Mega Millions
- About That $1.6 $1.537 Billion Jackpot -
Interesting Tidbits
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brought to you by
The Lotto Report
Originally Posted: Oct 23, 2018
Revised: Oct 24, 2018 - Updating financial data
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Editorial & Opinions by Dawn Nettles
The Lotto Report
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Summary of 10/23/18 Mega Millions Jackpot
One Winning Ticket - South Carolina
Jackpot Reduced - They Over Projected Sales
The SC Winner Will Collect ...
REDUCED Jackpot - $1,537,000,000
Factor (Interest Rate) 10/23/18 - 1.751%
Cash Value - $877,784,124
(Cash Value represents the amount needed to invest
to get
a return of $1.537 Billion over 30 years)
Less 25% Federal & 7% State Taxes - NET Winnings: $596,893,204
(South Carolina has a state tax)
Actual sales did not support the advertised
amount - they were <$35 million> short
So they reduced the jackpot amount from $1.6
to $1.537 Billion. Actual sales and jackpot allocation ....
Roll sales were: $2,328,992,942
Allocated for a jackpot winner (.376509%): $877,988,272
(FYI - There's an
est $200K in prize pool that the winner will NOT see)
NOTE:
$1.6 Billion (advertised amount) is the amount a player
would receive
IF the real amount he won was invested
for 30 years.
He will pay taxes each year so he will
NEVER really see $1.6 Billion (or the advertised amount).
If you chose the annual pay, here is the annuity
schedule showing what you will receive
- before taxes - each year.
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Interesting Tidbits
There's been lots of comments so I'm going to address a few
of them so as to set the record straight. I want ya'll to understand
fully how lotteries work.
If I hold the winning ticket, I'll win $1.6 Billion.
This statement is NOT true. The figure, "$1.6 billion,"
represents how much money a player would receive AFTER
they take the REAL amount you won and invested it for 30 years.
Then and only then would you see a GROSS amount of $1.6 billion.
How much do you actually win?
In reality, you won a percentage - .376509 - of ROLL sales. For the
Oct 23, 2018, $1.6 billion jackpot, they anticipate tonight sales to be around
$850+ million which would make ROLL sales a total of $2,439,596,716+ meaning
there would be $918,530,120 in the jackpot prize pool for a winner from all states.
Sales came in lower that projected. The actual figures are shown above.
This was the 26th consecutive draw in this roll.
You've all seen where they were quoting $904 million for the Cash Value
amount but the interest factor declined a little bit today meaning it would
require $913,763,564 to invest to get a return of $1.6 billion over 30 years.
So the $904 Million increased a bit.
How much would you actually receive in cash?
Unfortunately, the Mega Millions group does not specify in their
rule exactly how much a jackpot winner will actually receive. Having
made that clear, I think you can safely expect to receive the exact amount
needed to invest to get a return of $1.6 billion over a 30 year period. So
based on today interest factor, that amount would be an est $913.7 million.
(If the factor increases or deceases tomorrow, Oct 24, then the figure will change.
You're paid based on the factor the first working day after a win.
The Mega Millions group does not have a set plan for determining how
much a winner will receive ... It appears they pay the amount advertised
even when sales are greater and the jackpot could have been in increased.
Or the increase is not in accordance with the amount in the prize pool!
In Texas, 25% is automatically deducted for federal taxes making your
take home an est $685,322,672. In South Carolina, they deduct
25% in Federal and 7% for state taxes meaning the winner will take
home $596,893,204. While this is a WHOLE lot of
money,
it is a far cry from the $1.6 million they are touting (advertising).
Will there be a winner tonight (Oct 23, 2018) ... I would say most likely yes.
(One winning ticket in South Carolina)
This is because with an est $850M $739.3 M tickets sales, then this means they
will sell 425 370.1 million tickets. I would surmise that they would cover at
least 80% of the combinations. People need to understand that
there are MANY duplicate tickets sold - probably 125 million
duplicates for this draw.
Retailers No Longer Receive Bonuses For Selling Winning Tickets
I know you are hearing and seeing that retailers will get a piece
of the pie if they sell a winning ticket, but his is not true any longer.
Here's what the TLC recently sent to a newspaper who was not
aware that retailer bonuses had been cut ...
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Oct 19, 2018 For many years, the Texas Lottery’s retailer bonus program has been an important retailer recruiting and retention tool for the sales organization to utilize. Decisions by the 85th Legislature and Governor on the FY 2018 – 2019 budget affect all aspects of the state’s budget, including Texas Lottery operations. The $4.2 million annual retailer bonus budget was vetoed by the Governor and was zeroed out in the second year of the 2018 – 2019 biennium. The long-established bonus program was phased out at the end of FY 2018 and bonuses will not be available in FY 2019. The Texas Lottery Commission did include an Exceptional Item request to reinstate funding for the retailer bonus program in the agency’s Legislative Appropriations Request for the 2020-2021 biennium. Decisions to reinstate funding will be determined during the next legislative session. The Texas Lottery will continue to provide opportunities for retailers to earn free scratch tickets in promotions for specified games and earn incentive payments and drawing prizes in the Retailer Cash Incentive Programs. However, the loss of this key program may have an impact on retailer recruitment, retention and development opportunities. The retailer bonus program is separate from the statutorily authorized 5% retailer commissions. Steve Helm
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1554 Mega Millions drawings have been held in Texas.
160 jackpots were won consisting of 183 winning tickets:
Arkansas, California (30), Florida (2), Georgia (12), Idaho, Illinois (9),
Indiana (2), Kansas, Maryland (9), Massachusetts (3), Michigan (15),
Missouri, New Jersey (16), New York (30), North Carolina (2),
Ohio (19), Pennsylvania (2), Rhode Island, South Carolina, Tennessee,
Texas (12),
Virginia (9) & Washington (4)
If Texas does NOT have the jackpot winner, then Texas
will send an est $62 $68.4 million out of state to pay this winner.
This is really bad news for the Texas economy because
no one will be contributing to our schools, parks, etc.
Re-Cap of First 1554 Texas Draws
160 Rolls (jackpots won) - 12/5/03 thru 10/24/18
Total Sales: $2,820,083,352
Average draw sales: $1.7 Million
Division of Monies - Suppose To Be:
50% to players & 50% to state
38% went to schools = $1,071,631,674
5% went to 16,000 retailers = $141,004,168
7% went to the TLC = $197,405,835
THEN
Low tier prizes won = $499,115,133
Low Tier Allocated = $487,106,119
Low Tier - Differences - Overpaid to Winners - $12,009,014
$$ Sent out of state to pay jackpot winners = Est <$870,026,321>
$$ to Texas from out of state to pay 6 jackpot winners = Est $518,702,940
More Has Been Sent Out of State Than What Has Come In - Est <$351,323,381>
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All Texas Games - Sales Pages
Pick3 Sales & Payouts, Click here
Daily 4 - Sales and payouts, click here
Lotto Texas - Prizes & sales, click here
Texas 2 Step - Prizes & sales, click here
Cash 5 - Prize amounts & sales, click here
Mega Millions - Lottery Sales by the draw, click here
Mega Millions - Lottery Sales by State, click here
Lotto Texas - Lottery Sales by the draw, click here
Powerball vs Mega Millions - # of Tickets Sold Per Draw, click here
Powerball - Sales by State, click here
Powerball - Lottery Sales by the draw, click here
All or Nothing - Sales & Payouts, Click here
Texas Lotto Report
(All About the Texas Lottery)
Dawn Nettles
P. O. Box 495033
Garland, Texas 75049-5033
(972) 686-0660
(972) 681-1048 (Fax)