking 21st in land area, it is bordered by eight states (tied for the most with Tennessee): Iowa to the north, Illinois, Kentucky and Tennessee to the east, Arkansas t ...
; the 60-day "clock
A clock or a timepiece is a device used to measure and indicate time. The clock is one of the oldest human inventions, meeting the need to measure intervals of time shorter than the natural units such as the day, the lunar month and t ...
" starts with the drawing, so a jackpot winner who wishes to take the cash option needs to make immediate plans to claim their prize. New Jersey
New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...
and Texas
Texas (, ; Spanish: ''Texas'', ''Tejas'') is a state in the South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2020, it is the second-largest U.S. state by ...
require the cash/annuity choice to be made when ''playing''; in New Jersey, an annuity ticket can be changed to cash after winning, while in Texas, the choice is binding. (When the cash option was introduced in 1997, all Powerball players had to make the choice when playing. This regulation was phased out by 1999.) All Powerball prizes must be claimed within a period ranging from 90 days to a year, depending on where the ticket was bought.
Powerball winnings in California
California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
are subject to federal income tax
Income taxes in the United States are imposed by the federal government, and most states. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allow ...
only. Conversely, Powerball winnings in Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and unincorporated ...
are not subject to federal income tax, only local tax. There is no state income tax in Florida, South Dakota
South Dakota (; Sioux: , ) is a U.S. state in the North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Lakota and Dakota Sioux Native American tribes, who comprise a large porti ...
, Texas, Washington
Washington commonly refers to:
* Washington (state), United States
* Washington, D.C., the capital of the United States
** A metonym for the federal government of the United States
** Washington metropolitan area, the metropolitan area centered o ...
and Wyoming
Wyoming () is a state in the Mountain West subregion of the Western United States. It is bordered by Montana to the north and northwest, South Dakota and Nebraska to the east, Idaho to the west, Utah to the southwest, and Colorado to the s ...
, and only on interest and dividends in New Hampshire
New Hampshire is a state in the New England region of the northeastern United States. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Gulf of Maine to the east, and the Canadian province of Quebec to the nor ...
and Tennessee
Tennessee ( , ), officially the State of Tennessee, is a landlocked state in the Southeastern region of the United States. Tennessee is the 36th-largest by area and the 15th-most populous of the 50 states. It is bordered by Kentucky to th ...
. In all other states, winnings are subject to both federal income tax and that state's income tax, provided the winning ticket was purchased in the winner's home state. Winnings from tickets purchased outside of one's home state may be subject to the income tax laws of ''both'' states (with possible credit based on the two jurisdictions), though this depends on the states in question.
Secondary prizes
Unlike the jackpot pool, other prizes are the responsibility and liability of each participating lottery. All revenue for Powerball ticket sales not used for jackpots is retained by each member; none of this revenue is shared with other lotteries. Members are liable only for the payment of secondary prizes sold there.
Since the secondary prizes are defined in fixed amounts (except in California), if the liability for a given prize level exceed the funds in the prize pool for that level the amount of the prize may be reduced and the prize pool be distributed on a parimutuel basis and result in a prize lower than the fixed amounts given in the prize tables. Because the secondary prize pools are calculated independently, it is possible lower-tier prizes will differ among the game members.
Notable wins
Because the quoted jackpot amount is an annuity of 30 graduated annual payments, its cash value relative to the annuity fluctuates. The actual ratio depends on projected interest rates and other factors. MUSL starts with the cash value, built from a percentage of sales, and then calculates the advertised jackpot amount from that value, based on the average costs of the three best securities bids.
On December 25, 2002, the president of a construction firm in Putnam County, West Virginia, won $314.9 million ($ million today), then a new record for a single ticket in an American lottery. The winner chose the cash option of $170 million, receiving approximately $83 million after West Virginia and Federal withholdings.
On October 19, 2005, a family from Jacksonville, Oregon, won $340 million ($ million today). The winners chose the cash payout of $164.4 million (before withholdings), smaller than a previous winners cash payout in 2002 due to a then-recent change in the annuity structure.
