Powerball

This article is about the U.S. lottery game. For the Australian version, see Powerball (Australia). For other uses, see Powerball (disambiguation).

File:Powerballlogo.png

Powerball logo

Powerball is an American lottery game sold through lotteries as a shared jackpot pool game. It is coordinated by the Multi-State Lottery Association (MUSL), a non-profit association formed by an agreement with member lotteries. Powerball is a jackpot game whose advertised (annuity) grand prize starts at $20 million and can roll over into the hundreds of millions over many drawings. The advertised jackpot prize is paid as an annuity over 29 years or players may elect to receive the present value, paid in cash. Powerball drawings are held every Wednesday and Saturday at 10:59 p.m. Eastern time. Powerball currently uses a 5/59 (white balls) + 1/39 (the Powerball) matrix to select its winning numbers. Each selection of six numbers costs players $1 for the base game; for an extra $1, they can multiply a non-jackpot prize by up to 5 with the PowerPlay multiplier. The official cut-off time for ticket sales is one hour before the drawing, although some jurisdictions cut off sales earlier that that. The drawings are regularly held at Universal Studios in Orlando, Florida. Occasionally, drawings are held at remote locations, sometimes to promote the game's expansion to new locations. The results of drawings are not official until they are audited by the accounting firm LWBJ, LLP.

Powerball currently holds the record for the largest single prize awarded by an American lottery, set on February 18, 2006 when a single ticket won the advertised $365 million jackpot. The eight people sharing the ticket elected to take the cash option, and split $177,270,519.67 before taxes.

The 2010 expansion of Mega Millions and Powerball

On October 13, 2009, MUSL and the Mega Millions consortiums signed an agreement to allow US lotteries to sell both games, no longer requiring exclusivity. The expansion occurred on January 31, 2010, as 10 Mega Millions members began selling Powerball tickets for their first drawing on February 3, 2010. On the same day, 23 Powerball members began offering Mega Millions tickets for their first drawing on February 2, 2010. On March 1, 2010, Montana (by joining Mega Millions) was the first jurisdiction to add either game after the cross-selling expansion. Later that month, Nebraska, followed by Oregon, also joined Mega Millions; Arizona followed suit on April 18, 2010. Ohio joined Powerball on April 16, 2010. Currently, Powerball is played in 44 jurisdictions, while Mega Millions is available in 39 jurisdictions, with 38 selling tickets for both games. The California Lottery is the only one offering Mega Millions, but not also Powerball. As a result of the 2010 expansion, the Powerball is now one state short of being the first Lottery played nationwide in all states that have legal statues supporting a Lottery.

It is likely this cross-selling arrangement is a temporary measure as the lotteries investigate the possibility of merging the two games to establish a single national game.

Current and future participating members

US jurisdictions with Powerball as of January 31, 2010; note: the District of Columbia, Ohio, and the US Virgin Islands also participate

US jurisdictions with former rival Mega Millions as of January 31, 2010; note: Arizona, the District of Columbia, Montana, Nebraska, and Oregon also participate. Thirty-eight jurisdictions offer both games as of April 18, 2010

PB = Powerball (Lotto*America until April 1992); MM = Mega Millions (The Big Game until May 2002)

