So, you’re wondering how PowerBall payout works, how Powerball pays its winners, and the steps required to cash out.
This article is briefly going to explain in detail how Powerball pays winners. It will also explain the types of payments as well as other things to consider, i.e. Tax.
Table of Content
- What is Powerball
- How does Powerball Payout?
- Powerball onetime payout (Pros & Cons)
- Powerball Annuity Payout (Pros & Cons)
- Conclusion: Which of Them is Better?
What Is Powerball
Powerball is a lottery game that has been termed as “The fastest growing gambling game” in South Africa.
Tp play, you are required to purchase a lottery ticket at a verified retailer. The game is straightforward; you are provided with 52 numbers, and out of them, you pick six random numbers (white) of your choice without replacement.
There’s also an option for a random choice called “Powerball Quick Pick.”
In the draw, five numbers are picked out at random & a new amount called “The Powerball.”
There are nine possible ways of winning, and each depends on a specific combination of numbers.
How Does Powerball Pay Winners?
There are two ways of getting paid for winning a Powerball prize, and it depends on the price you win.
For smaller prizes like matching three white balls, 4, etc. you can withdraw the money directly from “The National Lottery” website.
For Powerball Jackpot winners and other higher Powerball prizes, you would need to visit Ithuba regional or central offices in South Africa to claim the prize.
Quick Note: you must be 18 years old or above to claim a Powerball prize and must come with the original Powerball winning ticket and a Valid ID card.
HOW CAN I WITHDRAW POWERBALL JACKPOT PRIZE?
There are two ways of withdrawing a Powerball jackpot prize money.
- Onetime Payment
- Annuity Payment
Powerball Jackpot Annuity Payment
This Powerball Jackpot payout option involves spreading the estimated Powerball prize value over 30 years.
That is, the jackpot prize is split into 30 payments paid each year for 30 years straight.
The first Powerball payout is paid to the Powerball winner on claim date, and the subsequent payments will be made year after year with a 5% increment to keep up with the standard of living.
Another thing to note is that the payments will continue even after the death of the Powerball winner.
Powerball Jackpot Onetime Payment
Another payment option (the most requested) is to withdraw the Powerball Jackpot prize all at once.
For every draw, there is an estimated Powerball Jackpot prize and an equivalent cash value.
What the Powerball winner is paid is the equivalent cash value, which is relatively lower than the annuity estimated Powerball Jackpot.
To better explain, let’s say the estimate Powerball Jackpot prize was $83 million.
Only $52.8 million will be paid to the Powerball winner if he chooses the one-time payment option.
Conclusion: Which of Them is better?
Well, it depends on the Powerball winners and what he thinks he can handle. With stories of a lot of Powerball winners going broke, it might just be better to opt-in for the annuity payment.
Once you withdraw the onetime cash prize, you pay a considerable sum of tx as well as other extra expense that comes with it.
The money becomes relatively lower compared to the annuity option.
Another thing to consider is overspending, and this isn’t just for saying sake because what most people think after winning Powerball jackpot is spending extraneously without care.
That being said, the annuity does have some drawbacks too, one being the uncertainty of future tax rates as a lot can happen between now and 30 years.
It depends on the Powerball winner to decide which would be better for his case.
We hope you’ve found this article useful if you have any questions or corrections you can add a comment below.