ialottery blog

Powerball Jackpot Raised For Tomorrow’s Drawing!

The Powerball jackpot is definitely getting attention right now and all those tickets being snapped up have pushed the big prize even higher for tomorrow’s drawing!

After reviewing the latest numbers, lottery directors in the game decided just a few minutes ago to raise the Powerball jackpot to an estimated $325 million annuity for tomorrow’s drawing. And there’s an even more interesting twist on the cash-option side of things: The lump-sum amount for tomorrow is $202.9 million, a record amount.

We think these latest developments show that $2 Powerball game is performing as expected. We’re less than a month into the new game and it’s already generating the bigger jackpots that we’d said would come with the new game when it was revamped in January. The new version of Powerball debuted Jan. 15. With it came starting jackpots that doubled to $40 million, easier odds of winning and a “second prize” that’s moved to $1 million cash.

Here’s how the jackpot numbers break down: The estimated $325 million annuity is the amount you’d get in annuitized payments over the 30-year payout of the jackpot. But if you were to choose the cash option like a lot of folks do these days, the lump-sum payment would be $202.9 million cash, and that’s a record. The biggest previous lump-sum amount for a Powerball jackpot was $177.3 million from the drawing on Feb. 18, 2006.
     
And the 411 on $2 Powerball: Players still choose their first five numbers from a pool of 59, but the group of numbers in the Powerball pool has shrunk from 39 to 35, producing better overall odds of winning a prize. Along with changes at the higher prize levels, the very smallest prize you can win in Powerball has also increased. You now win $4 when you match just the Powerball.

The Power Play® option is still available for an extra $1 per play. Instead of randomly multiplying prizes by two to five times, the Power Play now increases each prize level by a set amount. For example, if you’ve added the Power Play option to your ticket and you match the first five numbers in a drawing, the $1 million prize you would have won will be doubled to $2 million. Or, if you would have won a $10,000 prize for matching four of the regular numbers and the Powerball, the Power Play option will quadruple that prize to $40,000.

A chart showing all of the Power Play prize amounts is available here.

The Latest On The Withdrawn Jackpot Claim

With the crush of media calls today, I am just now having a chance to blog about the latest unusual twist in the claim – and now withdrawal of the claim – for the multi-million-dollar Hot Lotto jackpot won in December 2010 in Des Moines.

We received confirmation a little after 6 p.m. last night that the claim for the ticket was being withdrawn. It’s definitely the real winning ticket and it was worth millions of dollars. We wanted to pay the prize and have said repeatedly that we were ready to pay the prize, but we needed just some basic information before we could do so.

Ultimately, the folks representing Hexham Investments Trust said they wouldn’t provide the information, so they were walking away.

I’ve been asked several different times by reporters today what we think/how we feel/what our reaction is. We’re disappointed that this prize won’t be paid. But at the same time, we focused throughout the process of doing the right thing and wanted to be thoughtful, methodical and careful in our approach. I would hope that’s what everyone would want us to do when there are millions of dollars on the line. And there definitely were in this instance!

So, now what happens to the money? The total involved is the $10.75 million in cash that was on hand from the sale of tickets for that particular Hot Lotto jackpot drawing. The money will be returned to the 15 lotteries that sell the Hot Lotto game in proportion to the percentage of sales that came from each state.

Here in Iowa, the money will ultimately go into the Iowa Lottery’s prize pools for future games and promotions. We’re talking about having a promotion in the spring to give away the money, maybe something with the theme that “everyone deserves a second chance”! We can have some fun with it. We haven’t had a chance yet to work through those details, but we will do so as soon as we can.

Here is the statement we issued last night: 

DES MOINES, Iowa – Iowa Lottery officials met Thursday evening with local counsel from the Davis Brown Law Firm representing Hexham Investments Trust. Following that meeting, Iowa Lottery CEO Terry Rich released the following statement:

“This has been and continues to be the strangest situation that we can recall in the 26-year history of our lottery.

We were excited when the Hot Lotto jackpot-winning ticket was presented in December and we were hopeful that we’d soon be paying out the big prize to the lucky winner. That has not happened. And in fact, late this afternoon, the jackpot claim from Hexham Investments Trust of Bedford, N.Y., was withdrawn. We received confirmation of the claim withdrawal shortly after 6 p.m. today from the Davis Brown Law Firm here in Des Moines.    

As you likely know, the winning ticket for the Hot Lotto jackpot won in December 2010 in Des Moines was turned in here at the lottery with less than two hours to go before the prize would have expired. The winning ticket was signed by a trustee on behalf of Hexham Investments Trust, but no member of the trust was present when the ticket was brought to the lottery by two lawyers on Dec. 29.

