This gigantic jackpot has an intriguing new twist. For the first time, the winner can opt for a lump-sum payment instead of annual amounts. Or, the winner could choose a one-time payment in the amount the lottery would have to invest today to pay the advertised amount over 26 years. Of course, a big winner whichever method is chosen will be the federal government for taxes. Lottery winnings are not subject to state taxes.
Players have to decide when they buy the ticket which payment method they want.
Ticket sellers say many are opting for the lump sum. State lottery officials said the jackpot is currently the largest being offered by a state lottery in the nation. It got to its No. 2 in California history status by rolling over with no winner six times, reported the wire service. Lotto fever is bringing big business to the 19,000 lottery vendors. In Los Angeles, Jerry Provencio, a special events worker for Paramount, stopped at a gas station Tuesday to buy one of several planned batches of tickets.