KY Lottery sales set to break records. Here’s what to know about winning a jackpot

The Kentucky Lottery is on track to see record-breaking sales for their most recent fiscal year when the numbers are released Friday, July 22.

Its sales for July 2021 to May 2022 totaled $1.54 billion, which is $85.6 million, or nearly 6%, more than the previous year.

With Kentuckians spending more money on the lottery than ever, the odds of a jackpot being won in the commonwealth are continuously increasing.

Here’s everything you need to know about the process of winning a jackpot in Kentucky.

You’ve won. Here’s your first steps

You just found out that you’ve won a large jackpot. After the initial shock settles, you might not know exactly what to do next.

According to CEO of Kentucky Lottery Mary Harville, the first thing a winner should do is call the lottery and try to remain calm.

“It can be a very exciting experience,” Harville said, “and I’ll tell you, it’d be a very exciting experience for us.”

A Mega Millions jackpot has never been won in Kentucky, and a PowerBall jackpot hasn’t been won in the state since 2010.

Harville said once it’s confirmed you are a winner, the lottery will arrange a time with you to meet at its main office in Louisville.

A prize must be claimed within 180 days of the draw date.

According to vice president of Kentucky Lottery Maggie Garrison, the process is the same if a jackpot is won within a pool of people, rather than an individual.

“We require all those folks to provide their ID and fill out the claim form, so we go through the same steps with them.” Garrison said. “It’s just a matter of breaking up the prize within the pool.”

What’s next?

According to Harville, it’s advised you contact an attorney or a certified public accountant immediately after winning.

“We know when they do that, they’re going to be okay,” Harville said.

Harville also said it’s encouraged to bring your attorney or CPA along when you go to the office to meet lottery officials.

What are my options for claiming the money?

Kentuckians who win big have two options for claiming their prize: take a lump sum or receive annual payments.

Harville said most winners in recent years have chosen the lump sum for a variety of reasons.

“That can be a very life changing amount of money to receive,” Harville said.

Can I remain anonymous?

In Kentucky, winners must provide ID to Kentucky and fill out out a claim form to receive their prize, but can choose whether their name is released to the media.

However, Kentucky Lottery is subject to the Open Records Act, meaning if someone were to request the information, Kentucky Lottery would have to release it.

After a jackpot is won, there is typically a news conference featuring the winner.

“This is a newsworthy event,” Harville said. “Media will want to know who you are.”

Although it is optional, Chip Polston, senior vice president of communications for KY Lottery, said they advise people to go ahead and do the news conference.

“We can tell them, almost to a T, exactly what’s going to be asked of them,” Polston said. “It’s much more manageable to go ahead and take care of that up front.”

Harville said she feels this is a way for Kentucky Lottery to be transparent.

“All Kentuckians can know that these prizes are being awarded to individuals,” Harville said.

Why am I getting so many phone calls?

“You’re probably going to want to change your telephone number,” Harville said.

Along with a life-changing sum of money, you could receive numerous phone calls from people trying to sell you things, Harville said.

Harville said while you may be hesitant to change your number if you have had it for a while, it is ultimately a worthwhile decision.

What about taxes?

Kentucky takes a 6% tax from all lottery winnings, and the federal government takes a 25% tax.

If you decide to take the lump sum, you will pay all taxes at once, but if you decide to take the annuity payments, taxes will be paid over time.

What should I do now that I have my money?

Harville advises recent winners to “slow down.”

“You don’t really know what you’re going to do yet. Take your time,” Harville said. “Prioritize and decide what you want to do with this large amount of money.”

She said a temptation of many is to immediately quit their job after winning a large jackpot, but advises winners to wait at least six months before making a decision like that to ensure financial security.

“It’s really important to follow the advice of your financial adviser and your lawyer,” Harville said. “Get a plan first for how you’re going to invest that money so that it grows over time and be a benefit for generations to come.”

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