Payouts
The South Dakota Lottery offers a variety of prizes for its games, with payouts ranging from a few dollars to millions of dollars. For example, the Powerball jackpot starts at $20 million and can grow to hundreds of millions of dollars if there are no winners. The second prize for Powerball is $1 million, and players can win smaller prizes for matching fewer numbers.
For games like Dakota Cash, the top prize is usually around $100,000, and players can win smaller prizes for matching fewer numbers. The Lucky for Life game offers a prize of $1,000 per day for life! And scratch-off tickets offer instant prizes of up to $500,000, depending on the ticket price.
Take a look at the homepage, or the individual game pages, to see the very latest estimated jackpot prizes for the next draw. Many of the game pages include tables of payout for the last draws made to Mount Rushmore State residents
Taxes on Lottery Winnings
Lottery winnings everywhere in the US are subject to federal and state taxes, which can significantly reduce the actual amount of money that you'll receive. In South Dakota, all lottery winnings over $5,000 are subject to a 24% federal withholding tax . For example, if you win a $10,000 prize, you will receive $7600 after taxes. Of course, depending on your own circumstances, you may be able to reclaim some of that tax or be asked to pay even more.
Players who win large jackpots may also have the option to receive their winnings in a lump sum or as an annuity. A lump sum payment is a one-time payment of the full jackpot amount, while an annuity pays out the winnings over a period of years. Choosing the annuity option can help reduce the amount of taxes owed on the winnings, but it may not be the best choice for all winners. Make sure you consult your own tax advisor before making the choice should you be lucky enough to win a large amount.