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Powerball
Los Angeles Times via Getty Images
Players saw a much smaller Powerball jackpot in the first cross‑border drawing, but the difference had nothing to do with currency or prize size. It came down to how each country advertises the value of the same shared jackpot — one using the gross figure, the other using the net. When Powerball launched in the U.K. on July 21, the headline number appeared far lower than the U.S. version, with the U.K. listing roughly $400.4 million (£300 million) versus the U.S.’s $567 million. The gap reflected disclosure, not payout: the U.K. presents its share of the jackpot pool on a net basis, while the U.S. promotes the pre‑tax annuity value no winner actually receives.
What Powerball’s U.K. Launch Actually Changed
Powerball has operated in the U.S. since 1992, and players in 45 states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands buy tickets several times a week for a chance at major winnings. Selling tickets outside the U.S. marks the first time the game crossed international borders.
U.K. tickets cost £4 (about$5.33), according to Powerball, more than double the $2 ticket cost in the United States. Like the U.S., more than half of every ticket sold in the U.K. stays within the country to fund public programs. The lottery uses the same drawing and the same jackpot as the U.S. version. The key difference is how each country presents the size of that jackpot.
Why U.S. and U.K. Jackpot Headlines Don’t Match
The advertised U.S. jackpot reflects the gross total of a 30-year annuity. For instance, a $600 million jackpot pays $20 million annually for 30 years. However, winners never collect that full amount. The federal government withholds 24% immediately, and winners owe more when they file taxes because the payout places them in the top tax bracket (over $640,600 for single filers and over $768,700 for married filers). That means winners will owe about 37% of their winnings in federal income taxes.
Even beyond federal taxes, winners owe state income taxes unless they live in states without income tax, such as Florida, Texas, Tennessee or Nevada. Some states, like California, exempt lottery winnings from income taxes. Any state that levies income tax takes a share of the payout.
As a result, a $600 million jackpot produces far less than the advertised amount. Put differently, based on how the tax code works, the advertised Powerball jackpot arguably resembles a form of misleading advertising because no winner can collect the full amount.
Recognizing this issue, the U.K. chose a more direct approach. The U.K. does not tax lottery winnings, so a jackpot does not affect a player’s gross income. The advertised U.K. jackpot applies the highest applicable tax rate to the shared pool and converts the remainder into pounds, according to Allwyn. U.K. winners effectively take home the net amount, even though they would otherwise be entitled to more.
Beyond the jackpot difference, U.S. winners choose between a 30-year annuity or a discounted lump-sum payout. U.K. winners do not have a choice and must take the annuity. Most U.S. winners choose the lump sum , putting the U.K. system at odds with typical winner preferences.
Taken together, the U.K. Powerball offers an identical game with identical odds and an identical jackpot. But once currency and taxes enter the picture, the advertised figures diverge. The U.K. lists a net payout, while the U.S. lists a gross one.
How U.K. Jackpot Disclosure Fits Into All‑In Pricing Trends
Businesses, policymakers and of consumers have long debated how clearly sellers should present prices. That debate intensified as consumers pushed back against junk fees and deceptive pricing. The FTC’s May 2025 ruling on unfair or deceptive fees requires sellers to display full totals — including mandatory fees — whenever they show a price. Live-event ticket sellers and short-term lodging providers must now show all-in pricing.
Lottery jackpots rarely faced similar scrutiny because the fees are not hidden. When a U.S. player wins the jackpot, their gross income increases and becomes subject to federal and state taxes. Those taxes are required by law, and players must comply. However, psychological factors may make the U.S. system feel similar to the junk fees regulators aim to eliminate. The advertised jackpot is never the amount a winner can collect, which may create an unfair impression. The U.K. avoids this by presenting more transparent pricing on the outcomes for the jackpot winner.
It may be tempting to assume the U.S. Powerball reduced the jackpot when expanding abroad. In reality, the U.K. figure reflects the all-in payout to the player who matches all six numbers.
Rather than advertise a larger number, the U.K. lists the net amount. The U.S. figure effectively needs an asterisk because federal and state taxes take a huge share of the winnings. As Powerball’s international expansion places American and British jackpot headlines side by side, the gap between them is not a currency quirk. It previews a question U.S. regulators already ask about everything from concert tickets to hotel rooms: is the advertised price the price anyone actually gets? For lottery jackpots, the U.K. answered that question first.
