CASH CLAIM
I won $1m from a scratch-off lottery ticket but walked away with nearly half when I cashed in all thanks to my choice
The choice between two specific options is highly controversial
A LUCKY player has landed a life-changing win from the lottery but walked away with only half the prize pot after a crucial decision.
The winner, a beekeeper by trade, carded a $1 million prize from a state's lucrative scratch-off game.
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North Dakota resident Mason Maxwell, 47, was in Florida — where he lives in the summertime – when he decided to purchase a Diamond Mine 20X ticket from a SunStop gas station, per a press release from Florida Lottery officials.
The gas station was near Highway 441 in Lake City, about 61 miles west of Jacksonville.
After scratching off the ticket in his car last June, the part-time resident found out he'd hit the big time.
The ticket revealed a $1 million prize in what officials dubbed an "un-BEE-lievable" win.
Read More on the Lottery
At a price of only $10 per ticket, Mason made quite the return on his investment.
Mason later went to the Florida Lottery headquarters in Tallahassee to pick up his winnings, as is required for amounts totaling $1 million or more.
The beekeeper was then confronted with a decision that would significantly impact the money he'd won.
He could choose to receive the funds through a one-time lump sum distribution, or annuity payments throughout what was likely 20 years or more.
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Annuity payments are a viable option for many lottery winners because of the consistent and reliable cash each year, but they can also avoid significant tax implications.
Mason opted to get the money all at once through a lump sum instead, which meant he had almost half his winnings stripped away right away due to taxes.
Inside lives of lotto winners who DON'T splash the cash
TAX TURMOIL
The federal government always has an imposed tax of 24% on lottery winnings greater than $5,000.
States, however, decide their taxable rates on the funds, and fortunately for Mason, Florida does not tax lottery winnings.
Still, the 24% fee was a serious chunk.
The beekeeper walked away with about $695,000, having $305,000 taken out.
It could be argued that Mason was likely still thrilled with the win but reinforced that every lottery winner should seriously consider what's best for their situation — lump sum or annuity payments.
There are benefits to both, as Mason has the freedom to take that money and invest it, save it, or put a significant amount wherever he might choose rather than being locked into annuity payments.
Top lottery winners in the US
Millions dream of winning the lottery and finding fame and fortune. These are the biggest winners in US lottery history.
- Edwin Castro - $2.04 billion, Powerball, Nov. 8, 2022, in California.
- Theodorus Struyck - $1.765 billion, Powerball, Oct. 11, 2023, in California.
- Unknown winner - $1.602 billion, Mega Millions, Aug. 8, 2023, in Florida.
- Marvin and Mae Acosta from Los Angeles, California, John and Lisa Robinson from Munford, Tennessee, and Maureen Smith and David Kaltschmidt from Melbourne Beach, Florida - $1.586 billion, Powerball, Jan. 13, 2016.
- Unknown winner - $1.537 billion, Mega Millions, Oct. 23, 2018, from South Carolina.
- Unknown winner - he sued the mother of his child to keep his identity hidden - $1.348 billion, Mega Millions, Jan. 13, 2023, from Maine.
- Unknown winner - $1.337 billion, Mega Millions, July 29, 2022, from Illinois.
- Unknown winner - $1.326 billion, Powerball, April 7, 2024, from Oregon.
- Yanira Alvarez - $1.08 billion Powerball, July 19, 2023 in California.
- Wolverine FLL Lottery Club - $1.05 billion, Mega Millions, Jan. 22, 2021, from Michigan.
- Unknown winner - $842.4 million Powerball, Jan. 1, 2024, from Michigan.
Another argument for those who decide on a lump sum could be that life is sometimes short, and it could end before all the payments arrive to use for whatever they desire.
KEEP IT CONSISTENT
Andrew Stoltmann, a lawyer who has worked with at least 10 lottery winners, told The U.S. Sun that he still sees downsides in the lump sum and would advise toward annuity payments.
Most notably, Andrew said that many lottery winners "don't have the infrastructure" to handle the large quantity that comes with a multi-million-dollar win.
He claimed many winners also come from "lower socioeconomic backgrounds" and weren't provided with the financial education to manage the money.
"So then they take this massive sum of money and they just don't really know what to do with that," he told us.
"It's a pretty big mistake."
Read More on The US Sun
For more related content, check out The U.S. Sun's coverage of a lottery winner recently arrested over a $1 million win.
The U.S. Sun also has the story of a player who was just moments away from losing a $30,000 lottery prize.