Editing Powerball (section)

== System of the game ==
===Basic game===
The minimum Powerball bet is $2. In each game, players select five numbers from a set of 69 white balls and one number from 26 red Powerballs; the red ball number can be the same as one of the white balls. The drawing order of the five white balls is irrelevant; all tickets show the white ball numbers in ascending order. Players cannot use the drawn Powerball to match one of their white numbers, or vice versa. Players can select their own numbers, or have the terminal [[Pseudorandomness|pseudorandomly]] select the numbers (the name for this varies by state, but most are called some variation of "quick pick", "easy pick", etc.).

In each drawing, winning numbers are selected using two ball machines: one containing the white balls and the other containing the red Powerballs. Five white balls are drawn from the first machine and the red ball from the second machine. Games matching at least three white balls or the red Powerball win.

Two identical machines are used for each drawing, randomly selected from four sets. Originally, the model of machine was the Criterion, manufactured by Beitel Lottery Products (as was the previous Lotto America machines), however since 1999, the model of machine used is the Halogen, manufactured by Smartplay International of [[Edgewater Park, New Jersey]]. There are eight ball sets (four of each color); one set of each color is randomly selected before a drawing. The balls are mixed by a turntable at the bottom of the machine that propels the balls around the chamber. When the machine selects a ball, the turntable slows to catch it, sends it up the shaft, and then down the rail to the display. (The Florida Lottery was considering switching to a [[random number generator]] in 2019 for its in-state drawings; it is unknown whether Powerball was affected.) If the onsite location is unavailable, as was the case during [[Hurricane Michael]] and again during [[Hurricane Helene]], a backup machine is located at MUSL headquarters in Iowa.<ref>{{cite news| url = https://www.washingtonpost.com/nation/2018/10/10/hurricane-michael-ran-million-powerball-drawing-out-town| title = Powerball drawing: Jackpot now $314 million after nobody had the winning numbers Wednesday - The Washington Post| newspaper = [[The Washington Post]]}}</ref> The drawings are supervised by Carroll & Company, CPA’s.

The double matrices and probabilities in the game's history:
{| class="wikitable"
|-
!Starting date
!Pick 5 White Balls from Field of
!Pick 1 Red Ball from Field of
!Jackpot chance
!''Power Play'' multiplier
|-
|April 22, 1992
| style="text-align:center;"|45
| style="text-align:center;"|45
| style="text-align:center;"|1:54,979,154
| style="text-align:center;"|None†
|-
|November 5, 1997
| style="text-align:center;"|49
| style="text-align:center;"|42
| style="text-align:center;"|1:80,089,127
| style="text-align:center;"|None†
|-
|March 7, 2001
| style="text-align:center;"|49
| style="text-align:center;"|42
| style="text-align:center;"|1:80,089,127
| style="text-align:center;"|1×-5×
|-
|October 9, 2002
| style="text-align:center;"|53
| style="text-align:center;"|42
| style="text-align:center;"|1:120,526,769
| style="text-align:center;"|2×-5×
|-
|August 28, 2005
| style="text-align:center;"|55
| style="text-align:center;"|42
| style="text-align:center;"|1:146,107,961
| style="text-align:center;"|2×-5×
|-
|January 7, 2009
| style="text-align:center;"|59
| style="text-align:center;"|39
| style="text-align:center;"|1:195,249,054
| style="text-align:center;"|2×-5×
|-
|January 15, 2012
| style="text-align:center;"|59
| style="text-align:center;"|35
| style="text-align:center;"|1:175,223,510
| style="text-align:center;"|None
|-
|January 19, 2014
| style="text-align:center;"|59
| style="text-align:center;"|35
| style="text-align:center;"|1:175,223,510
| style="text-align:center;"|2×-5×
|-
|October 7, 2015<ref name="cnbc2015">[https://nddb.coop/ccnddb/1024 Odds are, you won't like this Powerball story] {{Webarchive|url=https://web.archive.org/web/20191101072316/https://nddb.coop/ccnddb/1024 |date=November 1, 2019 }}{{Retrieved | access-date=2015-07-09}}</ref>
| style="text-align:center;"|69
| style="text-align:center;"|26
| style="text-align:center;"|1:292,201,338
| style="text-align:center;"|2×-5×; 10×‡
|}

†''Power Play'' was introduced in 2001.<br />
‡10× available if jackpot is under $150 million.<ref name=LotteryWorld2015/>

While Mega Millions and Powerball each have similar jackpot odds despite having a different double matrix (Mega Millions is 5/70&nbsp;+&nbsp;1/25), since Powerball is $2 per play, it now takes $584,402,676 (not counting Power Play side bets) on average to produce a jackpot-winning ticket.

