Cash vs. Annuity Payments

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If you win a large prize amount, we suggest that you take some time and explore your financial options. Seek out reputable financial experts, and ask a lot of questions.

What is an annuity and how does it work? An annuity is a series of fixed payments or graduated payments paid out over a specified period. A jackpot winner will be paid the full estimated prize amount over a period of time that is determined by the game won (read on for more details).

What's the cash value of a prize? The cash value of the jackpot is approximately 50 percent of the advertised, estimated jackpot.

Games Eligible for Annuity Payments and Payouts

PowerballIf you choose an annuity, you’ll be paid in 30 graduated payments over 29 years. Subsequent annuity payments will be made annually close to the anniversary date of the claim and increase 4% per year. The choice you make is binding and irrevocable. You have 60 days from the date your ticket is validated to decide how you want to be paid.

Mega MillionsIf you choose an annuity, you’ll be paid in 30 graduated payments (growing by 5% each year to keep up with inflation) over 29 years. Annuity payments will be made annually close to the anniversary date of the claim. The choice you make is binding and irrevocable. You have 60 days from the date your ticket is validated to decide how you want to be paid.

LottoIf you choose an annuity, you’ll be paid in 25 annual installments with the first annuity payment being 2.5% of the jackpot share. Following payments increase 3.7% each year until the entire amount is paid. The choice you make is binding and irrevocable. You have 60 days from the date your ticket is validated to decide how you want to be paid.