Yikes! Cash Amounts Again!

Reply #14

Redd55 — Sat, 04 Mar 2017 18:12:12 GMT

Unfortunately, I dont see where that data is archived on the state website. Since it occurs in PB/MM, it makes sense it would happen in CA superlotto, too. It's a shame, tho.

Reply #13

James78 — Sat, 04 Mar 2017 18:07:19 GMT

I noticed something weird about the California Lottery SuperLotto Plus jackpots right before its $72 million jackpot was hit on 1/25/17.

I believe the cash value ($43.5 million) of the jackpot did not change between the 1/14/17 and 1/18/17 draws, and actually decreased from $44.5 million to $44.4 million between the 1/21/17 and 1/25/17 draws. The annuity jackpot amount went up by $1 million every draw regardless. I'm sure these numbers were estimates, but seeing the cash value of a jackpot no... [ More ]

Reply #12

KY Floyd — Fri, 03 Mar 2017 19:10:46 GMT

Of course they could decide to offer smaller starting jackpots. The rules are the ones they decide on, not some immutable natural law they can't change, and they could go back to offering starting jackpots of $10 million, just like they did 15 years ago, if they wanted to.

I suppose it's possible that they changed the rules to offer an unfunded starting jackpot of $40 million because they're idiots, but I'm inclined to think that it's because they think that it results in better overall sales... [ More ]

Reply #11

Todd — Fri, 03 Mar 2017 18:03:54 GMT

The money on multi-state lottery sales are kept within each state. If someone wins the jackpot, the money is collected from each state, and that's why it can't be instantly paid out.

There is no national lottery . Games like Powerball are played within each state, and the rules are agreed to among the states.

Reply #10

music* — Fri, 03 Mar 2017 17:56:47 GMT

With interest rates increasing the price of bonds decrease. You will have to sell the bonds at a lower price in the future.

I believe that here in California the CA Lottery Commission will purchase U.S. Government bonds to fund the thirty-year payout.

But as Todd has written, the prize increases each year.

Most people do not have experience handling hundreds of millions of dollars from a Lump Sum. I believe that experienced professionals to help the lump sum winner are needed here.

Reply #9

Zebekyia — Fri, 03 Mar 2017 17:36:02 GMT

This brings me to an interesting question. Do you know who holds the MUSL's money aka where they get the interest rate from? Is it a shop around thing or is it like state lotteries who do business with a single bank? I was just curious to always learn more, but only someone with inherit knowledge would likely know this.

Reply #8

Todd — Fri, 03 Mar 2017 13:32:43 GMT

That question doesn't make sense, and I have no idea how it relates to this topic.

Reply #7

amber123 — Fri, 03 Mar 2017 04:54:36 GMT

So how did Florida, some 15 years ago increase the Jackpot by changing the Fantasy Five game's matrix from 1-25, to 1-36

Reply #6

Todd — Fri, 03 Mar 2017 02:13:10 GMT

Well, you're wrong. They can't decide to choose a smaller jackpot if the rules of the game provide a minimum starting jackpot. It is a calculated risk.

Reply #5

KY Floyd — Thu, 02 Mar 2017 22:58:41 GMT

I doubt that they consider it a risk. They have the option of advertising smaller jackpots that can be paid for with ticket sales and selling fewer tickets, or advertising bigger jackpots that won't be fully funded and selling more tickets. I'm pretty sure they've chosen the option that they think results in the bigger long-term profit.

Reply #4

GeneralMac — Tue, 28 Feb 2017 15:50:04 GMT

You brought up a good point about interest in buying tickets dropping off the drawing after a big one goes out.

The thing I have noticed over the years is how people's perception of big has changed.

A $200 Million jackpot doesn't even entice some people to buy until it gets closer to $400 Million and is talked about in the news.

Even the smallest PowerBall will still net me over $16 Million cash after Federal and State tax with holding.

Reply #3

Todd — Sun, 26 Feb 2017 19:50:07 GMT

Very true. In fact, if you were to win the jackpot at its lowest level, that might actually be the best time to claim the annuity instead of cash. That's because when the jackpot resets (for Powerball, Mega Millions, etc.) it is rare for the cash + interest to be as much as the annuity. In other words, you're getting more money than you really should, and the lottery actually loses a bit. (Or more than a bit.) The lottery banks on the fact that there are far fewer tickets sold at that jackpot le... [ More ]

Reply #2

Redd55 — Sun, 26 Feb 2017 19:29:54 GMT

Thanks! But boy those are some big swings! 6 million bucks!

Here's to winning summer jackpots -- though I would be more than happy to take a bullet and win one now.

Reply #1

Todd — Sun, 26 Feb 2017 19:19:30 GMT

The cash value determines the annuity jackpot, not the other way around. The cash annuity being close to each in Aug. 2016 means that there were poor interest rates at the time, and if the rates were better the annuity would be higher. The cash would be exactly as it was, regardless of rates, because that's just the cash on-hand.

As the economy improves this year, the annuity jackpot amount will go up quicker than you saw in 2016, because the interest rates will improve. I'm not going to get... [ More ]

Yikes! Cash Amounts Again!

Redd55 — Sun, 26 Feb 2017 16:51:34 GMT

Looked up a $67 million cash pay out for PB in August 2016 and it was $46,400,000. Then in December the cash payout for the same amount dropped down to $40,400,000. That is a huge drop.

Hopefully, it is improving. A cash payout on $40 million was $23,700,00 in Dec and most recently $24,200,000.