Walmart shopper turned $50 into $1m after single purchase – but split decision saw $300k vanish straightaway

A LUCKY Walmart customer won $1 million after purchasing a single lottery ticket from the store but saw over $300k of their winnings vanish after a snap decision.

The winning ticket was purchased in a Walmart store in Orlando, Florida earlier this week.

Preston Legge, from Orange County, Florida, about an hour and a half drive from Tampa, won the $1 million in a lottery scratch-off game, local ABC affiliate WFTV reported.

Legge's split decision, however, meant that he pocketed $640,000 rather than the original $1 million.

The player faced a difficult decision but decided to receive his winnings as a one-time lump sum from the Florida Lottery Headquarters.

Lottery players who win large amounts of money can choose to claim their prize through a lump sum or via annuity payments.

Annuity payments split the money into annual deposits across several decades.

But Legge chose to take the lump sum, meaning he was subject to high fees and taxes.

Despite this, Legge still went home with a whopping sum of money.

And the Walmart store that he purchased the winning ticket from received a $2,000 bonus commission.

SCRATCH-OFF GAMES

Florida Lottery officials say that there are 234 prizes worth $1 million.

The ticket also offers players the chance to win an additional $1.6 billion in cash prizes.

The game's overall odds of winning are 1 in 4.5.

Scratch-off games reportedly made up around 72% of all ticket sales in the 2022-2023 fiscal year.

Lottery winners across the US are faced with the tough decision of whether to claim their prize money as a lump sum or through annuity payments.

And Legge is not the only one who lost a sizeable amount of their winnings by making a split decision.

Top lottery winners in the US

Millions dream of winning the lottery and finding fame and fortune. These are the biggest winners in US lottery history.

• Edwin Castro - $2.04 billion, Powerball, Nov. 8, 2022, in California.
• Theodorus Struyck - $1.765 billion, Powerball, Oct. 11, 2023, in California.
• Unknown winner - $1.602 billion, Mega Millions, Aug. 8, 2023, in Florida.
• Marvin and Mae Acosta from Los Angeles, California, John and Lisa Robinson from Munford, Tennessee, and Maureen Smith and David Kaltschmidt from Melbourne Beach, Florida - $1.586 billion, Powerball, Jan. 13, 2016.
• Unknown winner - $1.537 billion, Mega Millions, Oct. 23, 2018, from South Carolina.
• Unknown winner - he sued the mother of his child to keep his identity hidden - $1.348 billion, Mega Millions, Jan. 13, 2023, from Maine.
• Unknown winner - $1.337 billion, Mega Millions, July 29, 2022, from Illinois.
• Cheng and Duanpen Saephan, and Laiza Liem Chao - $1.326 billion, Powerball, April 7, 2024, from Oregon.
• Yanira Alvarez - $1.08 billion Powerball, July 19, 2023 in California.
• Wolverine FLL Lottery Club - $1.05 billion, Mega Millions, Jan. 22, 2021, from Michigan.
• Unknown winner - $842.4 million Powerball, Jan. 1, 2024, from Michigan.

A North Carolina player won $2 million earlier this week but took home $858,006 after state and federal taxes were withheld.

Another player in Massachusetts won $1 million on Tuesday from a $20 scratch ticket.

The winner chose to receive the cash as a one-time payment, reducing the sum to $650,000 before taxes.

Federal taxes and fees then took $350,000 from the winnings, so the take-home sum was a lot less than the original $1 million.

Another lucky player also won $1 million from a scratch-off game in Florida but walked away with a smaller sum due to a tough decision.

Charles Kelly Kr. decided to receive his money as a lump sum so he walked away with $685,000.

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.