A $1.8 billion Powerball ticket was sold in Cabot, Arkansas last week, but the winner has not yet claimed the prize. The winner has 180 days to claim the jackpot, which can be taken as an annuity over 30 years or a lump sum of $834.9 million.
If you stopped for gas in Cabot on Christmas Eve and happened to buy a lotto ticket on a whim go give your floorboards and glovebox a quick check. The second-largest Powerball jackpot ticket ever won in the U.S. was sold in Arkansas last week a 1.817 billion prize. Thats the total payout should the winner choose to have the money distributed in annual payments over the next 30 years. They also have the option of taking a cash prize in a single lump sum of 834.9 million. The winning ticket was sold at a Murphy USA gas station in Cabot according to Arkansas Scholarship Lottery spokesman Karen Reynolds. But as of Tuesday morning it still had not been claimed. A lottery winner in Arkansas has up to 180 days to claim their prize so theres plenty of time. In our imagination the ticketholder is keeping the news secret for several weeks while subjecting his or her friends and family to an escalating series of challenges stress-testing their loyalty and personal character. If you know someone whos been acting unusually needy or difficult recently especially if theyre in Lonoke County you should probably assume theyre the Powerball winner and behave accordingly. (In the unlikely event the winning ticket isnt claimed within 180 days what happens next? According to the Powerball website the money reverts back to the states on a proportional basis meaning the ticketholder would be out of luck. At the stroke of midnight on the 180th day the Big Winner is transformed into the biggest loser in the world.) Even after the ticketholder steps forward his or her identity may not be known to the public for some time. The Arkansas Legislature passed a law in 2021 allowing a lottery winner who scores a prize of more than 500 000 to stay anonymous for three years. The confidentiality period is shortened to six months for elected officials and their relatives. Will the lucky person choose the 1 817 000 000 annuity distributed over 30 years or only the measly 834 900 000 cash prize? Most people take the lump sum more than nine out of 10 Powerball winners went that route according to a 2011 behavioral economics paper. If they select the annuity option the cash is invested and the interest accrues to the winner over time. Theyd receive one immediate payment followed by 29 annual payments that increase by 5 each year Reynolds explained. Either way taxes will take a significant chunk of the windfall. The state requires the lottery to withhold 3.9 on prizes of more than 5 000 (Arkansass maximum individual income tax rate) and the IRS requires a 24 withholding. Thats just initial withholdings though; the winner of a jackpot worth hundreds of millions will be pushed into the highest federal tax bracket meaning theyll ultimately pay up to 37 of their haul in federal income taxes along with the 3.9 state rate. If the winner chose to take the lump sum of 834.9 million that means theyd be left with only around 500 million in the clear after taxes. Rough. Officials with the Arkansas lottery warned people not to try to scam their way into a billion dollars with a fake ticket. The system has an extensive authentication process in place to validate whether a ticket is a winning ticket lottery officials said in a press release Tuesday. With several people claiming to hold the winning ticket on social media we want to remind everyone any attempt to claim lottery money fraudulently is a Class D felony in Arkansas said Blake Hudson the lotterys director of investigation and enforcement. Fraudulent tickets will be subject to investigation and could lead to arrest. Thanks for Reading! In a time when critical voices are increasingly silenced the Arkansas Times stands as a beacon of truth tirelessly defending the fundamental rights and freedoms within our community. With Arkansas at the epicenter of a sweeping culture war affecting our libraries schools and public discourse our mission to deliver unflinching journalism has never been more vital. Were here to hold power accountable but we cant do it alone. By contributing today you ensure that independent journalism not only survives but thrives in Arkansas. Together we can make a difference join the fight. Donate Subscribe