The latest Powerball lottery winner can only briefly savour the feeling of being a billionaire because they won’t be taking home the full prize.
On Sunday, April 7, a winning Powerball ticket was sold in Portland, Oregon. The prize is worth an astounding US$1.326 billion (C$1,800,263,790)—the fourth largest jackpot in the game’s history and the eighth largest jackpot among all US lottery games. The winning numbers were 22, 27, 44, 52, 69 and the red Powerball 9.
“I want to congratulate the winner on this life-changing moment. No one in Oregon has ever won a prize on this scale, and it’s very exciting for our staff and players,” said Oregon Lottery Director Mike Wells.
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However, despite the US$1.326 billion prize, the winner won’t see that total amount, according to a report by the Associated Press. The winner can choose a payout over 30 years, but if they opt for the lump sum (which is a popular choice), they’ll take home a total of $621 million after paying state and federal taxes — that’s less than half of their total windfall.
But if you win the lottery in Canada, you can rest easy since lottery winnings aren’t taxed.
“You do not have to report certain non-taxable amounts as income, including the following: lottery winnings of any amount, unless the prize can be considered income from employment, a business or property, or a prize for achievement,” reads the Government of Canada website.
According to Powerball, the winner has yet to come forward, and they have a year to claim their prize. The largest Powerball prize previously won in Oregon was a $340 million jackpot in 2005.
All forms of gambling, including the lottery, involve risk and outcomes are based on chance. Individuals are strongly advised to gamble responsibly. If you are experiencing any signs of gambling-related issues, you can find resources here.