Isn't this a b!tch? Mega Millions jackpot $200 million

[mawilson 2,133]

Very correct, Mr Scandal. Each ticket has equal odds of winning the jackpot, whatever the jackpot's size. What increases with increasing numbers of tickets is the probability that one of those sold tickets will be the winner.

If they're split among 100 winners, that's still a heck of a jackpot to be split.

The question is, how many more people play when the jackpot is $100m vs $10m.

[HAL 9000 96]

Does megamillions publicize this information? It would be cool to read on that kind of behavior.

[SMR 368]

Very correct, Mr Scandal. Each ticket has equal odds of winning the jackpot, whatever the jackpot's size. What increases with increasing numbers of tickets is the probability that one of those sold tickets will be the winner.

If they're split among 100 winners, that's still a heck of a jackpot to be split.

Well, a $200 million jackpot is only about $50 million lump sum. Divide by 100 that's $500,000. Pay income taxes and sales tax around 50%. You're taking home about $250K. It's a good size paycheck, but not really something you can retire early on.

[웃 910]

Very correct, Mr Scandal. Each ticket has equal odds of winning the jackpot, whatever the jackpot's size. What increases with increasing numbers of tickets is the probability that one of those sold tickets will be the winner.

If they're split among 100 winners, that's still a heck of a jackpot to be split.

Well, a $200 million jackpot is only about $50 million lump sum. Divide by 100 that's $500,000. Pay income taxes and sales tax around 50%. You're taking home about $250K. It's a good size paycheck, but not really something you can retire early on.

The odds are better for winning the jackpot (people actually do win every few times) than the odds for 100 people winning the jackpot (this will NEVER happen, EVER).

[HAL 9000 96]

Very correct, Mr Scandal. Each ticket has equal odds of winning the jackpot, whatever the jackpot's size. What increases with increasing numbers of tickets is the probability that one of those sold tickets will be the winner.

If they're split among 100 winners, that's still a heck of a jackpot to be split.

Well, a $200 million jackpot is only about $50 million lump sum. Divide by 100 that's $500,000. Pay income taxes and sales tax around 50%. You're taking home about $250K. It's a good size paycheck, but not really something you can retire early on.

Sure about those numbers?

Also keep in mind most lottery lump-sums have taxes already computed before the payout goes out.

More realistically you'd be looking at:

$200M -> Approximately $110M lump-sum AFTER tax. Then that gets divided among winning ticket holders. No double taxation.

Very correct, Mr Scandal. Each ticket has equal odds of winning the jackpot, whatever the jackpot's size. What increases with increasing numbers of tickets is the probability that one of those sold tickets will be the winner.

If they're split among 100 winners, that's still a heck of a jackpot to be split.

Well, a $200 million jackpot is only about $50 million lump sum. Divide by 100 that's $500,000. Pay income taxes and sales tax around 50%. You're taking home about $250K. It's a good size paycheck, but not really something you can retire early on.

The odds are better for winning the jackpot (people actually do win every few times) than the odds for 100 people winning the jackpot (this will NEVER happen, EVER).

The 100 people would hypothetically be part of a lottery pool (at work, etc). The winning number likely is picked only once in most cases.

[SMR 368]

Very correct, Mr Scandal. Each ticket has equal odds of winning the jackpot, whatever the jackpot's size. What increases with increasing numbers of tickets is the probability that one of those sold tickets will be the winner.

If they're split among 100 winners, that's still a heck of a jackpot to be split.

Well, a $200 million jackpot is only about $50 million lump sum. Divide by 100 that's $500,000. Pay income taxes and sales tax around 50%. You're taking home about $250K. It's a good size paycheck, but not really something you can retire early on.

Sure about those numbers?

Also keep in mind most lottery lump-sums have taxes already computed before the payout goes out.

More realistically you'd be looking at:

$200M -> Approximately $110M lump-sum AFTER tax. Then that gets divided among winning ticket holders. No double taxation.

Very correct, Mr Scandal. Each ticket has equal odds of winning the jackpot, whatever the jackpot's size. What increases with increasing numbers of tickets is the probability that one of those sold tickets will be the winner.

If they're split among 100 winners, that's still a heck of a jackpot to be split.

Well, a $200 million jackpot is only about $50 million lump sum. Divide by 100 that's $500,000. Pay income taxes and sales tax around 50%. You're taking home about $250K. It's a good size paycheck, but not really something you can retire early on.

The odds are better for winning the jackpot (people actually do win every few times) than the odds for 100 people winning the jackpot (this will NEVER happen, EVER).

The 100 people would hypothetically be part of a lottery pool (at work, etc). The winning number likely is picked only once in most cases.

Well, everything I have read says that lottery winnings are subject to taxes and the jackpot doesn't calculate that. I've never won, so I suppose I won't be able to give you a definitive answer. You are right that lump sum is usually something like a 65% payout, so I was being a little hyperbolic there. But you're still talking about 600k, not 200 million.

The odds of winning the lottery are less than the odds of being struck by lightning on two separate occasions.

Edited October 19, 2009 by SMR

[HAL 9000 96]

And everything I've read points to taxes being taken out before a payment is made.

The Federal Gov takes about 25% off the top in a lump sum and they can't tax you (twice) on something they've already taxed you on. The remaining tax depends on each participating state government. This varies between NO tax and upwards of 10%.

[scandal 951]

And everything I've read points to taxes being taken out before a payment is made.

The Federal Gov takes about 25% off the top in a lump sum and they can't tax you (twice) on something they've already taxed you on. The remaining tax depends on each participating state government. This varies between NO tax and upwards of 10%.

The present value of lottery winnings fluctuates with bond yields (since the lottery corp. invests the present value in a maturing series of bonds to pay the annual payouts). Since interest rates are now at historic lows, conversely the present value is relatively high, approx 605 of the lottery sum. Hence for a $200M jackpot, figure about $120M as the immediate payout (if you choose that option).

The top marginal US federal tax bracket is 35%, not 25%. So you are liable for 35% on virtually all of the winnings (everything over $373,000).

State taxes may also be payable, it depends upon the state.

So if you are a single winner of the jackpot, your net winnings are 65% * $120M = $78M. If you are liable for state taxes at, say, 5% your net is $72M.

If the jackpot is split, reduce accordingly -

2 way split - $36 M each (accounting for federal+state tax)

3 way split - $24M

4 way split - $18M

10 way split = $7.2M

In any event, it's plenty to go around. If SMR doesn't want his winnings I'll be happy to take his share

[HAL 9000 96]

What would be cool is a VJ Megamillions pool.