California, the Golden State, will bring a lot of green to the Mega Millions Lottery jackpots when the state joins the multistate game next month. That's green as in greenbacks.
Mega Millions Lottery officials expect jackpots, under the right circumstances, to reach a staggering half of a billion dollars, said Michigan Lottery Commissioner Gary Peters.
"With California in, the computer model says there is a high probability of a $500 million Mega Millions jackpot," Peters said. The largest Mega Millions jackpot was $362 million in May 2000. Shelby Township swimming pool cleaner Larry Ross won half of the pot, $181 million.
California will become the 12th state to join Mega Millions on June 22, with the first drawing under the new alignment on June 24.
California's population of 35 million is one reason for the projected mammoth jackpots. Adding four more numbers, from 52 to 56 to the main field, is another reason. That will increase the odds of hitting the jackpot from one in 135 million to one in 178 million, Peters said.
"That means jackpots will grow bigger and faster," Peters said. "We will see more $200 million jackpots like the $208 million jackpot (won by a Michigan couple) we just had."
Mount Clemens business broker Chris Kelly of Utica doesn't like the new arrangement.
"That's insane," said Kelley, a regular lottery player. "It's getting out of hand. Only one person will win the big jackpot like that. They should divide up the big jackpots."
Even the consolation prizes will hit mega proportions under the new format, Peters said. Second-place money will be increased from $175,000 to $250,000 and third-prize money from $5,000 to $10,000.
Clinton Township used car dealer Bob Bartolomucci likes the bigger secondary prizes.
"That's the only reason I play Mega Millions -- to win the second-place money," he said.
My guess is that Fla would join Powerball instead of MM. The Mega Millions group mentioned a while ago that after signing up their next "major state" (which ended up being California), that they would not be looking to expand further.
They would have to change the matrix again if Florida joined. Plus Powerball has the incredibly lame rule regarding limits to a record pot. The only lottery that even has a chance at 400+ is Mega. Good thing I live in a Mega state that is also income tax free :)
I think once the MM jackpot goes to $400 or $500 million and half the state of Florida is driving to Georgia to buy MM tickets somebody in Florida is going to start to ask to get MM in the state.
They can hold out for awhile longer but, I think the people of Florida would like to get Mega Millions in their state.
Powerball needs Florida more than Mega Millions does. Especially since Powerball is increasing their matrix as well, they need more states to support higher rollovers. It is totally bogus to increase the matrix without higher rollovers to compensate for it.
I have a question for the more knowledgeable lottery players than I.
Occasionally I will slip into Indiana to play power ball.
My question is if I was ever so lucky to hit a taxable prize would I be required to pay Indiana taxes as well as my own states?
I do see that Arizona has a non resident tax of 6% but nothing is said of the other states?
I find that the lure of the power play is strong enough for me to try my luck---- a 100k with a power play would be a good prize
Interesting question which doesn't have a definite answer because it will depend on the states involved. If you were to win in another state which has a state income tax, they will withhold federal and state income taxes from your winnings. What you would probably have to do is file a non-resident tax return in that state for those winnings. How nonresident income is taxed varies from state to state, so check the websites of the taxation departments of the states you are wondering about(the one you live in and the state of Indiana in your case) to get a definitive answer. In most situations, that state will only tax you on the income you received from them, and not other income you receive.
How your own state will tax you also varies. My state figures taxable income based on what is on the federal tax forms, so I'd have to pay my state's taxes on the income. In my state, if someone lives in the state for the entire year and pays income taxes to another state, the taxes can be deducted from the state income tax.
It's a complicated question that would require alot of research of all states involved and possibly the feds.
1. Their computer says that there is a high probability of a $500 million jackpot (Probably going to a Californian). Remember when computers were going to revert back to 1900? Anyway, are they taking into account that a huge lottery-playing population could work both ways? It could result in a high probability of a huge jackpot, but it could also result in several low jackpots getting hit.
2. How can they expect to have a jackpot in which the cash option was bigger than the odds. In theory, some rich businessman could buy out the game.
1. Their computer says that there is a high probability of a $500 million jackpot (Probably going to a Californian). Remember when computers were going to revert back to 1900? Anyway, are they taking into account that a huge lottery-playing population could work both ways? It could result in a high probability of a huge jackpot, but it could also result in several low jackpots getting hit.
2. How can they expect to have a jackpot in which the cash option was bigger than the odds. In theory, some rich businessman could buy out the game.
For #2, in theory I guess it's possible, but in reality it's impossible. given the realities of the situation, there is absolutely no way to buy all the Mega Millions combinations, especially with the new matrix with 176m combos. Logistically it could never be done. Also, since lottery transactions for the most part need to be handled in cash, there's very little chance of having $176 million in cash to do it.
If MM ever got to half a billion, I think everyone even those who believe it's wrong to gamble with play. Lines would be long. I like standing in line for tickets though. Just to think if no one wins this time, there will be a great rollover prize.
