Wednesday’s Powerball drawing is estimated to be worth $1.4 billion, a record. On the surface—a massive payday for the winner or winners.
Some interesting facts we dug up courtesy of MarketWatch:
- About 15% of the total is spent on marketing. All the broadcast ads, online marketing and more cost a pretty penny.
- The $1.4 billion number is based on the winner taking his or her money in the form of a 29-year annuity.
- The projected cash-option jackpot is a mere $868 million.
- The biggest factor in choosing a payout option is taxes.
- Lottery jackpots are fully taxable to the tune of 39.6%.
- If the winner elects the $868 million cash payout, the federal income tax hit would be about $344 million.
- The Fed withholds 25%. So at $868 million, the winner will pen a check for an incomprehensible $127 million.
Vision Critical recently published their findings on U.S. adult lottery players. The compelling truths:
- 50% of Americans actively play the lottery
- Enjoyment is cited by many lottery players, with 40% opting for non-cash contests.
- 62% of 18 to 24 year olds enjoy playing non-cash lottery games.
- Consumers still prefer to purchase lottery games in person
- 78% of the lottery players choose to buy in-store vs. online
- Only 75% of players believe that they will eventually win the lottery. Sounds like a lot–but that means that 1 in 4 people play realizing winning is unlikely.
Are you buying a ticket?
Direct Choice Inc. is a full-service direct marketing agency that has worked with national and regional brands in a wide variety of vertical markets. In addition to this blog, you can also find us on Facebook, Twitter, and LinkedIn