Huge Mega Millions, Powerball jackpots lure gamblers

Staff/wire report

YOUNGSTOWN

Nearly a billion dollars is on the line for whoever can actually win the Mega Millions.

On Thursday, the Mega Million jackpot rose to at least $970 million, making it the largest in Mega Millions history and the second-highest jackpot in U.S. lottery history after 2016’s $1.6 billion Powerball jackpot.

A manager at the Shell gas station on South Avenue and U.S. Route 224 said she had definitely noticed an uptick in lottery purchases as the jackpot grew.

“Oh yeah, people are coming out,” she said.

It’s not just the Mega Millions ticket luring people with dreams of exotic vacations, cars from this decade, debt-free futures and mortgage-free homes out to gas stations and convenience stores throughout the country. The Powerball is also paying out big money with a jackpot set for at least $430 million.

A cashier at the Best Oil on Mahoning Avenue on the city’s West Side said the number of lottery buyers has been steadily rising as the jackpots have increased, and that most customers who purchase one ticket also purchase the other.

“I think word of mouth plays a big part of it,” she said. “People hear about the jackpot so they start coming out and tell their friends and then those people come out. Most people are playing both tickets. It’s been busy.”

The Powerball’s cash value is $248 million and the Mega Millions is $548 million.

Though winning both would – at least technically – make the player an instant billionaire, it’s obviously an unlikely scenario. Extremely unlikely.

The odds of winning the Mega Millions are 1 in 302.6 million, and the odds of winning the Powerball are 1 in 292 million. To win both? 1 in 88 quadrillion.

Here are some answers for someone lucky enough to have a prized lottery ticket.

I’ve won. Now what?

Lottery officials recommend winners take a deep breath, put their winning ticket in a safe spot and consult with a reputable financial planner before popping over to the lottery headquarters.

Their first decision is whether to take the cash option, which would be at least $513 million, or an annuity, with one initial payment and annual installments over 29 years.

Nearly all winners opt for cash, but the annuity has advantages, as it reduces the tax bill a little and offers a stable flow of income that climbs by 5 percent annually.

How long do I have to claim the jackpot?

States have different rules, so depending where you purchased the ticket, you have from 180 days to a year.

Can I keep my name secret?

Winners can remain anonymous in six states – Ohio, Delaware, Kansas, Maryland, North Dakota and South Carolina.

In Arizona, people who win more than $600 can keep their names secret for 90 days after claiming prizes, but after that, names are public record.

In Michigan, winners are anonymous unless they win Mega Millions or Powerball prizes.

What about taxes?

For winners of $5,000 or more, all states automatically deduct 24 percent in federal taxes but state taxes vary widely.

Some big states, including California and Pennsylvania, don’t withhold taxes from lottery winnings, and some, like Texas, don’t have individual income taxes at all.

For the others, the state takes a bite – especially in New York, where a winner would need to pay a state tax of 8.8 percent. Residents of New York City would pay an additional tax of 3.9 percent.

In general, taxes eat up nearly half of winnings.