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Mega Millions

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File:Mega Millions logo.png
Mega Millions logo

Mega Millions is a US multi-jurisdictional $1 lottery game. Since it replaced The Big Game in May 2002 (see below), Mega Millions' advertised jackpots have started at $12 million, paid in 26 yearly installments (unless the cash option is chosen), increasing when there is no jackpot winner.[1] Reflecting common practice among American lotteries, the jackpot is advertised as a nominal value of annual installments. A cash value option, when chosen by a jackpot winner (see below), pays the approximate present value of the installments. Mega Millions currently uses a 5/56 (white balls) + 1/46 (the Mega Ball) double matrix to select its winning numbers. Each game costs players $1; in most of the 42 Mega Millions jurisdictions, players may opt to pay an extra $1 per game to multiply their non-jackpot prizes by 2x, 3x, or 4x with the Megaplier. (The Megaplier will be available to all Mega Millions players in January 2011.) Mega Millions is drawn at 11 PM Eastern time Tuesdays and Fridays, including holidays. The drawings usually are held in Atlanta, Georgia.[2]

Mega Millions holds the record for the largest US lottery jackpot, set on March 6, 2007, when two tickets, one each from Georgia and New Jersey, split a prize of $390 million (annuity). Both sets of winners chose the cash option.

The 2010 expansion of Mega Millions and Powerball

On October 13, 2009, the Mega Millions consortium and Multi-State Lottery Association (MUSL) reached an agreement in principle to cross-sell Mega Millions and Powerball in US lottery jurisdictions. The expansion occurred on January 31, 2010, as 23 Powerball members began selling Mega Millions tickets for their first drawing on February 2, 2010; likewise, 10 Mega Millions members began selling Powerball tickets for their first drawing on February 3, 2010. Montana (joining Mega Millions on March 1, 2010) was the first jurisdiction to add either game after the cross-sell expansion. Nebraska (March 20, 2010), Oregon (March 28, 2010), Arizona (April 18, 2010), Maine (May 9, 2010), Colorado, and South Dakota (the latter two on May 16, 2010) also have joined Mega Millions since the expansion.(Ohio added Powerball on April 16, 2010.) Mega Millions now is played in 42 jurisdictions, while Powerball is available in 44, with 41 lotteries selling tickets for both games.

California is the only Mega Millions member without Powerball. 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 lottery. (See Cross-selling expansion about potential national lottery game.)

Current and future participating members

Jurisdictions with Powerball only (in red), Mega Millions only (in blue), or both games (in pink) as of September 2010. Note: the District of Columbia participates in both games; the US Virgin Islands offers Powerball only

Powerball replaced Lotto*America in April 1992; Mega Millions replaced The Big Game in May 2002 (see below for the evolution of the name Mega Millions.)

Mega Millions and Powerball

Jurisdiction Powerball Mega Millions
Arizona 1994 April 18, 2010
Arkansas October 31, 2009 January 31, 2010
Connecticut 1995 January 31, 2010
Colorado 2001 May 16, 2010
Delaware 1991 January 31, 2010
Georgia January 31, 2010 1996
Idaho 1990 January 31, 2010
Illinois January 31, 2010 1996
Indiana 1990 January 31, 2010
Iowa 1988 January 31, 2010
Kansas 1988 January 31, 2010
Kentucky 1991 January 31, 2010
Maine 2004 May 9, 2010
Maryland January 31, 2010 1996
Massachusetts January 31, 2010 1996
Michigan January 31, 2010 1996
Minnesota 1990 January 31, 2010
Missouri 1988 January 31, 2010
Montana 1989 March 1, 2010
Nebraska 1994 March 20, 2010
New Hampshire 1995 January 31, 2010
New Jersey January 31, 2010 1999
New Mexico 1996 January 31, 2010
New York January 31, 2010 2002
North Carolina 2006 January 31, 2010
North Dakota 2004 January 31, 2010
Ohio April 16, 2010 2002
Oklahoma 2006 January 31, 2010
Oregon 1988 March 28, 2010
Pennsylvania 2002 January 31, 2010
Rhode Island 1988 January 31, 2010
South Carolina 2002 January 31, 2010
South Dakota 1990 May 16, 2010
Tennessee 2004 January 31, 2010
Texas January 31, 2010 2003
Vermont 2003 January 31, 2010
Virginia January 31, 2010 1996
Washington January 31, 2010 2002
West Virginia 1988 January 31, 2010
Wisconsin 1989 January 31, 2010

