The Mega Millions jackpot has reached a record-breaking $640 million, prompting many to buy tickets for a chance at riches. New Jersey Lottery Executive Director Carole Hedinger said the winner will need a lot of luck, considering the odds of winning the jackpot is almost one in 176 million. Hedinger spoke with NJ Today Managing Editor Mike Schneider about the huge jackpot, what a win in New Jersey would mean for the state and what those participating in pools should know.
Hedinger said the jackpot rose to $640 million Friday morning based on sales. The prize was estimated to be $540 million Thursday. “I can’t quite get my head around the size of this jackpot,” she said. Even though many more tickets were being purchased, she said the gaming system was under 10 percent of capacity.
The record jackpot will likely help the lottery exceed its revenue projections. “This year the Mega Millions jackpots have only been running about $70 million. That was a little low,” Hedinger explained. “So it was very hard to predict what our revenue would be this year. I think with the jackpot we’re seeing now though, we’re on target and we’ll meet our revenue goals.”
If there is one winner from New Jersey, it could mean big revenue for the state. “The withholding tax in New Jersey will be 3 percent,” Hedinger said. “And if the cash jackpot is $450 million you can see that 3 percent of that is a sizable tax revenue for the state along with the fact that about 42 percent of the sales are going to go to the state in terms of our net revenue contributions.”
While Hedinger said the lottery organization doesn’t counsel winners about how to handle their new-found fortune, she said all winners are advised to seek help of their own accountants and financial advisors.
When jackpots reach such high amounts, many people enter pools with coworkers or groups of friends. Hedinger said the lottery offers guidelines for pools. Clearly established rules are key, she said. She suggests everyone in the pool gets copies of the tickets, both front and back, before the drawing. Each ticket has a serial number that can identify where the tickets were purchased.
Hedinger also has advice for those entering a pool and buying tickets individually. “If somebody does buy tickets for the pool and wants to buy their own tickets, they should buy their own personal tickets separate and apart, even in a different retail location from where they buy the pool tickets,” she said.
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