It may be a very Merry Christmas for one lucky Powerball winner. The Christmas Eve Powerball jackpot is accumulating like a snowball tumbling down an epic sledding hill. The total is now so large, it’s a number rarely attainable even for high-stakes gamblers.
The prize has continued to grow after five drawings worth at least $1 billion went unclaimed with no ticket matching all six numbers. According to the Powerball website, that makes the current prize of around $1.7 billion the fourth-largest in Powerball history. It’s also the longest the game has ever gone without a winner.
“Much like the holidays, Powerball is a game that brings people together to dream big and hope for a brighter future,” said Matt Strawn, Powerball product group chair and Iowa Lottery CEO. “We hope this growing jackpot inspires excitement and joy and, most importantly, good will to all. A portion of every ticket helps support programs and services that benefit local communities.”
The next drawing takes place on Christmas Eve at 10:59 p.m. EST. And while it’s rare, a winner could claim the grand prize this very night. It happened once before, on December 24, 2011. Historically, Christmas Day has been a bit merrier for Powerball players, with four winners over the years having claimed the jackpot on December 25—in 1996, 2002, 2010, and 2013.
Not quite a billionaire
Still, even if a lucky Powerball player’s Christmas wish came true (and what a wish!), that doesn’t mean they’ll have $1.7 billion in the bank when it’s all said and done. According to Powerball, after federal taxes the lump-sum prize will have an estimated cash value of $781.3 million.
But that’s before state taxes—which vary widely across the country—come into play. Some states take a hefty portion of lottery winnings: In Maryland, the tax rate is 9.5%; in New York, it’s 8.82%; while New Jersey takes 8%. Washington, D.C., imposes the highest tax on lottery prizes: a whopping 10.75%.
On the other end of the spectrum, a winner in Arizona would have to turn over just 2.5% of the prize to the state. Indiana and Louisiana take 3% and North Dakota takes 3.9%. A handful of locations won’t take a dime of the winnings. If you live in California, South Dakota, Washington, New Hampshire, Texas, Wyoming, Tennessee, or Puerto Rico, the jackpot is yours to keep after federal taxes are imposed.
Therefore, after all the taxes are sliced off the top, the final takeaway could range from $492,261,980 for locations with no state tax down to $408,272,230 for Washington, D.C.
While no one has walked away with the grand prize just yet, nine tickets in the most recent drawing matched five numbers, earning $1 million prizes: one each in Florida, Georgia, Illinois, Ohio, Pennsylvania, Tennessee, and Wisconsin, and two in New York. That drawing produced 28 tickets eligible for $100,000 in winnings, and more than 100 tickets worth $50,000. Hardly a Dollar Store stocking stuffer!