A $1 Billion Powerball Jackpot? No Big Whoop

The $1 billion Powerball jackpot is drawing some yawns.

Though it is a life-changing windfall many times over, Wednesday’s prize marks the fourth to reach 10-figures since 2022. Economists say there are now signs of flagging interest given the infinitesimally small chance to become an overnight unicorn is now happening more often.

There were $152 million in nationwide sales for Saturday’s $829 million jackpot—a 25% decline from the $197 million in sales for another $825 million Powerball drawing on Oct. 29, 2022, according to Lottoreport.com, which tracks sales.

“Everyone’s like, well, seen that, done that,” says Victor Matheson, an economist at the College of the Holy Cross who studies lotteries. “Or, the more I play these billion-dollar jackpots, the more I realize that I’ve just thrown $2 away every time because I never win.”

The Multi-State Lottery Association, which runs Powerball, didn’t respond to requests for comment Tuesday. 

No one has won Powerball since the April 19, 2023, drawing, when someone in Ohio snagged the $252.6 million jackpot. Since then, there have been 38 drawings without a jackpot winner.

There are two reasons billion-dollar jackpots have become more common. 

In 2015, the Multi-State Lottery Association made the game harder to win, reducing the odds to one in 292 million from approximately one in 175 million. 

The Federal Reserve’s campaign interest rate increases also inadvertently inflated jackpots, because the advertised prize is based on the value of the money’s investment in a portfolio of bonds over 30 years. This is why the listed $1 billion jackpot would translate to $516.8 million before taxes should the winner choose the lump sum compared with 30 years of annual payments.

Aside from more stakes over $1 billion, another factor has also lowered interest: The number of Powerball drawings increased from two to three times a week. The added day has contributed to a degree of fatigue, said Kent Grote, an economist at Lake Forest College, who has studied state lotteries. 

That said, big jackpots in general do raise interest in lotteries among a wider range of Americans, Grote said. 

“More people are participating because it’s more life-changing for people even at higher income levels,” he said. 

And interest could surge again for all Americans if the stakes continue to rise. Outsize prizes boost lottery ticket sales and entice those who normally don’t buy tickets to try their luck. 

There were more than $551 million in ticket sales for last year’s record $2.04 billion Powerball prize, according to Lottoreport.com. There was just one winner in California.

Those buying Powerball tickets Tuesday said $1 billion remains an enticement.

Enybrive Aharanwa, a construction worker in New York City, who purchased tickets for his work lottery pool Friday, said his co-workers tend to only get interested as the jackpot increases. “When the number is big, we all do it,” he said.

Write to Anthony De Leon at [email protected]