===Power Play===
For an additional $1 per game, a player may activate the Power Play option. Activating it multiplies lower-tier winnings (base prize $50,000 or less) by up to 5, or 10 when the jackpot is under $150 million. Power Play is drawn separately from the 6 numbers. The 5+0 prize is automatically doubled to $2 million if Power Play is activated.

The dilemma for players is whether to maximize the chance at the jackpot or increase lower-tier winnings. If a player selects a fixed amount of money to spend on tickets at a certain time, the player will give up one guess of the winning set of numbers every two times this player activates Power Play in respect of one of the purchased tickets.

Power Play, when it began in 2001, was drawn with a special wheel. In 2006 and 2007, MUSL replaced one of the 5× spaces on the Power Play wheel with a 10×. During each month-long promotion, MUSL guaranteed that there would be at least one drawing with a 10× multiplier. The promotion returned in 2008; the ball landed in the 10× space twice. After being absent in 2009, the 10× multiplier returned in May 2010 (after the Power Play drawing was changed to RNG.) The promotion was extended for the only time, as the 10× multiplier was not drawn until June 12, 2010. The second prize 5× guarantee continued; the 10× applied to all non-jackpot prizes, as in previous promotions.

Power Play's success has led to similar multipliers in other games, most notably ''Megaplier'', available through all [[Mega Millions]] members except California. The 2012 Powerball changes resulted in all eight lower-tier levels having "fixed" Power Play prizes.<ref name="Changes Coming to Powerball">{{cite web |url=http://www.powerball.com/pb_message.asp |title=Changes Coming to Powerball... |publisher=Multi-State Lottery Association |access-date=January 22, 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120123094841/http://www.powerball.com/pb_message.asp |archive-date=January 23, 2012 |df=mdy }}</ref>

On January 19, 2014, PowerPlay was modified; it used 30 balls with the following distribution:
*2× (15)
*3× (9)
*4×/5×: 3 each

On October 4, 2015, PowerPlay changed again, using 42 or 43† balls as follows:
*2× (24)
*3× (13)
*4× (3)
*5× (2)
*10× (1)†

† 10× available when jackpot is under $150 million.

===Double Play===

A Double Play option is available in 14 states and Puerto Rico.{{efn|Beginning August 23, 2021, Double Play became available in Colorado, Florida, Indiana, Maryland, Michigan, Missouri, New Jersey, Pennsylvania, Puerto Rico, South Carolina, South Dakota, Tennessee and Washington.<ref name=doubleplay>{{cite web |title=Maryland Lottery - Powerball - Double Play FAQs |url=https://www.mdlottery.com/games/powerball/double-play/ |publisher=Maryland Lottery |access-date=2022-11-05 }}</ref>  Montana added Double Play in July 2022.<ref>{{cite web |title=Montana Lottery - Double Play |url=https://www.montanalottery.com/en/view/game/powerball#tab.doublePlay |publisher=Montana Lottery |access-date=2022-11-05 }}</ref> Mississippi added Double Play option beginning November 5, 2023.<ref>{{cite web |title=Mississippi Lottery - Mississippi Lottery Debuts Powerball Double Play Feature |date=September 11, 2023 |url=https://www.mslottery.com/mississippi-lottery-debuts-powerball-double-play-feature/ |publisher=Mississippi Lottery |access-date=2023-09-11 }}</ref><ref>{{cite web |title=Powerball Double Play |url=https://www.powerball.net/double-play |publisher=powerball.net |access-date=2022-11-05 }}</ref>}}  For an additional $1, players may reuse their Powerball numbers in a second drawing with a different prize structure held approximately 30 minutes after the main drawing. The Double Play top prize is worth $10 million, which stays as a fixed amount in every drawing, even if there's no winner. Unlike the main drawing's increasing jackpots, the $10 million top prize in Double Play is a not annuitized. Thus, a player is able to receive a cash lump sum worth $10 million, subject to state and federal taxes. A Powerball ticket with the Double Play option costs $3. If both the Power Play and Double Play options are chosen, then the total cost is $4.<ref name=doubleplay/>

