At 11 p.m. ET on Friday, millions of people who bought a $2 ticket at their local convenience store, or a pack of them with family, friends or co-workers, will find out if they’ve won. Or maybe no one will win the jackpot, as happened in the previous 29 draws. The odds of winning are high, one in 303 million. So it probably won’t be you (sorry). But if we’re wrong and luck, fate or prayer make you a winner, it’s safe to say you’ll be faced with major life decisions: Is it better to take the lump sum or the annual payments? Can I remain anonymous? Do I need a lawyer? And what to do with all this money?
Who can buy a ticket?
The jackpot has been inflated because no one has won any of the drawings, held every Tuesday and Friday, since the winning ticket on April 15 in Tennessee. On July 26 nobody matched the five numbers and the Mega Ball. That brings us to this moment of $1.28 billion. Forty-five states, plus Washington, DC and the Virgin Islands, participate in the Mega Millions drawing. Nevada, Utah, Alabama, Alaska and Hawaii do not, but residents of those states can purchase tickets elsewhere and then travel to claim their prize. Tickets can be purchased in person at grocery stores and gas stations. Some people only buy one. Others buy in groups. You can even buy them online in some states, but you may experience delays if you wait until the last minute. Sales stop 15 minutes before the draw. Executives at Raising Cane’s, a chicken wing restaurant with locations across the United States, bought a ticket for each of its 50,000 employees for Tuesday’s $830 million drawing. One gas station took eight hours to print the tickets, but the company remains undeterred and will try again on Friday. “We’re doubling down,” AJ Kumaran, the company’s co-CEO, said in an interview with FOX’s LiveNOW on Thursday. “What’s another two dollars per person?”
What has happened to previous big plans?
Nine people came close to winning the Mega Millions jackpot on Tuesday by matching the first five white balls drawn from the numbers 1 to 70. The golden Mega Ball eluded them. The last time a Mega Millions jackpot broke the billion-dollar mark was on January 22, 2021, when the winning ticket was sold in Michigan, netting $1.050 billion. Friday’s drawing amount is the second largest for this lottery, but the competitive multi-state Powerball lottery holds a world record for the January 2016 jackpot of $1.586 billion shared by winners in California, Florida and Tennessee. The record jackpot in Mega Millions history so far is $1.537 billion, which went to a single ticket purchased in South Carolina on October 23, 2018. Its winner remains unknown.
Can a winner remain anonymous?
Each Mega Millions participating state oversees lottery operations within its jurisdiction, including sales, retailers, taxes owed and other financial obligations. Laws, including whether winners’ names are required to be announced, vary by state. Marie Kilbane of the Ohio Lottery said that in her state, that includes whether a winner owes child support. “Internally, we check whoever that person is,” he said. “With all our winners.” Ohio is one of at least seven states that allow winners, who may be wary of fraud or potential targets of crime, to conceal their identities. Others include Delaware, Maryland, Kansas, North Dakota and South Carolina. States differ in what circumstances allow winners to remain anonymous or whether they can collect in the name of a trust, he said. In Texas, a winner of $1 million or more can remain anonymous. In Arizona, winners of $100,000 or more can choose to remain anonymous, but their city and county of residence are not confidential. In California, the names of the winners are part of the public record. Some states, such as Michigan, do not allow a trust for multistate lotteries such as Mega Millions or Powerball. Not all lottery winners are required to show up at a press conference with a big smile, holding a giant fake check. In accordance with the Open Records Act, the Wisconsin Lottery releases the winner’s name and city upon request. Any other information, including media interviews, is up to the winner.
What should you do with the money?
So you just won the second largest jackpot in Mega Millions history. And now what? You don’t need our advice on yachts, private islands and luxury cars, but experts say the winner should seek help from a reputable lawyer, financial adviser or accountant. Do your research first. Tax advice is key. Friday’s winner could take a $747.2 million lump sum or choose to take the $1.28 billion paid in annual installments over 30 years. The federal government will take 24 percent off the top, and you may also owe state taxes. Either option will catapult you into the top federal income tax bracket, currently 37 percent and slated to rise in the future, as Kiplinger noted in this guide for lottery dreamers. Before hiring a fiduciary or other financial advisors, the Consumer Financial Protection Bureau suggests checking the advisors’ background by asking for references, checking the status of their licenses and finding information about their professional history. These resources are online. The Federal Trade Commission advises consumers to find an attorney who specializes in an area relevant to their needs, which could include taxes, trusts or estates in the case of lottery winners, and to get referrals from family, friends, colleagues or community groups. He advises contacting your state and local bar associations before retaining an attorney. A cautionary tale: In 2019, the record jackpot winner in South Carolina retained a man named Jason Kurland, who markets himself as a “lottery lawyer.” On Tuesday, a jury in New York found him guilty of a scheme to defraud lottery winners that caused more than $100 million in losses, prosecutors said. You should also prepare for the possibility of long-term relatives and college roommates suddenly knocking on your door or dropping by your social media references. The Virginia Lottery appeared to suggest as much Friday on its Facebook page, where it shared a message from a man who announced: “Before I win that $1 billion in Mega Millions, I already know all my cousins.” “Useful words to share with all your friends today,” the state lottery said.
