And there is a 50% tax before it even gets to the draw.
The states get 50% of the money spent on tickets and then the winners get taxed on top of that. Somewhere between 2/3 and 3/4 of all lottery money ends up with government at one level or another.
The cash option, minus the state’s take of money from the purchase of tickets, is what it takes to invest in the 30-year annuity to claim the entire jackpot. It is not a 50% tax.
Maybe designate a bunch of co-winners to soften the bite?