The everyday person has probably dreamt once or twice about winning the lottery, and has a ready-to-go list of items that they would get first.
Winning big in the lottery or at an online casino is exciting, but when the excitement dies down it is important to assess what the right thing to do with your money will be. We’ve taken a look at the biggest jackpot wins, what players have done with their winnings and what important aspects you need to remember should you strike it rich.
Biggest Ever Lottery Jackpots
Spain is considered to have the biggest lottery jackpots, with the first jackpot prize in 2012 reaching a whopping €720 million, with a total prize pool of €2.52 billion. These tickets are however sold in batches of 180, so the prize is split between ticket holders in that winning batch. That first jackpot was spilt into 180 payouts of €4 million.
The current largest single ticket jackpot was $758.7 million; with a cash payout of $480.5 million won by a woman in Massachusetts in 2012. With the largest multiple ticket win being $1,586.4, which was split between three winners paying out $327.8 in 2016. These are massive sums and are certainly enough to get you thinking about what a big win could bring.
What Do Winners Spend Their Jackpots On?
A study conducted on what lottery winners spent their winnings on has concluded that the majority of winners invested in property. This seems to be a wise investment, and many lottery winners also use their wins to settle their debts, pay off mortgages and any other amounts owed.
Further purchases by recent winners also seem to be financially savvy, with investments for the future being the second most popular with winners, and the third “item” purchased being investments to ensure the future financial security of their children.
A recent trend from lottery providers is to provide some financial assistance and training to winners, as often people will spend their winnings quickly, and buy things they cannot afford to maintain in the long run, or simply get carried away and go a bit too far with lavish purchases.
But with most winners using their winnings wisely, this shows that people have become aware that their winnings should be used with a little bit of thought, and the assistance offered by the lottery providers is paying off.
Once people have paid off debts, cars and mortgages they generally do tend to move on to the fun stuff and splash out on exotic holidays, gorgeous clothes and jewellery, and sports cars.
How Not To Spend Your Winnings
Sadly, not all winners use their funds wisely. Take Ronnie Music Jr. for example, he used his $3million winnings to start a drug cartel, and now faces a possible life sentence in jail.
Michael Carroll is another example of what not to do, as he won over £9 in 2002 at age 19. Five years later he was basically penniless after years of wasting his money on drugs, parties and fancy cars.
Drawing Attention to Lottery T&Cs
People often get excited about winning the lottery, but when it comes to winnings, different countries have different rules. For example, the US lottery is subject to taxation with the IRS requiring a minimum of 25% of the prize winnings. These winnings are considered earnings and are therefore subject to taxation.
Countries like England do not tax the individual winners on their winnings, but they do tax the lottery before the jackpots are drawn, meaning the jackpots are smaller; if you can call £190 million “small”.
So when you strike it lucky and win a big jackpot, remember to settle your tax bill, spend your windfall wisely and ensure that you keep enjoying the rewards for years to come!