The last few Powerball drawings have seen the Powerball jackpot grow higher and faster than previous drawings. So how fast is it growing and what factors determine the jackpot?
Within 24 hours of the latest drawing, the Powerball jackpot has increased twice. After no one won the $360 million jackpot, the estimated amount rose to $475 million. Just a few hours later, the jackpot rose again to the now $550 million. In less than one day, the jackpot grew 15.8% without a subsequent drawing in between. Then again on Friday May 17, the jackpot rose to a record breaking $600 million. The increase from the first estimated jackpot to the current jackpot is $125 million, or 26.3%.
What determines the Powerball jackpot?
The estimated jackpot is calculated based on previous drawing sales, expected sales, and market interest rates for funding the annuity. Each time the jackpot is unclaimed, it increases by a minimum of $10 million. Each time someone wins Powerball, the jackpot resets to $40 million.
How fast is the jackpot growing?
Since the last claimed prize, the jackpot has grown faster than usual, reaching its second highest jackpot in under 7 weeks. In that time, the jackpot has grown as much as 31% for one drawing.
Since the last time someone won the Powerball jackpot, the jackpot has grown to approximately 13 times the original size. For the drawing on Saturday, the Jackpot grew from $360 million to $600 million, an increase of 66.6%. This is the highest jackpot increase in Powerball history.
The average jackpot growth since the last win comes to 23.5% per drawing. This is 10.2% higher than the average jackpot growth of 13.3%. If no one wins Saturday’s drawing, people can expect to see the jackpot grow by an even larger margin.
Why is it growing so fast?
In January 2012, Powerball changed the rules to allow for more chances to win. The ticket price went up from $1 to $2, putting more revenue into the jackpot. The changes made in 2012 helped Powerball gain more customers who were excited to have more possibilities to win.
In April 2013, California joined Powerball, becoming the forty-third state to offer the game. Since then, no one has won Powerball and the jackpot has increased at an exponential rate. Lottery officials predicted that the addition of California would add more revenue and players, considering it is the home of 12% of the United states population.
So how high will the jackpot get before someone wins?