it was a $2.04b jackpot. would have paid out that much as an annuity over like 25 years or something. taxes would have been withheld from those payments.

the 'lump sum' option was $997.6m, which is what the winner opted for. after taxes the amount received was actually $628.5m.

https://www.yahoo.com/news/2-04-billion-powerball-winner-200153929.html

whoever pulled the $424m out of their backside took another dose of taxes out of the payment that already had taxes deducted.

The way it works in America is that the amount they tell you is after a 30 year annuity, so you obviously get a lot of interest there. It also lets them bump their numbers up which makes it more attractive I guess. Currently Powerball is at 320 million with a cash value (or lump sum) of 150 million. After that you get taxed and knocked down more so you might end out taking home around 100 million. As someone who has not won, I can say that sounds like bullshit, but if I did win, well I wouldn't be complaining. What would I use the extra money on anyhow? Get some dude who wears orange facepaint the presidency? Hard pass. I'd have to be a gigantic friendless turbo nerd to do some shit like that.

Lottery winners usually have a choice of getting their winnings paid out over the course of twenty or thirty years, or as one lump sum. If they take the lump sum the winner only gets about half of what they would with the annual payments. So assuming this guy took the lump sum and got $1B the tax would be closer to 60%. Still a lot, but $450M is nothing to sneeze at.