Recently, in the United States, the lottery game “Powerball” has hit a record high, reaching over $1 billion ($1.3 billion, to be exact).
Powerball is an American lottery game offered in 44 states as well as the District of Columbia, Puerto Rico and the U.S. Virgin Islands, and is managed by the Multi-State Lottery Association. Drawings for the Powerball are held every Wednesday and Saturday evening, with 5/69 white balls being drawn, and 1/26 Powerballs.
On Sept. 16, 1987, The Multi-State Lottery Association formed (a nonprofit organization formed by an agreement with U.S. lotteries), with the only members being the District of Columbia, Iowa, Kansas, Oregon, Rhode Island, and West Virginia (with Missouri joining a month later, and the rest of the states joining over time). The first game orchestrated by the MUSL was Lotto*America, a pick-7-of-40 game, where matching four numbers won a prize of $5, matching at least five numbers won a pari-mutuel prize, and matching all seven numbers won the jackpot (the odds of winning were roughly about 1 in 18 million). Unlike today’s Powerball, Lottery*America only offered a 20-year annuity, and no cash option. In April 1992, Lotto*America was discontinued, and replaced by the Powerball, with the first drawing held April 22, 1992.
At the start of its launch, Powerball became the first ever game to use two drums, which offered more manipulation and allowing higher jackpot odds, with several different prize levels, and lower overall odds of winning. On Nov. 2, 1997, the annuity of the Powerball was changed from 20 to 25 yearly payments, and an option of receiving cash was added.
In 2008, Florida joined the Powerball game, and along with the start of sales in Florida, the matrices were changed to 5/59 + 1/39, which changed the probability of the jackpot from 1 in 146 million to 1 in 195 million. On Jan. 15, 2012, the price of a Powerball ticket doubled, rising from $1 to $2, and the PowerPlay (an optional asset that allows players to multiply their non-jackpot winnings by up to five) was raised to $3, as well, and on Oct. 4, 2015, the white-ball pool increased from 59 to 69, while the Powerball pool decreased from 35 to 26.
Powerball is played by players selecting their five numbers from a set of 69 “white balls” and one number from a set of 26 red “Powerballs.” In order to win, there must be a match of at least three white balls, or the red Powerball.
If you won $1 billion, what would you do with it?
