Powerball to lower jackpot starting point and increases due to plunge in sales

Mar 25, 2020, 5:57 pm (75 comments)

Powerball

Coronavirus strikes again

Today the Powerball Product Group announced it is making changes to the multi-state lottery game's jackpot due to sagging sales caused by the COVID-19 coronavirus.

Following the next grand prize win, Powerball's starting jackpot will reset to a guaranteed $20 million (annuity) with minimum roll increases of $2 million between drawings.

Previously the starting point was $40 million, with guaranteed $10 million increases between drawings that did not produce a jackpot winner.

"Powerball players in many U.S. lottery jurisdictions are under shelter-in-place orders or recommendations from their governors or mayors, which has affected normal consumer behaviors," Bishop Woosley, director of the Arkansas Scholarship Lottery, said. "Just like other enterprises around the world that are making adjustments, the lottery industry is making proactive changes to continue to offer the world's premier lottery product."

Tonight's advertised jackpot is a guaranteed $150 million; $114.8 million cash value. If the jackpot is won in tonight's drawing, the jackpot will reset to a guaranteed $20 million (annuity) for the Saturday, March 28 drawing with minimum jackpot roll increases of $2 million between drawings. If the jackpot is not won tonight, then the jackpot will grow to an estimated $160 million (annuity).

Powerball tickets are $2 per play. Drawings are held every Wednesday and Saturday at 9:59 p.m.

Lottery Post Staff

Comments

NY10

😂😂😂😂😂

LOL

what is Mega Millions waiting for ?

noise-gate

Is that the way you gonna play huh? Well, how about dropping it to $1 a line as well. Or $2 a line, but pick from 50 balls from one barrel & 10 mega balls. Fair is fair.Approve

hearsetrax's avatarhearsetrax

Skeptical

En ReVal

I agree, you want to start at a smaller amount but want $2. I hope both lotteries reach a billion by May

andl's avatarandl

MM has went up only 6 million. I'd imagine PB would do the same.

kao1632

It won't just be reduced sales... there is also the matter of how much cash they have to front up with for those $10m increases or $20m start...

The ratio of cash value to announced jackpot has hit 80% (three draws ago.. Jackpot $120m cash $96.1m -- 80.8% of jackpot.)

Meanwhile, the Jan 13, 2016 draw.. jackpot of $1,586.4 million.. cash value $983.5m is a rate of 62% (@62% $96.1m cash would  dictate a jackpot of $155m)

@62% $40m start needs cash of $24.8m

@80.8% $40m start needs cash of $32.32 ($7.52m more)

hearsetrax's avatarhearsetrax

Quote: Originally posted by En ReVal on Mar 25, 2020

I agree, you want to start at a smaller amount but want $2. I hope both lotteries reach a billion by May

Would love to see it hit the billion mark ... but highly unlikely by May

but maybe by the later part of July at the rate things are going

MsBee18

Sales are probably down because it's so freaking hard to win a prize.

MsBee18

Quote: Originally posted by kao1632 on Mar 25, 2020

It won't just be reduced sales... there is also the matter of how much cash they have to front up with for those $10m increases or $20m start...

The ratio of cash value to announced jackpot has hit 80% (three draws ago.. Jackpot $120m cash $96.1m -- 80.8% of jackpot.)

Meanwhile, the Jan 13, 2016 draw.. jackpot of $1,586.4 million.. cash value $983.5m is a rate of 62% (@62% $96.1m cash would  dictate a jackpot of $155m)

@62% $40m start needs cash of $24.8m

@80.8% $40m start needs cash of $32.32 ($7.52m more)

I must admit the recent cash payout has been generous.

andl's avatarandl

Cash value is based off the 30 Year treasury rate. Right now the 30 year rate is near historic lows. That is why the cash value is so high.

NY10

Quote: Originally posted by andl on Mar 25, 2020

Cash value is based off the 30 Year treasury rate. Right now the 30 year rate is near historic lows. That is why the cash value is so high.