That day, and since that time, we have been requesting basic information so we could confirm that the winning ticket was legally purchased, legally possessed and legally presented. This standard information is routinely requested of jackpot winners here in Iowa as part of our security processes to comply with both Iowa law and our lottery’s game rules. Those details usually are received within minutes at the time a winning ticket is presented, not in weeks or months. It has been 13 months since the purchase of this ticket and the drawing in which it won the jackpot.   

Those specifics in this instance were not shared with us when the ticket was brought to the lottery, and have still not been shared with us nearly a month later. We established 3 p.m. CST tomorrow as the deadline for that information to be provided so we could bring closure to the situation and move forward.

On Monday, we had informed the trust’s local counsel at the Davis Brown Law Firm in Des Moines of today’s deadline and specified in a letter the information we were requesting. Throughout this week, we remained in contact with lawyers at Davis Brown about our request. We received a letter from the law firm on Wednesday, specifying that if jackpot were to be paid to the trust, all of the winnings would be donated to charity. However, the specifics we sought were not provided.

The Lottery sent a reply to Davis Brown on Thursday, declining to pay the prize because of our concerns about the legality of the purchase, possession, and presentation of this ticket. A copy of that correspondence has been provided today.
 
During conversations with the lottery, Mr. Shaw specified that he is not the beneficiary of Hexham Investments Trust, only its lawyer and trustee. He also specified that he is not the person who purchased the winning ticket in Des Moines, and stated that the recipient of Hexham Investments Trust was a corporation in the country of Belize. He stated that he ultimately did not know the identity of the winner(s).

Through this process, we have tried our best to remain open and transparent, while protecting the integrity of the Iowa Lottery and its games.”

Deadline is Set for Hot Lotto® Jackpot Claim

Here’s the latest update on the Hot Lotto® jackpot claim. After Iowa Lottery officials met with representatives of the Iowa Division of Criminal Investigation and the Iowa Attorney General’s Office Monday, Iowa Lottery CEO Terry Rich set a deadline by which the necessary information must be presented to lottery officials.

The deadline Rich set is for 3 p.m. CST Friday (Jan. 27). If the information the lottery’s security team requires is not shared by that time, the Iowa Lottery will deny the prize payment.

This is the first time the lottery has experienced a situation like this in its 26-year history, and we will continue our work, understanding that the security and integrity of the Iowa Lottery and its games cannot be compromised.

We’re extremely glad that the winning ticket has been turned in. We look forward to learning more details about the situation. However, the jackpot prize has not been paid – and will not be paid – until the lottery has been able to complete the security process for this jackpot win.

New Twist In Jackpot Claim Story

The situation involving the Hot Lotto jackpot that was claimed just before it expired last month took another turn this week with court documentation from New York and Delaware about a person named Crawford Shaw. As you likely know, a man named Crawford Shaw is the trustee for Hexam Investments Trust, the owner of the jackpot-winning ticket that was purchased here in Des Moines in December 2010.  

A person named Crawford Shaw is associated with criminal proceedings and bankruptcy filings in New York and Delaware. What does that have to do with the jackpot-winning ticket? We don’t know. It could be nothing. But the fact that the information exists means it is something that the Iowa Lottery will look into as the situation progresses.

We’ve said from the beginning that there are three thresholds that must be met: We need information to ensure that the jackpot-winning ticket was legally presented, legally possessed and legally purchased. That information has not been shared with us here at the lottery and we therefore have not paid the prize and do not plan to do so until we have that information.
               

The Latest Update About That Hot Lotto Jackpot Claim

Here’s the latest about that Hot Lotto jackpot claim:

Iowa Lottery officials and representatives of the trust that claimed the Hot Lotto jackpot from December 2010 have met in person to discuss the claim. Crawford Shaw of Bedford, N.Y., the trustee for Hexam Investments Trust, attended the meeting late yesterday afternoon at lottery headquarters in Des Moines along with local attorneys who also represent the trust. They met with lottery security investigators and the lottery’s legal counsel for about 1½ hours, and the lottery’s investigation into the matter continues.

We think it was a good initial discussion. We’ve said it before and I’ll say it again here now: We’re glad that the winning ticket has been turned in and we look forward to learning more details about the situation. The jackpot prize hasn’t been paid out -- and it won’t be paid -- until the lottery has been able to complete the security process for the jackpot win.

The biggest question we’re hearing now is: How much longer? I don’t think anyone knows. This is the first time we’ve seen a situation like this here at the lottery and we’ll continue our work to ensure the security and integrity of the lottery and its games.

