It’s a US lottery which means very different things to Australia. In Australia tax is not paid on lottery winnings. In the US it is. A winner would lose 38% US Federal Income Tax and State Tax.
One essential difference is that big wins like this are paid over thirty instalments in 29 years. One is paid upfront, then each year after. The payments are increased by about 5% per year to allow for inflation.
There is a cash option about half of the quoted amount. That half a billion is soon whittked down to about $150 Million. That some is not insignificant but a long way from the half a billion.
Different tax rules apply throughout the world. A win in Spain sees tax at 20%. In Italy about 22%. The US is taxed at 38% on wins above $1500. It’s made up of Federal Tax of 30% plus a state tax of 8%.
In Australia The Lottery Office buys the tickets and the state they buy in charges the 8%.
Many lotteries internationally do not permit overseas buyers.
A lot more complicated than first appears.
There are a range of lotteries available now. The odds though for the huge jackpots are in the hundreds of millions.
A little known but true statistic is that 60% of lottery winners are broke again within 5 years.
People buy the Lamborghini or Ferrari but don’t allow for the tens of thousands of dollars for insurance and servicing. They buy the penthouse or boat but don’t anticipate the harbour fees or body corporates.
Money is both a blessing and a curse.
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