A MEGA Millions player has hit the $344 million jackpot but could end up losing half of their prize when they decide to come forward.
The gambler, who bought the ticket in Illinois, matched all six numbers on the popular game, becoming the second jackpot winner of the year.
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And, the player hit the jackpot just weeks before the game undergoes a revamp.
The ticket was sold at a store in Cortland and the player came up trumps on the draw that took place on March 25, per Mega Millions officials.
But, the winner will face a conundrum. They can either receive their prize as a lump sum, or take the annuity.
The jackpot prize has a cash value of $159.1 million.
But, deductions wouldn’t stop there.
In Illinois, players must pay a rate of 4.95% on their lottery winnings to the state.
And gamblers who win more than $5,000 must pay 24% to the federal government.
In Illinois, Mega Millions players have one year to claim their prize, according to the state’s lottery.
But, if the player wants to receive their winnings as a lump sum, then the amount must be claimed 60 days after the draw.
If they don’t come forward in time, then they will only be able to go down the annuity route.
This would mean that the prize would be divided into payments paid out over three decades.
The last time a Mega Millions player won the jackpot was in Arizona on January 17.
Mega Millions players will notice a series of changes from April 5.
Currently, it costs players $2 to buy a ticket. But, the price of a ticket will jump to $5.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have varying opinions on whether to take the lump sum or take the annuity.
This move has sparked controversy, with some players warning that they would stop buying a ticket.
“That is too high,” one player posted on Reddit.
“A 1 or 2 dollar purchase can be justified every so often. At $5 it is going to stop a lot of people from buying.”
Another was defiant in their tone, vowing not to play the game.
“This is gonna go bad for them, who’s gonna wanna throw $5 away for 1 ticket?” a third shopper feared.
Mega Millions chiefs have stressed that the price hike is only the second rise in the history of the game.
Players will see their odds of winning improved.
Currently, there is a one in 24 chance of winning the prize, but this will be one in 23 from April 5.
Players will see improved odds of winning the jackpot as well.
At the moment, gamblers have a one in 302.6 million chance of landing the jackpot.
Odds will improve to around one in 290.5 million once the changes have been rolled out.
Remember to gamble responsibly
A responsible gambler is someone who:
- Establishes time and monetary limits before playing
- Only gambles with money they can afford to lose
- Never chase their losses
- Doesn’t gamble if they’re upset, angry, or depressed
If you or someone you know is struggling with gambling addiction, call the National Gambling Helpline at 1-800-522-4700 or visit the National Council on Problem Gambling online.
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