A MEGA Millions player was just one number away from taking home a $690 million jackpot – but suffered a blow when their prize was cut thanks to a state policy.
The gambler defied odds of approximately one in 12 million to land their fortune on the game of chance.
A Mega Millions player in Califonia matched five numbers but took home less than other gamblers who achieved the feat (stock)[/caption]
They matched five numbers on Friday’s draw, and normally, this would mean they would walk away with at least $1 million.
But, they took home $359,992, per The Island Packet.
The ticket was sold at an OK Liquor store in Long Beach, located around 20 miles from Los Angeles.
This is because in California, prizes are paid out based on the tickets sold and winners.
Gamblers in Massachusetts and New York also matched five numbers and took home prizes of $1 million each.
But, one player in Vermont forked out an extra dollar on the Megaplier option and walked away with a $3million prize.
Despite the big winners, no player matched all six numbers to hit the jackpot.
This means the prize has rolled over to a whopping $740 million.
The prize pot has an estimated cash value of $342.9 million.
If the jackpot is won just days before Christmas, then the winner will face a life-changing decision.
They will have the option to receive their prize in staggered installments or in one lump sum.
Players who take the lump sum have been warned about the amount of tax they will have to pay on their winnings.
Federal officials withhold 24% on prizes over $5,000.
Jackpot winners that scoop such a large amount are then hurled into the top income tax bracket.
That is before state taxes are wiped from the prize.
Taking the lump sum or annuity is a conundrum jackpot winners have faced and will continue to experience.
Lotto experts, lawyers, and financial advisers have chimed into the debate.
Attorney Andrew Stoltmann told The U.S. Sun that taking the lump sum is a mistake 90% of winners make.
He warned players who win large amounts do not have the infrastructure in place to handle their prize pot.
Taking the lump sum or annuity is a conundrum jackpot winners have faced and will continue to experience
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.
Financial adviser Robert Pagliarini explained one of the benefits of taking the annuity is receiving a new check every year.
Mega Millions officials reveal the jackpot has not been won since September 10, when a ticket in Texas was worth $810 million.
This year, the Mega Millions jackpot has only been won three times.
A gambler in Illinois walked away with a $552 million jackpot in June.
And a ticket worth $1.12 billion was sold in New Jersey in March.
The $1.12 billion prize has not yet been claimed.
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
If you or someone you know is struggling with gambling addiction, call the National Gambling Helpline at 1-800-522-4700 or visit the National Council on Problem Gambling online.