Powerball only

Jurisdiction Powerball Mega Millions
Florida 2009 no current plans
Louisiana 1995 no current plans
U.S. Virgin Islands 2002 no current plans

Mega Millions only

Jurisdiction Powerball Mega Millions
California no current plans 2005

Neither Mega Millions nor Powerball

Alabama, Alaska, Hawaii, Mississippi, Nevada, Utah, and Wyoming do not offer a government-run lottery; as such, they do not offer either Mega Millions or Powerball.

Although Puerto Rico has a lottery, it has no plans to add either game.

History

The Big Game

The Big Game logo prior to the Mega Millions name change.

Tickets went on sale in Georgia, Illinois, Maryland, Massachusetts, Michigan and Virginia on August 31, 1996, for the new lottery then known as The Big Game. Drawings were held weekly on Fridays.

The Georgia Lottery was a member of MUSL at the time and wanted to sell both games for the remainder of that year; however, within a few days, Georgia was forcibly removed from MUSL, returning with the cross-selling expansion.

Beginning in January 1999, jackpot winners had the choice to claim the prize in cash.

In May 1999, New Jersey joined The Big Game, the only jurisdiction to do so before the change to Mega Millions.

The Big Game Mega Millions

New York and Ohio joined The Big Game on May 15, 2002. This was when the game was changed to its second name, The Big Game Mega Millions, temporarily retaining the old name, and its "gold ball" logo. Also, the "Big Money Ball" changed its name to the "Mega Ball." After the game's name was altered, the yellow ball in the logo of the Mega Millions read "The Big Game." The first (The Big Game) Mega Millions drawing was held on May 17, 2002. Three more lotteries later joined: Washington (September 2002), Texas (2003), and California (2005). California was the last addition to Mega Millions before the cross-sell expansion of 2010. Montana joined Mega Millions on March 1, 2010, one month after the cross-sell expansion.

When Texas added Mega Millions in 2003, it offered an option available only to its players, the Megaplier, which is similar to Powerball's Power Play; the latter is available wherever Powerball is played. None of the other original (before January 31, 2010) Mega Millions members have added the Megaplier.

On June 24, 2005, to commemorate California joining Mega Millions, the drawing was held in Hollywood, with Carrie Underwood assisting Glenn Burns for the draw.

For the drawing of November 15, 2005, a group called "The Lucky 7" held the single ticket, bought in Anaheim, California, winning the $315 million jackpot. They chose the cash option, splitting $175 million before Federal tax.[3] This remains the largest prize won by a single ticket in Mega Millions.

On March 6, 2007, the Mega Millions jackpot reached $390 million,[4] which is the record for the largest jackpot total of any US lottery. The jackpot was divided by two tickets, which matched the winning numbers of 16-22-29-39-42; the Mega Ball was 20; both winners elected to receive their prize in cash, with each share $116,557,083 before taxes.[5]

