Over $1.5 billion: Why do US lotteries rack up such high jackpots? See value ranking

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Changes in the format of games and the number of tickets purchased help explain astronomical figures. A Mega Millions lottery coupon is displayed at Lucky Mart in Chicago on Tuesday, January 10, 2023. Teresa Crawford/AP The North American Mega Millions lottery drew on Tuesday night (8) the prize of US $1.58 billion (about R$7.7 billion), one of the largest in the country’s history. A single bet made in Florida won the billionaire prize, according to the organization of the event. Compared to Brazil, the accumulated amount is approximately 1,420% higher, for example, the highest amount ever paid in the history of Mega da Virada, on December 31, 2022. At the time, five bets divided the prize of BRL 541, 9 million. It is worth noting that the Mega da Virada is a special contest, held once a year and, therefore, has higher values. Among the regular Mega-Sena contests, for example — which is held twice a week —, the highest prize ever paid was BRL 317 million. In Brazil, Mega-Sena and Mega da Virada winners do not pay tax on the prize. As for North American lotteries, there is this charge (understand more below). What explains US lotteries having such high jackpots? Astronomical amounts have been increasingly common in the country, both in Mega Millions and Powerball draws. Together, the two lotteries have already reached at least 8 prizes above US$ 1 billion (see ranking of amounts and dates below). One of the factors that led to such expressive figures was the gradual change applied to the format of the games. The main changes in Powerball took place in mid-2015 and in Mega Millions in 2017. Among the changes, lotteries now require more combinations of numbers to pay the main prize. On the other hand, the format was made easier for small prizes. Experts interviewed by the US press believe that the purpose of the changes was precisely to make access to the maximum prize pool more difficult and, thus, generate large accumulated prizes. To give you an idea, the chances of winning the Mega Millions jackpot are 1 in 302.6 million. As for Powerball, they are 1 in 292.2 million — before the changes, they were 1 in 175.2 million. Meanwhile, the odds of winning a lower tier prize of around $4 are on average 1 in 25. For comparison, the odds of winning the regular Mega-Sena prize with a single bet , of R$ 5, are 1 in more than 50 million, according to Caixa Econômica Federal — six times smaller than in Powerball, for example. Betting prices for both Mega Millions and Powerball are US$ 2. The number of tickets sold is even an indispensable factor for the ever-increasing increase in the value of prizes. Although the chances of winning are very small, there are more people betting on the attractive numbers. With more bettors, smaller chances of winners and more expensive tickets — the Mega Millions, for example, was readjusted from US$ 1 to US$ 2 in 2017 — experts point out that the values ​​of the prizes must be higher and higher. How Powerball lotteries work Players must choose five numbers between 1 and 69, which at the time of the draw will appear in white balls. The sixth number, the Powerball, appears on a red ball, and goes from 1 to 26. To reach the maximum prize, called “jackpot”, you have to combine all five white balls, in any order, in addition to hitting the red Powerball . Winners can choose to receive their prize as an annuity, paid in 30 graduated payments over 29 years, or a lump sum payment. There is the collection of taxes on the figure. Mega Millions Players can choose six numbers from two separate sets: five numbers from 1 to 70 (white balls) and one number from 1 to 25 (golden ball). For the maximum prize (jackpot), you must match all six numbers drawn. The winner can choose to receive the full amount through two options: annuity or single payment. In the case of annuity, an initial payment is made followed by 29 annual payments, each 5% higher than the previous one. The single payment does not mean taking the full jackpot announced by the award: there is a mandatory federal withholding tax of at least 24%. Biggest lottery prizes in the USA A survey published by the North American newspaper “The New York Times” shows that the prize drawn this Tuesday was already the third largest in the history of lotteries in the country. Considering Mega Millions and Powerball, there are already eight prizes that exceed US$ 1 billion since 2016. The highest amount paid so far was US$ 2.04 billion, in November 2022. See below: Powerball: US$ 2 04 billion, on November 7, 2022 Powerball: $1.586 billion, on January 13, 2016 Mega Millions: $1.58 billion, prize drawn this fourth Mega Millions: $1.54 billion, on January 23 October 2018 Mega Millions: $1.35 billion, on January 13, 2023 Mega Millions: $1.337 billion, on July 29, 2022 Powerball: $1.08 billion, on July 19, 2023 Mega Millions : $1.05 billion, as of January 22, 2022 Powerball: $768.4 million, as of March 27, 2019 Powerball: $758.7 million, as of August 23, 2017

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