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LOTTO bosses have issued a warning to all Powerball players after a ticket, now worth $1 million, was sold.
The slip was sold at a restaurant in Lawton, Michigan – located around 160 miles from Detroit.
Lotto tickets are covered with one hyndred dollar bills.[/caption]
And, one gambler spent just $2 at a Big T establishment to match five numbers ahead of the draw on Saturday, as revealed by Powerball chiefs.
The $1 million prize was the largest sum won on the game of luck, lotto bosses revealed.
The gambler defied odds of one in around 11.6 million to match five numbers.
This meant there were only one number away from clinching the jackpot, which stood at $265 million.
Players in Michigan have one year from the date of the draw to come forward.
Most states, including Florida, Georgia, and Texas, only give players a six-month window to claim their respective prizes.
But, they must book an appointment to claim their prize, as reported by MLive.
Once the gambler comes forward, they will lose a significant chunk of their prize.
Players who win more than $5,000 must pay 24% to the federal government in tax.
But, the deductions will not end there.
Players in Michigan must pay 4.25% to the state.
This will cut the take-home pay by more than $42,000.
No gambler managed to land the jackpot, which means it has rolled over again.
It now stands at an estimated $279 million.
The prize pot has a cash value of $131.5 million.
States With 6-Month Lottery Claim Windows
Some states have differing deadlines for when lottery players can claim prizes. Most allow a 180-day or one-year window before tickets expire and the money is forfeited. Below are the 180-day states:
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- District of Columbia
- Florida
- Georgia
- Idaho
- Indiana
- Kentucky
- Louisiana
- Mississippi
- Missouri
- Nebraska
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- South Dakota
- Tennessee
- Texas
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Credit: Jackpocket
This year has only seen one player win the Powerball jackpot.
Oregon resident Abbas Shafii, 79, took home more than $146 million after winning the jackpot.
He matched all numbers to land a $328.5 million prize, which had a cash value of $146.4 million.
Like many lotto players, Shafii faced a choice on how he wanted to receive his prize.
He could either take home his prize as a lump sum, or receive his payout in installments.
Shafii decided to take home the lump sum, following in the footsteps of renowned Powerball winner Edwin Castro.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have varying opinions on whether to take the lump sum or take the annuity.