Cross-sell expansion of 2010

The New Jersey Lottery, as well as others in early 2009, announced it would seek permission to sell Powerball tickets alongside Mega Millions. In October 2009, an agreement between Mega Millions and MUSL allowed all US lotteries, including New Jersey's, to offer both games. On January 31, 2010, Mega Millions expanded to include 23 Powerball lotteries. As of that date, 35 jurisdictions were participating in Mega Millions. On the same day, 10 existing Mega Millions lotteries began selling Powerball tickets, for a total of 43 lotteries. Ohio joined Powerball on April 16, 2010; currently, only California offers Mega Millions without also offering Powerball. On March 1, 2010, Montana became the first Powerball member to add Mega Millions after the cross-sell expansion. On March 20, 2010, Nebraska became the 37th Mega Millions member. On March 28, 2010, Oregon became the 38th Mega Millions member. Arizona, on April 18, 2010, became Mega Millions' 39th member. Maine, on May 9, 2010, became Mega Millions' 40th member. Colorado and South Dakota added Mega Millions on May 16, 2010, the last two additions for the foreseeable future. Mega Millions now is played in 42 jurisdictions.

Presumably due to their experience with the Power Play option for Powerball, all 23 lotteries joining Mega Millions on January 31, 2010 immediately offered Megaplier to their players. The Megaplier continues to be drawn by Texas Lottery computers, as nine Mega Millions members continue without the Megaplier. Montana, offering Powerball before the expansion date, became the 24th lottery to offer Megaplier. Nebraska became the 25th lottery to offer Megaplier. Oregon became the 26th lottery to offer Megaplier. With Arizona joining Mega Millions, it became the 27th lottery to offer Megaplier. Maine, by joining Mega Millions, became the 28th lottery to offer Megaplier. With Colorado and South Dakota joining Mega Millions, there are now 30 lotteries offering Megaplier.

According to the New Hampshire Lottery website, all Mega Millions members (specifically the 11 that offered Mega Millions before the January 31, 2010 cross-sell expansion that did not offer the Megaplier) will be required to implement Megaplier by January 2011. In an attempt to make Mega Millions' game play closer to that of Powerball, a Megaplier ticket that wins second prize is expected to fall under the same $1 million prize guarantee that Power Play currently uses. In addition, it is expected that a "combined" game will become available by October 2011; minimum play would be $5. [1]

On March 13, 2010, New Jersey became the first Mega Millions member (just before the cross-sell expansion) to produce a jackpot-winning ticket for Powerball after joining Powerball. The ticket was worth over $211 million annuity (the cash option was chosen.) On May 28, 2010, North Carolina became the first Powerball-only member just before the cross-selling expansion to produce a jackpot-winning Mega Millions ticket after joining Mega Millions. That jackpot was $12 million annuity.

Playing the game

Basic game

Since June 2005,[6] a player picks, or allows the lottery terminal to pick, five different numbers from 1 to 56 (white balls) and one number from 1 to 46 (the Mega Ball number, a gold-colored ball).[7] The Mega Ball number is drawn from a separate machine, so it can be a duplicate of one of the white ball numbers. The Mega Ball number cannot cross over to be used for matching a white ball number, or vice versa. Each play (a selection of six numbers for one draw) costs $1. Tickets may be obtained from either retail locations, or by mail through some lotteries.

Like other games that use "power" balls, two machines are used. The model used for Mega Millions is the Criterion II, manufactured by Smartplay International of Edgewater Park, New Jersey. The balls are moved around by means of counter-rotating arms which mix the balls in a random fashion. One by one, the winning numbers drop through a hole in the bottom of the mixing drum. The 56 balls in the first machine are white; the 46 Mega Balls are gold.

Previous incarnations of The Big Game and Mega Millions have used different matrices:

Date Pick 5 out of Pick 1 out of
September 9, 1996 50 25
January 13, 1999 50 36
May 15, 2002 (became Big Game Mega Millions) 52 52
June 22, 2005 (current) 56 46

Megaplier (available to most MM players)