===Prizes and odds===

Payouts as of October 7, 2015:<ref>{{cite web |title=NEW YORK STATE GAMING COMMISSION AMENDMENT OF SECTIONS 5004.9, 5007.2, 5007.13, 5007.15, 5007.16, 5009.2 and 5010.2 OF NEW YORK CODES, RULES AND REGULATIONS TITLE 9, SUBTITLE T, CHAPTER III, SUBCHAPTER A |url=http://www.gaming.ny.gov/pdf/Proposed%20rulemaking%20for%20Powerball%20Amendments%20and%20Amendments%20to%20Other%20Draw%20Game%20Regulations.pdf |website=New York State Gaming Commission |access-date=2015-08-02 |page=4 |url-status=dead |archive-url=https://web.archive.org/web/20150824015916/http://www.gaming.ny.gov/pdf/Proposed%20rulemaking%20for%20Powerball%20Amendments%20and%20Amendments%20to%20Other%20Draw%20Game%20Regulations.pdf |archive-date=August 24, 2015 |df=mdy }}</ref>

{| class="wikitable"
|-
!Matches
!Prize{{efn|name=cal|California's prize amounts are always parimutuel because its [[California Penal Code|state penal code]] distinguishes between a "lottery" which cannot be broken and a "banked game" whose [[Breaking the bank|bank theoretically could be broken]]. Only a "lottery" was authorized by the state Lottery Act. Therefore, Power Play is not offered in California.}}
!Power Play 2× (1 in 1.75)
!Power Play 3× (1 in 3.23)
!Power Play 4× (1 in 14)
!Power Play 5× (1 in 21)
!Odds of winning
|-
|PB only (0+1)
|$4
|$8
|$12
|$16
|$20
|1 in 38.32{{efn|Odds of winning 0+1 prize are 1:38.32 instead of 1:26 as there is the possibility of also matching at least one white ball.<ref>{{Cite web|url = http://www.powerball.com/pb_contact.asp|title = Powerball - Contact|access-date = 2015-08-02|publisher = Multi-State Lottery Association|quote = Sure, the odds of matching 1 red ball out of 35 are 1 in 35, but we are not giving the odds for matching a red ball. We give the odds for winning a prize for matching one red ball ALONE. If you match the red ball plus at least one white ball, you win some other prize, but not this prize. The odds of matching one red ball ALONE are harder than 1 in 35 because there is some risk that you will also match one or more white ball numbers - and then win a different prize.|archive-url = https://web.archive.org/web/20150806042548/http://www.powerball.com/pb_contact.asp|archive-date = August 6, 2015|url-status = dead|df = mdy-all}}</ref>}}
|-
|1 number plus PB (1+1)
|$4
|$8
|$12
|$16
|$20
|1 in 91.98
|-
|2+1
|$7
|$14
|$21
|$28
|$35
|1 in 701.33
|-
|3+0
|$7
|$14
|$21
|$28
|$35
|1 in 579.76
|-
|3+1
|$100
|$200
|$300
|$400
|$500
|1 in 14,494.11
|-
|4+0
|$100
|$200
|$300
|$400
|$500
|1 in 36,525.17
|-
|4+1
|$50,000
|$100,000
|$150,000
|$200,000
|$250,000
|1 in 913,129.18
|-
|5+0
|$1,000,000
| colspan=4 align="center" | $2,000,000{{efn|name=ppm5|$2,000,000 fixed for match 5+0 with Power Play as of 2012 format change.}}
|1 in 11,688,053.52
|-
|5+1
| colspan=5 align="center" | [[Progressive jackpot|Jackpot]]{{efn|name=jppp|Power Play multipliers do not apply to jackpot. Jackpot is split among multiple winners.}}
|1 in 292,201,338
|}

Overall odds of winning a prize are 1 in 24.87.

