Urgent warning issued to anyone who enters Thursday’s $100m Powerball draw

An urgent warning has been issued to all Australians ahead of Thursday’s $100m Powerball draw.

The Powerball Draw 1461 Division One jackpot has hit the eye-watering amount after going unclaimed for four weeks.

But with as many as half of all adult Australians expected to buy a Powerball ticket for their chance to win, players are being urged to take note of a crucial — but easy-to-miss — piece of advice from The Lott.

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The Lott has long encouraged players to seek guidance from a financial planner if they take home a significant win.

“We strongly suggest seeking professional financial advice for major lottery wins to ensure you receive the maximum benefit from your good fortune,” it advises on its website.

It’s further been claimed that one of the reasons that Division One winners have to wait two weeks to receive their jackpots is so they can receive professional guidance on how to manage their newfound wealth.

Powerball winners are urged to seek professional financial planning advice. Credit: The Lott

“In Australia there is a two week provisional period before the money is paid to you,” one Reddit user said.

“This is meant to be the time you seek financial advice from professionals. Tatts can put you in contact with ones that understand lotto and large windfall winnings.”

Another said: “You have two weeks to coordinate a lawyer, a financial advisor, and draw up an NDA.

“Keep your mouth shut and don’t tell anyone without them signing an NDA. Lawyers are bound by client confidentially already so start there, then make your financial advisor sign the NDA before engaging with them.

“After two weeks you get paid out, and you better have things organized before you get door knockers. If you do things right, nobody will ever find out.”

In a recent Reddit post, some Australian social media users shared their concerning experiences with money after winning jackpots.

‘Levels of begging’

Many complained of old and long-lost acquaintances “coming out of the woodwork” wanting a cut of their winnings.

“A friend won $1 million, they did not give him financial advisers but he had access to one,” one Reddit user said. “Too many people knocked on his door asking for money though as he found out while at work.”

Another said: “I won a large amount of money on a TV quiz show. All the mother****ers came out of the woodwork.

“Won the money when I was late 30s. Had a person I hadn’t seen since the last day of high school (like 20 f***en years ago) messaging me telling me she was about to lose the house and hundred acre property she inherited because she couldn’t work.

“We’d been Facebook friends for a few years before this and she couldn’t work because she was a raging alcoholic.

“Then the ‘I only need 10k’ message came. I said haha, yeah right. ‘No, I really need it, can you help.’ About four times in escalating levels of begging.

“Then proceeded to call me all the c**** under the sun because I wouldn’t give her money. Harassed me for about a month via DM. Then proceeded to stalk me around mutual friends posts when I commented and called me a tight arse and selfish.

“Was mostly people from school and very old acquaintances that I hadn’t seen for ages that hit me up. Family didn’t ask for a thing. Friends didn’t ask for a thing.”

You might be paying more than you need to for your Powerball tickets, and there is a simple explanation as to why.
You might be paying more than you need to for your Powerball tickets, and there is a simple explanation as to why. Credit: Getty Images

Another big winner said it can be easy to spend a large portion of your win without realizing it.

“We won the lottery. We are a smart and well-educated couple and we were determined it wouldn’t change us. It was an Oz Lotto between $1-10 million,” they said.

“We paid our mortgage off, paid for my mum to move into a better nursing home, paid my in-laws mortgage off, paid for private school for our children until high school.

“My husband invested a bunch. We weren’t going to be like those other people. Right? We both kept working (although when his contract ran out two years later he didn’t bother getting another client it because he didn’t have to).

“I was able to afford nice clothes, nice outfits. Louis Vuitton hand bags, Burberry coats, new cars. We could eat at nice restaurants. Just for a change.

“But that became our new normal. Until we couldn’t afford our new normal anymore. It hit us one day how much of our savings we’d gone through. It crept up on us. It wasn’t an overnight change.

“It was a ‘We have millions I can splurge on a bag!’ And then it became a ‘I need a new back pack so I’ll see what LV has.’

“Thankfully we’ve managed to rein it in and get back on top of things. But it was crazy how quickly there was a new and unsustainable normal.”

The warnings come as an American man faces a messy legal challenge from family over his $1.35 billion Mega Millions win.

The unidentified man won the huge jackpot in January last year, and is now locked in a bitter legal battle with family members.

He’s been accused of refusing to share a portion of his winnings as promised, abandoning plans to set-up a million-dollar trust fund and refusing to pay medical expenses for his father.

He has also claimed that the mother of his daughter violated a non-disclosure agreement by telling the rest of their family about his enormous win before their daughter’s 18th birthday in 2032.

He went on to accuse the woman of trying to kidnap their daughter when he wouldn’t pay for a vacation for her and her boyfriend.

The man also revealed how his relationship with his father deteriorated after he took home the major jackpot.

“I made the mistake of telling my father that I had won the lottery without having him sign a confidentiality agreement,” the lotto winner said in court documents.

“Our relationship deteriorated quickly thereafter.

“I did not tell him what I was doing with my money, how I was going to benefit my daughter, or any facts other than the simple fact that I had won.”

If you’re concerned about your gambling or the gambling of a friend or family member, log on to Gambling Help Online or make contact via phone on 1800 858 858.

You can access online counseling as well as services in your state or territory and support for family and friends.

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