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Tag: Lottery operators

  • Q&A: A look at $1.9B Powerball jackpot, how it grew so large

    Q&A: A look at $1.9B Powerball jackpot, how it grew so large

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    DES MOINES, Iowa — Monday night’s estimated $1.9 billion Powerball jackpot is nearly $400 million larger than the previous record jackpot and will keep growing until someone finally wins the prize.

    The jackpot started at $20 million back on Aug. 6 and over three winless months has grown to be 95 times as large. Put another way, it’s a crazy amount of money.

    WHY SO LONG WITHOUT A WINNER?

    Those who spend $2 on a Powerball ticket might wonder if something is wrong when 40 drawings pass without a jackpot winner, but this is how the game is designed. With odds of 1 in 292 million, that means it’s unlikely anyone will win the prize until a growing jackpot attracts more players. And more ticket sales mean the lottery can raise more money for public programs, which is the point of the state lotteries. Still, it has been an awful long time without a jackpot, and if there isn’t a winner Monday night, a new record will have been reached: 41 draws without anyone matching all six numbers.

    PLENTY OF PEOPLE MUST BE PLAYING NOW, RIGHT?

    Yes and no. Many, many more people are buying tickets now that the jackpot has reached nearly $2 billion. That’s clear from the fact that when the jackpot started at $20 million in the summer, players bought only enough tickets to cover less than 10% of the 292.2 million possible number combinations. For Saturday night’s drawing, that had climbed to 62%, so millions and millions of people are playing. But that percentage is still less than the 88.6% coverage reached for the previous record jackpot in 2016. And if 38% of the possible number combinations aren’t covered, there is a good chance there won’t be a winner.

    WILL THE EVENTUAL WINNER REALLY GET $1.9 BILLION?

    Pity the poor Powerball winner, as the lucky ticketholder will see nothing close to $1.9 billion. It’s only a question of how much less.

    First, that $1.9 billion prize is for winners who choose payment through an annuity, which sends out a check annually for 29 years, with a 5% increase each year. But almost no winners take the annuity, instead opting for cash. For Monday night’s drawing, the cash prize would be $929.1 million, or less than half the annuity prize.

    Federal taxes would take an additional bite, lessening the payout by more than one-third, and many states tax lottery winnings would as well.

    The difference between the annuity and cash prizes has grown larger recently because inflation has resulted in higher interest rates, which means money invested in the annuity can grow.

    DO I HAVE A BETTER CHANCE OF WINNING IF I BUY MORE TICKETS?

    Yes, but your odds of winning aren’t significantly improved. Think of it this way: If you buy one ticket, you have a 1 in 292.2 million chance of winning the jackpot. If you spend $10 for five number combinations, your chances are better, but at 5 in 292.2 million you still almost undoubtedly are not going to hit the jackpot. The same is true if you spend $100. Lottery officials say the average player buys two or three tickets, meaning they’re putting money down on a dream with very little chance it will pay off in a rich reality.

    WHERE IS POWERBALL PLAYED?

    Powerball is played in 45 states, as well as Washington, D.C., Puerto Rico and the U.S. Virgin Islands.

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  • In the 5 states without lotteries, a case of Powerball envy

    In the 5 states without lotteries, a case of Powerball envy

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    WEST POINT, Ga. — Loretta Williams lives in Alabama but drove to Georgia to buy a lottery ticket for a chance at winning the $1.5 billion Powerball jackpot.

    She was one of many Alabama ticket-buyers flooding across state lines Thursday. The third-largest lottery prize in U.S. history has people around the country clamoring for a chance to win. But in some of the five states without a lottery, envious bystanders are crossing state lines or sending ticket money across them to friends and family, hoping to get in on the action.

    “I think it’s ridiculous that we have to drive to get a lottery ticket,” Williams, 67, said.

    Five states — Utah, Nevada, Hawaii, Alaska and Alabama — do not have a lottery. A mix of reasons have kept them away, including objections from conservatives, concerns about the impact on low-income families or a desire not to compete with existing gaming operations.

    “I’m pretty sure the people of Florida, Tennessee, Mississippi and Georgia appreciate all of our contributions to their roads, bridges, education system and many other things they spend that money on,” said Democratic legislator Chris England, from Tuscaloosa, Alabama.

