The Powerball jackpot recently climbed to over $1 billion, sparking a frenzy of ticket sales across the country as people hoped to win the enormous prize. With so much interest in the record-setting jackpot, many people are wondering where the winning ticket was sold.
The Winning Powerball Ticket
The winning ticket for the $1.6 billion Powerball jackpot on January 13, 2016 was sold at a 7-Eleven convenience store in Chino Hills, California. The store is located near Los Angeles, off the 15 and 71 freeways. The holder of the single winning ticket has not yet come forward to claim the prize.
The winning numbers for the January 13th drawing were 4, 8, 19, 27, 34, and Powerball 10. The winner matched all six numbers to take home the grand prize, which had rolled over multiple times without a winner. The cash value option for the jackpot is $983.5 million.
Where Chino Hills Is Located
Chino Hills is a suburb in San Bernardino County, California. It is located about 35 miles east of Los Angeles in the Inland Empire region. Chino Hills had an estimated population of 83,447 as of 2021. The city borders the neighboring communities of Chino, Chino Hills, and Diamond Bar.
Some key facts about Chino Hills:
- Incorporated in 1991
- Median household income of $108,560 (affluent city)
- Highly rated public schools
- Rolling hills geography in southwestern San Bernardino County
- Home to Chino Hills State Park
So while Chino Hills is not one of the biggest cities in California, it is a prosperous suburb that is now known for selling the world record Powerball ticket.
7-Eleven Store Background
The winning Powerball ticket was specifically sold at the 7-Eleven store located at 4024 Los Serranos Road in Chino Hills. This store is owned by franchisee Balbir Atwal, who bought it nearly two decades ago.
The store is one of the busiest 7-Eleven locations in the region, serving a steady stream of customers from the nearby residential neighborhoods. Employees say dozens of people were purchasing Powerball tickets for the record jackpot leading up to the January 13th drawing.
In addition to Powerball tickets, the 7-Eleven store sells the usual convenience store items like snacks, drinks, groceries, and an ATM. The store will receive a $1 million bonus from the California Lottery for selling the winning Powerball ticket.
California Lottery History
The California Lottery has been operating since 1985 after it was approved by state voters in 1984. The lottery provides supplemental funding for California public schools. Some key facts:
- Over $39 billion contributed to public schools since inception
- Lottery sales topped $8 billion in fiscal year 2020-21
- Powerball began in California in 2013
- Mega Millions began in California in 2005
- Daily games include Scratchers, Fantasy 5, Daily Derby
While the Powerball jackpot of $1.6 billion is a new record, the California Lottery has generated other large winning tickets over the years. The previous record jackpots sold in California were two Mega Millions tickets worth $414 million and $549 million sold in 2014 and 2015.
The Powerball Game
Powerball is a multi-state lottery game that occurs twice a week on Wednesdays and Saturdays. Players select five main numbers between 1-69 and one Powerball number between 1-26. To win the jackpot, a ticket must match all six numbers.
Powerball tickets cost $2 per play. Players can multiply non-jackpot prizes up to 10 times with the Power Play add-on for an extra $1 per play. Jackpots start at $40 million and roll over until there is a winner.
Powerball jackpots have been won all across the country since the game began in 1992. But California did not participate until 2013 after legislative approval. The January 13, 2016 jackpot win in Chino Hills was only the second Powerball jackpot won in California.
Breakdown of Powerball Prize Funds
For the January 13th, 2016 drawing with the $1.6 billion jackpot, the total prize pool was roughly $1.94 billion based on nationwide Powerball ticket sales. Here is how those funds were distributed:
| Prize Category | Number of Winners | Total Prize Amount |
|---|---|---|
| Match 5 + Powerball (Jackpot) | 1 | $1.6 billion |
| Match 5 | 8 | $1 million each ($8 million total) |
| Match 4 + Powerball | 485 | $50,000 each ($24.25 million total) |
| Match 4 | 13,145 | $100 each ($1.31 million total) |
| Match 3 + Powerball | 176,155 | $100 each ($17.62 million total) |
| Match 3 | 4,426,138 | $7 each ($30.98 million total) |
| Match 2 + Powerball | 7,284,138 | $7 each ($50.99 million total) |
As the table shows, the vast majority of the prize pool goes to the jackpot winner. But thousands of smaller prizes between $7 and $50,000 were also won in the January 13th drawing.
Odds of Winning Powerball
The odds of winning any Powerball prize are about 1 in 24.9. But the odds for the life-changing jackpot are much lower:
- Odds of winning Powerball jackpot: 1 in 292.2 million
- Odds of winning $1 million prize: 1 in 11,688,053.52
- Odds of winning $50,000 prize: 1 in 913,129.18
- Odds of winning $100 prize: 1 in 36,525.17
With odds like this, it is no surprise that the Powerball jackpot can grow into the hundreds of millions before somebody finally wins. The winner beat odds of roughly 1 in 300 million to land the record $1.6 billion prize.
