IT’S certainly set to be a very merry Christmas for one lucky lottery winner – though they don’t know it yet.
The anonymous player won a massive $2 million in the Powerball of December 21, doubling their initial $1 million prize.
Somebody is sitting on a winning Powerball ticket for $2 million (stock image)[/caption]
He or she matched all five white balls in the draw – though nobody managed to score the jackpot this time around.
The winning white ball numbers were 1, 12, 17, 21 and 58 and the red Powerball was 1.
Whoever bought the ticket, which was purchased in New Jersey, also paid for Power Play, so increasing their prize by 100%.
This optional feature costs $1 per play and in the case of matching five balls with Power Play, the prize is automatically doubled to $2 million.
With other non-jackpot prizes the multiplier varies by 2, 3, 4, 5 or 10 times and it is randomly selected each time.
The unknown winner now has one year from the draw date on December 21 in which to claim their prize.
A second winner, this time in Idaho, also scored $2 million in the same draw.
They also matched the five white balls correctly and doubled their money by opting for Power Play.
While in Illinois, somebody is $1 million richer after matching all five white balls on December 21.
The jackpot was not won during Saturday’s draw so it now increases to $103 million for the next draw on December 23.
The cash value for this is $47 million, according to the Powerball website.
CASHING IN
Due to the amount of money involved the winner won’t be able to claim their prize where they bought their ticket.
A claim form will have to be completed in order to receive the prize money.
These are available from the New Jersey lottery website, lottery retailers or from the New Jersey Lottery headquarters in Trenton.
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.
The winner should sign the back of the ticket before making an appointment to submit their claim in person.
WHAT HAPPENS IF DEADLINE NOT MET?
If the winner doesn’t come forward before the deadline, they forfeit their right to the prize.
In such cases a proportion of the prize money then goes to each state in which Powerball is played.
This is then used to fund public works and could find its way back into other lottery games.
Powerball draws take place on Monday, Wednesday and Saturday, with the Saturday evening draw attracting the most players.
Another lucky lottery customer in Missouri is sitting on $1 million and doesn’t know it after purchasing a winning ticket in the Mega Millions draw six weeks ago.
Meanwhile in Florida another Mega Millions winner is set to become $5 million richer when they claim their prize from the December 10 draw.
Responsible gambling
Remember to gamble responsibly
A responsible gambler is someone who:
- Establishes time and monetary limits before playing
- Only gambles with money they can afford to lose
- Never chase their losses
- Doesn’t gamble if they’re upset, angry, or depressed
- National Council on Problem Gambling – https://www.ncpgambling.org/
- Gamble Aware – www.begambleaware.org
For help with a gambling problem, call the National Gambling Helpline on 1-800-522-4700 or go to ncpgambling.org/chat
