Merry Christmas indeed! Lucky N.Y. lottery player wins $49M

Comment #31

ellardfam — Thu, 30 Dec 2010 17:45:43 GMT

Yeah...what an awesome gift!So they picked a quick pick?Seems that almost all winners claim to have used the quick pick option.I play both,my numbers and QP's

Comment #30

ressuccess — Wed, 29 Dec 2010 17:44:08 GMT

Congratulations to New York winning the Powerball Jackpot. The Powerball Estimated Jackpot continues to be revised upward after Powerball continues to roll at least twice.

Comment #29

jimmy4164 — Wed, 29 Dec 2010 04:51:52 GMT

RJOh, Batiatus, HaveABall,

Thanks for your interest in this question. It turns out, the answer is at the Link I've been tacking onto my (Summaries) postings every week!

http://en.wikipedia.org/wiki/Powerball

Scroll down to the section entitled Winning Expectation. It's all spelled out there. The table even details examples of various cash and annuity amounts. I was correct that about 1/3 of ticket sales is what the cash option should be, and wrong in assuming it is not, because IT IS! I... [ More ]

Comment #28

jimmy4164 — Tue, 28 Dec 2010 20:48:01 GMT

I doubt if their explanation, if they would be willing to respond with one, would be any more than a run around to cover the fact that they are simply withholding 66.5% of ticket sales, and not 50%. Have you ever called the posted phone number of a lottery commission office? My experience calling PA regarding the Millionaire Raffle was a complete waste of my time. I'm hoping someone here has heard or read an official position on this.

Comment #27

jimmy4164 — Tue, 28 Dec 2010 20:36:31 GMT

HaveABall,

There isn't much I can disagree with in your post, but it doesn't address my original concern. Using my example from above, you're telling us that a cash option winner will eventually receive the entire $33M after 12 years of smart investing. My question is WHY should a Jackpot winner have to wait at all, and be a savvy investor to boot, to be paid THE MONEY THAT WAS JUST RECENTLY DEPOSITED IN A BANK FROM PROCEEDS OF CASH TICKET SALES!

--Jimmy4164

p.s. I hope there weren't an... [ More ]

Comment #26

HaveABall — Tue, 28 Dec 2010 19:47:23 GMT

Jimmy, and others who like to run calculations with your calculator ... if you are referring to Powerball, the annuity payments are completed at the 30th payment (over 29 years time). Were you aware that the last time that a jackpot winner chose the ANNUITY option was October 10, 2007? That is a long time, and should make you think!

Most of these jackpot winning CASH OPTION recipients (even after paying the apx. 35% federal taxes plus their state's taxes) are able to obtain the SAME amount o... [ More ]

Comment #25

RJOh — Tue, 28 Dec 2010 19:44:41 GMT

But the lump sum is NOT the full 1/3 of sales, as I think it should be.

Have you discussed your concerns with the PowerBall people? They may have a reasonable explanation.

Comment #24

jimmy4164 — Tue, 28 Dec 2010 19:23:53 GMT

Batiatus,

After a second reading I see that in my earlier response to your post I misstated your position. I said that you agree with the lottery's calculation, when clearly, you are at least questioning it when you say, there is not much transparecy with the present value calculation done by the lotteries.

Sorry about that.

I hope you'll continue in this discussion at:

https://www.lotterypost.com/thread/223792/1894878

--Jimmy4164

Comment #23

dpoly1 — Tue, 28 Dec 2010 15:08:44 GMT

I used to wish that some young man would win the PA Lottery in the 1970's .............

............ now I am hoping that some old man has a Happy New Year's Gift of about $80,000,000 after taxes Tonite!

that Grey Violet Bentley that I like is still available for one grand mid-life crisis

Comment #22

jimmy4164 — Tue, 28 Dec 2010 05:13:24 GMT

Batiatus,

We're not too many pages away from each other on this. Take a rough hewn example:

$100,000,000 Total Sales since last jackpot payoff

$17,000,000 Payouts for Powerball, 1WB + PB, 2WB + PB,,,,, 5WB

$50,000,000 Lottery's Advertized Cut

$33,000,000 Announced Jackpot Amount

Here is where we differ...

You accept the Lottery's calculation that allows them to get away with giving [about] $16,500,000 to some place like Peachtree in exchange for them guaranteeing the win... [ More ]

Comment #21

ttech10 — Tue, 28 Dec 2010 00:35:16 GMT

You have to look at how the lottery invests though in comparison to how we would. They have companies bidding over who gets to be in charge of the investing which keeps the interest rates higher than you will find most anywhere else (at least during these times).

Comment #20

Batiatus — Mon, 27 Dec 2010 23:25:04 GMT

The lump sum payout is simply the present value of an future annuity. Generally, you could take the lump sum and give it to someplace like Peachtree. Then they could structure the lump sum into an annuity if you should change your mind.

One thing I agree on, there is not much transparecy with the present value calculation done by the lotteries. Interest rates are so low right now that you would think the lump sum payouts would be increased from years past

Comment #19

freeobama — Mon, 27 Dec 2010 22:26:02 GMT

Concrads to NY and their first powerball win,After spending $200 a week faithfully on mega million or powerball for the past 5years maybe i can win a dollar in this sorry state i love and live in

Comment #18

Abdi — Mon, 27 Dec 2010 18:41:15 GMT

this christmass gift could not have come at a better time than this.

Comment #17

dpoly1 — Mon, 27 Dec 2010 14:24:34 GMT

And the NY and Federal Tax Grinch's get their rotten hands on the winner's money!

