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What is the Megaplier?

The Megaplier is an option that is currently offered in all states that sell Mega Millions tickets except California.  For an extra $1.00 per ticket you can increase your non-jackpot prize winnings by 2, 3, 4, or 5 times.

The Megaplier is not available in California because of state law that requires all lottery prizes to be paid out on a pari-mutuel basis.

The Megaplier multiplier number is chosen at random by computerized drawing in Texas at around the same time the Mega Millions numbers are drawn in Georgia.  The Megaplier was invented by the Texas Lottery as an add-on available only in that state, but was later available in all of the Mega Millions states except California starting in 2010.  The Megaplier continues to be drawn in Texas.

A player must choose the Megaplier option when they buy their Mega Millions ticket, and then the ticket must match one of the 9 Ways to Win (except the jackpot) before the multiplier takes effect.  Megaplier costs an extra $1 per play.  See How to Play Mega Millions for more information.

Why is the cash option always a different percentage of the annuity from draw to draw?

If you’re calculating what percentage the cash value is of the annuity, then you’re looking at it backwards. The cash value is the starting point, as it is a direct percentage of ticket sales. Then the annuity amount is calculated from that, based on prevailing interest rates. Since the interest rates are constantly changing, the annuity amount calculated on one day will be a different number than if it is calculated the next day. So when a drawing occurs and the lottery has to estimate the next annuity jackpot, they first estimate the number of tickets that will be sold for the next drawing, which determines what the cash value estimate is (because a fixed percentage of each ticket sold goes toward prizes). Then they finally calculate what the annuity will be based on the current interest rates.

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