Powerball - Lottorate compare world lotteries

Like Megamillions, Powerball also has a variation on the main game called Powerplay. For an extra $1 (so $3 in total), players get better returns on all prizes except the main jackpot. The match 5+0 (second tier prize) becomes a fixed cash payment of $2m rather than $1m whilst other payouts are determined by a multiplier which varies between 2x and 10x. (it will be slightly less for jackpots over $150m as the 10x multiplier is then no longer an option). Based on jackpots over $150m the average multiplier is 2.6x. Powerplay is a nice way of spreading the joy a little bit further down from the main jackpot win to the lower tiers. Around 11% of people play with the Powerplay option each week. Whether you should play or not really depends on whether you are in it for the big one only... or not! Powerplay's value also depends on the size of the jackpot advertised that week. The net effect in terms of return to player (RTP) is very similar to the Megaplier on Megamillions in that the RTP is better when jackpots are smaller (0.32 to 0.44 vs 0.23 and 0.41) but not so good when jackpot sizes increase. See RTP below. Note that California do not apply the Powerplay in the same way as other states - see their site.

The odds of hitting the jackpot have increased over the years from 1 in 52m to today's massive 1 in 292m, the longest odds of any lottery other than the Italian Superenalotto. The change in 2015 from 1 in 175m to 1 in 292m is one key reason why the jackpot managed to reach the heady levels of $1.5bn. Higher jackpots also mean more press coverage (though it does get harder each year to impress!) which in turn lead to more sales. The latest $1.5bn jackpot story did at least halt what was a slight decline in Powerball sales....

If I were to buy every ticket combination when the jackpot was at the billion or billion and a half mark, wouldn't I be guaranteed to make a profit? Well, yes and no! The odds of the big one are 292m/1 and a ticket costs $2 so a small cash investment of $584m on the face of it looks to be worthwhile. But (butts are always big) ...as with other US jackpots you need to factor in three things: the cash vs annuity option, taxes (sadly!) and the chances that you will be sharing the jackpot with someone else... Add to this the difficulties of actually filling out 290m tickets and you'll see why it's a yes and a no. First off, you'd have to take the annuity option of your jackpot paid out in 30 annual installments. If you chose instead the cash option, you can already multiply your advertised jackpot by around 65%. Then comes the tax bit which will set you back between 25% and 38% depending on where you live. Add to this the chance of sharing it with someone else (which of course increases, the more tickets are sold) and it's not a pretty net result. From ticket sales data, sharing a $1bn jackpot on Powerball is much more likely than unlikely. As an example, on the draw when the $1.5bn jackpot was won, 630m tickets were sold (= a 75% chance of sharing and indeed, the $1.5bn was split three ways). If you want more on RTPs and jackpot alerts and value, see our More Data sections. If you do win a $1bn Powerball jackpot though, I'm sure you wouldn't be too disappointed to have to share it...just remember us 'friends' too!

A few sites talk positively about how annuities are one of two 'possible options' for taking your jackpot winnings! This is copy that reads like a polished poo. Firstly, no one really wants the annuity option: if you win the jackpot, you want your cash - and some lotteries have even cancelled the annuity 'option' for this reason. But secondly and more importantly, the annuity option is the amount they advertise that you will win when in reality you've only won around 65% of this. It's a bit like selling your car for $10,000 dollars but only getting $1,000 per year - oh but we'll give you $6,000 for it if you want the cash now... In brief, I have no love of annuity options, especially when they run over 30 years. They are a marketing gimmick that borders on misrepresentation....

Given the size of its jackpots (even in the first week after it's hit), the Powerball is an attractive lottery. In terms of return to player though, it starts to 'look' interesting at around $500m but after taxes and reducing your value by the chances of sharing, it's really difficult to find true positive value. Given the sheer volume of ticket sales when it gets towards $1bn (sales exceed 3x the odds of hitting the jackpot itself) your value is reduced by a high sharing reduction). Set your alert to $1bn and if you do hit it on your own, happy days, but it'll probably have to get to $2bn, depending on ticket sales, before it becomes a 'no brainer' - but this isn't impossible!.

The marketing success of its giant jackpots is also this lottery's weakness in terms of return to player value. You're very likely to be sharing the big jackpots - oh, poor you! Worth playing just because it's such a monster but can't really suggest a jackpot alert where you get real net value. Play the Powerplay option only if a) you like the idea of better second tier prizes and are not chasing the big jackpot or b) if you happen to be playing when the jackpot is below $100m or so. Otherwise, spend your extra $1 on a Megamillions ticket for the next available draw!