Most of us dream of what it would feel like to win the lottery. Just imagine going to bed with your everyday worries and waking up a billionaire overnight. That is exactly what happened in 2022 when the biggest Powerball jackpot in history was won.
Let us walk through how big the prize was, who won it, and why Powerball jackpots have reached such incredible amounts in recent years.
What is the highest powerball jackpot ever
The largest Powerball jackpot that was ever recorded happened on November 7, 2022, and the total prize was a jaw-dropping $2.04 billion.
To give you an idea of how big this was, here are some quick comparisons:
- It was the first time any U.S. lottery jackpot crossed the $2 billion mark.
- It was bigger than any Mega Millions prize at that time.
- The winner had the choice of taking the full $2.04 billion in yearly payments spread over 29 years or a lump sum cash option of about $997.6 million before taxes.
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Who won the 2.04 billion powerball jackpot
The lucky ticket was sold in Altadena, California, at Joe’s Service Center, a local gas station and convenience store.
The winner was later revealed as Edwin Castro, a California man who chose to remain mostly private. What we know is that he selected the lump sum payout, making him an instant billionaire, even after federal and state taxes took a significant portion.
While not much is known about his personal life, his story sparked nationwide attention because so many people wondered how they would handle such sudden wealth.
How much was the prize after taxes
The advertised jackpot was $2.04 billion, but like all lottery prizes, taxes cut into the final amount.
Here is how it worked out:
- Lump sum option: About $997.6 million before taxes.
- Federal tax withholding: 24% was taken out immediately.
- California state tax: California does not tax lottery winnings, so the winner avoided that extra deduction.
Even after taxes, Castro still walked away with hundreds of millions of dollars.
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How rare is it to win the powerball jackpot
You might be wondering what the odds really are of hitting such a jackpot. The odds of matching all six numbers in Powerball are 1 in 292 million. To put that into perspective:
- You are more likely to be struck by lightning than to win the jackpot.
- You are more likely to become a professional athlete than to win Powerball.
Still, jackpots like the $2.04 billion one prove that somebody eventually does win.
Why are powerball jackpots so big now
Powerball jackpots have grown much larger in the past decade, and there are reasons for that:
- In 2015, the game changed to make it harder to win the jackpot by increasing the number pool. This meant jackpots roll over more often.
- More rollovers equal bigger prizes.
- Powerball is played in 45 states plus Washington, D.C., which means millions of tickets are sold every drawing.
That is why all of the top 10 Powerball jackpots in history have happened since 2015.
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