Why do you get more with Mega Millions?

Reply #15

LuckyLilly — Thu, 21 Jun 2007 23:39:48 GMT

I know you didn't, just be more careful next time, okay

Reply #14

Prob988 — Thu, 21 Jun 2007 23:23:04 GMT

Sorry. I didn't mean to hurt you.

Reply #13

justxploring — Thu, 21 Jun 2007 21:35:38 GMT

Take 2 aspirins and a jackpot.

Reply #12

weshar75 — Thu, 21 Jun 2007 21:23:08 GMT

I only play Powerball for the cash option so the annuity value does not concern me. When I can I play Mega Millions for the cash value too.-weshar75

Reply #11

LuckyLilly — Thu, 21 Jun 2007 20:27:41 GMT

My head hurts.

Reply #10

Prob988 — Thu, 21 Jun 2007 19:43:50 GMT

It is only useful to compare the cash value. This is what the lottery is actually worth. There are simply two different investing strategies used to inflate the jackpot for advertising purposes.

Which lottery is a better bet depends on jackpot size. For a powerball and MM at the same cash value, the PB is a better bet since the odds are better for PB, although still astronomical.

The expectation value is the ratio of the potential payoff to the odds. The higher the expectati... [ More ]

Reply #9

Todd — Thu, 21 Jun 2007 19:14:31 GMT

Reply #8

CA LotteryGuy — Thu, 21 Jun 2007 18:21:45 GMT

Powerball starts at $15 million and goes up a minimum of $5 million per draw.

Mega Millions starts at $12 million. There is no minimum increase.

Usually after 2 draws MM is at around $16 - $17 million, while Powerball is at $20 million. Mega Millions reaches around $25 Million on the third draw. Powerball is around $27 million or so.

When Powerball reaches a record high (currently $365 million) it will only grow in $25 million increments. Mega Millions has no such limitation.

Reply #7

DoubleDown — Thu, 21 Jun 2007 17:02:34 GMT

MM seems to increase slower- I think because it is played in 12 states vs. 31 for Powerball...

Reply #6

Raven62 — Thu, 21 Jun 2007 16:26:34 GMT

The Mega Millions jackpot is an estimated 26-year annuity value. When players choose the annuity option for their prize, the state lottery pays the prize out over 26 years by buying U.S. Government Treasury Securities, which earn interest and mature annually over the 26 years. That annual return is the amount the winners receive each year for the 26 year period. With the cash option, the state lottery will take the amount of money that would have been invested and will pay it directly to the

Reply #5

LuckyLilly — Thu, 21 Jun 2007 16:24:54 GMT

Does the mega jackpot rise more slowly than the powerball

Reply #4

tnlotto1 — Thu, 21 Jun 2007 16:20:28 GMT

thanks luckylilly and calotteryguy for answering this question i had wanted to know why for along time because i play both powerball and megamillions and it didnt make sense why the cash options worked out that way everytime i compared similar jackpot amounts.

Reply #3

CA LotteryGuy — Thu, 21 Jun 2007 15:53:11 GMT

The other big difference is that Mega Millions is paid out in equal installments where Powerball is paid in graduated installments.

While they are similar in that both are both annuities, they are very different in how the payments are structured.

Reply #2

LuckyLilly — Thu, 21 Jun 2007 15:23:18 GMT

Megamillions is paid out over 26 years, and Powerball over 29 (30 payments). I guess Megamillions needs more to fund an annuity that is paid out in 4 less years.

Reply #1

spy153 — Thu, 21 Jun 2007 15:08:29 GMT

I wish I had an answer for you missnyc, I was wondering the same thing myself. Also, why are the payouts so low anyway. Powerball's cash payout is less than half the advertised amount. I wonder how many winners have been so disappointed to hear the news "well, if you take the cash amount, after taxes, you will walk away with only 1/4 the original advertised jackpot?" I have trouble with the fact that over 250.00 a week is cut out of my hubby's check for taxes anyway. I am almost positive I... [ More ]

Why do you get more with Mega Millions?

MissNYC — Thu, 21 Jun 2007 15:00:13 GMT

Here's a question...when you compare the jackpot analysis for the Mega Millions with Powerball, especially when Powerball is much more (as it is currently) why does the Mega Millions seemingly pay out so much more than Powerball? Currently Powerball is 89 million with a cash payout of 40 mil, while Mega Millions is sitting at 66 million with a cash payout of 37 mil, only 3 million less than Powerball, whose jackpot is over 20 million dollars greater. Does anyone have an explanation? I'm just hap... [ More ]