What B.C. residents should know if they win the U.S. Powerball lottery

The U.S. Powerball lottery is generating a lot of buzz and discussion online in B.C. and across the country.

The U.S. jackpot currently sits at an estimated $1.4 billion, translating into a whopping $1.99 billion Canadian.

The draw is now Wednesday night, but the odds of winning the big jackpot are not good. Chances of having the Powerball ticket are one in 292.2 million, according to Multi-State Lottery Corporation, which runs the game.

Canadians previously had to visit an American state if they wanted to buy an American lottery ticket, but that’s not the case anymore. Thelotter.com allows agents to purchase tickets on behalf of Canadians from lottery retailers.

The Powerball website says people who legally purchase tickets can play the game and collect prizes anywhere in the world. Winners do not have to be an American citizen or a resident to play the game. Some state lawmakers have talked about limiting wins to U.S. citizens, but no laws have passed so far.

The Better Business Bureau of B.C. (BBB) is warning residents of buying lottery tickets online from some third party online lottery sites.

“The concern from our point of view is selling lottery tickets online is illegal in most U.S. states, so what companies have done is set up a concierge service where Canadians pay for tickets and an employee technically goes out and buys your ticket for you,” says Evan Kelly, senior communications advisor for BBB. “You simply have to trust they are doing this, add to the fact that winning is so remote that in effect you’re just handing someone your money and credit card information. You still don’t get a hard copy of the ticket, unless presumably if you win. Given the amount of online scams these days, this seems like one that would be very easy to set up and a simple way to collect a lot of personal information. All we are saying is be careful.”

Here are some tips if you choose to buy online lottery tickets:

• Do your research: Look for legitimate online ticket sales, read user reviews.
• Social Insurance Number: While many sites ask for home address and credit card information, they should have no reason to ask for your SIN.
• Use a secure website: When buying anything online look for the https:// and lock icon in the url, the ‘s’ means secure.
• Make sure your PC is up to date: If you happen to fall victim to a fake lotto site, make sure your computer has the latest update to anti-virus software.
• Head south of the border: If you really want to play and can manage it, drive south of the border and buy them in person.
• Don’t bet the farm: The chances of winning are nearly 1 in 300,000,000. Statistics say you have a 25x better chance of becoming President of the United States.
• Foreign lottery scams are all over the place: The usual modus operandi is you are contacted by someone about a lottery win but you must pay a fee first to release the money. Often the victims have never entered a contest.

Here is what you need to know if you do win:

The taxes:

If a non-U.S. citizen wins the lottery, they are subject to federal withholding taxes for non-U.S. citizens, which is 30 per cent of their winnings. This amount may vary depending on the state where the winning ticket is purchased.

The payouts:

Winners can opt for 30 payments over 29 years or can choose the cash option, which pays out the entire amount. The jackpot could be less than the amount of the winning ticket as the sale of tickets impacts the outcome; it depends on how much cash the lottery has in the jackpot prize pool. A single winner of Saturday’s draw would get about $299.6 million as a lump sum. The winners still have to pay income tax withholding amounts. However, the state of Washington does not charge winners any state personal income tax.

Cashing in:

If a Canadian does win, they have to return to the state of purchase’s headquarters, then prove their age and identity to collect their winnings. If you buy the ticket online, the ticket will be purchased in the nearest American state.

Tips from past winners:

There’s no secret formula to winning the lottery, but past winners have provided some tips to perhaps increase your chances.

Leave the picking number to the computer: The majority of past winners, about 70 per cent, have left the big decisions up the computer.

Does picking your own numbers help at all?  If you play the lottery regularly, pick your own numbers and stick with them every time you play.

Lucky numbers: Based on an analysis of past winners, the numbers 8, 54, 14, 39 and 13 are the most frequently drawn.

Sign the back: This could help if you win and someone tries to claim your ticket.

Once you win, don’t spend the winnings right away: Experts suggest winners wait at least six months to a year before making any purchases to help prevent the millions from being spent immediately.

It doesn’t appear any Canadians have ever won the big jackpot in the past, but anything can happen.

The previous record amount won of any lottery game in the U.S. was a $656 million Mega Millions jackpot in March 2012.