Powerball jackpot reaches $810 million to start 2024: What to know ahead of next drawing

(NEXSTAR) — A Powerball player (or players) could begin 2024 on a high note: the current jackpot has ballooned to an estimated $810 million ahead of the next drawing.

The current jackpot has been building since October when a $1.765 billion prize was won by a ticket sold in California. It had a chance to be the largest-ever Powerball jackpot won on Christmas Day, but no ticket matched the winning numbers drawn that day.

Now, the jackpot is on pace to be the first and largest lottery jackpot of 2024 (the Mega Millions jackpot is currently only $114 million).

As of Monday, Powerball officials estimate the jackpot to be $810 million, with a cash value of $408.9 million. At this size, the jackpot ranks as the fifth-largest in game history, coming in behind the $1.08 billion jackpot won in California in July of last year.

Here are the 10 largest Powerball jackpots:

1. $2.04 billion: Nov. 7, 2022; California
2. $1.765 billion: Oct. 11, 2023; California
3. $1.586 billion: Jan. 13, 2016; California, Florida, Tennessee
4. $1.08 billion: July 19, 2023; California
5. Est. $810 million: Jan. 1, 2024
6. $768.4 million: March 27, 2019; Wisconsin
7. $758.7 million: Aug. 23, 2017; Massachusetts
8. $754.6 million: Feb. 6, 2023; Washington
9. $731.1 million: Jan. 20, 2021; Maryland
10. $699.8 million: Oct. 4, 2021; California

It also stands as the 10th-largest jackpot across Powerball and Mega Millions behind a $1.05 billion Mega Millions grand prize hit by a ticket in Michigan in 2021.

A winner would, however, receive much less than the advertised $810 million, or the $408.9 million cash value.

Whether the winner takes the annuitized payouts or the cash prize, a large chunk is withheld for taxes. Though some states do not have a state lottery tax withholding, they all must withhold 24% in federal tax on prizes as large as this jackpot. With additional taxes, you’ll see roughly 37% of your prize money withheld, should you win. 

Outside of those states — where a winner would take home roughly $511.6 million with the annuitized option or $257.6 million in cash, according to USA Mega — a winner would collect between $423.3 million ($213.1 million in cash) and $475.9 million ($239.7 million in cash).

That’s the best-case scenario, though. If there is more than one jackpot-winning ticket, the prize will be split amongst the winners. Even though the odds of winning the jackpot are slim (1 in 292.2 million), 18 of the more than 200 Powerball jackpots won since 2003 have been split by at least two tickets.

If you’re lucky enough to win the jackpot, even if you’re splitting it, experts recommend moving quickly to assemble a team that includes an attorney, a tax advisor and a financial advisor. They also encourage protecting your ticket and keeping your victory a secret for as long as possible — which may be easier in states that allow jackpot winners to remain anonymous.

If you’re ready to test your luck, the next Powerball drawing is Monday, January 1 at 10:59 p.m. ET.

Powerball tickets are $2 each and sold in 45 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. In addition to Mondays, drawings are held every Saturday and Wednesday at 10:59 p.m. ET. Players have a 1 in 24.9 chance of winning any Powerball prize.