The Mega Millions jackpot grew to $1.28 billion this week, making it the second-biggest prize in the lottery since its inception in 1996.
At 11:00 PM ET on Friday, millions of people who bought a $2 ticket at their local convenience store or a bundle of them with family, friends or co-workers will find out if they’ve won. Or maybe no one will win the jackpot, which happened in the previous 29 drawings.
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 best 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 swelled because no one won any of the drawings held every Tuesday and Friday after a winning ticket was drawn on April 15 in Tennessee. On July 26, no one matched the five numbers and the Mega Ball. That brings us to this $1.28 billion point.
Forty-five states, as well as Washington, DC, and the Virgin Islands participate in the Mega Millions lottery. Nevada, Utah, Alabama, Alaska and Hawaii do not, but residents of those states can still purchase tickets elsewhere and then travel to claim their prize. Tickets can be purchased in person at shops and gas stations. Some people only buy one. Others buy in groups. You can even buy them online in some states, but you may face backlogs 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 one ticket for each of its 50,000 employees for Tuesday’s $830 million drawing. The gas station took eight hours to print the tickets, but the company remains undeterred and will try again on Friday.
“We’re doubling down,” said AJ Kumaran, the company’s co-CEO, in an interview with FOX’s LiveNOW on Thursday. “What’s two more dollars a person?”
What happened in the previous big drawings?
Nine people came close to winning Tuesday’s Mega Millions jackpot by matching the first five white balls drawn from numbers 1 through 70. The golden Mega Ball eluded them.
The last time the Mega Millions jackpot passed the billion-dollar mark was on January 22, 2021, when the winning ticket was sold in Michigan, netting $1.050 billion.
Friday’s drawing was the second-largest for that lottery, but the rival multistate Powerball lottery held the world jackpot record since January 2016 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. The winner remains unknown.
Can a winner remain anonymous?
Each state that participates in Mega Millions controls lottery operations within its jurisdiction, including sales, retailers, taxes owed and other financial obligations. Laws, including whether winners’ names must be announced, vary from state to state.
Marie Kilbane of the Ohio Lottery said in her state that includes whether the winner owes child support. “Internally, we are verifying who this person is,” she said. “With all our winners.”
Ohio is one of at least seven states that allow winners who may fear fraud or becoming targets of crime to conceal their identities. Others include Delaware, Maryland, Kansas, North Dakota and South Carolina. States differ on what conditions allow winners to remain anonymous or whether they can collect in the name of a trust, she said.
In Texas, a winner of $1 million or more can remain anonymous. In Arizona, winners of $100,000 or more may choose anonymity, but their city and county of residence are not confidential. In California, the winners’ names are part of the public registry. Some states, such as Michigan, do not allow trusts for multistate lotteries such as Mega Millions or Powerball.
Not all lottery winners have to show up at a press conference with a big smile holding a giant fake check. Pursuant to its open records law, the Wisconsin Lottery releases the winner’s name and city upon request. All 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. Now what?
You don’t need our advice on yachts, private islands and luxury cars, but experts say the winner should get help from a reputable lawyer, financial adviser or accountant. Do your research first.
Tax advice is key. Friday’s winner can take a $747.2 million lump sum or choose to take $1.28 billion, payable in annual installments over 30 years. The federal government will take 24 percent of the top, and you may also owe state taxes. Both choices will catapult you into the highest federal income tax bracket, which is currently 37 percent and is slated to increase 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’ experience 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 that suits their needs, which may include taxes, trusts or estates in the case of lottery winners, and to get referrals from family, friends, colleagues or community groups . He advises checking with state and local bar associations before hiring an attorney.
A cautionary tale: In 2019, South Carolina’s record jackpot winner retained a man named Jason Kurland, who advertised himself as a “lottery attorney.” A New York jury on Tuesday 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-lost relatives and college roommates suddenly knocking on your door or intruding on your social media mentions.
The Virginia Lottery appeared to suggest as much on 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.”
“Helpful words to share with all your friends today,” said the state lottery.
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