Mega Millions

Mega Millions is a multi-state US$1 lottery game in the United States. Twelve U.S. states currently license Mega Millions as a provider of multistate lotteries in those states (29 states, the District of Columbia, and the US Virgin Islands license Powerball, Mega Millions' main competitor). As of 2007, Mega Millions features jackpots of at least US$12 million, payable in 26 annual payments or a lump sum cash payout. As will be explained later, there are differences in playing Mega Millions from state to state. Mega Millions is drawn Tuesdays and Fridays; the current estimated jackpot for Friday, January 4, 2008 is US$12 million, with a cash option of $7.2 million.

History

Big Game logo prior to the Mega Millions name change.

Tickets went on sale in Georgia, Illinois, Maryland, Massachusetts, Michigan and Virginia for the new lottery on August 31, 1996, then known as The Big Game. Six days later, the first drawing was held. Drawings were held weekly on Fridays until they held a Tuesday drawing on February 10, 1998. On January 13, 1999, jackpot winners had the choice to claim the prize in lump sum for the first time (however, an Illinois winner in late 1998 was allowed to receive their prize in cash.) In May 1999, New Jersey joined The Big Game. On May 9, 2000, The Big Game offered a jackpot worth $363 million. The prize was won by two ticket holders from different states. This was the largest under its old name and was once the world's largest. This was later surpassed on February 18, 2006 by a $365 million jackpot from Powerball, the other big interstate lottery. On April 16, 2002, the last Big Game jackpot was won. This prize was worth $331 million and there were 3 winners. On May 14 that year, The Big Game held its last drawing. New York and Ohio joined the Big Game on May 15, 2002. This was when the game was changed to its current name, Mega Millions. Also, the "Big Money Ball" changed its name to the "Mega Ball." After its name change to "Mega Millions" from "The Big Game," the yellow ball in the logo of the Mega Millions read "The Big Game." The first Mega Millions drawing was held on May 17, 2002. Three more states later joined: Washington (also in 2002); Texas (2003), and California (2005). After rolling over 15 times, Mega Millions offered a jackpot $390 million on March 6, 2007. This set a new world record for the largest jackpot, returning the title to Mega Millions after being held briefly by Powerball. There were two winners in the $390 million draw, one each from Georgia and New Jersey.

Playing the game

As of 2007, to play the game, a player US$1 and picks five numbers from 1 to 56 (white balls) and one additional number from 1 to 46 (the Mega Ball number, a yellow ball). The Mega Ball number can be a duplicate of one of the white ball numbers, since the balls are drawn from separate machines. In Georgia, New Jersey, New York, and Texas, the player must also choose, in advance, whether they wish to collect a jackpot in lump sum or annuity. Georgia and New Jersey winners can change an annuity ticket to cash; however, the choice is binding in New York and Texas. Tickets may be obtained from either retail locations, or by mail in select states (currently, only Illinois, Maryland, Massachusetts, New Jersey, New York and Virginia offer subscriptions by mail). Exclusive to Texas, Mega Millions players also have the option to activate a multiplier should they win a non-jackpot prize; for $2, a selection of five white numbers and a Mega Ball can win a double, triple, or quadruple prize (up to $1 million cash) with the "Megaplier". This is in contrast to the game-wide options in Powerball's "PowerPlay" and Hot Lotto's Sizzler". Previous incarnations of the Big Game and Mega Millions have had different matrices:

Tickets must be purchased 15 minutes prior to the draw (usually 11:00 PM Eastern time), accounting for local time zone differences. Laws and regulations vary slightly and are generally governed by the applicable laws in the state where the ticket is sold, and the winner's home state (e.g. if a New Jersey resident buys a winning ticket near their workplace in Manhattan.) Mega Millions winnings are generally exempt from state income tax in California and New Jersey; Texas and Washington have no state income tax. On the other hand, residents of New York City and Yonkers, New York pay city tax in addition to state and federal taxes. As of 2007, a player wins a prize according to the following chart:

The Mega Ball number cannot cross over to be used for matching a white ball number, or vice versa. The overall payout in Mega Millions is 50 percent. The Texas Lottery offers players a chance to multiply lower-tier prizes. This feature is called "Megaplier".

Machines Used

Like most games that used power or bonus balls, a pair of machines are used. The balls are moved around inside a rotating drum. The winning balls drop through a hole in the drum a single ball at a time. All the balls in the first machine are white; the Mega Balls are gold.

The draw

Drawings are usually held at WSB-TV in Atlanta at 11:00 PM Eastern time on Tuesdays and Fridays. Usually, the announcer is WSB's chief weather forecaster, Glenn Burns. However, drawings may sometimes be held elsewhere:

• On February 20 and July 2 2004, when the jackpot reached near-record levels (annuitized values of US$230 million and US$290 million, respectively), the draws were held in Times Square with popular New York Lottery draw host Yolanda Vega.
• On June 24 2005, to commemorate California joining Mega Millions, the drawing was held in Hollywood, California with Carrie Underwood assisting Glenn Burns for the draw.
• On March 6 2007, the draw returned to Times Square with host Yolanda Vega due to the world's largest jackpot offered (an annuitized jackpot of US$390 million).

