Lazy reporters not bothering to check something that is easily verifiable. Per the Mega Millions website, the cash payout is $707.9 million.
In Washington State they only hold out 28% for Federal taxes even the top rate is 37%, and there is no state or local income taxes.
California does have a state income tax, but lottery winnings are exempt.
If there is “outcry” and “surprise” then clearly people have no concept of how much tax they pay.
This is one argument in favor of the Fair Tax. If people are (federal) taxed at point of sale it becomes much clearer how much federal tax is being collected. And possibly some accountability will be demanded.