Question of the Day - 05 January 2026

A lot of numbers here.

To begin with, we don't know of any lottery jackpots paid out over 40 years. The biggest multi-state jackpots from Mega Millions and Powerball are paid out, if the annuity option is selected, with a check the first year, then increasing amounts over the next 29 years. True, some smaller jackpot are "for life"; the Lucky for Life game offers a top prize of $1,000 a day for life (or $365,000 a year), plus a second prize of $25,000 a year for life, with a minimum of 20 years. Even here, winners also have a lump-sum cash-payout option. 

As for slot jackpots, the major wide-area progressives, like Megabucks, have an annuity option that pays out over 25 years. In fact, Megabucks started as annuity only; in early 1999, it introduced the lump sum option. The Megabucks annuity pays out over 25 years, while the lump sum is usually in the 60%-70% range of the advertised amount, depending on interest rates. This is handled by IGT (the manufacturer), not the casino, and winners usually have 60-90 days to decide. 

The smaller jackpots, such as the one for $1.1 million at Fontainebleau, are all paid out as lump sums, no annuity option. The full amount is paid out immediately, no different than if the winner just hit a $1,000 royal. Of course, federal (24%-37%) and state (depending on residency) taxes have to be factored in at some point, either withheld by the casino or paid at tax time, but the displayed jackpot amount is the actual cash payout.