Jackpots should be tax free, then the economy would actually be stimulated!

this is me trying to pound some sense into a liberal politician!

Congrats to the winner

Comment #16

ttech10 — Mon, 27 Dec 2010 09:41:43 GMT

I think we both just have different thoughts on this. I really don't see a problem with the announced jackpot being about twice as much as the lump sum as they tell you it's the annuity amount (at least at the places I see the jackpot amounts) and also because any jackpot win would be enough for me so don't see an issue with jackpots not being high enough.

Comment #15

jimmy4164 — Mon, 27 Dec 2010 07:25:53 GMT

First of all, I need to correct my original statement. The Jackpot part of the Powerball payback is not really 1/2 of sales, it is more like 1/3 of sales. The other 17% (or so) is paid back to the winners of the lesser prizes.

You're correct that annuity recipients DO get more than the lump sum people, over 20 or 30 years. But the lump sum is NOT the full 1/3 of sales, as I think it should be. It is 1/2 of 1/3 of sales. Check some of the results and I think you'll see that the lump sum is alw... [ More ]

Comment #14

ttech10 — Mon, 27 Dec 2010 06:37:47 GMT

It would make more sense to me if cash option winners received the full (1/2) of sales and annuity winners received an even larger amount

Isn't that how it is though? If you choose annuity you get an even larger amount than the people who chose lump sum (who do get the full amount of the money). I don't know, that's the way I see it.

Comment #13

jimmy4164 — Mon, 27 Dec 2010 06:05:35 GMT

Does anyone know the rationale that lotteries use to justify only paying out approximately one half of jackpot amounts when the winner chooses a lump sum? In terms of the effects of compound interest on the present and future value of the winnings, it seems to me they have it backwards.

Since lottery tickets are only sold for cash, on the day of any given drawing, the full amount of the sale proceeeds should be on deposit in the respective state's bank. Initially, approximately 1/2 is held ba... [ More ]

Comment #12

dingo — Mon, 27 Dec 2010 06:03:45 GMT

I wonder if this winner had written a convincing letter to Santa Claus.

Comment #11

ttech10 — Mon, 27 Dec 2010 04:00:46 GMT

Also just by the law of averages it's bound to happen much more often. I'm mid-20s myself and there's not really anyone else I know that plays the lottery. One of my friends will pick one or two up every now and then (and usually only if he's with me when I'm buying mine) but other than that there's nobody else.

I like seeing young (20s-30s) people win just because it's something different and not just well we like our life now so we're just going to pay off everything and put the rest i... [ More ]

Comment #10

Genome — Mon, 27 Dec 2010 00:55:59 GMT

Yeah you're right it does seem more fair for someone older to win PB or MM. Seeing someone around my age just gives me hope that I could win a jackpot pretty soon.

Comment #9

dphillips — Sun, 26 Dec 2010 21:52:20 GMT

Genome, why do you hope the person is someone young like you? If you are young and in excellent health, you have plenty of time to make your financial mark in life -- and that is called -- patience. Perhaps, I can understand someone who is older: they have paid their dues, working, and their longevity may or may not be as long as yours.

Often, I read comments from some of the young posters over the years, expressing their disdain if someone older wins: it is as if the young posters deserve wi... [ More ]

Comment #8

NYSlugger 777 — Sun, 26 Dec 2010 19:08:08 GMT

Wow and I just checked the website turns out the Jackpot winner used the quick pick option to let the computer select the number for them.Congrads to whoever it was on the big win.

I played quick pick last night too with powerplay and it didnt match a single number for me.

My #'s were 19, 22, 35, 53, 55, and powerball 07

Comment #7

kapla — Sun, 26 Dec 2010 16:33:56 GMT

And it WASN'T some one from NY City!!! YEA

Comment #6

kennedygrandma — Sun, 26 Dec 2010 16:01:59 GMT

So happy for them. Its a blessing I love to hear about people winning I know one day soon it will be me.

Comment #5

sully16 — Sun, 26 Dec 2010 13:13:57 GMT

wow, how cool is that to win on Christmas. congrats to the winners.

Comment #4

barbos — Sun, 26 Dec 2010 10:04:31 GMT

So the odds are really 1 in 195,249,054? No wonder there isn't a Nobel prize for mathematicians, hehe. Happy holidays to the winner and all LP guys, wish you good luck.

Comment #3

ttech10 — Sun, 26 Dec 2010 08:40:46 GMT

Congrats to them, wonder if it was a stocking stuffer. I only put $1 into this drawing, gonna use my normal PB budget towards MegaMillions.

Comment #2

louise black — Sun, 26 Dec 2010 07:57:54 GMT

What a gift from Santa, bet no one else had a Christmas Gift that big.Congrat!!!! to the lucky winner.

Comment #1

Genome — Sun, 26 Dec 2010 07:30:15 GMT

I hope it is someone young like me.

Merry Christmas indeed! Lucky N.Y. lottery player wins $49M

Lottery Post — Sun, 26 Dec 2010 06:53:38 GMT

By Todd Northrop

It will probably be the merriest Christmas one New Yorker has ever known.

That's because one lucky lottery player from New York has won the Powerball jackpot in the Christmas drawing Saturday evening.

It will likely be the furthest thing from a Silent Night in the winner's household, as they will either win a $48.8 million annuity jackpot, or a $23.1 million lump-sum cash option.

Of course, the federal government and the state of New York will be also singing Joy to... [ More ]