Starting tomorrow, Mega Millions will undergo a significant change—its ticket price will rise from $2 to $5.
This increase is part of a series of adjustments aimed at enhancing the game, including offering larger jackpots, better odds, and more frequent substantial prizes.
Officials believe that players will be willing to pay more if it leads to bigger wins.
Bigger Prizes, Better Odds: What the Changes Mean for Players
Joshua Johnston, the lead director of the Mega Millions Consortium, emphasized that the goal of these changes is to meet players’ demand for bigger prizes, not just in the jackpot but also in smaller non-jackpot prizes.
The revised game will now feature improved jackpot odds, shifting from 1 in 303 million to 1 in 290 million.
Additionally, the starting jackpot will increase to $50 million, up from the previous $20 million baseline.
The Second Price Hike in Mega Millions History
This is only the second time in Mega Millions history that ticket prices will increase.
The first price hike occurred in 2017, when tickets rose from $1 to $2.
With this new increase, lottery officials hope to generate more revenue, which will, in turn, boost the jackpot pool and state lottery funds used for various public services.
Why the Price Increase? Aiming to Attract More Players
Mega Millions officials say the price hike is necessary to keep up with the rising expectations of players.
With fewer people buying tickets and the jackpots needing to reach ever higher figures, the lottery has to adapt to maintain interest.
While a $500 million jackpot once caused long lines at convenience stores, now even jackpots reaching $1 billion can sometimes be met with a more subdued response.
Peter Sullivan, Senior Vice President of Lottery at DraftKings, spoke to DailyMail.com about the expected impact: “With bigger jackpots, improved odds, and enhanced non-jackpot prizes, we hope to see even more players participating in the lottery and turning to digital platforms like Jackpocket.”
Mega Millions and Powerball: How They Compare
Mega Millions, along with Powerball, is available in 45 states, Washington DC, and the U.S. Virgin Islands.
However, Powerball officials have stated that they have no plans to change their $2 ticket price or adjust the game’s odds in the near future.
While both games offer large jackpots, they are often presented as the total amount that would be paid out over 30 years in installments.
If the winner opts for a lump sum, the total prize is significantly reduced.
Taxes on Lottery Winnings: What to Expect
Winners of Mega Millions prizes, like all lottery winnings in the U.S., will face taxes. Federal taxes always apply, accounting for 37% of the prize amount, regardless of the state where the ticket was purchased.
Winners will also be taxed upfront at 24%, with the remaining taxes due when filing their return.
This means that even the most substantial winnings can be cut down considerably by taxes.
Top Mega Millions and Powerball Jackpots in U.S. History
The largest jackpots in U.S. history have been mind-blowing, with a few of them surpassing the billion-dollar mark. Some of the most notable prizes include:
- $2.04 billion (Powerball, Nov. 7, 2022, California)
- $1.765 billion (Powerball, Oct. 11, 2023, California)
- $1.602 billion (Mega Millions, Aug. 8, 2023, Florida)
- $1.586 billion (Powerball, Jan. 13, 2016, California, Florida, Tennessee)
- $1.537 billion (Mega Millions, Oct. 23, 2018, South Carolina)
These record-breaking wins have continued to drive excitement for the lottery, making it one of the most anticipated events for millions of players.
In Conclusion: What Does the Future Hold for Mega Millions?
With the price increase and the improved odds, Mega Millions hopes to not only offer bigger and faster-growing jackpots but also attract more players who are willing to take a chance for a life-changing prize.
Whether the changes will lead to even bigger excitement remains to be seen, but one thing is clear—Mega Millions is evolving.