Remember this moment because it probably won’t last: A U.S. lottery jackpot is projected to soar above $1 billion, and that’s still a big deal. Friday’s Mega Millions drawing is worth an estimated $1.15 billion, evoking headlines and likely luring more people to convenience stores with dreams of private spacewalks above the earth. It doesn’t seem to matter that the nation’s top 10 jackpots — not including this one — already have boasted 10-figure payouts. For many of us, something stirs inside when a number ticks one dollar above $999,999,999. “The question lurking is, what happens when $1 billion becomes routine and people don’t care about it anymore?” said Jonathan D. Cohen, author of the 2022 book “For a Dollar and a Dream: State Lotteries in Modern America.” “There’s no easy round number after a billion,” Cohen said. “But also, how much money can one person possibly, possibly, possibly need?” Meanwhile, Mega Millions’ ticket prices will rise from $2 to $5 in April. The increase will be one of many changes that officials say will result in improved jackpot odds, more frequent giant prizes and even larger payouts. Here’s brief history of lotteries and why jackpots are growing: Lotteries date back to at least ancient Rome Cohen notes in his book that lotteries have existed in one form or another for more than 4,000 years. In Rome, emperors and nobles held drawings at dinner parties and awarded prizes that ranged from terracotta vases to people who were enslaved. As early as the 1400s, lotteries were used in Europe to fund city defenses and other public works. Sweepstakes were common in the American colonies, helping to pay for the revolution against Britain. Cohen noted in his book that Thomas Jefferson approved of lotteries, writing that they were a tax “laid on the willing only.” Lotteries began to fall out of favor in the U.S. in the 1800s because of concerns over fraud, mismanagement and impacts on poor people. But starting in the 1960s, states began to legalize them to help address financial shortfalls without raising taxes. “Lotteries were seen as budgetary miracles, the chance for states to make revenue appear seemingly out of thin air,” Cohen wrote. Mega Millions’ first jackpot started at $5 million When Mega Millions started in 1996, it was called “The Big Game” and involved only six states. It was meant to compete with Powerball, which then had 20 states and the District of Columbia. The original payout for The Big Game started at $5 million. The value would be nearly twice that today accounting for inflation. In 2024 dollars, the before-taxes prize could buy a rare copy of the U.S. Constitution or cover Michael Soroka’s $9 million contract to pitch next season for the Washington Nationals. By contrast, the pre-tax winnings from Friday’s Mega Millions prize could theoretically buy a Major League Baseball team. The Nationals would be too expensive. But Forbes recently valued the Miami Marlins at $1 billion. A better comparison might be Taylor Swift’s tour revenue at the end of 2023. Her Eras Tour became the first to earn more than $1 billion after selling more than 4 million tickets. Swift, however, was expected to bring in a total of more than $2 billion when her tour finally wrapped up Dec. 8, according to concert trade publication Pollstar. Why jackpots are getting bigger These days, Mega Millions […]
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