Arizona programs to benefit from Powerball frenzy
Powerball jackpot soars, but what's the real payout?
The Powerball jackpot has grown to an estimated $1.3 billion for Wednesday's drawing, making it the fifth-largest jackpot in the game's history. FOX 10's Lauren Clark has more on how Arizona benefits from the frenzy.
PHOENIX - The Powerball jackpot has grown to an estimated $1.3 billion for Wednesday's drawing, making it the fifth-largest jackpot in the game's history.
By the numbers:
The advertised jackpot amount is the total prize if a winner chooses to receive the winnings as an annuity, paid out in 30 graduated installments over 29 years. The cash value, which is the amount the lottery has on hand to pay the winner in a single lump sum, is estimated at $589 million.
According to lottery officials, the disparity between the jackpot and the cash value is because the annuity option is based on the lottery investing the lump sum amount and paying out the winner with the earnings over time. The higher the interest rates, the larger the advertised jackpot can be.
The winner would have to choose between the annuity or the lump-sum cash option. Both options are subject to federal and state taxes.
Where does the rest of the money go – in this case, more than $600,000,000?
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Powerball jackpot soars to $1.3 billion after no winner Monday night
The new lottery prize is now the fifth-largest in the game’s history with the drawing set for Wednesday night.
What we know:
If no one in Arizona wins the big prize, the state will still benefit.
"This is a really big moment. We haven't seen one of these large jackpots in quite a while," said Alec Thomson, CEO of the Arizona Lottery.
Thomson said about 30% of every Powerball ticket sold in Arizona stays in the state to fund programs in five key areas: higher education, health and human services, business and economic development, and environmental conservation.
State law requires the Arizona Lottery to fund 17 specific programs, including the Victim's Rights Program, the Internet Crimes Against Children Fund, and Homeless and Transitional Services. The amount of money generated depends on how many people play.
"It really is a large impact that is touching every Arizona community and making the quality of life in our state stronger," Thomson said.
He added, "We like to say, 'You can’t win if you don’t play.' And 'if you don’t win, your community does.'"
What they're saying:
Here are some responses from Arizonans when asked about the jackpot:
- "It’s a lot of money."
- "I don’t even know what I would do with all of that."
- "$1.3 billon? That’s a lot of money."
- "Gone fishing! Everything would be paid off, and we would have all new toys."
- "Invest it. Make generational wealth."
- "Buy my mom a house and stuff."
- "I would probably just invest in some big property and stay cozy and get some goats, and cats and donkeys and cows and have a little farm and chill."