Winning the Lottery: Tips from a Billionaire
Oct. 19, 2018
Updated Sep. 5, 2025 at 6:00 a.m. CDT
Introduction to Winning the Lottery
Editor’s note: This story was originally published on Jan. 11, 2016, when the Powerball jackpot reached $1.6 billion. The latest Powerball jackpot climbed to an estimated $1.7 billion after no ticket matched the five white balls and the red Powerball drawn Wednesday night. Players have their next chance to win on Saturday, Sept. 6, 2025. If someone scores all the winning numbers, they could take home the third-largest jackpot in U.S. lottery history.
Mark Cuban’s Tips for Lottery Winners
Dallas Mavericks owner Mark Cuban, who knows what it’s like to suddenly become incredibly wealthy, has some tips (some practical and some philosophical) for lottery jackpot winners.
- Hire a tax attorney first.
- Don’t take the lump sum. You don’t want to blow it all in one spot.
- If you weren’t happy yesterday you won’t be happy tomorrow. It’s money. It’s not happiness.
- If you were happy yesterday, you are going to be a lot happier tomorrow. It’s money. Life gets easier when you don’t have to worry about the bills.
Additional Tips from Mark Cuban
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- Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs 1m dollars for anything. No one needs 100k for anything. Anyone who asks is not your friend.
- You don’t become a smart investor when you win the lottery. Don’t make investments. You can put it in the bank and live comfortably. Forever. You will sleep a lot better knowing you won’t lose money.
Mark Cuban’s Advice on Spending Lottery Winnings
But don’t take this as a suggestion from Cuban that you should spend a lot of money on lottery tickets. The odds will continue to be remote no matter how many tickets you buy. “It’s OK to spend 2 dollars for entertainment value,” he said via email. “If you have 10 dollars go to a Mavs game.”
Conclusion
Winning the lottery can be a life-changing event, but it’s essential to have a clear understanding of how to manage the winnings. Mark Cuban’s tips provide valuable insights for lottery winners, emphasizing the importance of hiring a tax attorney, not taking the lump sum, and being mindful of relationships with friends and relatives. By following these tips, winners can ensure a comfortable and secure financial future.
Frequently Asked Questions
Q: What should I do first if I win the lottery?
A: Hire a tax attorney to help you navigate the complex tax implications of your winnings.
Q: Should I take the lump sum or annual payments?
A: Mark Cuban advises against taking the lump sum, as it can be tempting to spend it all at once. Instead, opt for annual payments to ensure a steady income stream.
Q: How can I avoid being taken advantage of by friends and relatives?
A: Tell them no, and only consider helping those you are close to after consulting with your accountant. Remember, no one needs 1m dollars or 100k for anything, and anyone who asks is not your friend.
Q: Should I invest my lottery winnings?
A: Mark Cuban advises against making investments, as you don’t become a smart investor overnight. Instead, put your winnings in the bank and live comfortably, knowing you won’t lose money.
