Rick Wisler, Chairman of the Powerball Group and Director of the New Hampshire Lottery, says, "We've added more states to the Powerball game and after five years with the current game design, it is time to change Powerball so the game will continue to deliver what our players have come to expect. We also did not want to simply increase the odds so we are making some other changes that will be 'firsts' for lottery games."
Four White Balls Added; No New Red Balls
The first key change that players will notice is that they will choose from 53 white ball numbers instead of 49. The additional four ball numbers will be added to the drum for the drawing on October 9, 2002. The number of red ball numbers will remain the same at 42.
The dynamics of the Powerball design means that, while the odds of winning the jackpot prize will increase from 1 in 80 million to 1 in 120 million, the odds of winning a prize for matching the red Powerball alone will actually go down. The overall odds for winning any prize in the new Powerball game will remain about the same, at 1 in 36. The higher jackpot odds and the increased number of players will mean that the jackpot will climb faster and higher.
Power Play Option Drops The "1"
Power Play allows a player to multiply their winnings on all set prizes (all prizes except the jackpot prize and special bonus prizes) by a number randomly drawn in a wheel spin just before the Powerball drawing. With the new game, Power Play winners will be guaranteed to at least double their winnings. The new Power Play wheel will have 15 slots ranging from 2 to 5, with six "5's" and three each of "2's", "3's", and "4's".
The Power Play option has been extremely popular for the newer states, where Power Play sales have been up to 30% of total game sales. Colorado Lottery Director Mark Zamarripa says, "Power Play sales in Colorado have been popular with our players from the start. Seeing players who won $100,000 suddenly multiply their prizes into cash prizes of $500,000 quickly demonstrated the fun of the Power Play option."
New Match 5 Bonus Prize Feature Shares the Wealth
Powerball players will also see a new, no added cost, Match 5 bonus prize feature in Powerball. Your lottery will announce when the new bonus becomes effective, but watch for it whenever Powerball is estimated to reach a jackpot level that is more than $25 million over the previous record. At these new levels, the jackpot will be increased in increments of $25 million and sales above this amount will be used to create the new Bonus Prize Pool. When there is a jackpot winner, the money in the new Bonus Prize Pool will be divided among the winners of the Match 5 prize level. For some drawings, this could mean enhanced prizes of $1 million or more, in cash.
"The new Match 5 bonus prize pool is a first for a lotto game," said Chris Lyons, the Director of the Oregon Lottery who served as the chairwoman of the Powerball Group during the development stages of the new game. "As Powerball record jackpot levels continue to climb, we could see a hundred winners receiving one million dollars or more in cash. The new Powerball will be unique in that even our players who do not win the jackpot could become millionaires."
"The Match 5 bonus pool feature will let Powerball create many more big winners," added Wisler, the current chairman of the 23-member Powerball Group. "Everyone dreams of hitting the big jackpot, but at those levels, we believe that our players will be excited to see the prize money shared to create even more big winners."
Annuity Prize Change
Although most players take the cash option, Powerball will now extend the current annuity option from 24 years (25 payments) to 29 years (30 payments). Annuity winners receive their first payment immediately and will then receive a guaranteed return and annual payments for the next 29 years after their win.
"The annuity payments are the best option for our winners who want a guaranteed cash stream," said Charles Strutt, the executive director of the Multi-State Lottery Association, which administers the game for the member lotteries. "Powerball can invest the entire cash amount before taxes and will guarantee the return and the annuity payments to the winner. Adding five more annual payments means a larger annuity prize and additional payouts for the winner without substantially reducing each annual payment."
For example, even at today's current low rates, a cash jackpot of $125 million invested and spread over 25 payments (24 years) could pay out $217,500,000 with an annual payment of $8,700,000. In the new game, with 30 equal payments over 29 years, a cash jackpot of $125 million could pay out $247,250,000 with an annual payment of $8,241,000. That gives winners nearly the same annual payment for an additional five years.
"There are still some good reasons to take the cash," says Strutt. "A winner may want to invest in their own successful business or, for personal reasons, may want to spend the money quickly. Most winners, however, will find that after paying the taxes, they still need to manage their winnings. It is difficult to beat the guaranteed return offered by the lotteries."
Second Change For Powerball
Powerball began in February 1992 as a 5/45 + 1/45 game. It was changed to its present form in November 1997. The first version of Powerball set a new world record jackpot of $111 million. The current version has seen jackpots climb to over $130 million six times since 1997, twice reaching nearly $300 million. The newest version of Powerball is expected to climb even higher.
Powerball was launched in February, 1992. The current membership of 23 lotteries includes: the Arizona Lottery; Colorado Lottery; Connecticut Lottery Corporation; Washington D.C. Lottery & Charitable Games; Delaware State Lottery; Idaho Lottery; Hoosier (Indiana) Lottery; Iowa Lottery; Kansas Lottery; Kentucky Lottery Corporation; Louisiana Lottery Corporation; Minnesota State Lottery; Missouri Lottery; Montana Lottery; Nebraska Lottery; New Hampshire Sweepstakes Commission; New Mexico Lottery Authority; Oregon Lottery; Pennsylvania Lottery; Rhode Island Lottery; South Dakota Lottery; West Virginia Lottery; and the Wisconsin Lottery. The South Carolina Education Lottery has announced that they will begin selling the game in October. In addition, the Virgin Islands will begin sales November 14, 2002.
The phrase Power Play is a registered trademark of Carl Alexoff.
Q & A
I have heard that you will limit the jackpot increases by $25 million. Is this true?
The Powerball jackpot will continue to climb as supported by sales until a new jackpot record is announced. Only then will the jackpot growth be limited by $25 million increments so that the new bonus prize can be created. The current record amount is $295 million. The next new level will then be $25 million above that amount, and so on. As you can see, the Powerball jackpot will continue to climb to new record amounts, though more slowly, as we spread the prize money around to more winners.
When you limit the jackpot, does that mean the states will keep more of the money?
No. A new bonus prize is created which could create even more Powerball millionaires. All prize money will continue to be paid out to the players. The prize payout percentage does not change.
How big will the jackpots be in the new game?
Even though the overall odds of winning a prize remains nearly the same in the new Powerball game, the higher odds for the jackpot prize and additional players will mean that the jackpot will climb faster and higher. The average jackpot amount will move from the $50 million range into the $80 million range as new record jackpots continue to be set. The average number of jackpot wins per year should also increase.
Do new lotteries joining the game mean that it will be harder for me to win?
No. The number of lotteries selling the game or the number of players in the game do not change your odds of winning. The odds are set by the number of balls in the drums.
If I paid the extra dollar for Power Play do I get to multiply my Match 5 Bonus prize?
No. Because the new bonus prize has the potential of becoming so large, it will be treated like the jackpot prize and will not be multiplied. However, the Match 5 prize of $100,000 will continue to be multiplied by the Power Play number for those players who purchase the Power Play option.
Is the Match 5 Bonus Prize a cash prize or an annuity prize?
The new bonus Prize is paid in cash.
There are still 42 red Powerball numbers. How can the odds change for that prize?
It is true that the $3 prize for matching the red Powerball alone will actually be easier to win in the new Powerball game. To win that prize, a player must first match none of the white ball numbers. If you match any of those numbers, you win a different prize. Powerball's two-games-in-one design uses two drums and creates both a big jackpot game and a cash lotto game in one. By increasing the number of white balls, it will now be easier for players to win the prize for matching the red ball number alone with odds dropping from 1 in 73.7 to odds of 1 in 70.4 in the new game.