how do they calculate prize pools in U.S lotteries like the mega millions?

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So I read an article today about the win of the mega millions jackpot, and that the prize pool was increased by the time of drawing. I am Australian where our lotteries work on a parimutuel basis where 60% of sales in a drawing are divided amongst the prize divisions. And the advertised division one prize is the minimum prize for that drawing and if they don’t sell enough entries to cover that the lottery operator has to eat it and cover the shortfall from their own funds if it is won.

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Anonymous 0 Comments

Basically, they set a minimum requirement that automatically goes to the next pot if someone wins.

Anything over that minimum goes to the winner, minus a percentage for commissions and sales.

Sales from tickets helps drive up the pot, as long as no one wins, the pot gets bigger.

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