    Several times weekly, England hears from constituents asking when Alabama will approve a lottery: “Especially when people look on TV and see it’s $1.5 billion dollars.”

    In 1999, Alabama voted down a lottery referendum under a mix of opposition from churches and out-of-state gambling interests. Lottery proposals have since stagnated in its legislature, the issue now intertwined with debate over electronic gambling.

    In Georgia, a billboard along Interstate 85 beckons motorists to stop at a gas station billing itself as the ”#1 LOTTERY STORE” — 2 miles (3 kilometers) from the Alabama-Georgia line. Alabama car tags outnumbered Georgia ones in the parking lot at times and a line for ticket purchases stretched across the store.

    Similarly, anybody in Utah wanting a lottery ticket must drive to Idaho or Wyoming, the two nearest states to the Salt Lake City metro area, where most of the population resides. Lotteries have long been banned in Utah amid stiff opposition to gambling by leaders of The Church of Jesus Christ of Latter-day Saints, known widely as the Mormon church. The faith has its headquarters in Salt Lake City and the majority of lawmakers and more than half of the state’s residents belong to the religion.

    In Malad, Idaho, 13 miles (21 kilometers) from the Utah line, KJ’s Kwik Stop is taking advantage of Powerball’s absence in Utah, advertising directly to Utah residents to cross over for tickets. “Just because Utah doesn’t participate in the lottery doesn’t mean you can’t!” their website read recently.

    KJ’s sold hundreds of Powerball tickets to Utah residents on Thursday alone, said Cassie Rupp, a Kwik Stop cashier.

    In Alaska, when oil prices slumped in recent years, legislative proposals to generate revenue through lottery games, including possibly Powerball, faltered. A 2015 report suggested annual proceeds from a statewide lottery could be around $8 million but cautioned such a lottery could negatively affect charitable gaming activities such as raffles.

    Anchorage podcast host Keith Gibbons was in New York earlier this week but forgot to buy a Powerball ticket, even though he didn’t know the size of the jackpot. His response when told it could be $1.5 billion: “I need a ticket.”

    He believes even though Alaska is extremely diverse — Anchorage School District students speak more than 100 languages besides English in their homes — offering Powerball would appeal to everyone.

    “There’s a little bit of everybody here, and so when you bring things like that, it doesn’t just speak to our culture, it speaks to all cultures because everybody wants money, everybody wants to win, everybody wants to be part of the scene,” Gibbons said.

    Not everyone agrees.

    Bob Endsley is no fan of Powerball. He says Alaskans shouldn’t have the opportunity to buy tickets. “It’s a waste of money,” said Endsley, also finding fault with the taxes that have to be paid on winnings and the increasing jackpots.

    Taking a break from shoveling snow off his sidewalk, the Anchorage man said he once won $10,000 in a Canadian lottery. But it was so long ago, he said, that he doesn’t remember what he did with the windfall other than “paid taxes.”

    Hawaii joins Utah as the two states prohibiting all forms of gambling. Measures to establish a Hawaii state lottery or allow casinos are periodically introduced in the Legislature but routinely fail in committee.

    Opponents say legalized gambling would disproportionately harm Hawaii’s low-income communities and encourage gambling addictions. Some argue the absence of casinos allows Hawaii to maintain its status as a family-friendly destination. Gambling is popular among Hawaii residents, however, with Las Vegas one of their top vacation destinations.

    Wearing a University of Alabama cap, John Jones of Montgomery, Alabama, bought a Powerball ticket on Thursday in Georgia. He voted for an Alabama lottery in 1999 and said he hopes lawmakers there try again. A retired painter, Jones said he usually doesn’t buy a lottery ticket, but decided to take a chance.

    He said many Alabamians seem to be doing the same at the Georgia store. “I even met some friends over here,” said Jones, 67.

    ———

    Thiessen reported from Anchorage, Alaska. Associated Press writers Audrey McAvoy in Honolulu, Becky Bohrer in Juneau, Alaska, and Brady McCombs and Sam Metz both in Salt Lake City, Utah, contributed to this report.

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