Powerball vs. Mega Millions: how America's biggest lotteries work
Two multistate lotteries account for every prize over US$1 billion ever paid worldwide. The reason lies in their design.
How Powerball works
Players choose five numbers from 1–69 and one Powerball from 1–26. Each entry costs US$2 and is sold in 45 states, Washington, DC, Puerto Rico and the US Virgin Islands. Jackpot odds are one in 292.2 million, with draws on Mondays, Wednesdays and Saturdays.
Since 1992, Powerball has generated over US$36 billion for public programs. More than half of each ticket's price stays in its state of sale. In 2026, Powerball also became available in the UK, where British winners receive their prize only as 30 annual payments.
How Mega Millions works
Mega Millions uses five numbers from 1–70 plus one Mega Ball. It has undergone two major changes: ticket prices rose from US$1 to US$2 in 2017, and an April 2025 redesign increased prices to US$5 with a built-in multiplier. Jackpot odds became one in 290.5 million. Draws are held Tuesdays and Fridays.
Mega Millions holds the third-largest single-ticket prize ever: US$1.602 billion, won in Florida in August 2023. Its previous record was US$1.537 billion, won by a single South Carolina player in 2018.
| Powerball | Mega Millions | |
|---|---|---|
| Largest jackpot | US$2.04 billion (2022) | US$1.602 billion (2023) |
| Price per entry | US$ 2 | US$ 5 |
| Jackpot odds | 1 in 292.2 million | 1 in 290.5 million |
| Draws | Mon, Wed and Sat | Tue and Fri |
| Jackpot cap | None | None |
Why jackpots reach the billions
US jackpots are built to roll over. With odds around one in 290 million, it is common to go dozens of draws without a winner: 46 consecutive draws passed before the US$1.817 billion Christmas 2025 prize. Each unsuccessful draw raises the jackpot, attracting more players and driving it up further.
With no cap, the jackpot stops growing only when someone matches every number.
Interest rates matter too. The advertised amount represents an investment in annuities, so higher interest rates can inflate the 30-year figure without changing cash on hand. This helped lift the 2022 jackpot to US$2.04 billion.
Lump sum or installments
Winners can take a smaller lump sum or receive 30 payments over 29 years, increasing by 5% annually. Federal income tax and, in most states, state taxes apply to either choice.