Lottery warning as $1m Mega Millions prize goes unclaimed – ticket owner will only get $415k due to where it was sold

A LOTTERY player may lose out on almost $500,000 if they do not claim their prize money.

Although the ticket would have been worth $1 million in other US states, a law in the winner’s state means their winnings will only come to $415,055.

Getty

Getty

The Mega Millions lottery ticket was purchased at a liquor store in La Palma, California – less than an hour’s drive from Los Angeles.

It had five numbers but was missing the Mega Number, according to KABC-TV.

The unknown player won this prize money in Friday evening’s drawing of the multi-stage Mega Millions lottery.

Tickets sold in Illinois and New Jersey with five numbers, but not the Mega number, are worth $1 million.

But unfortunately, this unclaimed winning ticket was sold in California, which means different laws were applied.

The law in California means that major payoffs from lottery games are determined by sales and the number of winners.

So whoever this winner may be, they will not receive $1 million.

They will, however, still get the sizeable sum of $415,000.

The five winning numbers drawn on Friday, July 26, were 2, 14, 33, 58, and 65.

The California Lottery’s warning may remind players to look back on any tickets they purchased last week.

There were no tickets sold with all six numbers on Friday, meaning the estimated jackpot total has now risen to $331 million for this Tuesday’s drawing.

The odds of matching all five numbers, as well as the Mega number, are reported to be 1 in over 302,500,000, according to the California Lottery.

The Mega Millions game is played in 45 states across the US, as well as the District of Columbia and the US Virgin Islands.

Lottery winnings: lump sum or annuity?

Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?

The two payout methods can impact how much money you get from your prize.

Annuities pay out slowly in increments, often over 30 years.

Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.

Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.

Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.

Each state and game pays out 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 varying opinions on whether to take the lump sum or take the annuity .

Unclaimed tickets are a fairly common phenomenon in the US and players usually have between 90 days and a year to claim their winnings.

UNCLAIMED WINNINGS

Last week a lucky player won $390,000 in the Nebraska Lottery.

This sum, however, has also still not been claimed.

An even larger sum has also gone unclaimed in Arizona.

There were two winning prizes from the July 20 drawing – one worth $1 million, and the second worth $50,000.

Arizona winners have less than 200 days after the drawing to collect their prize money.

So for them, as well as the unknown Californian winner, the clock is ticking.