Canadians, yes, you can win the Powerball lottery — here's how
Postmedia News January 12, 2016
So you want to cash in on Wednesday's $2 billion (Canadian) Powerball jackpot, the world's biggest ever draw. Here's what you need to know:
Can I play the Powerball lottery, even though I'm Canadian?
You bet you can. No citizenship required to win.
How do I buy a ticket?
Take a drive. The only way to legally purchase a Powerball ticket is from a licenced retailer. So while you don't have to be American to win, you have to be in the U.S. to buy your ticket. There are online operators who claim to buy tickets on your behalf, but Powerball warns against these unregulated services.
Be warned that an obscure American law prohibits you from returning to the U.S. with your lottery ticket. Powerball does allow winners to claim tickets by mail, but again, U.S. authorities would likely see that as importing a lottery ticket. Your best move may be to open a mailbox south of the border and stash your ticket in it, on the 1-in-292 million chance that you do win.
What kind of tax can I expect to pay if I win?
A winner would have the option of being paid through annual payments over 29 years or opting for one smaller cash payment (about $1.24 billion Canadian). Why the difference? The larger sum is based on inflation adjustments over the 29 year period, so really this is a draw for the lesser amount. The bigger number draws more eyeballs, so that's why the organizers go with it.
Canada doesn't tax lottery jackpots. The U.S. Internal Revenue Service has a special tax just for gambling wins: 25 per cent for citizens, but 30 per cent for us non-Americans. Some states collect income tax on lottery winnings but B.C.'s closest neighbour, Washington, does not.
So what does that leave me with?
Even with 30% knocked off, you'll still end up with $980 million U.S. over annual payments, so you're not likely going to starve. Also consider, with the dollar where it is right now, that actually amounts to about $1.4 billion in Canadian dollars. So if you think of it like that, it might cushion the blow.
Can I buy an NHL team?
Yes. The Carolina Hurricanes are for sale and owner Peter Karmanos has said publicly he thinks the team is worth $400 million U.S. That's about $569 million Canadian.
Is gambling not fun anymore?
The B.C. government has gambling addiction help line. More details here at bcresponsiblegambling.ca.
This story has been edited to add information about U.S. laws regarding the importation of lottery tickets.
— with a file from The Province
© Copyright (c) The Province
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