Mega Millions players in 37 of its 42 jurisdictions have the option to activate a multiplier, called Megaplier; it is functionally similar to Powerball's Power Play. Megaplier is not offered in California, Massachusetts, New Jersey, New York, or Ohio. By doubling the wager in a game, players have an opportunity to multiply any non-jackpot prize by 2x, 3x, or 4x. The Megaplier is drawn by the Texas Lottery (before the cross-sell expansion on January 31, 2010, it was the only lottery to offer Megaplier) by a random number generator (RNG). Megaplier differs from Power Play in two ways: (1) There is no 5x Megaplier, and (2) the odds for each Megaplier possibility are not uniform (the 4x multiplier is heavily weighted so that it has a 12-in-21 chance of being selected.[8]

Megaplier Odds
2x 2:21 (9.5%)
3x 7:21 (33.3%)
4x 12:21 (57.1%)

Despite not having a 5x possibility, the extra weighting for a higher Megaplier results in the average expected Megaplier to be 3.476x over the long term. This is similar to Powerball's Power Play long-term expectation of just over 3.5x.

Megaplier wagers made for drawings after September 12, 2010 that win second prize are automatically elevated to 4x, winning $1 million. This already existed in Powerball's Power Play.

All lotteries offering Mega Millions are required to offer the Megaplier option by January 2011 (apart from Texas, none of the lotteries offering Mega Millions before the January 31, 2010 cross-sell expansion added it immediately due to logistics). As part of the Megaplier expansion to all Mega Millions members, its RNG drawings are expected to move to Atlanta, Mega Millions' home base.

The Kicker (exclusive to Ohio)

Mega Millions players in Ohio currently do not have the Megaplier option; however, they can play an add-on game, called The Kicker, for an extra $1 per ticket (rather than per game.) Six digits 0 through 9 are printed on every Mega Millions ticket generated in Ohio, below the last set of Mega Millions numbers, whether or not The Kicker is played. A The Kicker ticket matching all six digits in exact order wins $100,000; smaller prizes also are available. The Kicker has been an add-on game since 1988; it has "piggybacked" several Ohio Lottery games, but has never been an add-on to multiple games simultaneously. The Kicker was "transferred" to Mega Millions in 2005.

The Ohio Lottery has announced that The Kicker will be retired following the January 14, 2011 Mega Millions drawing. The Megaplier option will become available for Mega Millions players in Ohio beginning January 15, 2011, as part of the requirement that all Mega Millions jurisdictions offer the Megaplier by January 2011.[9]

Winning and odds

A player wins a prize according to the following chart:

Matches[10] Prize Approximate
probability
of winning
Normal balls
(pool of 56) 		Mega ball
(pool of 46)
5 1 Jackpot[11] 1 in 175,711,536 (56C5×46)[12]
5 0 $250,000 1 in 3,904,701[13]
4 1 $10,000 1 in 689,065[14]
4 0 $150 1 in 15,313[15]
3 1 $150 1 in 13,781[16]
3 0 $7 1 in 306[17]
2 1 $10 1 in 844[18]
1 1 $3 1 in 141[19]
0 1 $2 1 in 46[20]

Overall odds: 1 in 39.89.

In California, all prize levels are paid on a parimutuel basis, rather than the fixed lower-tier amounts for winners in other Mega Millions jurisdictions.

Currently, Mega Millions (1:~176 million) has better jackpot odds than Powerball (1:~195 million.)

Payment options

In Georgia, New Jersey, New York, Oklahoma, and Texas, players must also choose, in advance, whether they wish to collect a jackpot in cash or annuity. Georgia and New Jersey winners can change an annuity ticket to cash; however, the choice is binding in New York, Oklahoma and Texas.

If a jackpot prize is not claimed within the required time limit, each of the participating Mega Millions members get back all the money they contributed to that jackpot. The 36 jurisdictions use unclaimed prizes for different purposes; an unclaimed Mega Millions jackpot is most likely distributed towards educational purposes.[21][22]

In 2007, a $31 million prize went unclaimed in New York.[23] Many prizes of $250,000 each have been unclaimed, including several in Michigan for 2007 drawings.[24]

Claiming prizes

Mega Millions winners have either 180 days (California non-jackpot prizes only) or one year to claim prizes, including the jackpot (although some Mega Millions winners lose the right to collect a jackpot in cash if they wait more than 60 days after the drawing).

