If the state's finances were to get really bad, suspending lottery payouts would be high on the list as one of the first things to be cut. I believe that has already happened in Illinois.
It takes a lot of discipline however to "lay low" after winning such an amount. I personally know a $1m winner (on a scratch ticket) up in Massachusetts. He managed to keep a lid on it for about 48 hours but then he made the mistake of telling a few people and suddenly everybody in his family knew. He started hearing from relatives he hadn't seen in decades and he had to change his phone number.
By the way, I think it is so crass for people to suddenly try and "buddy up" with people who come into good fortune - after ignoring them for years. It's so transparent and shameless. Don't they have any self-respect?
My friend with the million dollars did the smart thing. He took the lump sum, paid off his mortgage, his car loans and banked the remainder, eventually putting much of it in mutuals. He also maxed out his 401(k) contribution at work now that he didn't have a mortgage to pay.
But no shiny new car, no other conspicuous luxury. His life is essentially unchanged. He still has the same job, drives the same car and wears the same clothes. His only real splurge is taking a two-week vacation in Hawaii each winter with his wife.
See, he realized that a million dollars (actually about $480K after taxes) wasn't life-changing. But he made the most of that $480K by making the necessary moves to achieve long-term financial security for himself.
Frankly, I think that I'd rather win a million dollars, than 1.6 Billion.
I like my life as it is. A Million Bucks would make things much easier - retirement, college for WBill Jr, maybe some nice vacations. I might retire early.
1.6 Billion would complicate things too much. But, I suppose that I could get used to it.