It all comes down to this: We know you want to know when you buy a ticket that you have the same fair chance of winning as everybody else. That’s what we concentrate on every day, in this situation and any other.

Reminder: $2 Powerball® Debuts Sunday

Here’s a reminder for this weekend: Sunday marks the debut of $2 Powerball, and the revamped game will sport several new features. As of that day, Powerball jackpots will start at $40 million and the jackpot will be easier to win. The overall odds of winning any prize also will be easier, and there will be more chances to win a prize of at least $1 million cash.

Powerball has been redesigned several times over the years so it will keep delivering the big jackpots that people expect, but also give players the chance to win other big prizes as well.
U.S. lottery directors approved the upcoming changes back in June. Before that vote was taken, the issue had been studied in two years of national research that involved 5,000 participants.   

Some of you may remember that back when Powerball started in 1992, it was played in just 15 states with jackpots that started at a guaranteed $2 million. Fast forward 20 years to today.  Powerball is one of the world’s biggest and most recognizable lottery games, played by 44 lotteries across the country, with players buying more than $3 billion annually in Powerball tickets. The biggest jackpot in the game so far was a $365 million prize split by eight co-workers at a Nebraska meat-packing plant in February 2006.

But with the game’s success has come demand for innovation to keep things fresh. The latest changes that take effect Sunday will help give players choices when it comes to lotto games and differentiate Powerball from other games. If you’re someone who thinks you’d rather keep playing a $1 lotto game, remember that you still have plenty of choices in that regard: Mega Millions, Hot Lotto and Iowa’s $100,000 Cash Game will continue to be available for $1 per ticket.

As of Sunday, you’ll still choose your first five numbers from a pool of 59. But the group of numbers in the Powerball pool will shrink from 39 down to 35, producing better overall odds of winning a prize.

The Powerball jackpots will start at $40 million – that’s double the current starting jackpot of $20 million. And the “second prize” in the game for matching the first five numbers but missing the Powerball will move to $1 million cash rather than the current $200,000.

Check out the changes on Sunday, and then we’ll all sit back and watch those jackpots climb!

The Latest On The Hot Lotto Jackpot Claim

Here’s video of our news conference when the winning ticket for that Hot Lotto jackpot was turned in with less than two hours to spare before the prize-claim period was set to expire.

Yesterday was a crazy day, but if it’s possible, I think today has been even busier. We here at the lottery have now been contacted by multiple people, each of whom individually claims that the winning ticket was stolen from them. We don’t yet know the credibility of any of those claims, but those are just some of the details we’ll be looking for as we continue to investigate this prize claim.

You know, in any high-profile situation like this, there will be rumors. Our job is to separate fact from fiction. Over the past 12 months, we’ve heard hundreds of stories from people who wondered if they’d bought the winning ticket. But the fact is, only one of those stories can be true. And the high-tech security behind a lottery ticket gives us a lot of valuable tools to use in our security process.

This is the first time the lottery has been through a situation like this in our 26-year history. We’ll continue our work, understanding that the security and integrity of the Iowa Lottery and its games cannot be compromised.

Jackpot-Winning Ticket Turned in With Two Hours To Spare

The lottery released this statement earlier today:

DES MOINES, Iowa – Iowa Lottery CEO Terry Rich issued the following statement Thursday regarding the claim of the Hot Lotto jackpot after nearly a year:

“The winning ticket for the multi-million-dollar Hot Lotto jackpot won on Dec. 29, 2010, here in Iowa has been presented today to the Iowa Lottery, coming in just under the wire before the prize was set to expire. It appears that the repeated reminders we’ve issued over the past year – and the information that the media helped us distribute to the public – worked as we had hoped, and brought in the winner just in the nick of time. 

We worried for months that the jackpot would not be claimed, so we’re glad that the winning ticket has been turned in. We emphasize, however, that the money has not been paid out -- and will not be paid out -- until the lottery has been able to complete the security process for a jackpot win.

This security process is a standard part of a jackpot claim, but additional security scrutiny is required in this particular instance by the rules of the Hot Lotto game because more than half the prize-claim period for the jackpot had expired.

The jackpot-winning ticket was presented to the lottery today by a representative of a Des Moines law firm on behalf of a trust. We have not yet had the opportunity to meet with the actual winners and ask the security questions we need to have answered regarding the ticket and its purchase.

The jackpot-winning ticket was presented by Julie Johnson McLean of the Davis, Brown, Koehn, Shors & Roberts law firm in Des Moines on behalf of Hexam Investments Trust, with Crawford Shaw of Bedford, N.Y., as the trustee. Ms. Johnson McLean had the winning ticket validated today at lottery headquarters in Des Moines, but no representative of the trust was present.