Record jackpots

Participating States

The following states participate in the Mega Millions lottery game:

• California (joined in 2005; it is the newest member)
• Georgia (original member; had offered Powerball but dropped out when the Big Game began)
• Illinois
• Maryland
• Massachusetts
• Michigan
• New Jersey (1999)
• New York (2002)
• Ohio (2002; New York and Ohio joined at the same time when Mega Millions began)
• Texas (2003)
• Virginia
• Washington (2002)

All other states which operate a lottery participate in Powerball except for Florida which does not participate in either multi-state game (though its lottery law allows it to later join either game if it wishes). States without a date listed above are the six original Big Game members. New Jersey is the only state to be added in the Big Game era (September 1996-May 2002). As of May 2007, the minimum age to purchase a Mega Millions ticket is 18, regardless of participating state. In most of these states, with the exception of Virginia, minors can win on tickets received as gifts; the rules according to each state vary for minors receiving prizes. Unlike Powerball, there are significant differences in play style among a number of the Mega Millions states:

• California's eight lower-tier prize levels (as well as the jackpot) are pari-mutuel. Its second prize often rolls over, and has paid over $1 million (cash) on multiple occasions.
• New York requires the jackpot choice (cash or annuity) to be made when the ticket is bought.
• Ohio has a Kicker game that can be played only with Mega Millions. A six-digit number is printed on all Ohio Mega Millions tickets, regardless if the Kicker is activated.
• Texas is the other Mega Millions state that requires the payment choice to be made before winning, instead of after. (This also applies to its Lotto Texas.) Likewise, it is the only state with the Megaplier (see above).

Georgia and New Jersey, while requiring the cash/annuity choice when playing, allows an annuity ticket to be changed to lump sum when claiming (a cash ticket cannot be changed, however). The jackpot choice in New York and Texas is binding. The game-wide cash option started after federal regulations signed by then-President Bill Clinton no longer required the choice to be made when playing. Mega Millions winners have from 180 days to one year to claim prizes, including the jackpot (although some winners lose the right to collect a jackpot in cash if they wait more than 60 days after the drawing).

Unclaimed Prizes

If a jackpot prize is not claimed within the required time limit, each of the participating states in the MEGA Millions game will get back all the money they contributed to that jackpot. Each state in the game uses unclaimed prizes for different purposes. In many states, unclaimed MEGA Millions jackpot prize funds are distributed to education.^{[3] [4]} In 2007, a $31M prize went unclaimed in New York State.^[5] Secondary prizes of $250,000 are unclaimed in many states, including several in Michigan for 2007 drawings. ^[6]

Miscellany

The attack on the World Trade Center on September 11, 2001 resulted in the state of New York passing legislation that included joining a multi-state lottery game. Separately, Ohio also voted as such. Both states opted to join the then-Big Game (on May 15, 2002) and its seven members. The added populations of the two new states, in turn, led to a larger double matrix (actually, the first machine continued to hold 52 balls, while 16 gold balls were added in the second, meaning there were 52 numbers to pick from in each part of a $1 game.) At this time, the game was renamed Mega Millions. A budget impasse in New Jersey in June 2006 led to the temporary shutdown of less-important state agencies on July 1, 2006. Among the casualties were the Atlantic City casinos, and the New Jersey Lottery. Not only were the in-state games (such as New Jersey Pick 6) not drawn for about a week, but all its lottery terminals were shut down, meaning Mega Millions could not be played in the Garden State, even though Mega Millions was drawn as usual. In 2005, Mega Millions was the target of a mailing scam. A scam letter bearing the Mega Millions logo was used in a string of lotto scams designed to trick people into providing personal financial information by cashing bogus checks. The letter, which has been sent to people in several states via standard mail, includes a check for what the scammers say is an unclaimed "Mega Millions" prize. If the check was cashed, it bounced, but not before the bank stamped it with a routing number and personal account information, and sent it back to the fraudulent organization, providing them with the recipients financial information.^[7]

References

1. ^ Payouts are uniform in all Mega Millions states, except in California, where all prizes, including the jackpot, are pari-mutuel, meaning payouts are based on sales and the number of winners. All other Mega Millions states set the second through ninth prizes at pre-determined amounts.
2. ^ If more than one person wins the jackpot, the prize is equally divided among the winning tickets. Winners have between 180 days to 1 year to collect the jackpot, depending upon the applicable laws in the state where the winning ticket was sold. Other than in New York and Texas (see above), a jackpot winner has 60 days from the drawing, or in some states, 60 days after claiming, to choose cash or annuity. The lump sum payment is typically approximately 55%-60% of the annuity value. The minimum jackpot prize is US$12 million, disbursed in 26 annual payments, or a cash payout.
3. ^ http://www.calottery.com/Games/MegaMillions/howtoplay/faq.html#q13
4. ^ http://www.michigan.gov/lottery/0,1607,7-110-1227-4242--F,00.html
5. ^ http://www.upi.com/NewsTrack/Top_News/2007/12/06/many_major_us_lottery_prizes_unclaimed/3678/
6. ^ http://www.michigan.gov/lottery/0,1607,7-110-46442_812_967---,00.html
7. ^ http://www.scamfraudalert.com/f23/mega-millions-logo-officials-warn-lottery-scams-5259/

External links

• MegaMillions.com - Official site