I found it interesting that last year, very little was made of the fact that soldier who won $150 million, did it by buying just one ticket. And yet maybe that happens more than I'd care to realize. Someone's buying tickets for 25 years, doesn't win a dime and another who's never even seen a lottery ticket before, ends up winning the jackpot.
They would have to change the matrix again if Florida joined. Plus Powerball has the incredibly lame rule regarding limits to a record pot. The only lottery that even has a chance at 400+ is Mega. Good thing I live in a Mega state that is also income tax free :)
How is it lame? That's just greed kicking in there. There is no difference between $300 Million and $500 Million unless you aspire to be an owner of an NFL team.
The Match 5 Bonus rule for Powerball is a great idea. To cap the prize and rolldown millions to the 5 out of 6 prize level. Then you could have multiple millionaires.
They would have to change the matrix again if Florida joined. Plus Powerball has the incredibly lame rule regarding limits to a record pot. The only lottery that even has a chance at 400+ is Mega. Good thing I live in a Mega state that is also income tax free :)
How is it lame? That's just greed kicking in there. There is no difference between $300 Million and $500 Million unless you aspire to be an owner of an NFL team.
The Match 5 Bonus rule for Powerball is a great idea. To cap the prize and rolldown millions to the 5 out of 6 prize level. Then you could have multiple millionaires.
But the Match 5 Bonus hasn't even ever been hit.
And yet if you look at the Forbes lists, you see that the truly rich have many multiples of $500 million, so it's all relative. Of course I don't need $500 or $300 million to have the life I want, but having that money would put me in a position to help a lot of people and that is power I would like to have.
i think one of the reasons would be mega millions has higher jackpots more often.then you have that match 5 rule where the jackpot can't get but to a certain amount.also mega millions pay out more if you match all 5 numbers correctly.........
I can see either MM or PB passing another $315 million with a fortunate run. As far as $500 million, even with the new matrices plus California for MM, I'm a little skeptical. I'd love to be proven wrong.
I don't get how anyone could ask what the difference between 300 and 500 million is. I hope you hire a non-enron accountant to do your tax if you win. The irs will know the difference. Plus people always seem to forget that if you win 500 million you don't get a check for 500 million. you will only get 1/3 or less. Something that just keeps escaping people.
I also think MM is the better lottery to play. I live in a state that has Powerball but I drive across the Great River to play Mega Millions. It just has better prizes. I read a while back that PB was considering limiting the increases to $25 million. My question is what happens to the rest of that money. You know when the jackpot gets high, more people play.
I have a question for the more knowledgeable lottery players than I.
Occasionally I will slip into Indiana to play power ball.
My question is if I was ever so lucky to hit a taxable prize would I be required to pay Indiana taxes as well as my own states?
I do see that Arizona has a non resident tax of 6% but nothing is said of the other states?
I find that the lure of the power play is strong enough for me to try my luck---- a 100k with a power play would be a good prize
You will have to pay a withholding tax when you pick up your lottery check, but you will be credited that amount when you pay your state tax.
Yeah and Mega Millions was supposed to have $400 Million jackpots the last time they changed the matrix.
Now all Mega Millions needs to do is focus on getting Florida to join.
My guess is that Fla would join Powerball instead of MM. The Mega Millions group mentioned a while ago that after signing up their next "major state" (which ended up being California), that they would not be looking to expand further.
FL won't go multi-state under Jeb Bush.
You will have to pay a withholding tax when you pick up your lottery check, but you will be credited that amount when you pay your state tax.
Thanks for the info:
Not that I really have any expectations of ever hitting a large prize. I do enjoy the game of what if.
I wish FL would join Powerball.
They would have to change the matrix again if Florida joined. Plus Powerball has the incredibly lame rule regarding limits to a record pot. The only lottery that even has a chance at 400+ is Mega. Good thing I live in a Mega state that is also income tax free :)
I think once the MM jackpot goes to $400 or $500 million and half the state of Florida is driving to Georgia to buy MM tickets somebody in Florida is going to start to ask to get MM in the state.
They can hold out for awhile longer but, I think the people of Florida would like to get Mega Millions in their state.
It's the right thing to do.
Mike
It will be really interesting and exciting to see a 500 million jackpot for mega millions if it does happen in the next year.
Powerball needs Florida more than Mega Millions does. Especially since Powerball is increasing their matrix as well, they need more states to support higher rollovers. It is totally bogus to increase the matrix without higher rollovers to compensate for it.
i've been doing a poll on if there will be a 500 million jackpot these past weeks......
I have a question for the more knowledgeable lottery players than I.
Occasionally I will slip into Indiana to play power ball.
My question is if I was ever so lucky to hit a taxable prize would I be required to pay Indiana taxes as well as my own states?
I do see that Arizona has a non resident tax of 6% but nothing is said of the other states?
