Why South Dakota Is One of the Best Places to Play the Powerball

We're about to venture into uncharted waters in the Powerball.

Long Overdue

If no one matches all six numbers in Saturday's (September 6) drawing, that would tie a record for the longest jackpot drought in the game's 33-year history of the game - 42 consecutive drawings without a winner.

When someone finally cracks the 292,201,338-to-1 odds and captures the big prize, two things are certain: they will win a staggering amount of money, and they will pay an extraordinary amount of taxes on those winnings.

But just how much varies wildly depending on where you buy your ticket.

Paying the Taxman

According to USMega.com, right off the top, both the initial mandated federal withholding of 24% as well as the remaining federal taxes that will be due.

Then, it's time to pay the state. Unless you live in one of eight places, including South Dakota.

The Mount Rushmore State, as well as California, Florida, New Hampshire, Tennessee, Texas, Washington, and Wyoming, don't tax lottery winnings, which means you get to keep a lot more of your money compared to other states.

READ MORE: August Was a Lucky Month for South Dakota Lottery Players 

Location, Location, Location Matters

Based on the projected $1.7 billion jackpot in the next drawing, players in those eight states would have $485,331,980 left over to deposit in the bank if they chose the one-time payout.

If they chose the 30-payment annuity option, they would receive $35,742,980 every year until 2055 - a total of $1,072,289,400.

That is quite a haul, no matter how you look at it, but compared to the states that tack on their own taxes, it is a HUGE difference.

Players in New York pay an additional 8.82 percent in taxes on their winnings (the highest among all 50 states), which means they would pocket $83,962,700 less than winners in those eight no-tax states for the one-time payout and $185,300,010  less with the 30-year plan.

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