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Question about Ohio Classic Lotto

Topic closed. 3 replies. Last post 6 years ago by RJOh.

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Columbus, OH
United States
Member #96391
August 28, 2010
86 Posts
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Posted: August 28, 2010, 7:33 pm - IP Logged

Hello everyone, I am new to the forum but have actually been lurking in the dark for several years now. Anyway, I had a question about the Ohio Classic Lotto. The cash value is never posted publicly (to my knowledge), but it is stated to be 50% of the jackpot amount. However, lately, rates have been incredibly low, causing cash values to be higher. For instance, a person who wins Mega Millions and opts for the cash option would be entitled to $8.3 million (69.2%) of the $12 milion annuitized value. A winner of Powerball tonight, even with its longer annuited payouts, is entiteld to $14 million (56%) of the $25 million adverstised jackpot. As a context, Mega Millions has historically carried cash value percentages somewhere between 56 and 60% while Powerball has run closer to 50% and more recently 48%.

So, my question is, does anyone know if the cash value for the Ohio Classic Lotto has also increased due to the low rates or is the cash value percentage fixed at 50%?

It would seem to me that the cash value for the Ohio Classic Lotto should be running right around 56-59% of the advertised jackpot. Of course, if the value is fixed at 50%, then I wonder why other lotto jackpots, specifically Powerball, which has a similar amount of years to the Ohio Classic Lotto for payouts, would not fix their cash value percentages regardless of the market rates.

    RJOh's avatar - chipmunk
    mid-Ohio
    United States
    Member #9
    March 24, 2001
    19901 Posts
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    Posted: August 29, 2010, 11:54 pm - IP Logged

    As stated on the Ohio Lottery website site, the cash value of Classic Lotto jackpot isn't related to the interest paid on government bonds as the jackpots of PowerBall and MegaMillions are, the state will simply pays 50% of the advertised jackpot if you prefer cash to an annuity.  Apparently any money that can be made in excess of the 50% would go to the state.

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

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      Columbus, OH
      United States
      Member #96391
      August 28, 2010
      86 Posts
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      Posted: August 31, 2010, 12:47 am - IP Logged

      RJOh, thank you for your response and for providing clarity on this issue. I find it interesting that none of the national lotteries have not gone the same route as the Ohio Classic Lotto, and cap the value that you can get should you opt for the cash option as opposed to the annuitized value. States could easily assume any money, as you stated, that can be made in excess of the 50% listed as the cash value. The same is true for other state lotteries. It seems a bit unfair but I guess the approach used by Ohio allows individuals who win to be benefit while the state can benefit as well.

        RJOh's avatar - chipmunk
        mid-Ohio
        United States
        Member #9
        March 24, 2001
        19901 Posts
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        Posted: September 2, 2010, 5:46 pm - IP Logged

        When you look at Ohio Lottery website and read Mega Million next jackpot $16.0 M cash option value:$11.1 M and see Classic Lotto next jackpot $8.0 M and read cash option value is 50% of jackpot amount you might wonder why it's not $5.5 M.

        I suspect that option allows them to advertise a higher jackpot than they have money to buy an annuity for, but as long as every winner take the cash option they won't have fund an annuity to pay the jackpot amounts.

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