The Davis-Brown firm contacted the lottery on Tuesday (Dec. 27), indicating that it had been asked to provide legal services to a trust in connection with the jackpot claim. This was not the first inquiry we had received from a lawyer on behalf of a client about this jackpot, and in none of the other instances did those involved have the winning ticket. We did not want to comment specifically about any of the inquiries until and unless someone actually brought the winning ticket here to the lottery, and that just happened this afternoon. The name of the trust was shared with us here at the Iowa Lottery when the ticket was presented today.

Will We See The Jackpot-Winning Ticket In Time?

We're down to the final hours, so the question is: Will a second multi-million-dollar U.S. lottery jackpot go unclaimed this week? A $77 million Powerball® jackpot just expired Monday in Georgia without being claimed, and now that Hot Lotto® jackpot we've been talking about for so long here in Iowa is on the line with just a day to go.
  
We here at the Iowa Lottery are hoping that our repeated reminders over the past year will cause a lucky someone – or group of someones – to double-check their tickets and come forward in time to claim the Hot Lotto jackpot. The winning ticket will expire at 4 p.m. TOMORROW (Dec. 29) if it isn't claimed by then.

With each passing day, we're getting more and more inquiries from folks who wonder if they may have made the jackpot-winning purchase. But so far, no one has presented the winning ticket, and I've got to emphasize that is a requirement for claiming the prize.

The Hot Lotto jackpot-winning ticket was purchased at Quik Trip, 4801 N.E. 14th St. in Des Moines. The lucky ticket matched all six numbers selected in the Hot Lotto drawing on Dec. 29, 2010, to win the grand prize. The winning numbers that night were: 3-12-16-26-33 and Hot Ball 11.

Hot Lotto tickets in Iowa expire a year from the date of the drawing in which a prize is won, so the jackpot prize will expire at 4 p.m. tomorrow if it isn't claimed by then. (The lottery's Validations Office closes at 4 p.m. and the equipment needed to process winning tickets is shut down at that time.)

We're choosing to never say never on this one, so we'll see what tomorrow brings!

Missing Millionaire: Only A Month To Go

Today has started the one-month countdown for that multi-million-dollar Hot Lotto® jackpot that’s still unclaimed 11 months after it was won with a ticket purchased in Des Moines. We’ve blogged about it here before, but here’s another reminder that the winning ticket will expire Dec. 29 if it isn’t claimed by then!

With each passing day, those of us who work here at the lottery get more and more inquiries from folks who wonder if they might have been the one who bought the jackpot-winning ticket nearly a year ago at a Des Moines convenience store. But so far, all the people who have contacted the lottery have had one thing in common: No one has presented the winning ticket to the lottery.

That’s the point we can’t stress enough: You must present the winning ticket to the lottery to claim the prize. In some of the media interviews I’ve done today, I’ve put it this way: Respectfully, it doesn’t matter how good of a story you come up with. If you don’t have the winning ticket, we can’t pay you the prize.

It is sad to see this huge prize continue to sit there without being claimed. Someone won this money and we want them to take it home. It could make a huge difference in someone’s life – or several someones’ lives.

The Hot Lotto jackpot-winning ticket was purchased at Quik Trip, 4801 N.E. 14th St. in Des Moines. The lucky ticket matched all six numbers selected in the Hot Lotto drawing on Dec. 29, 2010, to win the grand prize. The winning numbers that night were: 3-12-16-26-33 and Hot Ball 11.

Hot Lotto tickets in Iowa expire a year from the date of the drawing in which a prize is won, so this particular prize will expire at 4 p.m. on Thursday, Dec. 29, 2011, if it isn’t claimed by then. The Validations Office here at lottery headquarters in Des Moines closes at 4 p.m. and the equipment needed to process winning tickets is shut down at that time.

If the Hot Lotto prize expires without being claimed, the money from the jackpot will go back to the 15 lotteries that offer Hot Lotto in proportion to the percentage of sales that came from each state. (For example, if Iowa contributed 20 percent of the sales for that particular jackpot, Iowa would get 20 percent of the money back.) Here in Iowa, the money from unclaimed prizes goes into the lottery’s prize pools for future games. We’ll get about $1.3 million back if the jackpot were to go unclaimed.

We’re discussing the idea of having a special promotion in the spring to give the money away, something with the theme that “everyone deserves a second chance.” That’s something for further discussion if the expiration date comes and goes. But for right now, we’re concentrating on trying to find whoever the lucky person is who has this jackpot-winning ticket!