A MEGA Millions player has landed a record-breaking jackpot but they risk losing more than half of their prize when they come forward.
The player came up trumps by hitting the $348 million prize, but they will have a choice to make.
A Mega Millions ticket worth $348 million has not yet been cashed in (stock)[/caption]
The gambler, who hasn’t been named, defied the odds of one in 290.4 million to claim the top prize.
Lotto bosses have made an appeal for the winner to come forward.
And, in a bid to jog the player’s memory, the slip was bought at a E&C gas station in Burgess, Virginia – located around 100 miles from Chesapeake.
It was the first time since April 18 that a player had landed the Mega Millions jackpot.
The player prevailed in the draw that took place on June 27.
They are yet to claim their prize, but they must come forward within 180 days from the date of the draw.
If they do not come forward by December, then their slip will become worthless.
The player faces a choice on how they want to claim their prize.
They can either take home the lump sum, or receive it in installments.
But, the $348 million prize has a cash value of $155 million.
The player will not take home $155 million if they select the cash option.
This means that more than $37 million will be wiped from the prize pot.
The winner will have to pay a rate of 24% to the federal government.
And, the state will also hold back 4% of the prize, as per local law.
The amount the state will hold back will be worth more than $6 million.
The player’s jackpot win marks the fourth time this year a Mega Millions gambler has come up trumps.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have varying opinions on whether to take the lump sum or take the annuity.
April marked the last time a player had won the top prize – before Friday’s win.
A gambler in Illinois scooped $349 million on the game of chance in March.
But, that win was before the game underwent a series of changes.
In April, the game underwent a revamp and the cost of a ticket increased to $5. Previously, a ticket cost $2.
The price hike proved controversial among some, but bosses stressed Mega Millions would continue to provide great value to gamblers.
Bosses unveiled a series of perks for players.
Prize pots are larger than ever before, and gamblers have an improved chance of winning the jackpot.
LOTTERY REVAMP
Previously gamblers had to defy odds of one in 302.6 million to land the top prize.
Now, lottery players have a one in 23 chance of winning any prize.
Jackpots now start at $50 million when a top prize is won.
There is a built-in multiplier into the cost of a ticket.
Under the old format, players had to fork out an extra dollar on multiplier options.
Players can win between $2 million and $10 million for matching five numbers.
Previously, gamblers who matched five numbers would receive a $1 million prize.
Break even prizes have also vanished, meaning a win is always more than the cost of a ticket.
The player faces a six-month window to come forward (stock)[/caption]
