Mega Millions makes controversial changes starting tomorrow
Mega Millions is set to make a controversial change to its tickets from tomorrow as the cost of a single ticket will more than double from $2 to $5.
The price increase will be one of many changes to Mega Millions that officials said will result in improved jackpot odds, more frequent giant prizes and even larger payouts.
Lottery bosses are confident players won't mind paying more because the price rise will lead to larger prizes.
Joshua Johnston, lead director of the Mega Millions Consortium, said: 'Beyond big jackpots, players told us they want bigger non-jackpot prizes and that's exactly what this new game delivers.'
The revamped game will also feature improved jackpot odds, shifting from 1 in 303 million to 1 in 290 million.
Additionally, the starting jackpot will increase to $50 million, up from the previous $20 million baseline
It is only the second price increase since the game was created in 2002, after tickets were increased from $1 to $2 in 2017.
Mega Millions officials anticipate that by increasing ticket revenue and adjusting the odds, jackpots will grow larger and more rapidly, thereby attracting more players.
The cost of a Mega Millions ticket is set to more than double from the current $2 to $5
The goal is to increase revenue and provide more money to state lotteries, which in turn spend it on a variety of government services.
Mega Millions will introduce changes at a time when fewer people are buying tickets and jackpots need to reach ever-higher figures before sporadic players notice and opt to buy a ticket or two.
Whereas a $500 million jackpot once prompted lines out convenience store doors, top prizes of $1 billion now often draw more of a ho-hum response.
'The upcoming changes to the Mega Millions game mark an evolution for lottery players,' Peter Sullivan, Senior Vice President of Lottery at DraftKings told DailyMail.com.
'With bigger jackpots, improved odds, and enhanced non-jackpot prizes, we hope to see even more players participating in the lottery and turning to digital platforms like Jackpocket.'
Mega Millions and its lottery compatriot Powerball are sold in 45 states, as well as Washington DC, and the U.S. Virgin Islands. Powerball is also sold in Puerto Rico.
Powerball officials said they have no plans to change that game's odds or the $2 price for most tickets.
Multimillion-dollar jackpots may be eye catching but they are often not actually the amount lottery organizers have in the prize pool.
Lottery bosses are confident players won't mind paying more because the price rise will lead to larger prizes
Instead, it is the total amount that would be paid to a winner in installments over 30 years if the sum was invested in Treasury bonds.
If a winner chose to take a lump sum then the figure is reduced significantly.
After taxes, which very from state to state then the eventual winnings would be about one quarter of the headline prize.
Regardless of where the winner claims the money, federal taxes will always be due, and they account for a whopping 37 percent of the prize amount.
Winnings are taxed 24 percent upfront. But the total amount taken when filing will end up being 37 percent - as winners will likely end up in the highest tax bracket.
The largest US jackpots won
1. $2.04 billion, Powerball, Nov. 7, 2022 (one ticket, from California)
2. $1.765 billion, Powerball, Oct. 11, 2023 (one ticket, from California)
3. $1.602 billion, Mega Millions, Aug. 8, 2023 (one ticket, from Florida)
4. $1.586 billion, Powerball, Jan. 13, 2016 (three tickets, from California, Florida, Tennessee)
5. $1.537 billion, Mega Millions, Oct. 23, 2018 (one ticket, from South Carolina)
6. $1.348 billion, Mega Millions, Jan. 13, 2023 (one ticket, from Maine)
7. $1.337 billion, Mega Millions, July 29, 2022 (one ticket, from Illinois)
8. $1.13 billion, Mega Millions, March 26, 2024 (one ticket, from New Jersey)
9. $1.08 billion, Powerball, July 19, 2023 (one ticket, from California)
10. $1.05 billion, Mega Millions, Jan. 22, 2021 (one ticket, from Michigan)
Sources: AP archives, www.megamillions.com and www.powerball.com
