Is $810 million worth a $2 Mega Millions ticket? It depends

The Associated Press ^ | July 25, 2022 | By SCOTT McFETRIDGE

[Oldeconomybuyer]

DES MOINES, Iowa (AP) — Is $810 million worth $2?

That’s a good question, given it costs $2 to buy a Mega Millions lottery ticket that could pay off with an estimated $810 million prize — the nation’s fourth-largest jackpot — after the game’s next drawing Tuesday night.

ISN’T IT AN OBVIOUS QUESTION?

Not really.

To start with, your chance of winning the grand prize is minuscule, at one in 302.5 million. You have better odds of a smaller payoff, such as winning $1 million for matching five regular numbers but missing the Mega Ball.

STILL, A SHOT AT $810 MILLION SEEMS WORTH $2

Ah, but even if you somehow beat the odds you are not going to get $810 million.

First, that’s the amount for winners who take the annuity option, paid over 30 annual payments. But winners nearly always opt for cash, which for this drawing would pay out an estimated $470.1 million.

And then there are federal taxes, which will slice 37% off that cash prize, so that would leave less than $300 million.

SO, IS IT WORTH GAMBLING $2

If you have fun dreaming of a massive windfall that most likely won’t actually blow your way, buy a ticket. But if you need to watch your money, consider keeping the $2 in your wallet.

[higgmeister]

Ah, but even if you somehow beat the odds you are not going to get $810 million.

First, that’s the amount for winners who take the annuity option, paid over 30 annual payments. But winners nearly always opt for cash, which for this drawing would pay out an estimated $470.1 million.

And then there are federal taxes, which will slice 37% off that cash prize, so that would leave less than $300 million.

I wonder if you got the annuity option, could J.G. Wentworth® give you more than $300 million?