Powerball Jackpot Climbs to $663 Million Ahead of Next Drawing

The Powerball jackpot has climbed to an estimated $663 million after no ticket matched all six winning numbers in Monday night’s drawing, making it the second-largest lottery prize of the year so far. Despite the headline figure, the eventual winner would receive considerably less after choosing a payout option and accounting for federal taxes.

The winning numbers drawn were 6, 26, 46, 58, 65, with Red Powerball 25. If someone wins the next drawing, they can either accept the full $663 million prize paid over 30 annual installments or choose a one-time cash payment of $290.4 million, the option selected by most jackpot winners.

A winner opting for the lump-sum payment would first see the cash prize reduced to about $220.7 million after the mandatory 24% federal tax withholding. Depending on the winner’s overall taxable income, the federal tax rate could reach 37%, lowering the estimated payout to roughly $182.9 million.

Those choosing the annuity would receive annual payments of approximately $22.1 million before taxes. After applying the top federal marginal tax rate of 37%, each yearly payment would be reduced to around $13.92 million. State taxes may further reduce the prize in some locations, with states such as New York imposing taxes of up to 10.9% on lottery winnings, while states including Texas, Florida and California do not tax lottery prizes.

Powerball has also expanded to the United Kingdom, allowing U.K. players to participate beginning last week. Lottery officials said the additional ticket sales are expected to help jackpots grow more quickly. However, British winners will not have the option of taking a lump-sum payment and can only receive the jackpot through 30 annual installments. The advertised jackpot for U.K. participants is £352 million, or about $467.8 million. According to the U.K. National Lottery, the lower advertised amount reflects what a winner is expected to receive over 30 years after exchange rates and U.K. tax requirements are considered.

The next Powerball drawing is scheduled for Wednesday night. Meanwhile, the Mega Millions jackpot continues to grow and is set to reach an estimated $800 million for Tuesday night’s drawing.

So far this year, only two lottery jackpots have surpassed the $650 million mark, with the current Mega Millions prize remaining the largest. Among jackpots already claimed, the biggest was a $533 million Mega Millions prize won by a ticket holder in Illinois in March. The largest Powerball jackpot claimed this year was a $250.8 million prize won in Arkansas.

Winning the Powerball jackpot remains extremely difficult, with odds of 1 in 292.2 million. Those odds are unchanged despite the addition of U.K. players and remain slightly longer than the Mega Millions jackpot odds of 1 in 290.4 million.