A California Mega Millions player came within one number of winning a $690 million jackpot but saw their prize dramatically reduced due to state payout rules.
The lucky ticket holder matched five numbers in Friday’s drawing, beating 1-in-12 million odds. While players in other states would have received a $1 million prize, this player walked away with $359,992, according to The Island Packet.
The ticket was sold at OK Liquor in Long Beach, just 20 miles south of Los Angeles. Unlike many other states, California pays non-jackpot prizes on a pari-mutuel basis, meaning payouts depend on ticket sales and the number of winners.
Meanwhile, players in Massachusetts and New York who matched the same five numbers each received $1 million. A Vermont player who paid an extra dollar for the Megaplier option walked away with $3 million.
No ticket matched all six numbers in the latest draw, so the Mega Millions jackpot has now rolled over to an estimated $740 million. The cash option is estimated at $342.9 million.
If a winner claims the jackpot just before the holidays, they’ll face a crucial decision—whether to take a lump sum or annual payments. Financial experts warn that each option has major tax implications.
Federal taxes withhold 24% on prizes over $5,000, and large jackpot winners usually land in the top income tax bracket. State taxes may further reduce the payout.
Attorney Andrew Stoltmann told The U.S. Sun that most winners make a mistake by choosing the lump sum, noting they often lack the structure to manage such a windfall. Financial adviser Robert Pagliarini added that the annuity option offers the security of yearly payments.
The Mega Millions jackpot has only been hit three times in 2024. A $552 million prize was won in Illinois in June, and a $1.12 billion ticket sold in New Jersey in March remains unclaimed. The last jackpot win before that was in Texas on September 10, worth $810 million.
