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Old 06-05-2009, 09:01 PM  
woj
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Join Date: Jul 2002
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Quote:
Originally Posted by GatorB View Post
Well now Powerball is in at least half the states. That's more people than Canada. But as has been said lotteries in the US do not pay out jackpots in lump sums. The "jackpot" is for typcially a 25-30 year payout. Otherwise you get about half. See the company that runs Powerball doesn't have $232 million to pay out right now. It only has about half that. That why you only get half as much when you take lump sum because that's the amount they actually have. If you take the yearly pay out then you get basically 1/30 of the Jakcpot ( not really exactly that, but I won't complicate things further ) the rest gets invested and the interest earned on that money is enough to make it come out to $232 over the next 29 years.

And yes in the states you HAVE to pay taxes on your lottery winnings.
You don't get "half", you get whatever the current market price of 30 years of payments is... it depends on numerous factors including current interest rates etc...

basically what happens you win 232 million, which really is something like 600k/month for 30 years... then the lottery winner sells that prize to a 3rd party for whatever they are willing to pay...
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