Mega Millions

Alabama, Alaska, Hawaii, Mississippi, Nevada, and Utah do not sell lottery tickets. In 2013, Wyoming became the 44th state to establish a lottery; the next year, it began, initially offering both Mega Millions and Powerball. (In August 2018, a bill establishing a lottery in Mississippi was passed, and sent to its Governor for his signature; its lottery began November 25, 2019, with Mississippi joining Mega Millions on January 30, 2020.)

In most cases, a lottery joining Mega Millions on or after January 31, 2010 offered Powerball before the MUSL cross-sell expansion.

The Big Game logo prior to the Mega Millions name change.

Tickets for The Big Game began to be sold in Georgia, Illinois, Maryland, Massachusetts, Michigan, and Virginia on August 31, 1996. The Big Game was created and designed by Michigan Lottery Commissioner Bill Martin and Illinois Lottery Director Desiree Rogers after having discussions regarding a multi-state game with lottery directors Rebecca Paul of the Georgia Lottery and Penelope W. Kyle of the Virginia Lottery. The Big Game initially was drawn weekly, on Friday.

The Georgia Lottery was a member of MUSL at the time and wanted to sell both games for the remainder of 1996; however, within a few days, Georgia was forcibly removed from MUSL, returning with the 2010 cross-selling expansion.

Beginning in January 1999, jackpot winners were given the option to receive their prize in cash. In May 1999, New Jersey joined The Big Game, the only jurisdiction to enter as a participant before The Big Game became Mega Millions in 2002.

The Big Game Mega Millions logo following the addition of the name Mega Millions

Ohio and New York joined The Big Game consortium on May 15, 2002, when the game was renamed The Big Game Mega Millions, temporarily retaining the old name and the original "gold ball" logo. The "Big Money Ball" became the "Mega Ball." While the game's name was altered, the yellow ball in the new Mega Millions logo continued to read "The Big Game" until February 2003, after which it was replaced with six stars representing the original members of the consortium. The first (The Big Game) Mega Millions drawing was held two days later, on May 17. The Mega Millions trademark is owned by the Illinois Lottery. The first three lotteries to join Mega Millions were Washington (in September 2002), Texas (in 2003), and California (in 2005); California was the last addition to Mega Millions before the cross-sell expansion of 2010. Montana joined Mega Millions on March 1, 2010, the first addition to Mega Millions after the cross-sell expansion.

When Texas joined Mega Millions in 2003, it began offering an option, initially available only to Texas Lottery players, known as the Megaplier, which was similar to Powerball's Power Play. The 11 Mega Millions lotteries without Megaplier on the January 31, 2010 cross-selling date gradually added the multiplier option; by January 2011, all Mega Millions lotteries, except for California, offered the Megaplier. The Texas Lottery owns the trademark to Megaplier.[13]

On June 24, 2005, to commemorate California joining Mega Millions, that night's drawing was held in Hollywood, with Carrie Underwood assisting host Glenn Burns for the draw.

For the November 15, 2005 drawing, a group called "The Lucky 7" held the only jackpot-winning ticket, purchased in Anaheim, California, winning $315 million. They chose the cash option, splitting $175 million before federal withholdings.[14]

On March 6, 2007, the Mega Millions jackpot reached $390 million,[15] which was then the record for the third largest jackpot in U.S. history. The jackpot was shared by two tickets, both matching the numbers of 16-22-29-39-42 and Mega Ball 20. Both winners chose the cash option, with each share $116,557,083 before withholdings.[16]

The New Jersey Lottery, among others, in early 2009 announced it would seek permission to sell Powerball tickets alongside Mega Millions. In October 2009, an agreement between Mega Millions and MUSL allowed all U.S. lotteries, including New Jersey's, to offer both games. On January 31, 2010, Mega Millions expanded to include the 23 MUSL members; as of that date, 35 jurisdictions were participating in Mega Millions. On the same day, 10 existing Mega Millions-participating lotteries began selling Powerball tickets. Ohio joined Powerball on April 16, 2010. On March 1, 2010, Montana became the first MUSL member to add Mega Millions after the cross-sell expansion. Nebraska became the 37th Mega Millions participating member on March 20, 2010, followed by Oregon as the 38th member on March 28, Arizona as the 39th member on April 18, and Maine as 40th Mega Millions participant on May 9, 2010. Colorado and South Dakota added Mega Millions on May 16, 2010, bringing the total to 42 jurisdictions.

Recent additions to Mega Millions included the U.S. Virgin Islands, in October 2010, and Louisiana in November 2011. Florida joined Mega Millions on May 15, 2013; the first drawing to include Florida-bought tickets was two days later.

Presumably due to their experience with the Power Play option for Powerball, all 23 lotteries joining Mega Millions on January 31, 2010 immediately offered Megaplier to their players. The Megaplier continues to be drawn by Texas Lottery computers, as California does not offer the multiplier. Montana, offering Powerball before the expansion date, became the 24th lottery to offer the Megaplier, followed by Nebraska (the 25th), Oregon (the 26th), Arizona (as the 27th) and Maine (as the 28th lottery to offer the Megaplier option). After Colorado and South Dakota joined Mega Millions, this raised the number of lotteries offering the Megaplier to 37.