How so ?

I thought cash value is based on the cash on hand after expenses of the game 

Think's avatarThink

They have been making the games worse and worse and they had been looking for a convenient excuse to make them worse yet...bingo they got lucky and found one.

Powerball and MegaMillion have not been good for at least 5 to 7 years.

Next step is for them to find a way to get a multi-trillion dollar jackpot that nobody wins except once every 30 years.

Unlucky fool

Lower jackpots for an impossible odds game will surely help sell more tickets. Roll Eyes

Ranett's avatarRanett

It would interesting to see what happens after the COVID crisis is over. I haven't bought a powerball ticket in 6 or 7 weeks so it won't change my habits anyway.

SaraAnnRapp's avatarSaraAnnRapp

Quote: Originally posted by Unlucky fool on Mar 25, 2020

Lower jackpots for an impossible odds game will surely help sell more tickets. Roll Eyes

Ain't that the truth! LOL

SaraAnnRapp's avatarSaraAnnRapp

Quote: Originally posted by Ranett on Mar 25, 2020

It would interesting to see what happens after the COVID crisis is over. I haven't bought a powerball ticket in 6 or 7 weeks so it won't change my habits anyway.

I too have stopped buying tickets for these games. Right now I'm going to wait until April to see if my state runs the planned raffle. If so I will buy tickets for that. But I don't know when I will go back to playing PB and MM.

Stack47

"making changes to the multi-state lottery game's jackpot due to sagging sales"

How will lowering the jackpot create better sales? 

Just wondering.

Teddi's avatarTeddi

So instead of decreasing the ticket price or improving the odds, they've opted to make the jackpot less appealing to John Q Public. Yeah, makes perfect senseBS

Big Joey

Self isolation. It might be better to not play at all. Don't risk the lives of your household for non-winning lottery tickets, be ultra safe. No Pity!

JAMORA's avatarJAMORA

Quote: Originally posted by Big Joey on Mar 26, 2020

Self isolation. It might be better to not play at all. Don't risk the lives of your household for non-winning lottery tickets, be ultra safe. No Pity!

I Agree!

Stay home people!

And this change certainly didn't entice me to buy a ticket....lol

kao1632

Quote: Originally posted by NY10 on Mar 25, 2020

How so ?

I thought cash value is based on the cash on hand after expenses of the game 

cash value is (I assume) based on "cash on hand".

The annuity value (aka "the jackpot") is what they can buy with the cash value.

 

My records seem to indicate that the cash value is actually increasing (last cycle (when the jackpot got above $160m) next  is worth $171m, with a cash value of $116.2m...

$116.2m is less than the current ($160m jackpot) cash value of $122.4m.

Rushingwind$'s avatarRushingwind$

Quote: Originally posted by Teddi on Mar 26, 2020

So instead of decreasing the ticket price or improving the odds, they've opted to make the jackpot less appealing to John Q Public. Yeah, makes perfect senseBS

RantI Agree!

TheMeatman2005's avatarTheMeatman2005

In last night's Power Ball drawing there were no jackpot winners, so the annuity amount does go to $160 mil.

There were two tickets that matched 5 of 5 without the PB # for a $1 mil prize and two tickets that added the Powerplay and won $2 mil.

The two tickets without the Powerplay were sold in Colorado and the two with the Powerplay were sold in Oregon.

I wonder if each of the two tickets were purchased by the same person. What?

Some people buy the same set of numbers twice so if there are multiple winners they would receive two shares of the jackpot.

Stay safe people!

ErikB14's avatarErikB14

I believe the Power ball /Mega millions should be replaced' for a Yearly Raffle, like EL Gordo(The fat one$$)...with a guaranteed 400,000 winners. 

Im not longer interested in playing the Powerball' until they reduced the wager price to $1 buck per line.

rcbbuckeye's avatarrcbbuckeye

Quote: Originally posted by TheMeatman2005 on Mar 26, 2020

In last night's Power Ball drawing there were no jackpot winners, so the annuity amount does go to $160 mil.