A jackpot of $365 million ($ million today) was won on February 18, 2006, by one ticket in Nebraska
Nebraska () is a state in the Midwestern region of the United States. It is bordered by South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Kansas to the south; Colorado to the sout ...
. It was shared by eight people who worked at a meatpacking plant. The group chose the cash option of approximately $177.3 million, before withholdings.
On August 25, 2007, a jackpot worth $314 million ($ million today) was won by a retired auto worker from Ohio
Ohio () is a state in the Midwestern region of the United States. Of the fifty U.S. states, it is the 34th-largest by area, and with a population of nearly 11.8 million, is the seventh-most populous and tenth-most densely populated. The sta ...
; that ticket was bought in Richmond, Indiana, a community that had previously sold a jackpot-winning ticket of over $200 million.
In November 2011, three Greenwich, Connecticut
Greenwich (, ) is a town in southwestern Fairfield County, Connecticut, United States. At the 2020 census, the town had a total population of 63,518. The largest town on Connecticut's Gold Coast, Greenwich is home to many hedge funds and other ...
, financial executives shared a jackpot of $254.2 million ($ million today), the largest prize on a Connecticut-bought ticket. Choosing the cash option, the men split nearly $104 million after withholdings. The jackpot, at the time, was the 12th largest in Powerball history.
On May 18, 2013, the world's largest one-ticket jackpot at the time, an annuity of approximately $590.5 million ($ million today), was won by a Powerball ticket sold in Zephyrhills, Florida. On June 5, Florida Lottery
The Florida Lottery is the government-operated lottery of the U.S. state of Florida. , the lottery offers eleven terminal-generated games: Cash4Life, Mega Millions, Powerball, Florida Lotto, Pick 2, Pick 3, Pick 4, Pick 5, Fantasy 5, Cash Pop, ...
officials announced the winner who purchased the "quick pick" ticket at a Publix
Publix Super Markets, Inc., commonly known as Publix, is an employee-owned American supermarket chain headquartered in Lakeland, Florida. Founded in 1930 by George W. Jenkins, Publix is a private corporation that is wholly owned by present and ...
supermarket. the winner chose the cash option of approximately $370.8 million, before Federal withholding; Florida does not have a state income tax.
On January 13, 2016, the world's largest lottery jackpot at the time, an annuity of approximately $1.586 billion was split among three Powerball tickets in Chino Hills, California
Chino Hills (''Chino'', Spanish for "Curly") is a city located in the southwestern corner of San Bernardino County, California, United States. The city borders Los Angeles County on its northwest side, Orange County to its south and southwest ...
, Melbourne Beach, Florida
Melbourne Beach is a town in Brevard County, Florida. The population was 3,101 at the 2010 United States Census. It is part of the Palm Bay–Melbourne– Titusville Metropolitan Statistical Area.
History
The Ais Indians resided in the area in ...
, and Munford, Tennessee
Munford is a city in Tipton County, Tennessee. The population was 5,927 at the 2010 census, when it was listed as a town.
History
Beginning as a small village which grew around the Mt. Zion Methodist Episcopal Church in the early 1850s, it was ...
, each worth $528.8 million. Since there is no income tax in Florida
Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...
or Tennessee
Tennessee ( , ), officially the State of Tennessee, is a landlocked state in the Southeastern region of the United States. Tennessee is the 36th-largest by area and the 15th-most populous of the 50 states. It is bordered by Kentucky to th ...
(and California
California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
does not tax lottery winnings), the cash option after Federal withholdings is $187.2 million each.
On August 23, 2017, the owner of a Powerball ticket sold in Chicopee, Massachusetts
Chicopee ( ) is a city located on the Connecticut River in Hampden County, Massachusetts, United States. As of the 2020 census, the city had a population of 55,560, making it the second-largest city in Western Massachusetts after Springfield. ...
, won more than $750 million, one of the largest prizes in the lottery's history. A mother of two from Massachusetts was the lucky winner.