Mega Millions tickets bought with the Megaplier option, beginning September 12, 2010, automatically won $1 million (instead of $250,000) if the five white balls – but excluding the Mega Ball – are matched.

On March 13, 2010, New Jersey became the first Mega Millions participant (just before the cross-sell expansion) to produce a jackpot-winning ticket for Powerball after joining that game. The ticket was worth over $211 million annuity (the cash option was chosen). On May 28, 2010, North Carolina became the first Powerball member (just before the cross-selling expansion) to produce a jackpot-winning Mega Millions ticket after joining Mega Millions, with an annuity jackpot of $12 million.

In January 2012, Mega Millions' rival Powerball was altered; among the changes were a price increase of $1 for each play, as a result, a base game costs $2, or $3 with the Power Play option. At the time, there were no plans to change the price of a Mega Millions play, with or without the Megaplier (see below for the 2017 format change that includes the base price for a Mega Millions play to be raised to $2). The price increase for playing Powerball was a major factor in Louisiana deciding to pursue joining Mega Millions, as that state's lottery joined Mega Millions on November 16, 2011.

The final 5/56 + 1/46 Mega Millions drawing was held on October 18, 2013; that night's jackpot of $37 million was not won. The first drawing under the revised 5/75 + 1/15 format—which saw the jackpot estimate "leap" to $55 million due to the change in the annuity structure—occurred on October 22, 2013. The minimum jackpot was then $15 million, with rollovers of at least $5 million. Second prize (5+0) became $1 million cash. In the revised format, players chose 5 of 75 white ball numbers, and the "Gold Ball" number out of 15.

The Megaplier option remained; the 5x multiplier was added.

Lower prize tiers (through October 18, 2013) based on a $1 play:

• Match 5+0: $250,000
• Match 4+MB: $10,000
• Match 4+0: $150
• Match 3+MB: $150
• Match 3+0: $7
• Match 2+MB: $10
• Match 1+MB: $3
• Match 0+MB: $2

Payouts in California remained pari-mutuel.

The odds of winning or sharing a Mega Millions jackpot (October 19, 2013 – October 27, 2017): 1 in about 258.9 million. The overall odds of winning a prize were 1 in 14.71, including the base $1 prize for a "Mega Ball"-only match.

Prizes and odds (2013-2017 version) based on a $1 play:

• 5 numbers plus the Mega Ball (5+1): Jackpot; 1 in 258,890,850
• 5 numbers but not the Mega Ball (5+0): $1,000,000; $ 1 in 17,259,390
• 4+1: $5,000; 1 in 739,688
• 4+0: $500; 1 in 52,835
• 3+1: $50; 1 in 10,720
• 3+0: $5; 1 in 766
• 2+1: $5; 1 in 473
• 1+1: $2; 1 in 56
• Mega Ball only: $1; 1 in 21

The odds for winning the $1 prize, 1 in 21, reflected the possibility of matching none of the white balls, but matching the Mega Ball.

The annuity—which was 20 annual payments (no cash option was available) when The Big Game began—changed from 26 equal yearly installments to 30 graduated annual payments (increasing 5 percent yearly) with the format change on October 19, 2013.

On October 28, 2017, the price of a Mega Millions play doubled, to $2; the first drawing under the current price point was October 31, 2017. The Mega Millions double matrix changed, from 5/75 + 1/15 to the current 5/70 + 1/25.[17] The starting jackpot became $40 million, with minimum rollovers of $5 million. The "Megaplier" option (which again is not offered in California) was retained, with an adjustment to its multipliers. (The final jackpot for the $1 version was $30 million, which was not won; the initial jackpot for the new version would still be $40 million with a jackpot hit.)

Mega Millions' non-California prize tiers effective October 28, 2017 (old prizes in parentheses; changed amounts in boldface) for a $2 base play:

• 5+MB: Jackpot; starting jackpot raised to $40 million (annuity value)
• 5+0: $1,000,000 ($1,000,000)
• 4+MB: $10,000 ($5,000)
• 4+0: $500 ($500)
• 3+MB: $200 ($50)
• 3+0: $10 ($5)
• 2+MB: $10 ($5)
• 1+MB: $4 ($2)
• 0+MB: $2 ($1)

The new prize structure allocates roughly 75 percent of the prize pool for the jackpot; this is, in part, to facilitate the new Just the Jackpot option. The 2013-2017 version allocated about 68 percent towards the jackpot.

In preparation for the October 28, 2017 format change the then-46 Mega Millions members were given the choice of offering a $3, two-game play (called "Just the Jackpot"). A player choosing this option is not eligible for any of the eight lower-tier prizes; therefore, the Megaplier option is not available for Just the Jackpot wagers.

These lotteries offered the "Just the Jackpot" option upon the format change: Georgia, Indiana, Kansas, Massachusetts, Nebraska, New Jersey, New Mexico, New York, Ohio, South Dakota, Texas, Virginia, Wisconsin, and Wyoming. Kentucky has since added "Just the Jackpot", with other lotteries potentially adding it. Not known is whether a second series of playslips would be printed for lotteries offering "Just the Jackpot" beginning after the October 28, 2017 format change.

