Powerball winner must decide between $1.73 billion over 30 years or $756.6 million all at once
What if we told you that you've won a staggering one billion dollars? But there's a catch: after winning, you can either take only a portion of that money or take almost the entire billion dollars over the years. The second option seems more logical and safer, right? However, that is not the case with Powerball, a popular American lottery system, as most of its winners want to receive it all instantly.
What?
If you're wondering why we're discussing the idea of winning a billion dollars, which seems next to impossible, well, here's the thing. Someone from California recently won the second-largest lottery jackpot in history.
The winning sum? A whopping $1.73 billion (approximately ₹7,500 crore).
These lotteries are part of Powerball, an interstate lottery system played across 45 American states, the District of Columbia, Puerto Rico, and the US Virgin Islands (we will get to more of that in a bit).
The winning numbers drawn on Wednesday, October 11, are: 22, 24, 40, 52, 64, and the Powerball 10.
But here's the catch. Remember the situation we described earlier? Powerball winners always have to choose between two options. In this case, the winner can either receive the total amount over 30 years or opt for a lump sum prize estimated at $756.6 million, both before taxes.
The winner is currently anonymous, but their name will soon be revealed, as per Californian law, which requires winners to disclose their identity.
The second-highest jackpot ever
Before this win, there were 35 consecutive drawings without a jackpot winner, stretching back to July 19 when a player in California matched all six numbers and won $1.08 billion.
- Now, this jackpot stands as the world's second-largest lottery prize after rolling over for 36 consecutive drawings since the last top prize winner on July 19, 2023.
- The highest prize ever won by someone was $2.04 billion in Powerball, secured by a California player last November.
- The winner, Edwin Castro, became an overnight billionaire by choosing the total lump sum of $997.6 million, which was promptly added to his bank account.
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After claiming the prize, Edwin purchased several grand mansions, including a $47 million mansion in Los Angeles.
Not a new trend
What Edwin did was not an anomaly. In fact, there is a pattern of lottery winners taking the lump sum money instead of choosing the more financially prudent option of receiving the total amount over 30 years.
For instance, the third-highest Powerball jackpot, totaling 1.58 billion dollars, was won by a trio from Florida, Tennessee, and California. They, too, chose the lump sum amount of $328 million.
One of the winners from Tennessee, John Robbinson, a warehouse supervisor, explained their decision, saying, "We're going to take the lump sum because we're not guaranteed tomorrow."
By the way, winning a Powerball has odds of 1 in 292.2 million! And you can also purchase tickets from India online.
And if you want to read more about Powerball, READ HERE
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