Lottery players will have another shot Tuesday night at a massive Mega Millions prize that ranks as the biggest jackpot in the game's history and the third-largest prize ever in the U.S.
The jackpot rose again Tuesday to an estimated $1.58 billion prize. But that payout would go to a sole winner who opts for the annuity option, doled out over 30 years. But people usually prefer a lump sum option, which for Tuesday's jackpot would be an estimated $783.3 million.
A big slice of those winnings would also go toward federal taxes, and many states also tax lottery payouts.
The jackpot has been gradually building for months thanks to 31 straight drawings without a jackpot winner. The last time someone won the game’s top prize was April 18.
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Each drawing without a winner pushes the prize closer to the record $2.04 billion Powerball jackpot that someone in California won last year.
And if it seems like lottery jackpots topping $1 billion are more common nowadays, it's because they are. Since 2021, five prizes have topped $1 billion, not counting the latest game. The increased frequency is due to higher interest rates and worsened odds for winning a jackpot, which for Mega Millions is 1 in 302.6 million.
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The higher the interest rate, the larger the annuity can grow over three decades. The U.S. is in the midst of a remarkable run of interest rate increases, with the Federal Reserve raising a key rate 11 times in 17 months, and that higher rate enables a roughly $500 million lump sum prize to be advertised as a jackpot of about twice that size.
The drawing is set for 11 p.m. EST but it usually takes a couple hours before it's clear if there is a winner
Mega Millions is played Tuesday and Saturdays in 45 states, Washington, D.C., and the U.S. Virgin Islands.