"Just the Jackpot" wagers and regular Mega Millions plays are printed on separate tickets. Most Just the Jackpot wagers are terminal-generated; however, JtJ wagers in Kansas and Texas allow the player to choose their numbers, while Wisconsin players must ask for a terminal-generated ticket.

As of January 2020, there has yet to be a jackpot winner from a Just the Jackpot wager; there also is no known count of JtJ wagers that would have won second prize (5+0) with a traditional Mega Millions play.

Mega Millions players have the option to activate a multiplier, called Megaplier, in 46 of its 47 jurisdictions; it is functionally similar to Powerball's Power Play; except the latter limits the second-prize multiplier to 2x. (Neither Megaplier nor Power Play are offered in California because its state penal code distinguishes between a "lottery" in which the bank cannot be "broken", and a "banked game" whose bank theoretically could be broken; only a "lottery" was authorized by the state Lottery Act.) By adding $1 to a basic Mega Millions game, to $3, a player has an opportunity to multiply any non-jackpot prize by 2, 3, 4, or 5. The Megaplier is drawn by the Texas Lottery (before the cross-sell expansion on January 31, 2010, it was the only lottery to offer Megaplier), it is drawn by a random number generator (RNG). The odds for each Megaplier possibility are not uniform.[26]

Megaplier wagers made for drawings from September 12, 2010 through October 18, 2013 that won second prize (then $250,000) were automatically elevated to 4x, winning $1 million. This "guarantee" did not carry over to the following version of Mega Millions, although the $1 million second prize became $5 million if the Megaplier is 5x.

Former Mega Millions odds (October 19, 2013 – October 27, 2017):[27]

The probability and odds can be taken into a mathematical perspective: The probability of winning the jackpot (through October 27, 2017) was 1:(₇₅C₅) x (15); that is: 75 ways for the first white ball times 74 ways for the second times 73 for the third times 72 for the fourth times 71 for the last white ball divided by 5 x 4 x 3 x 2 x 1, or 5!, and this number is then multiplied by 15 (15 possible numbers for the "Megaball"). Therefore, (75 x 74 x 73 x 72 x 71)/ (5 x 4 x 3 x 2 x 1) x 15 = 258,890,850, which means any combination of five white balls plus the Megaball has a 1:258,890,850 chance of winning the jackpot. Similarly, the odds for second prize were 1:(₇₅C₅) x (15/14) = 1: 18,492,204 chance of winning. The overall probability of winning any prize was 1 in 14.7. If there are no jackpot winners for a specific drawing, the jackpot will keep increasing; however, the odds will still remain the same.

Payouts through October 18, 2013:

Overall probabilities: 1 in 755 of winning any of the top six prizes,[27] 1 in 40 of winning any prize.[39]

In California, prize levels are paid on a parimutuel basis, rather than the fixed lower-tier amounts for winners in other Mega Millions jurisdictions. California's eight lower-tier Mega Millions prize pools are separate from those shared by the other 45 lotteries. California's second prize is a "secondary jackpot"; its payout sometimes exceeds $1 million cash, even though California does not offer the Megaplier.[40]

In Georgia, New Jersey, and Texas, players must choose, in advance, whether they wish to collect a jackpot prize in cash or annuity. Georgia and New Jersey winners can change an annuity ticket to cash should they be eligible to claim a jackpot; however, the choice is binding in Texas. The other Mega Millions members allow the cash/annuity choice to be made after winning (usually 60 days after claiming the ticket), although in Florida the 60-day "clock" starts with the drawing in which the jackpot prize was won.

If a jackpot prize is not claimed within the respective jurisdiction's time limit, each of the 46 Mega Millions members get back the money they contributed to that jackpot. Each of the 46 lotteries have rules in regards to unclaimed prizes; most Mega Millions members set aside unclaimed winnings for educational purposes.[41][42]

In 2007, a $31 million prize went unclaimed in New York.[43] Many prizes of $250,000 each have been unclaimed, including several in Michigan for 2007 drawings.[44]

Mega Millions winners have either 180 days (California non-jackpot prizes only) or one year to claim prizes, including the jackpot (although some Mega Millions winners lose the right to collect a jackpot in cash if they wait more than 60 days after the drawing).

The minimum age to purchase a Mega Millions ticket is 18, except in Arizona, Iowa, Louisiana, and Mississippi, where the minimum is 21; and in Nebraska, where it is 19. Generally (an exception is Virginia), minors can win on tickets received as gifts; the rules according to each Mega Millions member vary for minors receiving prizes.

Rules vary according to the applicable laws and regulations in the jurisdiction where the ticket is sold, and the winner's residence (e.g. if a New Jerseyan wins on a ticket bought near their workplace in Manhattan). Mega Millions winnings are exempt from state income tax in California; while Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington state, and Wyoming do not have an income tax. On the other hand, some residents of New York City and Yonkers, New York pay three levels of income tax, as these cities levy income taxes.