Frequently Asked Questions
Why does the Lottery pay large MEGA Millions, SuperLotto Plus and Big Spin® prizes in installments?
The installment, or annuity payment system, which is commonly used in U.S. lotteries, makes it possible to pay out more prize money and allows winners to do some long-term financial planning.
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Who receives the interest earned on this money?
The winner who chooses their prize to be paid in annual installments receives the interest earned on the bonds purchased by the Lottery. To summarize, the Lottery buys a package of U.S. Treasury zero-coupon bonds (government securities) to secure the future payment of the prize. Together, the principal and the interest earned by these bonds over the specified time (SuperLotto Plus: 26 graduated payments, "The Big Spin®": 20 equal payments, Mega Millions: 26 annual payments) makes up the full amount of the prize. In effect, each year a portion of the securities matures and makes up that year's payment.
For example, on a $1 million Big Spin prize, there is approximately $500,000 cash (approximately one-half of the entire prize amount) available for the purchase of the bonds worth $950,000 at maturity. The first payment to the winner is $50,000. The California Lottery purchases bonds with the remaining $450,000. A portion of the principal plus the interest accrued over the next 19 years, make up the annual payment to the winner. After the 20th payment, the full prize amount of $1 million has been paid out and no funds remain in the account.
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What happens if a winner of a prize paid in installments dies before his or her last installment has been paid?
The California Lottery prize is the winner's property and is considered part of the estate. The winner may will the prize or leave it in trust to designated heirs. The California Lottery encourages all winners of large Lottery prizes to consult with financial experts to review their options.
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Will the Lottery pay individual prizes to group winners?
California Lottery regulations allow for the individual payment to members of a player group who win a prize paid in annual installments or who choose SuperLotto Plus Cash Option as long as the group consists of 100 winners or less. If you are a lottery group member, you may claim your winnings on a Lottery Multiple Ownership Claim Form available at any Lottery District Office. All district offices are listed on the website. The decision to claim your winnings as a group must be made at the time you claim your prize.
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Will the Lottery make prize payments to the trust fund of a winner who receives annual installment payments?
The Lottery will make the annual payments to your revocable living trust, provided you have filed the appropriate form with the Lottery Investments Office. The Declaration and Assignment of Lottery Prize to Revocable Living Trust form can be requested through the Lottery to make payments to a trust, the prize winner must be the person funding the trust and a beneficiary of the trust which is governed by the laws of the State of California. Upon your death, the remaining annual payments will be made to the surviving or successor trustee(s) or beneficiaries. If the trust form is not on file, the California Lottery will make payments according to regulations.
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How does the Lottery make sure MEGA Millions and SuperLotto Plus are completely random?
The California Lottery® goes to great lengths to ensure the randomness of the draws and eliminate any possibility of a breach of security that could jeopardize the integrity of the draws. Here's how we do that:
- A representative from a firm of independent certified public accountants monitors all draw activities to make absolutely sure that all procedures approved by the Director are followed. Any breach of procedures is reported to the Director. All draw-related activities are recorded on both video and audio tape.
- For each SuperLOTTO Plus draw, a pool of two draw machines is used. Using numbered capsules, the independent representative randomly selects the machines to be used at each draw. The first machine selected is designated as the SuperLOTTO Plus draw machine, with the remaining machine designated as the Mega draw machine. Six solid rubber ball sets are available for use for each SuperLOTTO Plus draw, three sets for the SuperLOTTO Plus balls(white), and three sets for the Mega balls(purple). Each ball set is stored in a locked box with a numbered, metal seal attached. Also using numbered capsules, the independent representative randomly selects one SuperLOTTO Plus ball set and one Mega ball set prior to each draw. In the event a ball set failed during pre-testing, an alternate ball set would be selected and used for the draw.
- An independent statistician reviews all results of pre-test draws and actual draws to further ensure ongoing randomness. The statistician and the Lottery's Internal Audits Office keep track of draw results to make sure no numbers come up more often than they should -- statistically speaking!