Former prizes/odds (January 19, 2014 – October 3, 2015):

{| class="wikitable"
|-
!Matches
!Prize{{efn|name=cal}}
!Power Play 2× (1 in 2)
!Power Play 3× (1 in 3 1/3)
!Power Play 4× (1 in 10)
!Power Play 5× (1 in 10)
!Odds of winning<ref>{{cite web |url=http://www.nmlottery.com/games/powerball/ |title=Powerball as of January 19, 2014 – New Prize Structure |publisher=nmlottery.com |access-date=January 10, 2014}}</ref>
|-
|PB only
|$4
|$8
|$12
|$16
|$20
|1 in 55.41
|-
|1 number plus PB
|$4
|$8
|$12
|$16
|$20
|1 in 110.81
|-
|2 numbers plus PB
|$7
|$14
|$21
|$28
|$35
|1 in 706.43
|-
|3 numbers; no PB
|$7
|$14
|$21
|$28
|$35
|1 in 360.14
|-
|3 numbers plus PB
|$100
|$200
|$300
|$400
|$500
|1 in 12,244.83
|-
|4 numbers; no PB
|$100
|$200
|$300
|$400
|$500
|1 in 19,087.53
|-
|4 numbers plus PB
|$10,000
|$20,000
|$30,000
|$40,000
|$50,000
|1 in 648,975.96
|-
|5 numbers; no PB
|$1,000,000
| colspan=4 align="center" | $2,000,000{{efn|name=ppm5}}
|1 in 5,153,632.65
|-
|5 numbers plus PB
| colspan=5 align="center" | [[Progressive jackpot|Jackpot]]{{efn|name=jppp}}
|1 in 175,223,510.00
|}

Payouts and odds for Double Play:

{| class="wikitable"
|-
!Matches
!Prize{{efn|name=cal|California's prize amounts are always parimutuel because its [[California Penal Code|state penal code]] distinguishes between a "lottery" which cannot be broken and a "banked game" whose [[Breaking the bank|bank theoretically could be broken]]. Only a "lottery" was authorized by the state Lottery Act. Therefore, Power Play is not offered in California.}}
!Odds of winning
|-
|PB only (0+1)
|$7
|1 in 38.32
|-
|1+1
|$10
|1 in 91.98
|-
|2+1
|$20
|1 in 701.33
|-
|3+0
|$20
|1 in 579.76
|-
|3+1
|$500
|1 in 14,494.11
|-
|4+0
|$500
|1 in 36,525.17
|-
|4+1
|$50,000
|1 in 913,129.18
|-
|5+0
|$500,000
|1 in 11,688,053.52
|-
|5+1
|$10,000,000
|1 in 292,201,338
|}

Overall odds of winning were 1 in 31.85.
{{notelist}}

All non-jackpot prizes are fixed amounts (except in California); they may be reduced and paid on a parimutuel basis, with each member paying differing amounts for the same prize tier, if the liability exceeds the funds in the prize pool for any game member.<ref>{{cite web |url=http://powerball.com/powerball/pb_prizes.asp |title=Welcome to Powerball – Prizes |publisher=Powerball.com |access-date=April 14, 2011 |archive-date=March 2, 2018 |archive-url=https://web.archive.org/web/20180302005016/http://www.powerball.com/powerball/pb_prizes.asp |url-status=dead }}</ref>

===Jackpot accumulation and payment options===
Jackpot winners have the option of receiving their prize in cash (in two installments; one from the winning jurisdiction, then the combined funds from the other members) or as a graduated [[Life annuity|annuity]] paid in 30 yearly installments. The pre-tax amount of the first annuity payment is approximately 1.505% of the jackpot amount. Each annuity payment is 5% higher than in the previous year to adjust for inflation.<ref>{{cite web |url=http://www.powerball.com/powerball/pb_howtoplay.asp |title=Powerball - How To Play |publisher=Powerball.com |access-date=January 12, 2016 |archive-url=https://web.archive.org/web/20160115222858/http://www.powerball.com/powerball/pb_howtoplay.asp |archive-date=January 15, 2016 |url-status=dead |df=mdy-all }}</ref>

The advertised estimated jackpot represents the total payments that would be paid to jackpot winner(s) should they accept the annuity option. This estimate is based on the funds accumulated in the jackpot pool rolled over from prior drawings, expected sales for the next drawing, and market interest rates for the securities that would be used to fund the annuity.<ref name="powerball.com" /> The estimated jackpot usually is 32.5% of the (non–''Power Play'') revenue of each base ($1) play, submitted by game members to accumulate into a prize pool to fund the jackpot. If the jackpot is not won in a particular drawing, the prize pool carries over to the next drawing, accumulating until there is a jackpot winner. This prize pool is the cash that is paid to a jackpot winner if they choose cash. If the winner chooses the annuity, current market rates are used to calculate the graduated payment schedule and the initial installment is paid. The remaining funds in the prize pool are invested to generate the income required to fund the remaining installments. If there are multiple jackpot winners for a drawing, the jackpot prize pool is divided equally for all such plays.

