Is $790M worth a $2 Mega Millions ticket?
Tuesday’s lottery drawing is a chance to dream big
DES MOINES, Iowa – Is $790 million worth $2?
That’s a good question, given it costs $2 to buy a Mega Millions lottery ticket that could pay off with an estimated $790 million prize, the nation’s fourth-largest jackpot, after the game’s next drawing Tuesday night.
To start with, your chance of winning the grand prize is minuscule, at one in 302.5 million. You have better odds of a smaller payoff, such as winning $1 million for matching five regular numbers but missing the Mega Ball. But even that is one in 12.6 million.
As lottery officials note, players should think of their $2 bet as a chance to dream while accepting the reality they likely won’t be entering a new income tax bracket Tuesday night.
Ah, but even if you somehow beat the odds you are not going to get $790 million.
First, that’s the amount for winners who take the annuity option, paid over 30 annual payments. But winners nearly always opt for cash, which for this drawing would pay out an estimated $464.4 million.
And then there are federal taxes, which will slice off 37% off that cash prize, so that would leave less than $300 million, though state taxes could cut in to that amount as well, depending on where the winner lives. Still a fortune, but a smaller fortune. That also doesn’t account for the possibility someone else will match the winning numbers, meaning they would need to divide even those smaller winnings in half or more, depending on the number of lucky players.
The reason the grand prize has grown so large is because no one has matched all six numbers since April. That’s 28 consecutive drawings without someone hitting the jackpot.
With so many people playing now that the potential top prize is so large, it becomes increasingly likely that someone or multiple players will finally end that streak.
Mega Millions is played in 45 states as well as Washington, D.C., and the U.S. Virgin Islands.
So, if you have fun dreaming of a massive windfall that most likely won’t actually blow your way, buy a ticket. But if you need to watch your money, consider keeping the $2 in your wallet.