Powerball Update on Jackpot Amounts and Minimum Jackpots
Forget big guaranteed starting Powerball jackpots because it’s changing. The Powerball Directory Group recently announced its decision to change the way the prizes are determined, so instead of lavish jackpots with eye-watering prizes, the jackpots now will only be based on the number of tickets sold. Seems fair enough, but with a reputation for creating millionaires, many now will be turning to other lottery products.
From April 8th, guaranteed starting jackpot amounts and minimum jackpot increases have been eliminated, and future jackpot increases will now be determined and announced by the group at each drawing, based on the number of tickets sold. And this is sure to have an impact on advertising. Previously, Powerball jackpots started at $40 million (annuity) and increased by a minimum of $10 million (annuity) between drawings.
Gregg Mineo, Powerball Product Group Chairman, and Maine Lottery Director said in a press release: “These changes are necessary to ensure that ticket sales can support the Powerball jackpot and other lower-tier cash prizes. Our number one priority is making sure that the Powerball game can continue to assist lotteries in raising proceeds for their beneficiaries.”
Mineo continued: “Since last week, more states and cities have asked their residents to stay at home, which has affected normal consumer behaviours and Powerball game sales. In response to the public health crisis, interest rates have declined. As a result, additional game sales are necessary to fund comparable jackpot amounts.”
They were expected to announced the starting jackpot be $20 million (annuity) – half what it was and minimum jackpot increases would be $2 million (annuity) instead of $10 million – that’s a fifth of what they were before, but because of Covid-19, they went with the decision to set the prizes based on ticket sales.
Ticket prices still remain the same though, that’s $2 a ticket. So, it’s not all doom and gloom.