The Powerball jackpot has reached an estimated $1.2 billion, making it the third-largest prize in the game's history.
There was no jackpot winner in the most recent drawing on Monday night.
The winner will face a crucial decision between a lump sum payout of $551.7 million or an annuitized prize of $1.2 billion, both pretax estimates.
The next Powerball drawing is scheduled for Wednesday at 11 p.m. ET, and the odds of winning the jackpot are 1 in 292.2 million.
According to Andrew Stoltmann, a Chicago-based lawyer who has represented lottery winners, most winners tend to choose the lump sum distribution, but he believes this might be a mistake.
John Loyd, a certified financial planner and enrolled agent, points out that while some winners might benefit from the lump sum payout, others could benefit from the financial structure of annuitized payments.
It's mentioned that some winners might decide to sell their annuity to a third-party company for a lump sum payment later on. However, this may not yield the best financial outcome.
The article notes that the recent Powerball drawing comes shortly after a single ticket in California won a $1.08 billion jackpot, marking the first time the game has seen consecutive billion-dollar jackpots.
Additionally, the Mega Millions jackpot is currently estimated to be worth $315 million, with odds of winning the grand prize at roughly 1 in 302 million.