Mega Millions and Powerball

• Arizona (PB 1994) (MM April 18, 2010)
• Arkansas (PB October 31, 2009) (MM January 31, 2010)
• Connecticut (PB 1995) (MM January 31, 2010)
• Delaware (PB 1991) (MM January 31, 2010)
• District of Columbia (PB 1988) (MM January 31, 2010)
• Georgia (PB January 31, 2010) (MM 1996)
• Idaho (PB 1990) (MM January 31, 2010)
• Illinois (PB January 31, 2010) (MM 1996)
• Indiana (PB 1990) (MM January 31, 2010)
• Iowa (PB 1988) (MM January 31, 2010)
• Kansas (PB 1988) (MM January 31, 2010)
• Kentucky (PB 1991) (MM January 31, 2010)
• Maryland (PB January 31, 2010) (MM 1996)
• Massachusetts (PB January 31, 2010) (MM 1996)
• Michigan (PB January 31, 2010) (MM 1996)
• Minnesota (PB 1990) (MM January 31, 2010)
• Missouri (PB 1988) (MM January 31, 2010)
• Montana (PB 1989) (MM March 1, 2010)
• Nebraska (PB 1994) (MM March 20, 2010)
• New Hampshire (PB 1995) (MM January 31, 2010)
• New Jersey (PB January 31, 2010) (MM 1999)
• New Mexico (PB 1996) (MM January 31, 2010)
• New York (PB January 31, 2010) (MM 2002)
• North Carolina (PB 2006) (MM January 31, 2010)
• North Dakota (PB 2004) (MM January 31, 2010)
• Ohio (PB April 16, 2010) (MM 2002)
• Oklahoma (PB 2006) (MM January 31, 2010)
• Oregon (PB 1988) (MM March 28, 2010)
• Pennsylvania (PB 2002) (MM January 31, 2010)
• Rhode Island (PB 1988) (MM January 31, 2010)
• South Carolina (PB 2002) (MM January 31, 2010)
• Tennessee (PB 2004) (MM January 31, 2010)
• Texas (PB January 31, 2010) (MM 2003)
• Vermont (PB 2003) (MM January 31, 2010)
• Virginia (PB January 31, 2010) (MM 1996)
• Washington (PB January 31, 2010) (MM 2002)
• West Virginia (PB 1988) (MM January 31, 2010)
• Wisconsin (PB 1989) (MM January 31, 2010)

Powerball only

• Colorado (PB 2001) (MM May 2010)
• Florida (PB 2009) (No MM plans yet)
• Louisiana (PB 1995) (No MM plans yet)
• Maine (PB 2004) (MM May 9, 2010)
• South Dakota (PB 1990; MM May 16, 2010)
• U.S. Virgin Islands (PB 2002; no MM plans yet)

Powerball maybe?

• California (No PB plans yet) (MM 2005)

Background and history

Lotto*America

Powerball's predecessor began in 1988; it was known as Lotto*America. The game, and name, were changed to Powerball on April 19, 1992. Powerball's first drawing was held three days later.

Maine joined MUSL in 1990, dropping out when Powerball began; it did not rejoin MUSL until summer 2004.

Powerball begins

When it was launched Powerball became the first game to use two drums as its core game. Using two drums offers more flexibility in game design, allowing for the possibility of high jackpot odds, numerous prize levels, and low overall odds of winning at the same time. (As explained later, a Powerball ticket can win by matching only one number.) The two-drum concept was suggested by Steve Caputo of the Oregon Lottery. The two-drum concept has since been copied by Mega Millions (formerly The Big Game) in the U.S., Australia's Powerball, Thunderball in the United Kingdom, and EuroMillions.

Through 2008 Powerball drawings were usually held at Screenscape Studios in West Des Moines, Iowa. The drawings' main emcee was longtime Iowa radio personality Mike Pace, who had hosted MUSL drawings since the organization began in the late 1980s. In 1996 Powerball went "on the road" for the first time, holding five remote drawings at the Olympics. Ironically, weeks later, the Georgia Lottery became the first, and only, lottery to leave Powerball. In August 1996, Georgia joined the then-new The Big Game (now Mega Millions), the other major US lottery group. It planned to sell tickets for both games for the remainder of that year; however, within a few days, Georgia was forcibly removed from MUSL, not to return until the 2010 cross-sell expansion of both games.

On November 2, 1997, the annuity was changed from 20 to 25 yearly payments and the cash option was added. Currently the annuity consists of 30 graduated payments (increasing 4% annually) over a period of 29 years.

In 1998 Florida was given permission by its government to participate in a multi-jurisdictional game. It was set to offer Powerball; however, in early 1999, the new governor, Jeb Bush, prevented Florida from joining since he believed Powerball would hurt the existing Florida Lottery games. In 2008 Gov. Charlie Crist reversed the policy and Florida joined MUSL on January 4, 2009. Lotto and Lotto Plus sales immediately tumbled, forcing the Florida Lottery to terminate Lotto Plus in October 2009. In its place the Florida Lottery introduced Lotto Xtra, which is nearly identical to Powerball's PowerPlay. Citing concerns of diluting Powerball sales, Florida is still undecided as to whether to join Mega Millions.

On March 7, 2001, an optional multiplier (called "PowerPlay") was added, allowing players to multiply non-jackpot winnings by up to 5 after paying an extra $1 per play. A wheel was introduced to select the PowerPlay multiplier for each drawing.