The minimum age to purchase a Mega Millions ticket is 18; there are three exceptions: Nebraska (19), with Arizona and Iowa having a minimum age of 21. Generally (an exception is Virginia), minors can win on tickets received as gifts; the rules according to each Mega Millions member vary for minors receiving prizes.

Laws and regulations vary slightly and are governed by the applicable laws in the jurisdiction where the ticket is sold, and the winner's residence (e.g. if a New Jerseyan buys a winning ticket near their workplace in Manhattan.) Mega Millions winnings are generally exempt from state income tax in California; Texas and Washington have no state income tax. On the other hand, residents of New York City and Yonkers, New York pay city tax in addition to state and federal taxes.

The draw

Drawings are usually held at WSB-TV in Atlanta at [25]. Formerly, the host was WSB's chief meteorologist, Glenn Burns. Now, most drawings are emceed by the new full-time host of Georgia Lottery drawings, John Crow, with Courtney Cason subbing on occasion. For jackpots in excess of $200 million, the drawing is sometimes moved to Times Square in New York City, with New York Lottery announcer Yolanda Vega hosting the draw.

Before January 31, 2010, Mega Millions was the only multi-jurisdictional lottery whose drawings were carried nationally, instead of airing only in participating jurisdictions; that was until the Powerball drawings also began to air after that date nationally via cable superstation WGN-TV in Chicago. WGN-TV simulcasts the Mega Millions drawings on its national WGN America superstation feed on Tuesdays and Fridays immediately following WGN-TV's 9 p.m. (Central time) newscast with the Powerball drawings being aired on Wednesdays and Saturdays after the 9 p.m. newscast (though both drawings air a minute later than on some television stations that carry either drawing).

Record jackpots

Cash Value Advertised Jackpot Drawing Date Winners Description
$233.1M $390M March 6, 2007 Two tickets (GA, NJ) World's largest jackpot
$224.2M $355M January 4, 2011 Two tickets (ID & WA) Largest jackpot since the January 31, 2010 cross-selling date between MUSL and the Mega Millions group;
$214M $333M August 28, 2009 Two tickets (CA, NY) NY winner elected annuity (the cash/annuity choice made when playing per NY Lottery rules)
$194.5M $330M August 31, 2007 Four tickets
$180M $363M May 9, 2000 Two tickets (IL, MI) Largest The Big Game jackpot
$175M $315M November 15, 2005 Anaheim, CA Largest MM jackpot won on 1 ticket (7 claimants)

Miscellany

In the aftermath of the attack on the World Trade Center on September 11, 2001, the legislature in Albany, fearing a monumental loss of revenue, passed legislation the following month, which was signed by Gov. George Pataki, that included joining a multi-jurisdictional lottery game. Around the same time, for entirely different reasons, Ohio's governor also gave the green light to joining a multi-jurisdictional game. Both lotteries opted to join the then-The Big Game, which, at the time, had seven members. The added populations of the two new jurisdictions, in turn, led to a larger double matrix (actually, the first machine continued to hold 52 balls, while 16 gold balls were added in the second, meaning there were 52 numbers to pick from in each part of a $1 game.) On May 15, 2002, the game was renamed The Big Game Mega Millions; soon after, it became just Mega Millions. Except for the 2010 cross-selling expansion, this was the only time The Big Game, Mega Millions, or Powerball simultaneously added more than one lottery.

In 2005, Mega Millions was the target of a mailing scam. A letter bearing the Mega Millions logo was used in a string of lottery scams designed to trick people into providing personal financial information by cashing bogus checks. The letter, which had been sent to people in several states via standard mail, included a check for what the scammers said was an unclaimed Mega Millions prize. If the check was cashed, it bounced, but not before the bank stamped it with a routing number and personal account information and sent it back to the fraudulent organization, providing them with the recipients' financial information.[26]

A budget impasse due to the 2006 New Jersey Government shutdown led to the temporary closing of less-important state agencies on July 1, 2006. Among the casualties were the Atlantic City casinos and the New Jersey Lottery. Not only were the in-house games (such as New Jersey Pick 6) not drawn for about a week, but all its lottery terminals were shut down, meaning Mega Millions could not be played in New Jersey, even though Mega Millions was drawn as usual.

