URBANDALE, Iowa — With ticket sales down because of the coronavirus, the organization that operates the multi-state Powerball lottery game announced Thursday changes in how the game’s jackpot will be calculated.
The Powerball Product Group said guaranteed starting jackpot amounts and minimum jackpot increases will be eliminated following this Saturday night’s drawing.
Powerball, which sells tickets in 45 states including West Virginia, currently has a $40 million minimum jackpot which increases by at least $10 million between drawings if no one hits the jackpot. Powerball Product Group said the new jackpot amounts will be based on ticket sales and interest rates only.
“These changes are necessary to ensure that ticket sales can support the Powerball jackpot and other lower-tier cash prizes,” said Gregg Mineo, Powerball Product Group chairman in a news release. “Our number one priority is making sure that the Powerball game can continue to assist lotteries in raising proceeds for their beneficiaries.”
In a decision announced last week, Powerball originally planned to reduce its minimum jackpot to $20 million because of the coronavirus but the product group said the decision had to be revisited with the evolving pandemic.
“Since last week, more states and cities have asked their residents to stay at home, which has affected normal consumer behaviors and Powerball game sales,” Mineo said. “In response to the public health crisis, interest rates have declined. As a result, additional game sales are necessary to fund comparable jackpot amounts.”
The jackpot for Saturday night’s drawing is $180 million.
The reduction of tickets sold will eventually hurt the West Virginia state budget. Proceeds from Powerball are collected by the West Virginia Lottery and divided into several state budget accounts.
Powerball sales in February for West Virginia totaled $1.8 million, a 43% reduction from January.