An unknown individual won nearly $6 million on a lucky lottery ticket, but could end up winning much less based on a split decision.
The player purchased the winning ticket at an off-license store in Colorado.
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When the individual comes forward to claim their winnings, they will have the option of receiving a lump sum upfront.
The ticket is worth $5,727,684, but if they make that decision, the prize money will be cut by more than half.
The lump sum would be just over $2 million – still a considerable amount, but considerably less than the original $5.7 million.
That’s what Edwin Castro did when he won the lottery in November 2022.
Instead of receiving money from the $2 billion jackpot in regular installments over three decades, Castro accepted the full amount.
He received $997 million, turning him into a billionaire overnight.
Colorado’s winning ticket was purchased this week on Wednesday night.
The unknown individual purchased his ticket at a Sundance Drug & Liquor store in Snowmass Village – about a three and a half hour drive from Denver.
The winning ticket is a Colorado Lotto+ ticket, according to the Fox network affiliate KDVR.
Right now, the Colorado Lottery is still waiting for someone to come forward to claim their winnings.
Players have 180 days after the draw to redeem their ticket.
This is just one of many recent Colorado Lott0+ winners.
Several other lucky winners have won more than $1,000 in recent days.
But the last time such a large amount was won was in April 2024.
Lottery player won $7 million – one of Colorado Lotto+’s biggest payouts.
Lottery winnings: lump sum or annual fee?
Players who win big on lottery tickets often have a choice to make: lump sum or annual fee?
Both payment methods can affect how much money you receive from your prize.
Annuities are paid slowly in increments, usually over 30 years.
Lump sums are paid all at once, but in smaller amounts since taxes are withheld all at once. This means 24% of your prize goes to Uncle Sam immediately. Many states also tax earnings.
Annuities can give winners time to establish the financial infrastructure necessary to receive a life-changing amount of money, but lump sums have the advantage of being taxed only once.
It’s also worth considering inflation when making a choice, as payments don’t adjust to the value of a dollar. This means you will likely receive less valuable money at the end of an annuity.
Each state and game pays prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have differing opinions on the possibility of take the fixed amount or take the annual fee.
This sum, however, is much less than what some lottery players have won in different states.
An unknown player won more than $1.5 billion in the 2018 Mega Millions Jackpot.
And this individual came close to losing his winnings.
It took them an entire year to claim the prize money.
This is just one reason why lottery officials regularly issue warnings to players to check their tickets.
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This story originally appeared on The-sun.com read the full story
