Powerball Slashes Minimum Jackpot in Half, Pandemic Cited for Change
Posted on: March 27, 2020, 12:04h.
Last updated on: March 26, 2020, 02:38h.
Powerball is cutting its minimum jackpot from $40 million to $20 million, lottery officials saying the change is a result of the current COVID-19 pandemic leading to reduced sales.
The Multi-State Lottery Association announced the change will be effective once the current $160 million jackpot is won.
Powerball players in many US lottery jurisdictions are under shelter-in-place orders or recommendations, which have affected normal consumer behaviors,” said Powerball Product Group Chairman and Maine Lottery Director Gregory Mineo.
“Just like other enterprises around the world that are making adjustments, we are making proactive changes to continue to offer the world’s premier lottery product,” Mineo added. Along with the smaller guaranteed annuity, Powerball announced the minimum jackpot rollover increase will be reduced to $2 million instead of the typical $10 million for the twice-weekly drawing.
Powerball is played in 45 states, plus the District of Columbia, Puerto Rico, and US Virgin Islands. Lottery sales totaled $72 billion in the US in 2017.
Economic Slowdown
With every American impacted by the coronavirus – the disease now confirmed in 68,440 US residents, and responsible for nearly 1,000 deaths – spending habits are quickly changing. Certain industries are benefiting from the coronavirus: groceries, medical and cleaning supplies, and home furnishings are among the sectors seeing increased sales.
But because of widespread government-ordered shutdowns of non-essential businesses, many workers are being laid off or furloughed, and therefore have less disposable income. Nearly 3.3 million Americans filed for unemployment this week.
Lottery officials in numerous states have argued that their operations qualify as essential businesses. As an example, the Ohio Lottery said in a statement, “The Lottery Commission’s operation is considered an essential government function providing funding of public education and our ongoing philanthropic efforts.”
State lotteries across the nation are reporting reduced ticket sales during the pandemic. Maine, Virginia, Massachusetts, and Missouri are a few of the states saying sales are down.
The Massachusetts State Lottery reports sales have plummeted $21 million over the last two weeks. “Representative of the whole economy, Lottery revenues have decreased significantly over the last two weeks,” said Michael Sweeney, Executive Director of the Massachusetts lottery.
Mega Millions to Follow
Powerball and Mega Millions are the two largest lotteries in the US. And like Powerball, Mega Millions is expected to reduce its minimum jackpot.
The Mega Millions Consortium has begun internal discussions about potential changes to address the slowdown in sales during the current health crisis,” said Mega Millions Director Gordon Medenica.
Mega Millions set the largest jackpot for a single ticket winner in 2018, when an anonymous person in South Carolina won $1.537 billion. The individual took the cash option, which was worth $877.8 million.
Powerball holds the record for the all-time largest jackpot in the US, a 2016 prize valued at $1.586 billion that was split among three winners. The two interstate lottery games have 48 jackpot wins that totaled at least $314 million.
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Last Comments ( 5 )
of course, now that the pandemic is finally over - you don't see them or mega millions racing to return the minimum jackpot back to $40 million. indeed, with the astronomical inflation under buydem, the real value of any jackpot is about 20% less than it was back in march 2020 - so if anything the minimum jackpot should be pushing $50 million. think you'll see happening anytime soon? me neither...
Total ripoff. When they increased the ticket price from $1 to $2 they said they were doing so to increase jackpots and encourage more playing, resetting the jackpot to $40 million. Now they are cutting back on the jackpot to previous levels but not reducing the ticket price concomitantly. They think no one will remember the reasoning they gave at the time of the increase.
As the saying goes, "My cow died, so I don't need your bull." The odds didn't change. When ticket sales are down, payouts are also less. The only change will be longer times to hit each payout. Your payout PER TICKET will not change, unless you change odds. And when that has happened, it's always been against the player. This change is also greatly against the player. I just wish the lotteries were open to private enterprise. With your current rules and odds, you wouldn't last a month.
We’ll see if the prizes go back up after the pandemic. I think it’s just a money grab by the states involved. I’m done playing, I’ll switch to local state game megabucks.
With no more huge jackpots less likely to see more revenue come in