On October 9, 2002, the 1x was removed from the PowerPlay wheel.

Game change in January 2009; Florida hosts drawings

With the start of Powerball sales in Florida on January 4, 2009 (with its first participating drawing January 7), the matrices changed to 5/59 + 1/39 (adding four white ball numbers and dropping three red balls). This change has worsened the jackpot probability from 1:146 million to 1:195 million; the overall probability dropped to 1:35.

Based on statistical projections, the average jackpot won increases from $95 million to $141 million. Over 3.5 million additional prizes are expected to be won yearly (based on the same sales level) due to the drop in overall probability. The starting jackpot has increased to $20 million, with each rollover adding at least $5 million. The jackpot contribution has increased from 30.3% to 32.5% of total sales.

The PowerPlay option, available for an extra $1 per play, continues to multiply lower-tier prizes by either 2×, 3×, 4× or 5× with an equal chance of each multiplier, except that the Match 5+0 prize of $200,000 automatically has a multiplier of 5× for PowerPlay wagers, making the Match 5+0 prize $1 million, paid in a lump sum.

The special rules allowing for a Match 5+0 bonus second prize if the jackpot exceeds its previous record by $25 million, triggered only twice, continue.

The conditions for Florida joining Powerball included a relocation of the live drawings from West Des Moines, Iowa, to Universal Studios in Orlando, Florida. The three hosts rotating announcing duties from Universal Studios are Tracy Wiu, Elizabeth Hart, and Scott Adams. (MUSL headquarters remain in Iowa; its other games, except for its Ca$hola, continue to be drawn there.)

The wheel that was used to determine the PowerPlay multiplier has been retired; a random number generator (RNG) is used for the Florida PowerPlay selection.

The Arkansas Scholarship Lottery became the 33rd Powerball member on October 31, 2009, the last to join before the 2010 cross-sell expansion. The Ohio Lottery added Powerball on April 16, 2010, leaving just California with only Mega Millions.

Cross-sell expansion of 2010

In March 2009, it was reported that New Jersey, already a Mega Millions member, sought permission to join Powerball. Shortly after New Jersey announced its desire to sell both games, discussions were revealed about possibly allowing each U.S. lottery to sell tickets for both Mega Millions and Powerball. On October 13, 2009 the Mega Millions consortium and MUSL reached an agreement in principle to cross-sell Mega Millions and Powerball in all U.S. lottery jurisdictions. In November 2009, MUSL signed an agreement to start streaming the live Powerball drawings online.

On January 31, 2010, Powerball sales expanded to 43 jurisdictions with the addition of 10 Mega Millions members (see list.) On the same day, 23 Powerball members began selling tickets for Mega Millions, leaving only 10 jurisdictions with just Powerball. Of these, several have added, or will add, Mega Millions by spring 2010. The Montana Lottery joined Mega Millions on March 1, 2010. Nebraska added the game on March 20, 2010; Oregon followed suit on March 28, 2010; Arizona joined on April 18, 2010; Maine coming along on May 9, 2010; and Colorado also is expected to add Mega Millions in May 2010. The Ohio Lottery joined Powerball on April 16, 2010 for the drawing the next day; only California offers Mega Millions, but not also Powerball.

On March 13, 2010, New Jersey became the first previously Mega Millions-only member (just before the cross-selling expansion) to produce a jackpot-winning Powerball ticket after joining Powerball. The ticket is worth over $211 million annuity; it was sold in Morris Plains. (None of the 33 Powerball members just before the cross-selling expansion have produced a jackpot-winning Mega Millions ticket.)

As a result of the Illinois Lottery joining Powerball, the game became the second multi-jurisdictional lottery (after Mega Millions, which Illinois was already a participant in) whose drawings are carried nationally rather than only in participating jurisdictions. Both games' drawings are simulcast nationally via cable superstation WGN-TV in Chicago through its national WGN America feed. WGN-TV has aired Illinois Lottery drawings nationally since 1992 after acquiring broadcast rights from Fox owned-and-operated station WFLD (channel 32) in 1988, which took the rights from WGN-TV in 1987. Powerball drawings are aired on WGN-TV and WGN America on Wednesdays and Saturdays immediately following the station's 9 p.m. (Central time) newscast with the Mega Millions drawings being aired on Tuesdays and Fridays after the newscast (though both drawings air a minute later than on some television stations that carry either drawing).

