Why is the cash option for the $1.2B Powerball drawing so low? The answer might surprise you - mlive.com

Why is the cash option for the $1.2B Powerball drawing so low? The answer might surprise you - mlive.com

LANSING, MI – It’s a question that lottery players both casual and hardcore ask themselves and others when talking about winning the multi-million-dollar jackpot.
“Would you take the cash option up front or the annuity for the full prize amount?”
With the annuitized prize valued at $1.2 billion for the drawing on Wednesday, Nov. 2 and the cash option worth an estimated $596.7 million, it’s something players will have to consider if they are lucky enough to win...

• The cash option is determined by the numbers of tickets actually sold during the run of drawings that haven’t had a winner. 
• Powerball is also required to have the total value of the cash option on hand to payout immediately if a player selects that option, meaning Powerball estimates that $596.7 million worth of tickets have been sold (or will be sold prior to tonight’s drawing) since the last winner was bought on Aug. 3...