• Cash option:
  For every dollar spent on a jackpot lotto game, a certain percentage is placed immediately into a cash pool. When you win the jackpot and choose the cash option, you will get the entire amount in the cash pool, minus taxes. 
• Annuity:
  When you win the jackpot and choose the annuity option, the cash pool is used to buy government bonds that pay out over a 25-year period for Megabucks or over a 30-year period for Powerball and Mega Millions. You will receive a payment every year until the full annuity amount is paid out. Taxes are withheld from each payment. It is similar to how a savings bond works. A $100 savings bond costs the purchaser only $50 today. If the holder of the bond waits until maturity, the bond is then worth the entire $100.

Note: After presenting the winning ticket you have 60 days to decide on cash option or annuity. After 60 days have passed, if you have not made a decision, the payment automatically becomes an annuity.