Playing the game

Basic game

Currently Powerball costs $1 per ticket. For each ticket they purchase, players must select five numbers from a set of 59 (white balls) and one number from a set of 39 (the PowerBall). Players can select their numbers on their own or they can elect to have the lottery terminal randomly select one or more of their numbers (called "quick pick", "easy pick", etc. depending on the Powerball jurisdiction). For each drawing, the winning numbers are selected in the same fashion using two ball machines; one contains white balls numbered 1 through 59, and the second contains the red Powerballs numbered 1 through 39. Five balls are drawn from the first machine, and one from the second machine; these become the official winning numbers. Tickets which match at least three white balls and/or the red Powerball are winners.

The order of the selection of the white numbers is irrelevant and all tickets have those selections printed in numerical order. Players do not have to match the white numbers in draw order, but they cannot use the drawn Powerball number to match one of their white numbers selections, or vice versa. It is possible for the same number to be drawn as both a white number and the Powerball in the same drawing.

Two identical machines are used for each drawing, randomly selected from a total of four machines. The model of machine used is the Halogen, manufactured by Smartplay International of Edgewater Park, New Jersey. There are eight numbered sets of balls (four white, four red); one set of each color to be used for the drawing are also selected. The balls are mixed by a turntable at the bottom of the machine that propels the balls around the chamber. When the machine selects a ball, the turntable slows to catch it, sends it up the shaft, and then down the rail to the display.

Over the years the draw matrix has varied:

Starting date	Pick 5 out of	Pick 1 out of	Odds to win Jackpot	PowerPlay multipliers
April 22, 1992	45	45	1:54,979,154	none
November 5, 1997	49	42	1:80,089,127	none
March 7, 2001	49	42	1:80,089,127	1x, 2x, 3x, 4x, 5x
October 9, 2002	53	42	1:120,526,770	2x, 3x, 4x, 5x
August 28, 2005	55	42	1:146,107,962	2x, 3x, 4x, 5x
January 7, 2009	59	39	1:195,249,053	2x, 3x, 4x, 5x

PowerPlay

For an additional $1 per ticket, the player may activate the optional PowerPlay feature, which applies a multiplier drawn by random number generator, to all prizes except the jackpot and second prize. Depending on the PowerPlay number, players may multiply non-jackpot prizes by 2x to 5x. The multiplier for the 5+0 (second prize) is guaranteed to be 5x.

The dilemma for Powerball players is whether to use their planned bankroll to maximize the chances at the jackpot, or, instead, "half" the chances at the jackpot and secondary prizes in exchange for an increase in the secondary prizes with PowerPlay (averaging slightly higher than 3.5x as 5+0 always pays 5x).

A promotion from March 2 through March 29, 2006, replaced one of the four 5× slots (when the multiplier was selected using a wheel) on the PowerPlay wheel with 10x. The 10× multiplier was drawn once, on March 11, 2006. The 10× multiplier returned in April 2007; again, it came up one time. The 10× space came back on April 2, 2008, with the ball finding the 10× space twice for the first time in a 10× promotional period. During each promotion, MUSL guaranteed that the ball would land in the 10× "space" least once, extending the promotion into a second month, and beyond that, if necessary.

After skipping 2009, the 10x multiplier will be in play during each of the nine Powerball drawings in May 2010 (beginning with May 1.) The promotion will be extended, if necessary, to guarantee at least one Powerball drawing with a 10x PowerPlay multiplier. The second prize 5x guarantee will continue as usual; the 10x multiplier, when drawn, will apply to all eight lower tier prize levels, as in previous PowerPlay promotions.

PowerPlay's success has led to similar multipliers in some other games, such as the tripler in MUSL's smaller Hot Lotto, called Sizzler (Triple Sizzler in North Dakota), and Megaplier for 27 of the 38 Mega Millions members. The Florida Lottery added Xtra to its Florida Lotto game on October 14, 2009.

