The additional $2,783,003 in interest doesn't apply if Kevin took the lump sum, which we assume he did. We tried doing the math ourselves and found that Kevin’s $15,491,103 Megabucks jackpot would have a present-day value of $12,708,100 if paid out as an annuity. Also, the payments are over 30 years and lotteries seem to no longer pay equal amounts each year, but rather an increasing amount each year.” annuity, but they all seem to include deducting taxes. I did a quick search for lottery lump sum vs.

Of course, if you change any of the input numbers, the lump sum changes, often drastically. They usually buy the annuity from an insurance company. “I don’t know what rates casinos are using. The prevailing interest rates, which right now are very low.Number of payments – say, once a year for 30 years.Total – what the casinos say they're paying out, like '$1 million'.Nelson Rose explains, “The lump sum, which is the present-day value of future payments, depends on: (Boyd Gaming, at whose Suncoast the jackpot was won, is prohibited by an agreement with International Game Technology from disclosing this.)

Then, there's the question of whether the player, in this case, Kevin from Alaska who hit the $15.5 million jackpot, took the jackpot in a lump sum or as an annuity. Nevada, of course, doesn't have a state income tax, so nothing comes out for that. First, 27% comes out in federal withholding taxes.

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