MUSL and its members accept all investment risk and are contractually obligated and liable to the winner to make all scheduled payments to annuity winners. If a jackpot ticket is not claimed, the funds in the prize pool are returned to members in proportion to the amount they contributed to the prize pool. The members have different rules regulating how unclaimed funds are used.<ref name="powerball.com"/>

When the Powerball jackpot is won, the next jackpot is guaranteed to be $20 million (annuity). If a jackpot is not won, the minimum rollover is $10 million. The cash in the jackpot pool is guaranteed to be the current value of the annuity. If revenue from ticket sales falls below expectations, game members must contribute additional funds to the jackpot pool to cover the shortage; the most likely scenario where this can occur is if the jackpot is won in consecutive drawings.

Because of the [[COVID-19 pandemic in the United States]] and resulting drop in ticket sales plus the falling interest rates on which annuity prizes were based, Powerball administrators reduced the minimum starting jackpot to $20 million, and the minimum increase to $2 million when the previous jackpot is not won.<ref>{{cite news |last1=Leggate |first1=Jim |title=Powerball cuts jackpot amounts amid coronavirus sales drop |url=https://www.foxbusiness.com/money/powerball-cuts-jackpot-amounts-amid-coronavirus-sales-drop |access-date=13 April 2020 |publisher=Fox Business |date=2 April 2020}}</ref>

=== Claiming prizes ===
A winning ticket must be claimed in the jurisdiction in which it was purchased, regardless of residence. The minimum age to play Powerball is 18, except in Nebraska (19), and Arizona, Iowa, Louisiana and Mississippi (21).

Generally, Powerball players do not have to choose cash or annuity unless they win a jackpot (then they usually have 60 days to choose). Exceptions include [[Florida]] and [[Missouri]]; the 60-day "[[clock]]" starts with the drawing, so a [[Progressive jackpot|jackpot]] winner who wishes to take the cash option needs to make immediate plans to claim their prize. [[New Jersey]] and [[Texas]] require the cash/annuity choice to be made when ''playing''; in New Jersey, an annuity ticket can be changed to cash after winning, while in Texas, the choice is binding. (When the cash option was introduced in 1997, all Powerball players had to make the choice when playing. This regulation was phased out by 1999.) All Powerball prizes must be claimed within a period ranging from 90 days to a year, depending on where the ticket was bought.

Powerball winnings in [[California]] are subject to [[Income tax in the United States#Federal income tax rates for individuals|federal income tax]] only. Conversely, Powerball winnings in [[Puerto Rico]] are not subject to federal income tax, only local tax. There is no state income tax in Florida, [[South Dakota]], Texas, [[Washington (state)|Washington]] and [[Wyoming]], and only on interest and dividends in [[New Hampshire]] and [[Tennessee]]. In all other states, winnings are subject to both federal income tax and that state's income tax, provided the winning ticket was purchased in the winner's home state. Winnings from tickets purchased outside of one's home state may be subject to the income tax laws of ''both'' states (with possible credit based on the two jurisdictions), though this depends on the states in question.

===Secondary prizes===
Unlike the jackpot pool, other prizes are the responsibility and liability of each participating lottery. All revenue for Powerball ticket sales not used for jackpots is retained by each member; none of this revenue is shared with other lotteries. Members are liable only for the payment of secondary prizes sold there.

Since the secondary prizes are defined in fixed amounts (except in California), if the liability for a given prize level exceed the funds in the prize pool for that level the amount of the prize may be reduced and the prize pool be distributed on a parimutuel basis and result in a prize lower than the fixed amounts given in the prize tables.<ref>{{cite web|url=http://floridalottery.com/powerball |title=Powerball |publisher=Floridalottery.com |date=January 18, 2016 |access-date=January 16, 2016}}</ref> Because the secondary prize pools are calculated independently, it is possible lower-tier prizes will differ among the game members.