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So does anyone know the cash pot in PB,MM

Topic closed. 12 replies. Last post 11 years ago by weshar75.

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dvdiva's avatar - 8ball

United States
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September 17, 2003
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Posted: August 29, 2005, 8:22 pm - IP Logged

Judging from www.usamega.com the cash prize is 61.2% of the advertised MM jackpot and only 50.7% for the PB jackpot. Is there a formula to determine what the cash amount is or is it anyone's guess?


    United States
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    June 2, 2005
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    Posted: August 29, 2005, 8:27 pm - IP Logged

    The reason PB's cash option is less because payments will increase from year to year just like CA SLP. In Mega Millions, if players take payments, they'll receive the same amount every year [less federal and state taxes].

      RJOh's avatar - chipmunk
      mid-Ohio
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      Posted: August 29, 2005, 8:39 pm - IP Logged

      The cash value is the amount expected from ticket sales, the jackpot amount is that cash plus the expected returns if lottery invest the cash over the annuity period.  When the interest rates change so will the percent of the jackpot to the cash value.

      RJOh

       * you don't need to buy more tickets, just buy a winning ticket * 
         
                   Evil Looking       

        dvdiva's avatar - 8ball

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        Posted: August 31, 2005, 12:17 am - IP Logged

        With such a big difference I wonder if the cash prize for the new Powerball will fall below 50 percent. It would really tarnish the whole prize level reducing it to a scam if it's below 50% IMO.

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          IL
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          May 10, 2005
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          Posted: August 31, 2005, 12:34 am - IP Logged

          With such a big difference I wonder if the cash prize for the new Powerball will fall below 50 percent. It would really tarnish the whole prize level reducing it to a scam if it's below 50% IMO.

          When it gets above 100 million it should be less than 50%

            weshar75's avatar - Lottery-042.jpg
            Mcminnville, Oregon
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            Posted: August 31, 2005, 1:50 am - IP Logged

            I checked the oregon lottery website for powerball information and it said that the cash option is worded "approximately half the annuitized jackpot".  So if you win on wednesday in oregon you will only get 22 million before tax cash.

              Todd's avatar - Cylon 2.gif
              Chief Bottle Washer
              New Jersey
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              Posted: August 31, 2005, 1:54 am - IP Logged

              Just Check USA Mega.  They show exact Cash and Annuity values for both, as well as detailed after-tax information for both games.

               

              Check the State Lottery Report Card
              What grade did your lottery earn?

               

              Sign the Petition for True Lottery Drawings
              Help eliminate computerized drawings!

                Todd's avatar - Cylon 2.gif
                Chief Bottle Washer
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                Posted: August 31, 2005, 2:49 am - IP Logged

                There are forumlas for figuring out the cash value and annuity values.  They are not simple equations, but rather complex models based on interest rates, sales numbers, estimation of sales, etc.  The FAQ pages at USA Mega gives some insight into it, but the entire model is not laid out in detail anywhere.

                 

                 

                Check the State Lottery Report Card
                What grade did your lottery earn?

                 

                Sign the Petition for True Lottery Drawings
                Help eliminate computerized drawings!

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                  Morrison, IL
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                  Posted: August 31, 2005, 11:41 am - IP Logged

                  With such a big difference I wonder if the cash prize for the new Powerball will fall below 50 percent. It would really tarnish the whole prize level reducing it to a scam if it's below 50% IMO.

                    This is why both games should get rid of the annuity option and just pay out jackpot prizes in cold hard cash only.  Both games should have a guaranteed starting jackpot of $7.5 million cash, with minimum rollovers of, say, $1.5 - 2 million cash.

                    Todd's avatar - Cylon 2.gif
                    Chief Bottle Washer
                    New Jersey
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                    Posted: August 31, 2005, 12:16 pm - IP Logged

                    Some people are using the term "scam" waaaaayyy too loosely these days. 

                    Dropping the cash value below 50% might be a negative thing, but to put it in the same category as some ripoff artist scamming elderly people out of their money by calling it a "scam" is beyond wrong.

                    As soon as people call Powerball a "scam", that's when their comments lose credibility with me. 

                    Powerball is anything but a scam.  It is a well-run, above-board game that players should be flocking to play.  If you feel something should be addressed, then calling the game a scam will get your comments overlooked, rather than addressed, IMHO.

                     

                    Check the State Lottery Report Card
                    What grade did your lottery earn?

                     

                    Sign the Petition for True Lottery Drawings
                    Help eliminate computerized drawings!

                      dvdiva's avatar - 8ball

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                      Posted: September 1, 2005, 1:40 am - IP Logged

                      Well any game that has a cash prize less than half of the jackpot is really worthless. It's more like Pepsi Billions where you don't really win the billion since they are hoping for inflation to cut down the value of the prize.

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                        IL
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                        Posted: September 1, 2005, 1:53 am - IP Logged

                        It will take alot bigger jackpot to equal jack's 315 million he got, probably 365 million. Hopefully powerball will take that in account when they go to the maximum 25 million rollover.

                          weshar75's avatar - Lottery-042.jpg
                          Mcminnville, Oregon
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                          Posted: September 1, 2005, 3:03 am - IP Logged

                          It will take alot bigger jackpot to equal jack's 315 million he got, probably 365 million. Hopefully powerball will take that in account when they go to the maximum 25 million rollover.

                          At the time Jack's cash option was just north of 170 million so now the jackpot will have to be around 350 million to equal his cash option.  I do not know about the taxes though because he had a 111.7 million after the lottery took their chunk of change for taxes.