There were two tickets that matched 5 of 5 without the PB # for a $1 mil prize and two tickets that added the Powerplay and won $2 mil.

The two tickets without the Powerplay were sold in Colorado and the two with the Powerplay were sold in Oregon.

I wonder if each of the two tickets were purchased by the same person. What?

Some people buy the same set of numbers twice so if there are multiple winners they would receive two shares of the jackpot.

Stay safe people!

One from Georgia with powerplay, and one from Oregon with powerplay.

reddog's avatarreddog

Quote: Originally posted by noise-gate on Mar 25, 2020

Is that the way you gonna play huh? Well, how about dropping it to $1 a line as well. Or $2 a line, but pick from 50 balls from one barrel & 10 mega balls. Fair is fair.Approve

I Agree!

TheMeatman2005's avatarTheMeatman2005

Quote: Originally posted by rcbbuckeye on Mar 26, 2020

One from Georgia with powerplay, and one from Oregon with powerplay.

On the NYS Lottery website  https://nylottery.ny.gov/powerball/past-winning-numbers it shows:

DRAWING RESULTS

DATE

WINNING NUMBERS

POWERBALL

POWER PLAY

03/25/2020

05-09-27-39-42

16

X2

close-button

POWERBALL + NO POWERPLAY

0 winners of $150 Million.

2 second-prize winners of $1 Million. Winning tickets sold in CO.

PRIZE LEVEL

NUMBERS MATCHED

PRIZE

NY WINNERS

1ST
$0.00 0
2ND $1,000,000.00 0
3RD
$50,000.00 1
4TH $100.00 23
5TH
$100.00 68
6TH $7.00 1311
7TH
$7.00 901
8TH
$4.00 6374
9TH $4.00 14649

POWERBALL + POWERPLAY

2 second-prize winners of $2 Million. Winning tickets sold in OR.

PRIZE LEVEL

NUMBERS MATCHED

PRIZE

NY WINNERS

2ND $2,000,000.00 0
3RD
$100,000.00 0
4TH $200.00 4
5TH
$200.00 11
6TH $14.00 156
7TH
$14.00 113
8TH
$8.00 820
9TH $8.00 1775
rcbbuckeye's avatarrcbbuckeye

Quote: Originally posted by TheMeatman2005 on Mar 26, 2020

On the NYS Lottery website  https://nylottery.ny.gov/powerball/past-winning-numbers it shows:

DRAWING RESULTS

DATE

WINNING NUMBERS

POWERBALL

POWER PLAY

03/25/2020

05-09-27-39-42

16

X2

close-button

POWERBALL + NO POWERPLAY

0 winners of $150 Million.

2 second-prize winners of $1 Million. Winning tickets sold in CO.

PRIZE LEVEL

NUMBERS MATCHED

PRIZE

NY WINNERS

1ST
$0.00 0
2ND $1,000,000.00 0
3RD
$50,000.00 1
4TH $100.00 23
5TH
$100.00 68
6TH $7.00 1311
7TH
$7.00 901
8TH
$4.00 6374
9TH $4.00 14649

POWERBALL + POWERPLAY

2 second-prize winners of $2 Million. Winning tickets sold in OR.

PRIZE LEVEL

NUMBERS MATCHED

PRIZE

NY WINNERS

2ND $2,000,000.00 0
3RD
$100,000.00 0
4TH $200.00 4
5TH
$200.00 11
6TH $14.00 156
7TH
$14.00 113
8TH
$8.00 820
9TH $8.00 1775

Hmmmmm.

I had just checked on USAMega.

TheMeatman2005's avatarTheMeatman2005

Quote: Originally posted by rcbbuckeye on Mar 26, 2020

Hmmmmm.

I had just checked on USAMega.

It's possible the NYS Lottery site is wrong. I'll go with the results on https://www.usamega.com/

Thanks RC

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