• New: Newport woman, 81, is the winner (March 6)
As you may have heard, the winning ticket for last night’s $336 million Powerball drawing was sold in Rhode Island. We don’t know who bought it yet, but as people are pointing out on Twitter this morning, this could mean quite a windfall for the state Treasury.
“The profits from PowerBall and Mega Millions tickets sold in Rhode Island stay in Rhode Island,” the Rhode Island Lottery says. My rough guesstimate is that the state government’s bounty from the winning ticket could be $18 million to $20 million.
The winner will have the option of taking his prize as either a one-time cash payout (estimated at $210 million after taxes) or a series of annual payments over the next 30 years that will grow by about 4% annually. (Powerball says it invests the money in a “wide variety of securities” on behalf of the winner if they chose an annuity.)
The winner will get a W-2 tax form, and state law requires the Rhode Island Lottery to withhold 25% of the payout for federal taxes and 7% for Rhode Island state taxes, according to the Lottery’s website. Here’s what happens to the money:
In general, revenues from all Rhode Island Lottery games are divided as follows: 67.9% prize awards; 18.3% General Fund; 13.2% commissions; 0.6% lottery operations and other costs. Of the money that is placed into the state’s General Fund, it is distributed among the state’s 39 communities for programs in Human Services, Education, General Government, Public Safety and Natural Resources. Additionally, certain funds are allocated to the Distressed Communities Relief Fund.
Update: A clerk at Eastside Marketplace in Providence tells WPRI 12 the winning Powerball ticket was sold there, but management isn’t talking. The Lottery hasn’t released anything official yet.
Update #2: The clerk who told us that was, obviously, wrong. Mea culpa on my part for publishing the information. The Lottery said Monday the ticket was sold at the Stop & Shop on Bellevue Avenue in Newport.
Update #3: Lottery Director Gerald Aubin says Rhode Island’s state government will get more than $12 million as its share of the winning ticket jackpot.
Update #4: The winner took the $210 million lump sum, so Rhode Island will get an estimated $12.58 million.
• Related: Thank the Mafia when you buy a Powerball ticket in Rhode Island (Dec. 13, 2010)