FILE – A Mega Millions Logo is displayed on a vending device at the Hoosier Lottery Booth at the Indiana State Fair in Indianapolis, Thursday, August 3, 2023. (AP Photo/Darron Cummings, File)
DES MOINES (Iowa) (AP) – The cost to buy a Mega Millions Jackpot Dream will soon more than triple. But lottery officials are confident that players won’t mind the increase after changes which will lead to bigger prizes and more winners.
Lottery officials announced on Monday that Mega Millions tickets will cost $5 per ticket, starting in April, a $5 increase from the current $2. Mega Millions officials announced that the price increase is just one of several changes to Mega Millions, which will result in better jackpot odds, more frequent large prizes and even greater payouts.
“Spending $5 to become a billionaire or millionaire is pretty good,” said Joshua Johnston. He is the director of Washington Lottery, and the lead director of the group overseeing Mega Millions.
Mega Millions, along with its lottery rival Powerball, are sold in 45 U.S. states, Washington, D.C., the U.S. Virgin Islands, and Washington, D.C. Powerball is also sold in Puerto Rico.
Officials at Powerball said they do not plan to change the odds of the game or the $2 price of most tickets.
Mega Millions is introducing changes at a moment when fewer people buy tickets, and jackpots must reach ever-higher numbers before sporadic gamers notice and decide to purchase a ticket or 2. While a $500,000,000 jackpot used to draw long lines outside convenience store doors, the top prize of $1 billion is now more common.
The much-hyped numbers for the jackpots could also be affected by falling interest rates. State lotteries advertise the annuity payouts for jackpots. These payouts are distributed over several decades by an investment fund. Annuity jackpots are more than twice as much as cash prizes, thanks to high interest rates.
Annuity jackpots will decrease in size if you expect interest rates to drop.
Johnston said that the expected declines in interest rate were not a factor for the upcoming changes.
Johnston said that the main motivation was to differentiate Mega Millions and Powerball from each other and attract customers who may now choose to avoid both games.
Johnston said that while it is a big step to more than double the ticket price, research shows that people are comfortable spending at least five dollars on scratch-off tickets or chance games like Mega Millions. This is the second price hike since the game’s creation in 2002.
Johnston said, “You pay $5 for your Starbucks.”
He said that officials from the lottery will provide more details about the changes over the next few months.