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Advertised Jackpots and Cash Options

Topic closed. 3 replies. Last post 10 years ago by Coin Toss.

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Zeta Reticuli Star System
United States
Member #30470
January 17, 2006
10344 Posts
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Posted: August 12, 2006, 5:53 pm - IP Logged

(This is not about payout choices)

 Since there are many knowledgable people here, and sorry if this has been discsussed before, but when someone chooses the lesser value cash value over the advertised jackpot amount, as for the money not paid out:

1. Why doesn't it roll into the next jackpot? 

and

2. Where does it really go? 

    justxploring's avatar - villiarna
    Wandering Aimlessly
    United States
    Member #25360
    November 5, 2005
    4461 Posts
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    Posted: August 12, 2006, 6:03 pm - IP Logged

    Coin Toss, I thought that the advertised jackpot actually doesn't exist and only the cash value is available. The jackpot is the amount the lottery estimates the cash value will reach if invested for 30 years at today's interest rates. Maybe I'm wrong, but that's the way I've always looked at it.

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      Morrison, IL
      United States
      Member #4657
      May 13, 2004
      1884 Posts
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      Posted: August 12, 2006, 6:47 pm - IP Logged

      That's right. The advertised jackpot does not exist because it includes the total interest earned on the cash value over time if the winner chooses annuity payments.

        Coin Toss's avatar - shape barbed.jpg
        Zeta Reticuli Star System
        United States
        Member #30470
        January 17, 2006
        10344 Posts
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        Posted: August 12, 2006, 7:38 pm - IP Logged

        Thanks, that's what I was wondering. I was also thinking that if a private enterprise tried to get that one on they'd probably be facing racketeering charges, no?

        Makes me think of some of Losing Jeff's posts.