The $2.04 billion Powerball jackpot finally found a winner on Tuesday morning, after technical difficulties delayed the drawing that had been scheduled to take place on Monday.
The massive prize marked the fifth time in the past five years that a lottery jackpot has crossed the billion-dollar threshold — and this one was a world record.
The prize had been growing for more than three months. The odds of winning it were roughly one in 292.2 million, according to Powerball.
Lottery winners choose between receiving their winnings in an annuity — with payments over 30 years — or the more popular option, a single lump sum payment in a smaller amount. (That's the option "Shark Tank" star Kevin O'Leary says you should choose.) The pretax lump sum payment for Tuesday's winner would be $997.6 million.
The previous Powerball jackpot winner came from the $206.9 million August 3 drawing — not a bad haul, but it now pales in comparison to a prize that topped the previous record U.S. jackpot set in January 2016. That one was also a Powerball drawing that reached $1.586 billion and was split between three winning tickets.
Here's a look at the top lottery prizes ever won so far.
1. $2.04 billion (Powerball)
A single winning ticket for the record Powerball drawing was sold at a gas station and convenience store called Joe's Service Center in Altadena, California, a community located north of Los Angeles. While the business' owner received a $1 million bonus from Powerball for selling the winning ticket, the identity of the ticket's owner remains unknown.
California is not one of the U.S. states where lottery winners have the option of remaining anonymous, so the jackpot winner will eventually have to come forward and claim their winnings publicly. They'll have up to a year from the date of the winning draw to claim the prize, according to the rules of the California Lottery.
When they do come forward, they'll have to choose between the annuity option or the nearly $1 billion lump sum payment — which would likely result in a total tax bill of $369.1 million, based on the top federal tax rate of 37%.
If the prize was taxed as income in California, the winner would be facing an additional state tax bill of more than $120 million. But California, along with Delaware, is one of just two states that don't tax lottery winnings like regular personal income — marking another stroke of luck for the winner.
2. $1.59 billion (Powerball)
This Powerball drawing from Jan. 13, 2016, for which three winning tickets were sold, held the record as history's biggest lottery prize for more than six years, until this week's Powerball drawing dropped it down a spot.
The winners — John and Lisa Robinson in Tennessee, Maureen Smith and David Kaltschmidt in Florida, and Marvin and Mae Acosta in California — split the full prize, giving them the option of roughly $533 million before taxes as an annuity or $327.8 million as the lump-sum payment.
The Robinsons' winning ticket was one of four they bought at a grocery store, they told NBC's TODAY show. They opted to take the lump sum. "We're not guaranteed tomorrow," says John.
Florida-based Smith and Kaltschmidt also picked the lump sum. At the time they planned to get massages, upgrade their truck and retire with the newfound wealth, according to NBC.
The Acostas remained anonymous for months after winning but released a statement saying they were thankful for the "rare gift that has been placed in our care."
3. $1.54 billion (Mega Millions)
The winner of this huge drawing in October 2018 also took their time to surface.
South Carolina is one of a handful of states that allows lottery winners to claim their prize anonymously. The ticket-holder — who never did make themselves known — finally claimed their winnings in March of the following year, just a little more than a month ahead of the deadline to come forward or risk forfeiting the prize.
The South Carolina Education Lottery Commission did reveal that the winner chose the cash option for their prize, taking a one-time payment of roughly $878 million. It's not a record jackpot, but that number still represents the biggest payout to a single lottery winner in U.S. history — at least for now.
Based on the expected tax bill, the total haul from that jackpot was likely somewhere around $491.7 million, after both federal and state taxes — a 7 percent income tax in South Carolina, plus the 37 percent federal rate. Other taxes may have also applied.
4. $1.34 billion (Mega Millions)
The first billion-dollar jackpot of 2022 topped $1.3 billion before it found a winner in July.
The winning player, or players, bought the lucky ticket at Speedway convenience store in Des Plaines, Illinois — and opted to take the lump sum payment option of more than $780 million, according to Mega Millions.
Illinois allows lottery winners to remain anonymous, and whoever won this huge prize has chosen to remain unknown to the public.
5. $1.05 billion (Mega Millions)
The fifth-biggest U.S. lottery prize ever was won in a January 2021 Mega Millions drawing. The ticket was reportedly purchased by four members of a lottery club in the Detroit suburb of Novi. A lawyer representing the club claimed the prize for them in March 2021.
"A club member saw a sign that the jackpot was up to $1 billion and remembered that they hadn't bought their tickets yet, so they pulled into the Kroger," Kurt Panouses, the estate lawyer and club representative, told reporters on behalf of the winners last year.
"When you play, of course you dream of winning, but the reality of it has been incredible," he said. "This kind of money will impact the families of our club members for generations to come. We plan to stay humble and pay it forward through charitable giving in southeast Michigan."
Want to earn more and work less? Register for the free CNBC Make It: Your Money virtual event on Dec. 13 at 12 p.m. ET to learn from money masters like Kevin O'Leary how you can increase your earning power.
Sign up now: Get smarter about your money and career with our weekly newsletter
