Why Was The Jackpot Increased?

Last week, you may have noticed a change in the Powerball jackpot that doesn’t happen all that often.   

The jackpot for the Powerball drawing on Wednesday (Feb. 3) was originally set at an estimated $108 million. But before the drawing happened, that amount was raised to an estimated $115 million.  

The last time we had done something like that was during Iowa State Fair time, when the jackpot reached $259.9 million before it was won in the drawing on Aug. 19.

Some of you have asked us how the jackpot amount can go up for the same drawing. And whose decision is it anyway?

The answer to the jackpot question can be found in the Powerball Game Rules section on our Web site. First, it helps to know where the Powerball jackpot money comes from. From all the tickets that are sold for a particular drawing, 49.5 percent of the money is dedicated to paying prizes until the jackpot prize is funded at the guaranteed annuitized amount. In other words, the prize pool consists of 49.5 percent of sales until the full estimated jackpot amount is reached.

If sales exceed that amount, the money can either be held over for the next drawing’s prize pool or the jackpot amount for the current drawing can be raised. In instances like last week when sales were high due to the start of cross-selling in Powerball and Mega Millions, the decision was to increase the jackpot amount for Wednesday‘s drawing to $115 million.

And just who makes that decision? You likely know that Iowa is just one member of the Powerball game. The Multi-State Lottery Association (MUSL), which is based in Urbandale, Iowa, oversees the game on behalf of the lotteries that sell Powerball tickets. The directors of all the lotteries that are members of the Powerball game serve on the MUSL Board. It is that Board that makes the decisions concerning the jackpot amount in Powerball.   

And in case you’re wondering, tomorrow night’s Powerball jackpot is an estimated $20 million. The $141.4 million jackpot in Saturday night’s drawing was won in North Carolina.  

Comments

[Mary Neubauer]

Great comments, Tino and Dave! This kind of interaction and input is exactly why we have a blog, so thank you for talking with us here. The amount of security and oversight involved in a Powerball drawing is extensive and thorough, ensuring that all monies are accounted for and every transaction balances for a particular drawing. That’s all part of the process of delivering the secure game that the public expects and demands. Your idea of a rolling counter for the jackpot is great! I’m going to pass your ideas along to the folks who handle Powerball drawings to see what they think. Mary

[Tino]

Wow, Dave has some interesting ideas. With a rolling jackpot counter, instead of an 'estimated jackpot', we could which the jackpot increase by the minute. That would be quite entertaining, if you ask me.

[Dave Jones]

The more I think about it the better the idea gets. When there is a really big jackpot, you know there would be media people checking it daily, if not hourly. Morning talk hosts, GMA, I bet there would be updates in local newscasts. For example "The Dow Jones closed at 4200, up 10. Sow bellies were 1.289 as they continue their downwards slide, Oats down at 4.10, but the Powerball/Mega Millions/(National Unified Lotto) Jackpot is going up, up ,up. It is currently at $386,759,000 with one more day to go. (turns to the weatherman) Wow! What would you do with all that money Ted?? That would be worth as much as what they spend on those insipid commercials. Some people would get obsessed with breaking down the highs and lows of the rate at which the 'Pot climbs, trying to tie it in to their Grand Unified Lotto prediction theory.
As much as some sore losers(or idiots as I like to call them) would try to convince you that the consensus feeling is that they don't want one person getting that much money, but would rather see more smaller sum millionaires, facts show that the large jackpots sell more tickets than lesser odds games that would fulfill the framework for these morons. But, I digress.

[Dave Jones]

I think that there is something wrong with carrying funds over to the next draw. Those dollars were accumulated for the purpose of one specific drawing therefore the intent is for them to be part of the drawing they were spent on. Why not have a rolling jackpot counter, sort of like they do on slots. Then players could feel more "in tune" with the jackpot chance they are buying. To decide ahead of time what the drawing jackpot total will be seems to violate the spirit of intent of the players. Not to mention which, it almost has the feel and taste of fraud that so many suspect the lottery organizations of being involved in. How do we know, for instance, that the overage is not being siphoned off into the pockets of the executives?