Mega Millions player doubles her $1m prize after spending just one extra dollar – but still loses almost half of cash

A LOTTERY player doubled her huge $1 million win by just spending an extra dollar on her lucky ticket.

Rafaela Blumenberg ended up landing a $2 million Mega Millions prize but had to wave goodbye to nearly half of her cash instantly.

N.Y. Lottery

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Blumenberg, from the Bronx, New York City , matched the first five numbers of the March 26, 2024, draw, according to the New York Lottery .

The drawn numbers that night were 7, 11, 22, 29, 38, and the Mega Ball was four.

She doubled her win by paying an extra dollar for the Megaplier feature.

This add-on allows players to multiply a win, except the jackpot, by up to five times.

Blumenberg’s money doubled as the Megaplier on that day was two.

She bought her lucky slip at the cigar shop Smokes 4 Less in Newburgh, New York, around 60 miles north of New York City.

Despite this huge win, Blumenberg faced a difficult decision that resulted in her losing nearly half of her cash.

Big lottery winners must choose between claiming their cash as a lump sum or through the annuity option.

The lump sum amount means the winner can take home their winnings in one go.

This option however is subject to high taxes and fees.

Blumenberg chose this and went home with $1,302,001.

The other option for players is the annuity payments which would split the win into yearly deposits spread across a decade or two.

BIG CHOICES

Blumenberg has not been the only lottery player to lose lots of money following this decision, The U.S. Sun has previously reported.

A scratch card player scooped up a huge $10 million win but immediately lost $3 million.

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 .

The new Massachusetts millionaire won playing the Bonanza game but walked away with just $6.5 million after a visit to the state’s lottery headquarters.

This anonymous player decided to get a trustee to claim their win.

The ticket was purchased from the sandwich shop Coletti’s Market in Raynham, Massachusetts, around 30 miles from Boston.

A Walmart shopper faced a similar fate when he won $1 million for a single lottery ticket.

Preston Legge lost $300,000 when he went to the Florida Lottery headquarters to claim his scratch-off card win.

Legge bought his lucky ticket at a Walmart store in Orlando, Florida .