- At least once a month, each solid rubber ball in all six sets is weighed and measured down to 1/1000 of a gram to ensure consistency in weight and measures.
- When not in use, SuperLotto Plus draw equipment is locked and sealed in a room which is monitored by video surveillance equipment, motion detectors and door alarms 24 hours a day. Access to the draw room requires two keys, one of which is in the possession of the independent representative.
- All Lottery drawings are open to the public.
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How are the Daily 3, Fantasy 5 and Daily Derby draws conducted?
Daily 3, Fantasy 5 and Daily Derby draws are conducted using an Automated Draw Machine.
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What is an Automated Draw Machine?
What is the Automated Draw Machine? The Automated Draw Machine is a state-of-the-art computer used to draw winning numbers for Fantasy 5, Daily 3 and Daily Derby. The Automated Draw Machine is a stand alone computer, which means it isn't connected to any other computer system. It looks like a desktop computer. The computer's hard drive cannot be opened without breaking a numbered security seal. Inside the computer, the programs that generate the random numbers are permanently implanted or "burned in" and cannot be altered. You could compare it to trying to alter the information on a compact disk. Tampering in any way with the system, without detection, is not possible.
The California Lottery has purchased three separate Automated Draw Machines, two are used for the daily draws and the third one is used as an off-site backup in the event of an emergency. Each day before the draw, a manual capsule draw is conducted to determine which draw device will be used, A or B. Another manual capsule draw is conducted to determine which randomization method is used, one being a mathematical algorithm and the other being a Random Number Generator. The numbers selected from either method are unpredictable and selected in an unbiased manner.
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How do the SuperLotto Plus draw procedures work to make sure every draw is secure?
Here's how it works:
- On the night of the draw, through a random drawing of capsules, an independent representative and a Lottery Security staff member determine which machines and ball sets to use.
- The selected ball sets are loaded on the draw machines by Security personnel. The independent representative and the Security staff person must have the draw equipment in view at all times.
- Two pre-tests are conducted. The pre-test draw results are recorded by security video cameras. The results of the pre-tests are reviewed by the Security staff person and the independent representative.
- Balls are reloaded after the final test to prepare for the live televised draw.
- Throughout the process, a check list of procedures is performed by the Security staff and the on-line computer center staff where wagers are recorded and processed.
- Pool closure occurs at 7:45 p.m. at which time no more wagers can be made for that day's draw. Security staff carefully verify that pools have closed prior to performing the live draw. Any wagering after 7:45 p.m. is recorded for the next SuperLotto Plus draw.
- A person who is not a Lottery employee presses a button which activates the SuperLotto Plus machines. The SuperLotto Plus draw is televised live on California Lottery® television stations.
- Once the draw is final and the results are validated, the information is sent by computer link to the on-line game computer center for distribution to all on-line retail locations statewide.
- Then the equipment is locked up under the watchful eye of the Security staff and independent representative until another day!
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How do players get to go to "The Big Spin®" show?
The colorful Big Spin Scratchers® ticket could get you to the "The Big Spin®" show in one of two ways! If you match 3 "SPIN" symbols, you'll go directly to the show to spin the wheel. If you match 3 "TV Show" symbols, you're entitled to attend "The Big Spin®" show and win between $1750 and $5000 or a chance to spin the wheel. Big Spin Scratchers® are only sold at California Lottery® retail locations.
There are other special ways to get to the "The Big Spin®" show. Fantasy 5 and some Scratchers®; have special features which offer players a chance to appear on other exciting segments of the show.
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Why aren't the Daily 3, Fantasy 5 and Daily Derby draws televised?
Although the actual draws are not aired on television, the results of these draws are aired on twelve major broadcast stations throughout California. The results air approximately 25 minutes after the live draws. Airing the animated draws is a more cost-effective and entertaining way to get the information to the California public. Daily 3 draws occur at approximately 1:05 p.m. and 6:35 p.m. Daily Derby and Fantasy 5 draws occur at approximately 6:35 p.m. and all daily game results are aired by 7:00 p.m. every day of the week.
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