On March 27, 2019, a single ticket purchased in Wisconsin
Wisconsin () is a state in the upper Midwestern United States. Wisconsin is the 25th-largest state by total area and the 20th-most populous. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake M ...
was the only winner of a $768.4 million ($477 million cash) Powerball jackpot, the third largest in U.S. lottery history. The winner of the enormous prize was identified as a 24-year-old Wisconsin man.
On November 8, 2022, a single ticket purchased in California
California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
was the only winner of a $2.04 billion ($997.6 million cash) Powerball jackpot, the largest in U.S. lottery history.
Fortune cookie payout
The Powerball drawing on March 30, 2005, produced 110 second-prize winners. The total payout to these winners was $19.4 million, with 89 winners receiving $100,000 each, while the other 21 winners received $500,000 each as they were Power Play selections.
MUSL officials initially suspected fraud or a reporting error. However, all 110 winners had played numbers from fortune cookie
A fortune cookie is a crisp and sugary cookie wafer usually made from flour, sugar, vanilla, and sesame seed oil with a piece of paper inside, a "fortune", usually an aphorism, or a vague prophecy. The message inside may also include a Chine ...
s made by Wonton Food Inc. of Long Island City, New York
Long Island City (LIC) is a residential and commercial neighborhood on the extreme western tip of Queens, a borough in New York City. It is bordered by Astoria to the north; the East River to the west; New Calvary Cemetery in Sunnyside to the ...
. The factory had printed the numbers "22, 28, 32, 33, 39, 40" on thousands of fortunes. The "40" in the fortune did not match the Powerball number, 42. No employees of Wonton Food played those numbers. At the time, the closest game member was Connecticut
Connecticut () is the southernmost state in the New England region of the Northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, New York to the west, and Long Island Sound to the south. Its capita ...
. Because the ticket holders had won as result of a coincidence rather than foul play, the payouts were made.
Had the fortune cookie given 42 as the Powerball number, these winners would have shared the $25 million jackpot: each $227,272 annuity or $122,727 cash (before withholdings). The fortune on the cookie read: "All the preparation you've done will finally be paying off."
Computers and slot machines
In 2006, WMS Gaming WMS Gaming is a manufacturer of slot machines, video lottery terminals and software to help casinos manage their gaming operations. It also offers online and mobile games. WMS was originally a subsidiary of WMS Industries, which became a wholly own ...
released a range of slot machine
A slot machine (American English), fruit machine (British English) or poker machine (Australian English and New Zealand English) is a gambling machine that creates a game of chance for its customers. Slot machines are also known pejoratively a ...
s under the Powerball brand name. In 2007, the Oregon Lottery released a Windows Sidebar
Windows Desktop Gadgets (called Windows Sidebar in Windows Vista) is a discontinued widget engine for Microsoft Gadgets. Desktop Gadgets have been replaced by Windows 10 Taskbar Widgets. It was introduced with Windows Vista, in which it features ...
gadget that displays the winning numbers for Powerball in real-time. The gadget also provides large jackpot announcements.
The New York Lottery introduced a Powerball scratchcard
A scratchcard (also called a scratch off, scratch ticket, scratcher, scratchum, scratch-it, scratch game, scratch-and-win, instant game, instant lottery, scratchie, lot scrots, or scritchies) is a card designed for competitions, often made of ...
in 2010. Five winning numbers plus a Powerball were printed across the top of the card, with 12 opportunities to match. Matching the winning numbers or the Powerball won. The top prize was $1 million (annuity); unlike actual Powerball, there was no cash option for the top prize.
See also
* Lottery jackpot records
* Mega Millions
Mega Millions (originally known as ''The Big Game'' in 1996 and renamed, temporarily, to ''The Big Game Mega Millions'' six years later) is an American multi-jurisdictional lottery game; as of January 30, 2020, it is offered in 45 states, the D ...
* Multi-State Lottery Association
The Multi-State Lottery Association (MUSL) is an American non-profit, government-benefit association owned and operated by agreement of its 34 member lotteries. MUSL was created to facilitate the operation of multi-jurisdictional lottery games, ...
(MUSL)
References
External links
*
{{U.S. lotteries
1992 establishments in the United States
Lottery games in the United States
Lottery monopolies
Mega Ball lottery games