Payout and odds

Payouts (on the base $1 play) are according to the following:

Matches	Prize	Current probability of winning
Zero numbers, plus Powerball	$ 3	1 in 61.74
1 number, plus Powerball	$ 4	1 in 123.48
2 numbers, plus Powerball	$ 7	1 in 787.17
3 numbers, no Powerball	$ 7	1 in 359.06
3 numbers, plus Powerball	$ 100	1 in 13,644.24
4 numbers, no Powerball	$ 100	1 in 19,030.12
4 numbers, plus Powerball	$ 10,000	1 in 723,144.64
All 5 numbers, no Powerball	$ 200,000	1 in 5,138,133.00
All 5 numbers, plus Powerball	Jackpot	1 in 195,249,054.00

Overall probability of winning a prize is 1 in 35.11. All non-jackpot prizes are fixed amounts, although they may be reduced and paid on a parimutuel basis if the number of winners at each prize level exceeds the funds in the prize pool for that drawing.

Some may notice that the odds of matching only the Powerball (1-39) are 1:62, instead of 1:39. This is because there is a chance of matching at least one white ball in addition to the Powerball. Additionally, some may calculate the jackpot odds at 1:17 billion versus the actual 1:~195 million. This is due to the lottery being concerned with combinations rather than permutations.

To put these odds in perspective, in the US in 2008 there were 1.03 deaths per 100 million vehicle miles traveled. A person living one mile from a retailer selling Powerball tickets is four times as likely to die in an accident traveling to and from that store (two miles round trip) than winning the Powerball jackpot on a $1 play. (Jackpot odds = 1 in 195 million; chance of death from vehicle accident= 2 miles * 1.03 deaths / 100 million miles); 1 jackpot = 2 * 1.03 * 195 million / 100 million = 4.02 deaths.

Jackpot accumulation and payment options

Jackpot winners have the option of receiving their prize in cash (in two installments; first from the winning jurisdiction, then the combined funds from the other 42 Powerball members) or as a graduated annuity paid in 30 installments over 29 years. Each annuity payment is 4% higher than in the previous year to adjust for inflation over the length of the annuity.

The advertised estimated jackpot represents the total payments that would be paid out to a jackpot winner should they accept the 30-installment option. This estimate is based on the current funds accumulated in the jackpot prize pool rolled over from prior drawings, expected sales for the current sales cycle, and current market interest rates for the securities that would be used to fund the annuity. The estimated jackpot is usually 32.5% of the (non-PowerPlay) revenue of every ticket sold, submitted by MUSL members to accumulate into a prize pool to fund the jackpot prize for each drawing. If no ticket wins the jackpot in a particular drawing, the prize pool carries over to the next drawing and continues to accumulate until someone wins. This prize pool is exactly the cash value that would be paid to a jackpot winner if they elect to take the cash. If the winner chooses the annuity option, current market rates are used to calculate the graduated payment schedule and the initial installment is paid. The remaining funds in the prize pool are then invested to generate the income required to fund the remaining installments. If there are multiple tickets sold with the winning combination for a drawing, the jackpot prize pool will be equally divided for each of the winning tickets.

MUSL and its members accept all investment risk and are contractually obligated and liable to the winner to make all scheduled payments to jackpot winners. If a jackpot winning ticket fails to be redeemed, the funds in the prize pool will be returned to members in proportion to the amounts they contributed to the prize pool. Different Powerball jurisdictions have different laws regulating how unclaimed funds must be used.

When the Powerball jackpot is won, the next jackpot is guaranteed to be at least $20 million (annuity). When the top prize is not won, the next jackpot is guaranteed to be at least $5 million higher than the prior drawing. The cash in the jackpot pool is guaranteed to be at least the current value of the annuity prize. If revenue from ticket sales fails to accumulate enough into the prize pool to equal the current value of the guaranteed annuity, MUSL members must contribute additional funds to the jackpot pool to cover the shortage. The most likely situation in which there would be a shortage in the jackpot pool is if there are jackpot winners in consecutive drawings. Usually by the third drawing in a rollover series the jackpot pool is increased by more than the minimum $5 million.

