To answer the first question: You win.
Reno-based International Game Technology (IGT) owns the more than 750 Megabucks machines that are leased to more than 130 casinos in Nevada. That statistic alone tells you that the manufacturer, IGT, owns the machines and pays off the jackpots that accrue from the play at all 10 dozen or so casinos that offer Megabucks. Another way of looking at it: What if player hit a $25 million jackpot on one of the four or so Megabucks machines at a casino such as Sturgeon's, in little Lovelock, Nev.? If Sturgeon's had to pay off the $25 million, it'd probably go bankrupt.
So, the host casino gets a cut of the hold (the money that each machine wins from the players). The hold percentages, which are set at the IGT factory, are a closely kept secret, but they’re believed to be in the 10%-15% range, of which the host casino shares a piece.
To answer the second question: When a player hits the top Megabucks jackpot, he receives one check equivalent to the first of 25 installments (if the jackpot is $25 million, the initial check is for $1 million). The player then decides whether to take the balance of the jackpot in the installments or a lump sum. Most opt for the single payout. As a matter of policy, IGT doesn't divulge the lump-sum amount, but it’s believed to be around 60% of the jackpot --in our $25 million example, he’d receive a check for $14 million, which is 60% of $25 million minus the initial $1 million.
From that, the player pays federal taxes, generally at the maximum rate of nearly 40% -- leaving the player around $9 million.
If the player is a non-Nevadan, depending on the home state, additional state taxes might be collected.
Millions of dollars is nothing to sneeze at, of course, but the Megabucks jackpots actually collected are a fraction of the big number on the meter.
