In recent years, lottery jackpots have reached billion-dollar sizes and then some. When a top prize grows to that level, it can trigger an intense fever pitch among lottery players and earn the games plenty of free publicity on news sites and TV. Super-sized jackpots also drive ticket sales, a fact that lotteries recognize and encourage by making it harder to win the prize.
When a winner chooses an annuity payout, he or she can expect annual installments for decades to come, based on the state’s tax laws and interest rates. A lump sum can be paid out immediately after taxes, but it usually offers a smaller payout than an annuity.
The size of a lottery jackpot is determined by the total number of tickets sold for that particular game and the ticket price, with a fixed percentage of every purchase going into the jackpot fund. When the jackpot reaches the set limit, the ticket number is announced and sales are suspended for the drawing at approximately 9 pm.
A number of online lotteries offer players the option of purchasing tickets from a third party, which acts as an agent and buys physical tickets on behalf of the player. These agents charge a fee for their services, but they do not collect income taxes and can only claim winnings for players who win the actual jackpot.
Several states have online lottery subscriptions that allow players to automatically purchase tickets on a recurring basis. Look for a “subscriptions” link on your state’s website to find out more about this service.