We’ve seen recently some huge jackpots surpassing $1 billion for Mega Millions and Powerball. But as some people know, those listed jackpots represent the annuity option. In other words, it’s the amount a winner gets paid only if they decide to receive 30 annual payments.
Meanwhile, a winner who chooses the cash/lump sum option only gets a fraction of the listed jackpot. As a result, a New York Times article calls lottery advertising “misleading,” and that’s because it is.