ONE lucky lottery player won a staggering $1 million prize after spending just five dollars on a scratch-off ticket.
However, the lottery player’s luck – and celebrations – were short-lived after he realized he’d have to give up nearly a third of his prize money.
Charles Kelly Jr. was ecstatic after winning $1 million from a scratch-off game.
Kelly Jr. chose to play the $5 Gold Rush Doubler scratch-off game.
He then scored the game’s top prize of $1 million.
He purchased the winning ticket last year at the Wildwood Meat Market, located at 1228 28th Street South in St. Petersburg, Florida.
The Wildwood Meat Market received a $2,000 bonus commission for selling the winning ticket.
However, before Kelly Jr. could celebrate his newly minted millionaire status, he quickly realized he wouldn’t be joining the two-comma club after all.
Kelly Jr. chose to receive his winnings as a one-time, lump-sum payment, meaning a significant chunk of his prize money would automatically go towards taxes.
While he claimed the prize back in March 2023, it took some time for him to receive his winnings.
The Florida Lottery revealed the news via a press release on August 21.
After all was said and done, Kelly Jr. walked away with $685,000.
The winnings are still major, but significantly less than the $1 million prize that was advertised.
Federal taxes and fees took $315,000 from the winnings, or around 31.5% – nearly one-third of the total prize money.
According to the Florida Lottery, the $5 Gold Rush Doubler scratch-off game features more than $188 million in cash prizes.
There are more than 13 million winning lotto tickets in circulation, with prizes ranging anywhere from $5 to 28 top prizes of $1 million.
There are currently eight top prizes of $1 million remaining.
The Gold Rush Doubler also sells $1, $2, and $10 scratch-off tickets.
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.
Like many scratch-off games, the rules are relatively simple.
Players who match their numbers to any winning number win a prize shown for that number.
Players who scratch off a nugget symbol automatically win double the prize shown.
Plus, any player who scratches off a gold bar in the Doubler Box will win double the amount of all 12 prizes.
There are four winning numbers and 12 player numbers for the player to scratch off.
There is a 1-in-2,010,516 chance of winning one of the remaining eight $1 million prizes.
The Gold Rush Doubler’s overall odds of winning a prize are much higher, coming in at 1-in-3.98.
Scratch-off games are a popular choice for lotto players and enthusiasts alike, comprising nearly 72% of all lottery ticket sales between 2022 and 2023 alone.
Kelly Jr. was one of 16 Floridians who won a $1 million prize in the $5 Gold Rush Doubler game in 2023.
All 16 winners opted to take the one-time, lump-sum, cash payment option for their winnings.
So far, four tickets with a $1 million prize have been sold this year.
This wasn’t the first time a lottery winner walked away with less money than they thought they won.
Other winners also chose to receive the lump sum, one-time cash option, receiving a smaller payday in the process.
Still, it’s better than receiving no money at all, like lottery tickets which are still unclaimed even months after announcing the winners.