Taxes on Powerball Winnings
While winning over a billion dollars sounds like a dream come true, the Powerball winner will not actually take home the full advertised jackpot. That’s because the federal government and the state of California will both tax Powerball winnings.
For a $1.6 billion jackpot, here is an estimate of the tax bite:
- Federal tax: 37%, or about $592 million, owed to the IRS
- California state tax: 8% for California residents, or about $128 million
After subtracting the federal and state taxes, the winner would take home an estimated $880 million from the $1.6 billion prize. Still life-changing money, but 25-40% of the jackpot will go straight to Uncle Sam and Sacramento.
Jackpot Winners Remaining Anonymous
Winners of massive lottery jackpots often try to remain anonymous after hitting the prize. Despite all the publicity and hype surrounding record jackpots, winners have the legal right in most states to stay out of the spotlight.
In California, the law allows lottery winners to remain anonymous and does not require their name be released to the public. The winner can choose to come forward but usually does so at a press conference arranged by the lottery agency.
If the Chino Hills ticket holder follows the trend, he or she will likely try to keep their identity secret for as long as possible. But staying truly anonymous with a billion dollar prize is difficult, as interest surrounding the winner will be massive.
Should You Take the Lump Sum or Annuity?
Powerball winners have two options for receiving their jackpot winnings:
- Lump Sum – A one-time payment upfront, which for this jackpot was $983.5 million.
- Annuity – The full $1.6 billion prize paid out over 29 annual payments.
There are pros and cons to each approach. The lump sum gets you nearly a billion dollars immediately that can be invested. But the annuity avoids investment risk and spreads the tax burden over almost three decades.
Most experts recommend the lump sum, as conservative investments can generate similar returns as the annuity over time. Also, state law allows jackpot recipients to remain anonymous if they take the lump sum, which many winners prioritize.
How Winning Affects “Lucky” Retailers
While lottery players receive the actual prize money, retailers who sell major winning tickets also receive bonuses from the state lottery. In California, retailers get $1 million for selling a jackpot-winning Powerball or Mega Millions ticket.
These policies are designed to reward and motivate retailers who generate lottery revenue for the state. Bonus funds come from the lottery agency’s marketing budget, not the prize pool.
Retailers can use the bonuses to upgrade their stores, give employees rewards, invest in marketing, or pad their bottom line. Past retailers have reported increased customer traffic and sales after selling big winning tickets.
Will the Jackpot Lead to More Ticket Sales?
State lotteries heavily market and advertise big jackpot amounts because interest and ticket purchases increase as prizes grow. The record $1.6 billion Powerball jackpot led to a surge in ticket sales across the country.
Between November 7 and January 13, Powerball sales totaled over $1.35 billion as the jackpot rolled over again and again. Sales spiked in the final days leading up to the drawing that produced a winner.
Now that the jackpot has reset to $40 million, short-term ticket sales will likely decline from their recent peaks. But the extensive coverage of the record payout will keep public interest higher as people remember that playing Powerball can sometimes lead to a billion dollar payday.
Past Record Jackpots
Here are some of the other notable record jackpots from the Powerball and Mega Millions games:
- January 2016 – $1.6 billion Powerball
- March 2012 – $656 million Mega Millions
- December 2013 – $648 million Mega Millions
- February 2015 – $564.1 million Powerball
- January 2016 – $1.54 billion Powerball
The recent world record Powerball jackpot easily surpassed the previous high marks. Lottery officials note that it may be some time before a prize approaches $1.5 or $1.6 billion again.
Unclaimed Jackpot Prizes
Amazingly, some massive jackpot tickets have gone unclaimed because winners failed to come forward. These include:
- December 2002 – $68 million Powerball (Indiana)
- August 2012 – $77 million Powerball (Kansas)
- November 2015 – $63 million Powerball (California)
Lottery officials are anxiously waiting to see if the Chino Hills ticket for the $1.6 billion prize goes unclaimed. But considering the unprecedented attention on this jackpot, it is highly likely the winner will come forward promptly.
Conclusion
The record-shattering Powerball jackpot has captivated the nation in recent months as the prize escalated beyond $1 billion. Now that a single ticket purchased in Chino Hills, California has won the $1.6 billion prize, intense interest centers on where the ticket was sold and whether the lucky winner will come forward.
While the odds of matching all six numbers are incredibly low, somebody beating the odds has breathe new life into the Powerball game. States with lotteries are thrilled that Powerball can produce such enormous jackpots, as revenue for government programs depends on public excitement and ticket sales.
For now, all eyes are on the Golden State to see if the mystery Chino Hills winner claims the grand prize. Regardless of the winner’s identity, he or she instantly has become one of the richest people in the world thanks to a $2 Powerball ticket.