What is Powerball? Drawing Time, Rules, Prize Money & Tax Details Explained
A jaw-dropping $1.8 billion Powerball jackpot is up for grabs on Saturday, September 6, 2025, with the drawing scheduled for 10:59 p.m. ET. Organized by the Multi-State Lottery Association (MUSL), Powerball is one of the biggest and most popular lotteries in the United States.
This record-setting prize has created a nationwide buzz, with millions of Americans lining up at gas stations, supermarkets, and convenience stores—or even logging in online in certain states—for a chance at life-changing money.
How Does Powerball Work?
The Powerball drawing is a lottery event where winning numbers are selected randomly. Here’s how the format works:
- Five white balls are drawn from a set of 69 numbers.
- One red “Powerball” is drawn from a separate pool of 26 numbers.
- To win the jackpot, a player must match all six numbers.
Even if you don’t hit the jackpot, smaller prizes—ranging from $4 to $1 million—are available for partial matches.
How Much Does a Ticket Cost?
Each Powerball ticket costs $2. Players can purchase them in 45 states, plus Washington, D.C., Puerto Rico, and the U.S. Virgin Islands. Some states even allow tickets to be purchased online, making the game accessible to millions.
Rules for Picking Numbers
Players must:
- Select five numbers from 1 to 69 (white balls).
- Select one Powerball number from 1 to 26 (red ball).
If no one matches all six, the jackpot rolls over to the next drawing, which explains how the prize has grown to such astronomical levels.
The Odds of Winning
Dreaming is easy, but winning is not. The odds of hitting the Powerball jackpot are about 1 in 292 million. To put this in perspective, the U.S. population is around 342 million, which means the chances are slimmer than being struck by lightning several times in your life.
Still, the massive payout keeps players hopeful, and smaller wins can still make an impact—many past winners have walked away with $1 million or more for matching five numbers.
How Big of a Deal Is This Jackpot?
Economists often describe the Powerball as a low-cost ticket to dreamland. Spending $2 gives people the chance to imagine a billionaire lifestyle, even if the odds are long. For many, it’s about hope, not probability.
With $1.8 billion at stake, this jackpot has become one of the largest in U.S. history, drawing in both regular players and first-timers eager to test their luck.
Tax Details: What Winners Need to Know
While $1.8 billion sounds incredible, the amount a winner actually takes home is much smaller due to taxes and payout options.
- Payout Options: Winners can choose between the full prize in 29 annual installments (increasing 5% per year) or a cash lump sum estimated at $826.4 million.
- Federal Taxes: Any lottery prize over $5,000 is subject to a 24% mandatory federal withholding. On the cash option, that means about $198.3 million will be withheld right away.
- Final Tax Bill: High earners may face a federal tax rate of up to 37%, meaning the actual payout could be significantly reduced beyond the initial withholding.
- State Taxes: Depending on the state where the ticket is purchased, winners may also owe additional state income taxes.
Why People Still Play Despite the Odds
Even though the math isn’t on the player’s side, the Powerball jackpot represents hope—the dream of a new house, financial security, or generational wealth.
As one economics expert explained, “Two dollars is a small price to pay for the fantasy of becoming a billionaire.”
Final Thoughts
The Powerball jackpot of $1.8 billion is not just a lottery drawing—it’s a national event. With millions of tickets expected to be sold before the September 6, 10:59 p.m. ET drawing, excitement is building.
While the odds of winning are tiny, the thrill of possibility keeps players lining up. Whether you play or just watch, the record jackpot is a reminder of both the power of chance and the reality of taxes that follow any big win.
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