Key Moments:
- Allwyn has announced Powerball’s UK launch, opening access to billion-pound prizes this summer.
- UK winners will receive tax-free earnings, distributed via annuity over 30 years.
- The upcoming Lotto changes are expected to increase UK millionaires from approximately 140 to about 345 per year beginning June 7.
International Expansion Brings Record Jackpots to UK
Powerball, the leading jackpot draw from the United States, is set to make its British debut. Allwyn, the National Lottery operator, stated on Tuesday that UK players will soon be able to compete for jackpots reaching into the billions, through a partnership agreement with the Multi-State Lottery Association (MUSL).
This represents a major shift for the UK lottery market. The existing Lotto draw has a limit that only allows five rollovers before requiring a must-win event. In comparison, Powerball’s jackpots have previously surpassed $1 billion six times, reaching an all-time high of $2.04 billion.
EuroMillions offers another continent-wide jackpot to UK residents, but its top prize is limited to €250 million, making Powerball’s uncapped prizes a significant new offering.
UK Winners to Benefit from Unique Prize Structure
Unlike the U.S. model—where winners may choose between a lower-value lump sum or a 30-year annuity—UK players who win the Powerball jackpot will collect their full prize in annual installments over 30 years. Importantly, all lottery winnings in the UK are tax-free, ensuring the total advertised payout is delivered, provided the winner can claim all installments over the decades.
Allwyn Promises Boost in Good Causes Funding
Allwyn projected that Powerball’s arrival will bring roughly £1 billion (US$1.35 billion) in additional funding for good causes during the first five years. More than 30% of every ticket price will be allocated to community projects, heritage, arts, and sports across the UK.
The company previously won the estimated $80 billion (US$100 billion) National Lottery tender in 2022 after pledging to double Camelot’s contributions to good causes. However, Allwyn faced court challenges and underwent a comprehensive technological transformation during its early phase as operator. CEO Andria Vidler described the Powerball move as evidence of the company “delivering on its promise.”
Significant Changes Coming to Lotto
Allwyn is also set to initiate the largest update to the Lotto game since 1994. Starting June 7, each £2 Lotto ticket will offer two chances to win, a change anticipated to increase the annual number of UK Lotto millionaires from about 140 to an estimated 345.
| Game | Jackpot Cap | Payout Structure | Annual Winners (Projected) |
|---|---|---|---|
| Powerball | Uncapped | 30-year annuity | — |
| EuroMillions | €250,000,000 | Lump sum | — |
| Lotto (Post-Update) | 5 rollovers, then must-win | Lump sum | Rising from 140 to approx. 345 |
Concerns Remain Over International Sales
The international expansion of Powerball has not been without controversy. In 2021, Idaho lawmakers decided to withdraw the state from the draw if MUSL proceeded to sell tickets in the UK and Australia, citing worries about lottery revenues benefitting foreign governments. Although MUSL postponed international plans at that time, it is still uncertain if these issues have been fully resolved or temporarily set aside as Powerball prepares for its overseas debut.
- Author
Daniel Williams