I find that the lure of the power play is strong enough for me to try my luck---- a 100k with a power play would be a good prize
Interesting question which doesn't have a definite answer because it will depend on the states involved. If you were to win in another state which has a state income tax, they will withhold federal and state income taxes from your winnings. What you would probably have to do is file a non-resident tax return in that state for those winnings. How nonresident income is taxed varies from state to state, so check the websites of the taxation departments of the states you are wondering about(the one you live in and the state of Indiana in your case) to get a definitive answer. In most situations, that state will only tax you on the income you received from them, and not other income you receive.
How your own state will tax you also varies. My state figures taxable income based on what is on the federal tax forms, so I'd have to pay my state's taxes on the income. In my state, if someone lives in the state for the entire year and pays income taxes to another state, the taxes can be deducted from the state income tax.
It's a complicated question that would require alot of research of all states involved and possibly the feds.
PrisonerSix
Here's what I don't quite get.
1. Their computer says that there is a high probability of a $500 million jackpot (Probably going to a Californian). Remember when computers were going to revert back to 1900? Anyway, are they taking into account that a huge lottery-playing population could work both ways? It could result in a high probability of a huge jackpot, but it could also result in several low jackpots getting hit.
2. How can they expect to have a jackpot in which the cash option was bigger than the odds. In theory, some rich businessman could buy out the game.
Here's what I don't quite get.
1. Their computer says that there is a high probability of a $500 million jackpot (Probably going to a Californian). Remember when computers were going to revert back to 1900? Anyway, are they taking into account that a huge lottery-playing population could work both ways? It could result in a high probability of a huge jackpot, but it could also result in several low jackpots getting hit.
2. How can they expect to have a jackpot in which the cash option was bigger than the odds. In theory, some rich businessman could buy out the game.
For #2, in theory I guess it's possible, but in reality it's impossible. given the realities of the situation, there is absolutely no way to buy all the Mega Millions combinations, especially with the new matrix with 176m combos. Logistically it could never be done. Also, since lottery transactions for the most part need to be handled in cash, there's very little chance of having $176 million in cash to do it.
If MM ever got to half a billion, I think everyone even those who believe it's wrong to gamble with play. Lines would be long. I like standing in line for tickets though. Just to think if no one wins this time, there will be a great rollover prize.
I doubt we'll see $500 million for a while, even with CA.
I found it interesting that last year, very little was made of the fact that soldier who won $150 million, did it by buying just one ticket. And yet maybe that happens more than I'd care to realize. Someone's buying tickets for 25 years, doesn't win a dime and another who's never even seen a lottery ticket before, ends up winning the jackpot.
They would have to change the matrix again if Florida joined. Plus Powerball has the incredibly lame rule regarding limits to a record pot. The only lottery that even has a chance at 400+ is Mega. Good thing I live in a Mega state that is also income tax free :)
How is it lame? That's just greed kicking in there. There is no difference between $300 Million and $500 Million unless you aspire to be an owner of an NFL team.
The Match 5 Bonus rule for Powerball is a great idea. To cap the prize and rolldown millions to the 5 out of 6 prize level. Then you could have multiple millionaires.
But the Match 5 Bonus hasn't even ever been hit.
They would have to change the matrix again if Florida joined. Plus Powerball has the incredibly lame rule regarding limits to a record pot. The only lottery that even has a chance at 400+ is Mega. Good thing I live in a Mega state that is also income tax free :)
How is it lame? That's just greed kicking in there. There is no difference between $300 Million and $500 Million unless you aspire to be an owner of an NFL team.
The Match 5 Bonus rule for Powerball is a great idea. To cap the prize and rolldown millions to the 5 out of 6 prize level. Then you could have multiple millionaires.
But the Match 5 Bonus hasn't even ever been hit.
And yet if you look at the Forbes lists, you see that the truly rich have many multiples of $500 million, so it's all relative. Of course I don't need $500 or $300 million to have the life I want, but having that money would put me in a position to help a lot of people and that is power I would like to have.
mega millions has a better edge over powerball as the game to play.....
How...
so?
i think one of the reasons would be mega millions has higher jackpots more often.then you have that match 5 rule where the jackpot can't get but to a certain amount.also mega millions pay out more if you match all 5 numbers correctly.........
.....but powerball does have the multiplier that is one advantage powerball does have....
I can see either MM or PB passing another $315 million with a fortunate run. As far as $500 million, even with the new matrices plus California for MM, I'm a little skeptical. I'd love to be proven wrong.
I don't get how anyone could ask what the difference between 300 and 500 million is. I hope you hire a non-enron accountant to do your tax if you win. The irs will know the difference. Plus people always seem to forget that if you win 500 million you don't get a check for 500 million. you will only get 1/3 or less. Something that just keeps escaping people.
I also think MM is the better lottery to play. I live in a state that has Powerball but I drive across the Great River to play Mega Millions. It just has better prizes. I read a while back that PB was considering limiting the increases to $25 million. My question is what happens to the rest of that money. You know when the jackpot gets high, more people play.