Powerball jackpot hits $900 million: How to play, Quick Pick or not; your odds

BOSTON — With a $800 million lottery payout looming – the largest in American history --  to say “Powerball fever” has struck is an understatement.

In addition to crowds at ticket outlets in participating states, lines, some of them stretching for blocks,  have formed at “border towns” the cities nearest to the borders of states who don’t participate in the Powerball lottery.

If you are the lucky one to be able to get your tickets before Saturday night, then the incredibly (and we mean INCREDIBLY) lucky one to win, you may have  some questions about your upcoming life as a multi-millionaire.

Here are a few questions and answers about the Powerball lottery game and what happens if you win it.

How do you play?

You choose five numbers between 1 and 69, then one “Powerball”  number between 1 and 26. The drawing consists of five “white” balls being drawn,  then one “red”  ball  -- the Powerball – being chosen.

How do you win?

There  are a few ways. Match all the "white" numbers and match the Powerball and you win the grand prize. In Saturday’s case, $900 million. Match five numbers without the Powerball and win $1 million; match four  plus the Powerball and you get  $50,000; match three and  the Powerball and you get $100; match three without the Powerball and you get $7; match two and the Powerball and you get $7; match one and the Powerball and you get $4; match the Powerball and you get $4.

How much does  it cost?

Tickets  are $2. You can “upgrade” the ticket to something that increases the potential prize amounts.  It’s called a “Power Play” and it costs an addition $1 per ticket.

How much would you actually get if you hit the grand prize?

That depends on how you want to collect your money – a lump sum or a 30-year annuity.

The highest federal tax rate for 2016  is 39.6 percent for income above $233,476 to $466,951, depending on your filing status. With an $800 million jackpot,  you’re looking at a lump sum payout estimated of $558 million before taxes. What you will receive of that lump sum after all federal  taxes are deducted,  but before state taxes are taken, would be around $385 million.  (Note: The federal government collects the tax in this way: The IRS will tax 25 percent of the total winnings off the bat, before you even get a check. You will have a tax bill for the remaining amount for which you will likely be taxed at the rate of 39.6 percent -- unless  you are very creative filing your taxes for 2016.)

Your winnings would be subject to varying state tax  rates, unless you live in a state such as Florida which does not tax  lottery winnings.

If you decide to take the annuity, you are in rare company. Most people opt for the lump sun. The annuity, paid out over 30 years is annuitized – meaning it starts out at a lower  amount and increases each year by about 4-5 percent. For the annuity payment, you’re looking  at more than $26.6 million a year to start. That’s before federal taxes come out and state taxes if they apply in your state. For the first year, the annuity take home amount would be $20 million -- $26 million minus the 25 percent the federal government takes. Then you would be subject to federal tax on the remaining amount and state taxes if they apply.

Which states participate in Powerball?

Only six states in the United States do not participate in Powerball. You cannot buy Powerball tickets in Alabama, Alaska, Hawaii, Mississippi, Nevada or Utah.

Is there advantage to using the “quick pick” system as opposed to using numbers you pick yourself?

About 70 percent of past winners used "Quick Picks," numbers randomly chosen by the computer system that spits out tickets. Technically, however, numbers you chose have the same odds of winning as Quick Pick numbers do.

What are the odds of winning the Powerball?

According to the Multi-State Lottery Association, your odds of matching all the winning Powerball numbers are 1 in 292.2 million.

What are the odds of being struck by lightning?

Roughly 1 in a million

… of getting bitten  by a shark?

1 in 11.5 million

… of becoming president of the United States?

1 in 10 million

… of dating a super model?

1 in 88,000

… of getting a royal flush in poker?

1 in 31,000

So, you could become president, date a super model, get bitten by a shark after you get a royal flush in poker and then be hit by lightning before you win  the Powerball jackpot.

But, hey, you gotta play to win.

Where and when is the draw done? Can anyone tamper with it?

The Powerball numbers are drawn in Tallahassee, Fla.,  at 10:59 p.m. ET on Wednesdays and Saturdays. The machine that draws the numbers is kept in a vault armed with two locks and an alarm. Audio and video recordings are made of the area surrounding the vault every time it is opened.

Cox Media Group