Update – Game Sales and Interest Rates to Determine Advertised Powerball Jackpot

URBANDALE, Iowa – The Powerball Product Group today announced its decision to determine Powerball’s advertised jackpot based on game sales and interest rates. Following the April 8 drawing, guaranteed starting jackpot amounts and minimum jackpot increases will be eliminated, and future jackpot increases will be determined and announced by the Product Group prior to each drawing. Previously, Powerball® jackpots started at $40 million (annuity) and increased by a minimum of $10 million (annuity) between drawings.

“These changes are necessary to ensure that ticket sales can support the Powerball jackpot and other lower-tier cash prizes,” said Gregg Mineo, Powerball Product Group Chairman and Maine Lottery Director. “Our number one priority is making sure that the Powerball game can continue to assist lotteries in raising proceeds for their beneficiaries.”

The Powerball Product Group announced plans last week to reduce the starting jackpot to $20 million (annuity) and minimum jackpot increases to $2 million (annuity) between drawings. Those changes were scheduled to go into effect after the current jackpot was won. However, due to the evolving COVID-19 pandemic, the Powerball Product Group revisited the topic and decided Powerball’s advertised jackpot should be determined by game sales and interest rates effective following the drawing next Wednesday.

“Since last week, more states and cities have asked their residents to stay at home, which has affected normal consumer behaviors and Powerball game sales,” said Mineo. “In response to the public health crisis, interest rates have declined. As a result, additional game sales are necessary to fund comparable jackpot amounts.”

The advertised Powerball jackpot for Saturday’s drawing is a guaranteed $180 million. If the jackpot rolls, it will grow to a guaranteed $190 million for the April 8 drawing. If the jackpot is won on Saturday night, it will reset to a guaranteed $20 million for the April 8 drawing and continue to grow based off sales and interest rates.

Powerball tickets are $2 per play. Tickets are sold in 45 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Drawings are broadcast live every Wednesday and Saturday at 10:59 p.m. ET from the Florida Lottery draw studio in Tallahassee. More than half of all proceeds from the sale of a Powerball ticket remain in the jurisdiction where the ticket was sold.

Update – Game sales and interest rates to determine advertised Powerball jackpot

Guaranteed starting jackpot amounts and minimum jackpot increases to be eliminated

What change is happening to Powerball?
Following the April 8 drawing, Powerball’s starting jackpot and the rate at which the advertised jackpot grows will be determined by game sales and interest rates. Guaranteed starting jackpot amounts and minimum jackpot increases will be eliminated. Previously, Powerball® jackpots started at $40 million (annuity) and increased by a minimum of $10 million (annuity) between drawings.

Why does this change need to happen?
Game sales and interest rates are the two main factors in the determination of Powerball’s advertised jackpot. Since last week, more states and cities have asked their residents to stay at home, which has affected normal consumer behaviors and Powerball game sales. In response to the public health crisis, interest rates have declined. As a result, more game sales are necessary to fund comparable jackpot amounts. The Powerball Product Group elected to enact the changes following the April 8 drawing to ensure that ticket sales can support the Powerball jackpot and other lower-tier cash prizes.

When does this new change go into effect?
This change will go into effect immediately following the Wednesday, April 8 drawing. As normal protocol, MUSL’s Director of Finance will continue to distribute the Grand Prize Estimate, which announces the advertised jackpot annuity and cash value for that evening’s drawing and the next drawing. The advertised Powerball jackpot for Saturday’s drawing is a guaranteed $180 million. If the jackpot rolls, it will grow to a guaranteed $190 million for the April 8 drawing. If the jackpot is won on Saturday night, it will reset to a guaranteed $20 million for the April 8 drawing and continue to grow based off sales and interest rates.

Weren’t there going to be changes enacted after the jackpot was won?
Yes. The Powerball Product Group, decided last week to reduce starting jackpots to $20 million (annuity) and minimum jackpot increases to $2 million (annuity) between drawings. Those changes were scheduled to go into effect after the current jackpot was won.

However, due to the evolving public health crisis, the Powerball Product Group revisited the topic and decided Powerball’s starting jackpot and subsequent advertised jackpots should be determined by games sales and interest rates effective following next Wednesday’s drawing.

What about the previously announced changes? Will they still happen if the jackpot is won?
If the Powerball jackpot is won Saturday night, it will reset to a guaranteed $20 million for the April 8 drawing and continue to grow based off sales and interest rates.

For all jackpot wins after the April 8 drawing, the starting jackpot will be determined by the Product Group and announced prior to each drawing. For all drawings after April 8, the Product Group will announce the growth between drawings prior to each drawing.

Is this change permanent?
A collective group of 38 U.S. lotteries, known as the Powerball Product Group, will determine how long this change will last.

Does this change apply to any other lottery draw games?
No. This change only applies to Powerball.

Are there plans to change the $2 ticket price, set cash prizes, or game odds?
No. The elimination of minimum jackpot increases and guaranteed starting jackpot amount will not alter Powerball’s $2 ticket price, set cash prizes, or game odds.

About POWERBALL

It’s America’s Game! Since 1992, POWERBALL® has inspired the country with a chance to become a millionaire, while raising nearly $22 billion for good causes supported by lotteries. Powerball set a world record jackpot of $1.586 billion in January 2016. The record prize was shared by winners in California, Florida and Tennessee.

Powerball tickets are $2 per play. Tickets are sold in 45 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Drawings are broadcast live every Wednesday and Saturday at 10:59 p.m. ET from the Florida Lottery draw studio in Tallahassee. More than half of all proceeds from the sale of a Powerball ticket remain in the jurisdiction where the ticket was sold.

The Powerball jackpot grows until it is won. Players select five numbers from 1 to 69; and one Powerball number from 1 to 26. Players can multiply non-jackpot prizes by 2, 3, 4, 5 or 10 times with the Power Play® option for an additional $1 per play. NOTE: The Match 5 + Power Play prize is always $2 million. The 10X multiplier is only in play when the advertised jackpot is $150 million or less.

Powerball jackpot winners may choose to receive their prize as an annuity, paid in 30 graduated payments over 29 years, or a lump sum payment. Both advertised prize options are prior to federal and jurisdictional taxes.

The overall odds of winning a prize are 1 in 24.9. The odds of winning the jackpot are 1 in 292.2 million.

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