The Powerball jackpot did not reach a winner in the Wednesday, August 20 draw, resulting in the prize climbing to an estimated $700 million ahead of the next drawing on Saturday, August 23. The lump sum payout is approximately $316.3 million before taxes, but after federal tax withholding, the actual payout could be around $240.4 million, potentially decreasing further due to federal and state taxes.

While the large prize is enticing, most winners opt for the lump sum, despite the tax implications, because it provides immediate access to the funds — useful for investments, estate planning, or other financial strategies. Concerns about heirs and the stability of the lottery system also influence this choice.

The jackpot may grow even larger if ticket prices increase, similar to recent changes made by Mega Millions.