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 prize 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 sixth drawing will take place on Christmas Eve at 10:59 p.m. EST. And while it’s rare, a winner could walk away with the grand prize this very evening. 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 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 end up being as much as $492,261,980, for locations with no state tax, or as little as $408,272,230 for those with the highest rate (Washington, D.C.).
While no one has walked away with the grand prize just yet, there have been plenty of winners who matched five numbers and claimed $1 million prizes. The matches went to nine Powerball players across the country in Florida, Georgia, Illinois, two in New York, Ohio, Pennsylvania, Tennessee and Wisconsin. Likewise, 107 people claimed $50,000 prizes and 28 tickets that won $100,000 prizes. Hardly a Dollar Store stocking stuffer!