ABERDEEN, S.D. - One yet-anonymous person who bought a Lucky for Life lottery ticket at an Aberdeen supermarket will have a big decision to make — take the equivalent of $1,000 each day, or take a lump-sum payment of $5.7 million.

There are a couple of advantages to each choice, said Norm Lingle, executive director of South Dakota Lottery.

With a regular jackpot, like those that come with the Powerball or Mega Millions, the full jackpot is paid in annuities — an annual payment — or a reduced payment can be made in a lump sum, Lingle said. For those that choose an annuity, the payments will be made to the person or his or her estate until the full amount is paid out.

The first payment is made when the winner claims the prize, Lingle said. In the case of the multi-state Lucky for Life game, it's a little different, Lingle said. While the prize is equivalent of $1,000 per day, it's actually a once-a-year payment of $365,000, made on the anniversary of day the prize was claimed.

The winning numbers — 4, 10, 15, 19 and 43 with a Lucky Ball of 8 — were drawn Monday, and resulted in the first jackpot-winning ticket bought in South Dakota.

WDAY logo
listen live
watch live

Unlike prizes with a set jackpot, the Lucky for Life annuity is paid until the winner dies, Lingle said. If the winner dies within 20 years of winning, that person's estate will continue to be paid for the remainder of the 20 years.

"If they have exceeded the 20 years, then the payments will cease all together," Lingle said.

A lottery winner never sees their full jackpot, Lingle said. Twenty-four percent is taken off right away for federal taxes.

No money is taken by the state of South Dakota, because there is no state income tax, Lingle said. But more taxes will likely be owed beyond the initial 24 percent.

"They can be life-changing events," Lingle said. "Getting some expert advice from either an attorney or a financial planner, accountant, really, will help make the process much smoother and hopefully allow you to avoid any road bumps in the future."

Whether the Lucky for Life winner chooses a lump sum or the annuity, it's going to land them in the top 10 prizes in South Dakota Lottery history. With the annuity option, Lucky for Life is still more than $7 million guaranteed.

The winner is advised to sign the back of the ticket immediately and to contact the South Dakota Lottery Pierre’s office at 605-773-5770 with any questions.