Elecia Battle made national headlines in January 2004 when she claimed that she had lost the winning ticket in the Mega Millions drawing of December 30, 2003.[27] She then filed a lawsuit against the woman who had come forward with the ticket, Rebecca Jemison. Several days later, when confronted with contradictory evidence, she admitted that she had lied.[28] She was charged with filing a false police report the following day. As a result of this false report, Battle was fined $1,000, ordered to perform 50 hours of community service, and required to compensate the police and courts for various costs incurred.[29]

See also

Notes

  1. ^ FAQs, Mega Millions, Retrieved on 2009-01-12
  2. ^ http://www.megamillions.com/faqs/#4
  3. ^ http://www.megamillions.com/winners/winner.asp?bioID=94FAEA2C-A966-44C3-8D6C-620756BEDFBA&startItem=1
  4. ^ Megamillions.com
  5. ^ Megamillions.com
  6. ^ Michigan Lottery Through the Years, State of Michigan, Retrieved on 2009-01-12
  7. ^ How To Play, Mega Millions, Retrieved on 2009-01-12
  8. ^ http://www.molottery.com/mega_millions/mega_millions.jsp
  9. ^ http://www.ohiolottery.com/PDF/Ticketseller_dec_10.pdf
  10. ^ Prizes are uniform in all Mega Millions jurisdictions, except in California, where all prizes, including the jackpot, are pari-mutuel (payouts are based on sales and the number of winners of each prize level.) All other Mega Millions members' second through ninth prizes are set amounts, although in rare cases they can be reduced.
  11. ^ If more than one play wins the jackpot in a given drawing, the prize is divided equally among 5+1 plays. Winners have one year to collect a jackpot share; for other prizes, the deadline also is one year, except in California, where it is 180 days. Other than in New York, Oklahoma, and Texas (see above), a jackpot winner has 60 days from the drawing, or in some jurisdictions, 60 days after claiming, to choose cash or annuity. The relative value of a cash jackpot share fluctuates, averaging 60% of the annuity amount. Jackpots begin at $12 million (disbursed in 26 annual payments); the corresponding cash value is approximately $7 million, depending on interest rates.
  12. ^ Google.com
  13. ^ Google.com
  14. ^ Google.com
  15. ^ Google.com
  16. ^ Google.com
  17. ^ Google.com
  18. ^ Google.com
  19. ^ Google.com
  20. ^ Google.com
  21. ^ Frequently Asked Questions
  22. ^ What Happens to Unclaimed Prizes?
  23. ^ Many major U.S. lottery prizes unclaimed - UPI.com
  24. ^ Michigan.gov , Lottery - Top Unclaimed Prizes
  25. ^ Mega Millions Drawing Time11:00 PM Eastern time on Tuesdays and Fridays
  26. ^ Mega Millions Logo Officials Warn of Lottery scams - ScamFraudAlert
  27. ^ "Women argue over 'lost' jackpot". BBC News. 2004-01-06. Retrieved 2008-02-19.
  28. ^ "Midwest: Ohio: Apology For Lottery Claim". The New York Times. 2004-01-09. Retrieved 2008-02-19.
  29. ^ "Midwest: Ohio: Lottery Tale Costs Her $6,596". The New York Times. 2004-04-07. Retrieved 2008-02-19.
Preceded by World's largest lottery jackpot
May 9, 2000–February 18, 2006 		Succeeded by
Preceded by World's largest lottery jackpot
March 6, 2007–present 		Succeeded by
Incumbent
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