Lotto Fever
New Zealand is about to have the biggest lottery drawing ever on Saturday - NZ$50 million (about US$32 million). To say the country is suffering from a case of “Lotto Fever” is an understatement. This is on the front page of the news, all over the radio, and pretty much everywhere else. So here are the top tidbits to think about when comparing a Kiwi lotto system to a US one. (Disclaimer: I don’t encourage gambling. I rarely buy lottery tickets, and it is more of a gag than anything else.)
Where to buy: NZ lottery tickets can be purchased at many dairies (aka convenience stores à la 7-11), stand alone lottery stores, and online at MyLotto. Registering online is easy - maybe too easy - and you can even create subscriptions so tickets are automatically purchased for every drawing.
Draws are twice weekly: They take place on Wednesdays and Saturdays. The cutoff time to purchase tickets is 7:30 pm.
Different Games: There’s the “Lotto” game, “Powerball” game, and “Strike” game that can all be combined into one ticket. A line of Lotto (5 numbers to choose from, 1-40, with 1 being the most drawn number and 28 being the least) plus a “Powerball” number (1-10, with 2 being the most drawn number and 9 being the least) costs $1.50. You do not have to play the powerball number, but that’s the only way to get the big $50 million jackpot. Adding a Strike line is another $1 and could get you $1 million.
Big wins: The $50 million jackpot is the biggest in New Zealand’s history. In 2016, a $42 million jackpot was won by one ticket. Last year’s biggest win was $22.2 million. In true New Zealand fashion, there is a lot of discussion as to whether or not $50 million to one person makes sense given the Kiwi aversion to Tall Poppy Syndrome (TPS.) There is a small - but vocal - contingent that is making the argument to divide the $50 million among 50 winners so that the wealth is more evenly distributed. Also up for discussion? Whether or not to tell anyone you won. Most people I’ve talked to say they wouldn’t tell. Just another way that TPS comes into play in Kiwi culture.
Definite winner(s): There’s the possibility that someone could win the whole $50 million on Saturday. But since the money MUST be divvied up per lottery rules which cap the jackpot, the winnings will trickle down to lower “divisions” if no one gets all six numbers plus the powerball.
Division 1: 6 numbers match
Division 2: 5 numbers match + powerball
Division 3: 5 numbers match
Division 4: 4 numbers match + powerball
Division 5: 4 numbers match
Division 6: 3 numbers match + powerball
Division 7: 3 numbers match
Taxation: Unlike in the US, New Zealand won’t tax lottery winnings, though you will have to pay tax on the interest earned after investing it. Unfortunately, the IRS taxes US citizens no matter where you are in the world or where the income is earned, so if an American happens to win, well, the US government will still get a portion.
Are you planning on entering the Powerball draw for the big $50 million prize? What would you do with that windfall?
** Update ** I didn’t win the big jackpot, but I did get a Division 6 win, so I’m NZ$15 richer :)
