Why did the Powerball jackpot end up smaller than the advertised $1.8B?
Share this @internewscast.com

(NEXSTAR) — Before Saturday’s Powerball draw, which resulted in two jackpot-winning tickets, the advertised grand prize stood at $1.8 billion. However, following confirmation of the winning tickets, the jackpot turned out to be about $13 million less than initially stated.

So what changed?

In Powerball (and Mega Millions) jackpots, the winner chooses between receiving their winnings as either 30 yearly annuity payments or a single cash payout. The advertised figures reflect both options. The higher amount, $1.787 billion in this instance, corresponds to the annuitized payments, while the lower amount, $820.6 million, reflects the cash value.

The cash value shown for the jackpot indicates the funds required to provide the estimated annuity prize, according to Powerball officials. Predictions of ticket sales are used to project the jackpot’s cash value, along with interest rates tied mainly to U.S. Treasury bonds, which are purchased to ensure the funding of annuity payments.

Though Powerball officials have not elaborated on why the jackpot was less than the promoted $1.8 billion, and a spokesperson did not promptly respond to Nexstar’s inquiry, it is common for these figures to vary between drawings.

Often, this is due to ticket sales; the majority of tickets are sold on the day of the drawing. If actual sales fall short of expectations — possibly affected by external factors like adverse weather — or if there’s a fluctuation in U.S. Treasury rates, the jackpot’s value may adjust.

But, when the jackpot is over $1 billion, is a difference of $13 million really that much?

For the winners of this jackpot, however, there is a catch. As there were two winning tickets, one in Missouri and another in Texas, both ticket holders will evenly divide the prize. Powerball officials state that the winners (who may choose to remain anonymous) will receive either $893.5 million in annuities or a one-time payment of $410.3 million.

Share this @internewscast.com
You May Also Like

Florida Governor Ron DeSantis Urges Change with Proposed National Amendment

DELRAY BEACH, Fla. – In a spirited address this week, Florida Governor…

Dramatic Finish: Lake Mary Secures Class 7A Football Championship with Last-Second Hail Mary Pass

MIAMI, Fla. – In a thrilling showdown, Lake Mary High School claimed…

Orange County’s Second Harvest Food Drives Support Families During Holiday Break

ORANGE COUNTY, Fla. – As winter break nears, numerous families in Orange…

Fernando Mendoza Clinches the Coveted Heisman Trophy: A New Era in College Football Dominance

He stands out as the first individual from Indiana to clinch college…

Jury Awards $40 Million to Cancer Patients in Johnson & Johnson Talcum Powder Case

A jury in Los Angeles delivered a $40 million judgment on Friday…

Experience the Magic: Carriage Rides & Santa’s Mailbox at Christmas in Olde Jonesborough

On a crisp Saturday in December, the charming town of Jonesborough, Tennessee,…

Tragic End to High-Speed Chase: Titusville Man Killed as Pursuit Ends in Fiery Crash, FHP Reports

BREVARD COUNTY, Fla. – In a tragic turn of events Friday night,…

Exclusive Q&A: Insights from BWXT President on the Future of Depleted Uranium Facilities

JONESBOROUGH, Tenn. — In an exclusive interview with News Channel 11, Ron…

Comprehensive Overview of Fatal Campus Shootings Across U.S. Colleges

A tragic incident unfolded at Brown University in Providence, Rhode Island, over…

Brace for Impact: Arctic Air Invades Pacific Northwest Amidst Severe Flooding Aftermath

A chilling wave of arctic air is surging southward from Canada, making…

ETSU Celebrates Milestone: Over 1,300 Graduates Awarded Diplomas at Vibrant Commencement Ceremonies

JOHNSON CITY, Tenn. (WJHL) — On Saturday, East Tennessee State University (ETSU)…

Tragic Shooting at Brown University: 2 Dead, 9 Injured as Police Hunt for Suspect

PROVIDENCE, R.I. – A massive police operation is underway at Brown University…