What to know about the Oklahoma Lottery, Mega Millions, winnings taxes

Christopher Lane II, The Oklahoman
·3 min read

The Oklahoma Lottery has been captivating residents and offering thrilling chances to win since its inception. Administered by the state government to raise revenue for various public programs, the Oklahoma Lottery has become a staple of everyday life for many Oklahomans.

How long has Oklahoma had a lottery?

The Oklahoma Lottery was established in 2005 after the Oklahoma Education Lottery Act was passed by the state legislature. The primary purpose of the lottery was to provide additional funding for education programs, including scholarships and school improvements.

Since its launch, the Oklahoma Lottery contributed over $1.2 billion to education throughout the state.

Oklahoma is the 4th youngest lottery. Mississippi, Wyoming and Arkansas have all created state lotteries in more recent years.

While our state program has seen growth since its launch, states like Alabama and Utah maintain religious claims and forego lotteries.

Many governments throughout history, including the Romans and royal European courts in Spain and England, used lotteries to raise municipal funds and support public projects.

In the United States, the first government-run lottery in the nation was established by Puerto Rico in 1934.

How bad are Oklahoma taxes on lottery winnings?

Winning the lottery can be a life-changing experience, but it's essential to understand the tax implications. In Oklahoma, lottery winnings are subject to both state and federal income taxes.

Oklahoma has a 4.75% state tax withholding, so the winner of the $170 million jackpot would receive about $162 million dollars after tax, while a winner of a 1k-Scratcher would rake in a little over $952.

According to the Oklahoma Lottery website, winners can choose between receiving a lump sum payment of their winnings or opting for 30 annual payments over 29 years.

For draw or fast-play games, you have 180 days from the draw date to claim your prize and 90 days for scratcher games.

What lottery games does Oklahoma have?

The Oklahoma Lottery offers a range of games, each with its own unique rules and prize structure.

Pick 3

  • Players select a three-digit number, and the top prize is awarded for matching the winning numbers in the exact order.

  • Other prize levels are available for matching numbers in different orders. Daily drawings, with the top a $500 prize varying based on the specific numbers chosen.

Cash 5

  • Players choose five numbers, and the top prize is awarded for matching all five numbers. Additional prize levels are available for matching fewer numbers.

  • Drawings held daily, with a $25,000 taxes-paid, top prize, dependent on matching all five numbers.

Powerball and Mega Millions

  • These multi-state lottery games offer enormous jackpots. Players select a set of numbers, and the jackpot is won by matching all the numbers plus an additional specified number.

  • Drawings take place on Wednesdays and Saturdays.

  • The current jackpot is an enticing sum of $170,000,000.

  • As for Mega Millions, drawings occur on Tuesdays and Fridays with the current jackpot set at an impressive $1,550,000,000.

Lotto America

  • Another multi-state lottery game where players select a set of numbers.

  • The jackpot is won by matching all the numbers plus an additional Star Ball number.

  • Drawings held on Wednesdays and Saturdays. The current jackpot stands at $7,580,000.

Lucky for Life

  • This game offers a top prize in the form of a lifetime annuity.

  • Players select numbers, and the jackpot is won by matching all the numbers plus the Lucky Ball.

  • Drawings take place on Mondays and Thursdays. The top prize offers a lifetime annuity of $1,000 a day for life providing financial security for the fortunate winner.

The Oklahoma Lottery continues to provide thrilling opportunities and support critical educational programs in the state. As always, participants are encouraged to play responsibly and consult official sources, such as the Oklahoma Lottery website, for the most accurate and up-to-date information.

This article originally appeared on Oklahoman: What to know about the Oklahoma Lottery, Mega Millions, winnings taxes