When the Powerball jackpot reaches a new record for the game, the annuity jackpot amount is capped at $25 million more than the prior drawing. If revenue from ticket sales for that drawing exceed the amount required to fund the $25 million increase to the annuity jackpot, the excess accumulates into a bonus prize pool. This is shared and paid in a lump sum to all tickets that match 5+0 if during the same drawing at least one ticket wins the jackpot. Otherwise, the amount accumulated in the bonus pool rolls over to the following drawing's bonus pool until the jackpot prize pool is won. If, unexpectedly, the bonus prize pool is to be awarded but there are no 5+0 tickets, the bonus prize pool is to be divided among all 4+1 winners. The bonus prize is in addition to the regular prize (or PowerPlay prize) earned by the 5+0 or 4+1 ticket. Bonus prize pool funds for winning tickets that expire unclaimed are returned to the members in proportion they contributed to the prize pool for those drawings.

Claiming prizes

Although players may cross state lines to purchase tickets sold in other jurisdictions, all prize claims must be made in the jurisdiction that sold the ticket.

The minimum age to play Powerball is 18, except in Nebraska, where it is 19, and in Arizona, Iowa, and Louisiana, where it is 21.

Generally, Powerball jackpot winners do not have to choose cash or annuity until after claiming (then they usually have 60 days to do so). There are exceptions: in Florida and Missouri, the 60-day "clock" starts with the drawing, so a jackpot winner who wishes to take the cash option needs to make immediate plans to claim their prize. (In Idaho, winners have only 30 days after claiming to make the choice.) New Jersey and Texas require the cash/annuity choice to be made when playing; in New Jersey, an annuity ticket can be changed to cash after winning; however, in Texas, the choice is binding. (When the cash option was introduced in 1997, all Powerball players had to make the choice when buying tickets; this regulation was phased out by early 1999.) Powerball winners, including the jackpot, must claim their prizes within a period ranging from 90 days to 1 year, depending on the rules of the MUSL member where the ticket was bought.

Powerball winnings are exempt from local income taxes in Delaware, Pennsylvania, South Dakota, and the District of Columbia. There is no state income tax in Florida, South Dakota or Texas, and only on interest and dividends in Tennessee and New Hampshire; however, New Hampshire began collecting a 10% tax on lottery winnings in July 2009. Winnings from tickets purchased across state lines may be subject to tax from the location of purchase (with possible credit for taxes paid to one's own jurisdiction, or vice versa).

Secondary prizes

Unlike the jackpot pool, the secondary and PowerPlay prizes are the responsibility and liability of each participating MUSL member. All revenue for Powerball ticket sales not earmarked for the jackpot pool, including PowerPlay revenue, is retained by each member and none of this revenue is shared across participating lotteries. Members are liable only for the payment of secondary prizes sold in their jurisdiction.

Since the secondary prizes are defined in fixed amounts, on rare occasions, if the number of winning tickets at a prize level exceed the funds in the prize pool for that level the amount of the prize may be reduced and the prize pool be distributed on a parimutuel basis and result in a prize lower that the fixed amounts given in the prize tables. Because the secondary prize pools are calculated independently, it is possible prizes may be lower in one jurisdiction, yet remain at their advertised level in the other Powerball jurisdictions.

Winning expectation

Because the quoted jackpot amount is paid as an annuity over 29 years, its immediate cash value relative to the annuity fluctuates. The actual ratio depends on projected interest rates and other factors. MUSL starts with the cash value, built from a percentage of sales (currently over 32%) and then calculates the advertised jackpot amount from that value based on the average costs of the three best securities bids.

The most common strategy that is employed by players is to play Powerball only when the jackpot is over $100 million, so that the long-term winning expectation would approach $1 in prizes for each $1 bet. This analysis is similar to one when a poker player calculates pot odds to determine if the expected return would be high enough to justify placing an additional bet in hope of overcoming the odds their hand could win the pot.

When the jackpot is advertised at $200 million, the average expected return on each $1 bet placed for that single drawing is $0.68, compared to $0.22 when the jackpot is reset to its starting level. Break-even is reached when the jackpot reaches an estimated at $323 million. Assuming one player buys a Powerball ticket only when the jackpot exceeds $323 million they should expect to win more than the amount bet over the long term (before taxes.) However, this strategy does not guarantee a positive return for three reasons: (1) these calculations do not account for the possibility of multiple tickets matching the winning numbers in a single drawing, with the jackpot and the 5+0 bonus prize pool being shared equally among all winners. Additionally, as the jackpot increases, more tickets are sold for each drawing, increasing the likelihood that a split jackpot will occur. (2) taxes due on the winnings will diminish the winner's returns unless the player was able to concentrate all their gambling losses in that tax year. (3) the jackpot has to be won to realize these returns.

