Powerball Draws $1 Billion Jackpot Numbers, Offering $433.1 Million Cash Option

Q: Did a lucky player finally beat the staggering odds for the $1 billion jackpot, or will the massive prize roll over again?

No one appears to have won the $1 billion Powerball jackpot in Wednesday night’s drawing, so the prize is expected to roll over again. The winning numbers for Aug. 12 were 4, 26, 66, 67 and 69, with Powerball 9. The advertised jackpot was $1 billion, or about $433.1 million as a cash option. Multiple reports in the updates provided say no ticket matched all five white balls plus the Powerball. That means the jackpot should move to the next drawing on Saturday, Aug. 15, held at 10:59 p.m. ET. Powerball drawings take place every Monday, Wednesday and Saturday. The result fits the game’s extremely long odds: 1 in 292,201,338 to win the jackpot. The grand prize had already rolled over for 44 consecutive drawings since the last jackpot hit on May 2, when tickets in Florida and Texas split a $20 million prize. Players should still check their tickets carefully, because large non-jackpot prizes are often won even when the top prize survives. Powerball tickets cost $2, with Power Play available for an extra $1 to boost most non-jackpot winnings. In Michigan, ticket sales close at 9:45 p.m. on drawing nights.

Q: Why does a billion-dollar jackpot shrink to $433 million in cash, and how much will the government actually take from the winner?

The $1 billion headline figure is the annuity value, not the cash sitting in the prize pool today. Powerball advertises the jackpot as 30 payments over 29 years, funded with investments such as U.S. Treasury securities. The cash option reflects the amount available immediately, which for this drawing is $433.1 million. The gap exists because the lottery is comparing money paid now with the larger total you would receive over decades as those funds earn interest. If a single winner takes the cash option, the government immediately withholds 24% for federal taxes. On $433.1 million, that is about $103.9 million, leaving roughly $329.2 million up front. But that is not the winner’s final federal tax bill. Lottery winnings are taxed as ordinary income, and a jackpot this large would push most winners into the top 37% federal bracket. That means the total federal tax would be about $160.2 million, or roughly $56.3 million more due at tax time beyond the initial withholding. After federal taxes alone, the winner would keep about $272.9 million to $286.4 million, depending on deductions and filing circumstances; the commonly cited rough estimate is about $286.4 million. State taxes can cut it further. In states with no tax on lottery winnings, such as Florida or Texas, the winner could keep close to that federal after-tax amount. In high-tax states such as New York, the take-home could fall by tens of millions more.

3 articles · Updated · Detroit News · Aug 12

$1 billion Powerball jackpot numbers drawn Wednesday were 26, 67, 69, 66, 04, with Powerball 09.
The jackpot's cash value was set at $433.1 million, giving winners the lump-sum alternative to the annuity payout.
Powerball drawings are held at 10:59 p.m. on Monday, Wednesday and Saturday, with the next drawing scheduled for Saturday.
$2 tickets remain on sale by state deadlines; in Michigan, players could buy for the drawing until 9:45 p.m.