\
A LOTTERY winner has won a massive million with a $20 ticket – but a split-second decision means that they’ll only get to take home a portion of it.
The final $1 million prize was claimed on Tuesday in one of Massachusetts Lottery’s scratch ticket games.
1
The Wallace P. Gator Trust of Quincy, represented by trustee Natalie Logan, claimed the million-dollar prize.
The celebrations didn’t last long as the prize winners realized that they had to decide between a lump sum payment or annuities.
The trust chose to receive the cash as a one-time payment of $650,000 before taxes.
Federal taxes and fees took $350,000 from the winnings, or around 35% – over one-third of the total prize money.
That means the winner only took home a fraction of the money.
The winnings are still huge, but significantly less than the $1 million prize that was advertised.
The prize came from a $20 scratch ticket game that was released in February 2023 called $5,000,000 100X Cashword.
As of August 28, all of the prizes have been claimed.
There were 10 $1 million prizes and two $5 million grand prizes at the time the game was made.
You play the game by scratching off all of the letters on the ticket.
If you uncover two or more complete words in the revealed letters, you win the corresponding prize in the game key.
The game also gives out prizes ranging from $20 up to $10,000.
Luckily for Massachusetts residents, thousands of those prizes remain.
Another lottery winner received only a fraction of his prize when he had to make the same quick decision.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have varying opinions on whether to take the lump sum or take the annuity.
Charles Kelly Jr. won $1 million from a scratch-off game.
He bought the winning ticket last year at the Wildwood Meat Market in St. Petersburg, Florida.
However, he chose to receive the cash as a lump sum payment, which took off $315,000 from the money.
When all was said and done, he walked away with $685,000.
Scratch-off games are a popular choice for lotto players and enthusiasts, making up almost 72% of all lottery ticket sales between 2022 and 2023 alone.
Other lucky winners also chose to receive the lump sum, one-time cash option, receiving a smaller payday in the process.
Top lottery winners in the US
Millions dream of winning the lottery and finding fame and fortune. These are the biggest winners in US lottery history.
- Edwin Castro – $2.04 billion, Powerball, Nov. 8, 2022, in California.
- Theodorus Struyck – $1.765 billion, Powerball, Oct. 11, 2023, in California.
- Unknown winner – $1.602 billion, Mega Millions, Aug. 8, 2023, in Florida.
- Marvin and Mae Acosta from Los Angeles, California, John and Lisa Robinson from Munford, Tennessee, and Maureen Smith and David Kaltschmidt from Melbourne Beach, Florida – $1.586 billion, Powerball, Jan. 13, 2016.
- Unknown winner – $1.537 billion, Mega Millions, Oct. 23, 2018, from South Carolina.
- Unknown winner – he sued the mother of his child to keep his identity hidden – $1.348 billion, Mega Millions, Jan. 13, 2023, from Maine.
- Unknown winner – $1.337 billion, Mega Millions, July 29, 2022, from Illinois.
- Cheng and Duanpen Saephan, and Laiza Liem Chao – $1.326 billion, Powerball, April 7, 2024, from Oregon.
- Yanira Alvarez – $1.08 billion Powerball, July 19, 2023 in California.
- Wolverine FLL Lottery Club – $1.05 billion, Mega Millions, Jan. 22, 2021, from Michigan.
- Unknown winner – $842.4 million Powerball, Jan. 1, 2024, from Michigan.