With the jackpot at various levels, for each $1 bet, the net expected return across all players for that single drawing is:

Prize Pool Cash 32.5% of all ticket sold since last winner	Expected Advertised Jackpot 29 year payout total approx 2x cash	Expected return per $1 bet For all players	Notes
$10M	$20M	$0.226	Smallest Guaranteed Jackpot
$25M	$50M	$0.303
$50M	$100M	$0.431
$75M	$150M	$0.559
$97.681M	$195.362M	$0.675	Break-even if all combinations purchased1 and only one winner24
$125M	$250M	$0.815
$150M	$300M	$0.943
$161.137M	$322.274M	$1.000	Long term break-even if tax rate 0%3 and only 1 winner4
$177.270M	$365M	$1.071	Largest-ever Powerball Jackpot (single winner)
$195M	$390M	$1.173+5	If the $25 million cap (with 5+0 bonus prize) is in play.

¹If it were feasible for a single player to buy all 195,249,054 number combinations for a single drawing, their own ticket purchases would add an additional $63.5 million to the cash value prize pool.
²Taxes negligible as winnings would equal losses under this assumption.
³Taxes relevant as losses likely spread over many tax years but income earned immediately.
⁴Does not account for the risk that more than one player shares the jackpot.
⁵A $25 million increase in estimated jackpot represents the sale of 38.5 million tickets for one drawing. Each additional ticket sold above that amount increases the 5+0 payout if the jackpot is won in that drawing. The expected payout at this level would ultimately be slightly higher than the calculated value here.

Largest payoffs

The largest Powerball jackpot of $365 million occurred on February 18, 2006 and was won by a single ticket in Nebraska. It was shared by eight persons who worked for a Conagra meatpacking plant. They elected to receive their winnings in cash, sharing $177,270,519.67 (before taxes). This is the largest prize awarded for a single ticket in an American lottery.

Jack Whittaker of West Virginia was the claimant to the then biggest one-ticket jackpot, $315 million, won on Christmas, 2002. He elected the cash payout of $170,505,876 (before taxes).

On October 19, 2005, the West family of Jacksonville, Oregon won that evening's $340 million jackpot. However, the cash pool for their winnings was actually smaller than the $315 million jackpot from December 2002. Their cash share was "only" $164,410,058.03. The family won less than two months after the rules were changed to generate larger estimated annuity jackpots. Had the December 2002 jackpot been estimated under the current rules, it would have been $352.6 million.

On August 25, 2007, a jackpot worth $314 million was won by a retired auto worker from Ohio; that ticket was bought in Richmond, Indiana, a community that has sold two jackpot-winning tickets of at least $200 million each.

Fortune cookie payout

The Powerball drawing on March 30, 2005 game produced an unprecedented 110 second-prize winners, all of whom picked the five white balls correctly but missed the Powerball number. The total payout to 5+0 winners was $19.4 million; 89 tickets won $100,000, and the other 21 tickets won $500,000 due to the PowerPlay option.

Powerball officials initially suspected a reporting error or fraud, but it turned out that all the winners had received their numbers from fortune cookies made by Wonton Food Inc., a fortune cookie factory in Long Island City, Queens, New York. The factory had printed the five regular numbers (22, 28, 32, 33, and 39) on thousands of fortunes. The sixth number in the fortune, 40, did not match the Powerball number, 42. None of the employees of Wonton Food played those numbers. Since the matches had been the result of a coincidence and not foul play, the payouts had to be honored.

Computers and slot machines

In 2007 the Oregon Lottery released a new Windows Vista Sidebar gadget which relays the winning numbers for Powerball in live time. The gadget also provides large jackpot announcements.

In November 2007, the Lottery Post website released the Lottery Results Gadget for Windows Vista, providing near real-time winning numbers for Powerball, in addition to results for every other lottery game offered in each state. Likewise, new jackpots are pushed to the Windows Sidebar gadget after they are announced.

In 2006, WMS Gaming released a range of slot machines under the Powerball brand name.

See also

• MUSL
• Mega Millions
• Lottery jackpot records

External links

• Official Powerball site
• Powerball Live Drawings Online