HOW ARE LOTTERY JACKPOTS CALCULATED?

Those huge amounts of cash have to come from somewhere. How do the Mega Millions and Powerball jackpots get so high?

Watch for a full breakdown of how lotteries come up with those massive multi-state jackpots.

Is there a topic you think we should cover next? Let us know in the comments!

Lotteries announce that rising gas prices may be impacting sales:

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[igormazurets]

Thank you, as always for incredible detailed explanation. I really appreciate.

[tstan]

Thank you for taking the time to make this video and share the information on a somewhat complicated topic. In the future, it may be fun to make a video about the pros and cons of taking the cash option versus the 30 year annuity. For instance, most people don't realize that for a given jackpot with the annuity option, it will take about 22 years of payments to add up to the cash option's one-time payment.

[Scenarioschrijver]

Fascinating. Thanks for this video. Very intriguing. So much information.

[HeyJayMan]

Not so long ago the amount you received before taxes was about 73% of the jackpot, now it’s 60%. That means if you lived in a state with no state taxes you would take home about 56% of the total jackpot, now it’s about 45.5%. Besides, most of the big jackpots goes to California, NY and Florida.

[dexuptotheminute]

This was very informative ! I didn't know about this in the Multi State lottery games! Superb job 👏👌👍🙌

[luckyspetfriends]

Very informative video. Thanks Kate. Iam a subscriber already.

[JLW]

4:52 Taxes
6:04 Annuity Payment
7:34

[rayzumot]

is the estimated "cash value amount" that you talked about from minute 6:50 ~ 740 is the money that the winner would take home after all the Taxes ?!!

[acefire]

Of course and each state, it's a little different but pretty close to the same except if you live in certain stit's a little bit more taxing. That's kind of why you say only expect half.

[jcobbs]

Can you do jackpots with the most roll-overs in a sequence, and what the jackpot final total was?

[aquamarinekaykb]

I would always take the annual payments, always.😊

[StevenConroy-mn]

I didn't hear MY question answered, at least I don't think I did !!! It used to be that choosing to take the Cash Option gave you about 60% of the advertised jackpot, , Before your Taxes of course yet Lately the Cash Option has been LESS than 50% of the advertised Jackpot. I think that when us Voters, who voted YES on having a lottery it was stated that 60% goes back to the Winners but NOW it's LESS than 50%, and as I am sure you are aware That can be a Substantial amount of Money !!! What Say Ye ???

[clarkejoseph]

The UK Lotto needs to get rid of the Jackpot cap so that way we can get an unlimited Jackpot just like the States does.
I hope Allwyn are taking notes of this.

[williamsaemann]

Nice video. I am still confused about the annuity. What is the interest rate the winner gets for the annuity. Is it the interest rate when the annuity is purchased, does it vary year to year, etc. This needs to be considered when choosing between the annuity and cash option. The annuity is a safe investment but the cash payment can be also if you invest in low risk options and earn about 5% annually on the principal.

[gt-c-]

I still do not understand why taxes are different for same jackpot.
For instance at the time of this writing both Mega and Powerball jackpots are $312M.
But the taxes are different and the cash payout is bigger on the Powerball!
WHY?

[tonysaenz]

Does anybody know how to watch the mega millions or Powerball lottery drawings live?

[jaykaynum]

I'm greedy. I want to win the Power ball, Maga Million and Her💚

[theluckiesand]

These two current estimated cash value amounts are soooo low that it doesn't even Motivate to play.

[randyrichardson]

Hi. Thanks for the info.
I was wondering how instant
scratch off tickets are distributed through out the
state. Higher prize tickets seem
to be in certain areas. Thanks!

[victormanuelsanchezfonseca]

MANE FONSECA VICTOR MANUEL SANCHEZ FONSECA STOCKTON CALIFORNIA ❤🎉