Comment: Easy Explanation.

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Easy Explanation.

Wisconsin's Megabucks jackpot is actually the cash value amount. THATS the part that increases from drawing to drawing unless there is a winner and it ALWAYS increases (again, unless there is a winner) just like it is supposed to.

But like ALL lotteries, the big flashy advertised payout amount is the estimated total money one would get with a government annuity. Interest rates do fluctuate so therefore that possible annuity varies from drawing to drawing.

For instance if the cash value of the jackpot today is $1 million - and government interest rates are X% - the total payment over 30 years might be $1.4 million.

If it isn't won, then next drawing the cash payout amount will be $1 million + whatever the additional amount is, but if interest rates DROP that will only buy an annuity of $1.3 million perhaps.

Remember that the jackpot is actually the cash value - not the total cash paid with the annuity (even though they advertise what the estimated annuity will be for promotional purposes) and that estimate can drop if interest rates do. But the REAL payout is the cash value and, without a winner, THAT amount ALWAYS increases, just as it is supposed to do.

Nothing wrong or dishonest here. The annuity is ONLY an estimate based on current interest rates until someone actually wins and an annuity is actually purchased.