Tuesday, October 24, 2017

Mega Millions tickets will cost $2

More expensive to enter, harder to win:
  • Your odds of winning the Mega Millions jackpot are about to get even longer.
  • And the price of a ticket is doubling, from $1 to $2.
  • Players may pick six numbers from two separate pools of numbers - five different numbers from 1 to 70 and one number from 1 to 25 - or select Easy Pick/Quick Pick. You win the jackpot by matching all six winning numbers in a drawing.

This week's drawings on Tuesday and Friday night will be the last time that you can buy a $1 ticket to the multi-state lottery. The jackpot stands at $25 million as of Tuesday.

Starting on Saturday, tickets will cost $2, the same as tickets for rival Powerball.


Mega Millions is also changing the range of numbers that players have to chose from, which will make the odds of winning the second prize of $1 million or more slightly better than they are now.

But the odds of winning the jackpot will get worse -- jumping from 1 in 258.9 million in this week's drawings to 1 in 302.6 million under the new rules.
Those are tougher odds than Powerball, which is a 1 in 292.2 million shot.

For Mega Millions, tougher odds will translate into much bigger jackpots in the future, since there will be more rollover weeks when no one takes the top prize. And that, along with the higher ticket price, will translate into much bigger jackpots in the future.

Mega Millions has been having a hard time competing with Powerball, which raised its ticket prices and lengthened its odds back in October 2015. Since then, the Powerball jackpot has topped $200 million nine times, compared with the three times that a Mega Millions jackpot got that large.

And it's the big jackpots that bring lottery buyers into the game.

Mega Millions will also introduce a $3 ticket that gives players two chances at the jackpot, rather than one. The catch: A $3 ticket holder is only eligible to win the jackpot prize, not the secondary prizes that range from $1 up to $1 million or more.

A regular Mega Millions ticket will now have a 1 in 24 chance of winning some kind of prize. But that's worse than the 1 in 14.7 odds that you had in the game than ends Tuesday.

***  TAXES ***

Example: $375 million Mega Millions jackpot

  • Choosing the lump sum payment of $226 million would mean forking over $56.5 million to the IRS and netting $169.5 million.
  • The annuity option would result in $93 million going to the federal government over 30 years, leaving you with $282 million.
  • Unless you live in a place that does not tax lottery wins, you can expect to pay additional taxes to your state.

Largest Mega Millions jackpots

Rank
Amount   
Date     
Number of winning tickets
Where tickets were bought
1$656 million3/30/123Kansas, Illinois, Maryland
2$648 million12/17/132California, Georgia
3$536 million7/8/161Indiana
4$533 million3/30/181New Jersey
5$451 million1/5/181Florida
6$414 million3/18/142Florida, Maryland
7$393 million8/11/171Illinois
8$390 million3/6/072Georgia, New Jersey
9$380 million1/4/112Idaho, Washington
10$375 million7/17/18??
Regardless of the payment option you choose, the federal government gets 25 percent of the loot right off the bat.

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