Powerball is an American lottery game sold through lotteries as a shared jackpot pool game. It is coordinated by the Multi-State Lottery Association (MUSL), a non-profit association formed by an agreement with member lotteries. Powerball is a jackpot game whose advertised grand prize starts at $20 million and can roll over into hundreds of millions over many drawings. The advertised jackpot prize is paid as an annuity over 29 years or players may elect to receive the present value, paid in cash. Powerball drawings are held every Wednesday and Saturday at 10:59 p.m. Eastern time. Powerball currently uses a 5/59 (white balls) + 1/39 (the Powerball) matrix to select its winning numbers. Each selection of six numbers costs players $1 for the base game; for an extra $1, they can multiply a non-jackpot prize by up to 5 with the PowerPlay multiplier. The official cut-off time for ticket sales is one hour before the drawing, although some jurisdictions cut off sales earlier that that. The drawings are regularly held at Universal Studios in Orlando, Florida. Occasionally, drawings are held at remote locations, sometimes to promote the game's expansion to new locations. The results of drawings are not official until they are audited by the accounting firm LWBJ, LLP.
Powerball currently holds the record for the largest single prize awarded by an American lottery, set on February 18, 2006 when a single ticket won the advertised $365 million jackpot. The eight people sharing the ticket elected to take the cash option, and split $177,270,519.67 before taxes.
On October 13, 2009, MUSL and the Mega Millions consortiums signed an agreement to allow US lotteries to sell both games, no longer requiring exclusivity. The expansion occurred on January 31, 2010, as 10 Mega Millions members began selling Powerball tickets for their first drawing on February 3, 2010. On the same day, 23 Powerball members began selling Mega Millions for their first drawing on February 2, 2010. On March 1, 2010, Montana (which joined Mega Millions) was the first jurisdiction to add either game after the cross-selling expansion. On March 20, 2010, Nebraska (which joined Mega Millions) became the second jurisdiction to add either game after the cross-selling expansion. This results in Powerball now being played in 43 jurisdictions while Mega Millions is available in 37 jurisdictions, with 35 selling tickets for both games.
Some of the remaining Powerball-only jurisdictions and two remaining Mega Millions-only members may also offer both games in the future, possibly by spring 2010. It is likely this cross-selling arrangement is a temporary measure as the lotteries investigate the possibility of merging the two games to establish a single national game.
PB = Powerball ( Lotto*America until April 1992); MM = Mega Millions ( The Big Game until May 2002)
Powerball's predecessor began in 1988; it was known as Lotto*America. The game, and name, were officially changed to Powerball on April 19, 1992. The first drawing was held on April 22, 1992.
Maine joined MUSL in 1990, dropping out when Powerball began; it did not rejoin MUSL until summer 2004.
When it was launched Powerball became the first game to use two drums as its core game. Using two drums offers more flexibility in game design, allowing for the possibility of high jackpot odds, numerous prize levels, and low overall odds of winning at the same time. (As explained later, a Powerball ticket can win by matching only one number.) The two-drum concept was suggested by Steve Caputo of the Oregon Lottery. The two-drum concept has since been copied by Mega Millions (formerly The Big Game ) in the U.S., Australia's Powerball, Thunderball in the United Kingdom, and EuroMillions.
Through 2008 Powerball drawings were usually held at Screenscape Studios in West Des Moines, Iowa. The drawings' main emcee was longtime Iowa radio personality Mike Pace, who had hosted MUSL drawings since the organization began in the late 1980s. In 1996 Powerball went "on the road" for the first time, holding five remote drawings at the Olympics. Ironically, weeks later, the Georgia Lottery became the first, and only, lottery to leave Powerball. In August 1996, Georgia joined the then-new The Big Game (now Mega Millions), the other major US lottery group. It planned to sell tickets for both games for the remainder of that year; however, within a few days, Georgia was forcibly removed from MUSL, not to return until the 2010 cross-sell expansion of both games.
On November 2, 1997, the annuity was changed from 20 to 25 yearly payments and the cash option was added. Currently the annuity consists of 30 graduated payments (increasing 4% annually) over a period of 29 years.
In 1998 Florida was given permission by its government to participate in a multi-jurisdictional game. It was set to offer Powerball; however, in early 1999, the new governor, Jeb Bush, prevented Florida from joining since he believed Powerball would hurt the existing Florida Lottery games. In 2008 Gov. Charlie Crist reversed the policy and Florida joined MUSL on January 4, 2009. Lotto and Lotto Plus sales immediately tumbled, forcing the Florida Lottery to terminate Lotto Plus in October 2009. In its place the Florida Lottery introduced Lotto Xtra, which is nearly identical to Powerball's PowerPlay. Citing concerns of diluting Powerball sales, Florida is still undecided as to whether to join Mega Millions.
On March 7, 2001, an optional multiplier (called "PowerPlay") was added, allowing players to multiply non-jackpot winnings by up to 5 after paying an extra $1 per play. A wheel was introduced to select the PowerPlay multiplier for each drawing.
On October 9, 2002, the 1x was removed from the PowerPlay wheel.
With the start of Powerball sales in Florida on January 4, 2009 (with its first participating drawing January 7), the matrices changed to 5/59 + 1/39 (adding four white ball numbers and dropping three red balls). This change has worsened the jackpot probability from 1:146 million to 1:195 million; the overall probability dropped to 1:35.
Based on statistical projections, the average jackpot won increases from $95 million to $141 million. Over 3.5 million additional prizes are expected to be won yearly (based on the same sales level) due to the drop in overall probability. The starting jackpot has increased to $20 million, with each rollover adding at least $5 million. The jackpot contribution has i
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