There are some movie lines that become instant classics. “Here’s looking at you, kid,” or “We’ll always have Paris,” came from, “Casablanca.” But another line seems more than topical and timely as the one-billion dollar-plus Mega Millions lottery jackpot continues to grow. “So, you’re telling me, there’s still a chance,” said Jim Carrey, as one half of the schlub duo in “Dumb and Dumber.”
Yes, for millions of hopeful Americans ready to pony-up their money, there is still a chance that they’ll win the big prize. Regrettably, with odds of winning somewhere north of 300 million to one, it’s microscopically small. Not too different than getting a random call from NASA that you’ve been chosen to pilot the next space mission. Still, as is often said, ‘you can’t win if you don’t play.’ And as the prize rises, people continue to line up hoping and praying that that single ticket lands in their hands.
In grocery stores, convenience stores, truck stops and airports, just about anywhere lottery tickets are sold, people are investing in what they hope is their golden ticket. They’re mashing together number combinations they think, more often, hope, are guaranteed gold.
Really serious lotto players research past winning combinations. They play numbers that have been lucky in the past; they play numbers that haven’t come up recently. Some swear it’s a science. Others play randomly or play their children’s birthdays while most just let the machine do the picking.
In Colorado, lotto has been around for nearly forty years. And while it hasn’t paid off for everyone, the state has done just fine. State lottery spokesperson Meghan Dougherty said, Colorado “is nearing $4 billion in proceeds that have been returned to the state.” By law, lottery proceeds go toward “parks, recreation, open spaces, trails, wildlife and schools,” she said. Every community in the state has something paid for with lottery dollars.
Not unlike nearly everything else, the pandemic had an impact on lottery ticket sales, said Dougherty. “Lottery’s revenue experienced a dip,” she said. But it didn’t last long. No surprise, sales run along the same lines as the economy. When it stalls, so, too, do sales. It’s cyclical and predictable.
While the eyes on the prize are focused on Mega Millions and it’s nine and ten-figure payouts, it’s scratch tickets, said Dougherty, that are the most popular buy. “The Lottery’s Scratch games drive the revenue for the Lottery,” she said. Scratch players are responsible for “more than 60 percent of sales compared to all other categories combined.” Running a close second is Colorado Lotto-plus, outselling even Mega Millions and Powerball.
State lottery officials don’t worry that the two national games, Mega Millions and Powerball, get most of the attention. They welcome the attention. “These giant jackpot runs really help drives sales for the (Colorado) lottery across every category,” Dougherty said. “Other products see higher sales when there is a large national jackpot. It helps us meet our Great Outdoors Colorado cap faster.”
Colorado is the only state in the country where the majority of lottery proceeds are dedicated to outdoor recreation and conservation. Other states use lottery dollars for education or simply put it back into the general fund. In fiscal year 2022, Dougherty said, the state was the winner. “Lottery’s proceeds partners received $180 million.”
When gigantic lottery prizes are won, it may often seem that they’re won everywhere but Colorado. But, said Dougherty, that’s not true. Mega Millions may not have landed here, but a couple of Powerball winners have called Colorado home. Winning Powerball tickets, including two with jackpots of $133 million and $90 million prizes, have been won here. The bigger prize was won in Clinton, the runner-up was sold in Rifle.
As the lottery enters its fourth decade in Colorado, there are still critics who say these games of chance most hurt those who can least afford to gamble. Not so, said Dougherty, calling it “a common misconception.” Proportionally, however, lower income players do spend a higher percentage of their income than higher earners.
While winning the Mega Millions big prize might sound good, there are downsides. Winners of big prizes are often besieged by any number of predators, ranging from scam artists to long-lost relatives or old high school friends looking “for a little help.” And then there’s the taxman.
According to Forbes, the winning Mega Million prize automatically—no surprise—catapults the winner into a higher tax bracket. The winning ticket is accompanied with a quick 24 percent lopped right off the top. That means the $1.1 billion prize suddenly shrinks to something around $570 million. Complaints from winners rarely linger long.
Winners have the option of taking a lump sum or a thirty-year payout. Most opt for the lump sum. On the other hand, the annuity is still pretty good. On $1.1 billion, the annual payout would be just under $40 million a year for the next three decades.
Most ticket buyers know they won’t win. But as the classic movie line goes, ‘there’s still a chance.’ But there’s also another classic line, though no one really knows who said it. ‘I’ve been rich, and I’ve been poor. Being rich is a whole lot better.’
Note: Because the drawing for Mega Millions occurred as LaVozColorado was going to print, we regret not being able to announce a winner if, in fact, last night’s drawing produced one. If, on the chance someone somewhere is now a millionaire many times over as a result of their winning ticket, we congratulate you. If there was no winner, as the saying goes, ‘better luck next time.’
