Explore what the rules are for splitting Powerball jackpots when multiple players come forward with winning tickets.
Whether you are new to Powerball or have been playing for years, it pays to know the answers to a few questions. Have you ever wondered what happens to your winnings when there are multiple winners at the same time? We’ll share the rules behind splitting Powerball jackpots.
Dividing the jackpot equally
According to Reddit, news reports, and state lottery sites, the primary rule when there are multiple winners in a Powerball drawing is that the jackpot is divided equally among all winning tickets. The total jackpot prize is shared based on the number of winning tickets, meaning that each winner receives an equal portion of the prize.
- Example: Suppose the prize is $100 million, and there are two winning tickets. Each winner will receive $50 million before taxes.
- Example: If there are three winners, each will receive approximately $33.3 million before taxes and so on and so forth.
Powerball ensures that all winning tickets are treated equally, regardless of where they were purchased. The winners can be from the same state or different states. The jackpot prize is still divided evenly.
Lump sum vs. annuity options
Once the jackpot is divided among the winners, each winner must choose between two payout options: A lump sum or an annuity. It’s a deliberate decision to make, but one that almost everyone would enjoy having.
The one-time payment of a lump sum remains popular but is typically smaller than the total jackpot amount. Taxes hurt. The lump sum take-home is typically about 60% of the final advertised Powerball jackpot amount.
Unlike the lump sum, an annuity pays the entire jackpot to the winner, but the payments are paid over a fixed period such as 30 years. These structured annual payments begin immediately following the drawing. This is a good option for people who want to secure their newfound income over time.
It’s important to note that each winner decides for themselves how they want their winnings paid. So, in the event of multiple winning Powerball tickets, each winner can choose how they’d prefer to receive their funds. Multiple winners doesn’t mean you don’t get the choice.
Tax implications
Taxes. We all hate to pay them, but they apply to Powerball wins.
Every Powerball winner pays federal taxes, and many also pay state taxes based on where they played and won. In terms of multiple winners, what you need to know is that the taxes are applied to your share. What you pay individually will depend on your overall income and tax bracket, as well as where you live.
Example: If you win a $100 million dollar Powerball jackpot but split it with another winner, you only pay taxes on the $50 million you win.
Smaller Powerball prizes
There are more ways to strike it rich with Powerball than a life-changing jackpot. In fact, hundreds of Powerball players walk away with smaller prizes, ranging from $4 to a whopping $1 million. In the event you win a smaller prize, it’s all yours, regardless of how many others win smaller prizes. So, in these instances, including with Power Play or Double Play multipliers, you’re enjoying all the loot to yourself.
Verifying your win
Powerball officials with your local Lottery Headquarters will check to verify the authenticity of your winning ticket, and that will help them determine the number of winners. Each winning ticket is independently verified for the win. Once all tickets have been accounted for, Powerball will announce the number of winners. The verification process can take some time, in particular, when the win is especially large or the number of winning tickets is numerous.
No shame in sharing
No matter the number of winners, winning the Powerball can be life-changing.Feel confident that the prize will be split evenly; that you’ll get to choose how you get paid; that how you collect your winnings are not affected by other winners; and that your ticket can be verified independently.
Powerball should be played for fun, but a win, even shared, is sure to put a smile on your face.