The new version of Mega Millions coming in April includes a number of changes, one of which is the removal of prizes that only award the player’s money back. Thus, any win will be more than the ticket price. Although it means fewer tickets will be winners, it’s a positive change for players, as it also means more prize money will stay with them rather than being rolled over into more tickets for the next draw.
The other changes have already been covered by Bonus and include bigger jackpots, improved odds, and an automatic inclusion of the Megaplier. In addition, break-even prizes will be eliminated, meaning winning combinations will pay out more than the ticket price. Mega Millions published a full list of the changes on Oct. 7.
The latter is a significant change that some players might not realize is beneficial. Any win is a welcome surprise in a game of chance like the lottery, but Mega Millions’ no-break even change transforms smaller wins into more meaningful rewards. That could increase engagement among players and help Mega Millions differentiate from rival Powerball.
Why Removing Break-Even Prizes a Good Thing
In the current format, break-even prizes award players the ticket cost, usually $2. While winning anything is always exciting, break-even rewards often feel underwhelming. Moreover, when players win a prize equal to the cost of their ticket, they frequently just use that money to play again until they eventually lose. This cycle benefits the lottery as it keeps all the money, and it’s bad for players because a few would win meaningful prizes, including the jackpot.
Alternatively, players are less likely to rebet large prizes as they represent actual gains. For example, someone who wins $1 million is unlikely to spend the entire sum on more tickets, so money paid out in large prizes is more likely to stay with players. In the extreme case, the “jackpot only” version of Mega Millions leads to virtually no rebetting, so in principle it’s the best for players. However, never winning anything isn’t much fun, so many players will want to compromise on something in between.
By adjusting prize structures, Mega Millions aims to balance its and players’ interests. While break-even prizes are more profitable for lotteries, they raise the risk of player fatigue as their perception of their chances to win big prizes decreases. By removing small prizes, the percentage of players pocketing profit increases, and fewer will likely rebet their winnings. This shift means players get a true reward every time they win, with a higher payout than initially paid. That adds excitement to each play. Knowing that any win will deliver a bonus, rather than just breaking even, can make the experience more satisfying.
Mega Millions Confirms Changes Will Come In April
Rumors of Mega Millions price hikes started circulating at the beginning of the year. In May, during La Fleur’s 2024 Raleigh Conference, Oklahoma Lottery executive director Jay Finks appeared to confirm that tickets would rise to $5.
Additional details came from the Montana Lottery Commission‘s June meeting, and in early October, Mega Millions confirmed the changes, announcing they would take effect in April 2025. Important changes include:
- The price of each ticket goes up to $5, up from $2 (plus $1 for the optional Megaplier feature).
- Automatic inclusion of the Megaplier with every ticket.
- A higher starting jackpot of $50 million, up from $20 million.
- Improved odds of winning any prize, including the jackpot.
In addition to the higher starting jackpot, the $5 ticket means higher average jackpots. It will likely help Mega Millions grow beyond the billion-dollar mark faster and even reach the $2 billion mark. These changes could be a key to differentiating it from Powerball.
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