Powerball winner from Arkansas claims massive $1.8B jackpot

LITTLE ROCK, Arkansas — One lucky Arkansas lottery player has claimed the $1.8 billion Powerball jackpot from the Christmas Eve drawing. 

The winner, who is remaining anonymous, chose to receive the prize as a one-time cash payment. Before tax withholdings, the lump-sum amount was $834.9 million.

The winning Quick Pick ticket was sold at Murphy USA 7879, located at 208 S. Rockwood in Cabot, for the Dec. 24 drawing. This was only the second time that a Powerball jackpot was won in the state. The first time was in 2010. 

“Everyone was anxiously waiting for the winner to step forward, but we are happy they took the time to seek legal counsel and financial advice first, as we recommended. We are thrilled that the winner is from Arkansas,” said Sharon Strong, executive director of the Arkansas Lottery.

The winning numbers for the Dec. 24 drawing were 04, 25, 31, 52 and 59, with the Powerball number being 19.

Before the jackpot was won, there were 46 drawings without a big winner, going back to September, when two winners won $1.787 billion. 

The last time someone won a Powerball jackpot on Christmas Eve was in 2011. The lottery game said that the sweepstakes has been won on Christmas Day four times, most recently in 2013.

Arkansas law allows any lottery winner with a prize over $500,000 to remain anonymous when claiming the prize. 

States are fairly split on whether to allow lottery winners to remain anonymous. A count by USA Today shows 19 states where lottery winners may maintain their anonymity, at least partially. 

The rest of the U.S. requires them to come forward publicly, usually sometime within a year after winning the jackpot. 

While the winner can remain anonymous to the public, they’ll need to provide proper identification so the state can process the claim and report the winnings to the IRS. 

A lottery win can catapult the ticketholder into a completely new tax bracket, and most financial professionals suggest holding off on claiming the ticket until securing at least one financial adviser to walk them through the process of claiming the money and making sure it doesn’t disappear. 

But if they’re smart, the winners will likely take some time to plan before coming forward. Part of the reason lotteries give up to a year to claim large prizes is that the extra time gives people who have just come into an unfathomable amount of money a chance to meet with experts who can walk them through the process. 

“So by far, the biggest misconception that we hear or read and see is, is that the money seems to be infinite when it certainly is not,” wealth advisor Shean Fletcher previously told The Associated Press, adding that winners should meet with financial advisers, lawyers and certified public accountants to make a plan.

There are hefty taxes to deal with, regardless of whether the winner takes the lump sum payout or the month-to-month annuity option, so the winner will need a good accountant. 

The initial tax bills aren’t the only reason financial experts warn lottery winners to take it slow — you shouldn’t buy a pricey home without a good idea of recurring taxes and upkeep, for example. 

A good financial adviser will help a winner avoid spending outside their means (even if those means have increased exponentially overnight) and a lawyer can help stop possible lawsuits from those looking to take their own cut of the earnings. 

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