SACRAMENTO, Calif. (KSEE/KGPE) – The Powerball jackpot stands at an estimated $1.04 billion the second Powerball jackpot in a row to cross the billion-dollar threshold. Why does the jackpot continue to increase?
According to the California Lottery, when people win Mega Millions, it most likely gives a sales boost to the jackpot since it’s not uncommon for players to purchase both games when either one of the advertised jackpots is high.
The Powerball also added a third weekly drawing on Monday nights giving the jackpot more opportunity to roll and grow.
Officials add that higher interest rates support higher advertised jackpots, which reflect the projected prize amount to be yielded if a winner elects to receive their prize over 30 annual payments. When a player makes that choice, the California Lottery conservatively invests the cash value of the jackpot in U.S. Treasury bonds. The cash value of the jackpot is driven solely by ticket sales – not interest rates.
Like any California Lottery game, lottery officials say the Powerball is a game of chance; the game has experienced short jackpot cycles with jackpots hit in back-to-back drawings, as well as longer jackpot cycles that can reach up to 30-40 consecutive drawings and produce billion-dollar jackpots.