No. of Recommendations: 2
Can you provide a link where the requirement to pay the states 50% of your winnings can be verified

From the Powerball wiki

The advertised estimated jackpot represents the total payments that would be paid to jackpot winner(s) should they accept the annuity option.

And from an article from the Tax Foundation at

After all, the coffers of the 44 participating jurisdictions get a slice of every jackpot, as only about half of Powerball ticket revenue is given out in the form of prizes (lower than the average for other lottery games). The rest of the jackpot, minus the consortium’s administrative costs, goes toward those jurisdictions.

Its all Time-Value-Of-Money. There are several derived numbers vs the actual ticket sales....

Total multi-state ticket sales
minus operating expenses including payment to the ticket sellers
Future value of net proceeds over 30 years
Inflation adjusted annuity amount whose future value equals future value of net ticket sales (this is the stated winnings)
Present value of that annuity stream, using Multi-State Lottery Commission mandated discount rate. This is the lump sum payment amount

Essentially, the states make most of their revenue from the excess of the current ticket sales over expenses and the present value of the future accumulation...which usually works out to about 50% of ticket sales. State sales tax revenues are small compared to ticket sales and several states in the multi-state system, TX being the largest, have NO sales tax.

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