Do you have to be a US citizen to win the Powerball lottery?

As the Powerball climbs to a whopping $1bn prize, many people are wondering how they can claim the seventh-largest lottery in US history.

The Powerball jackpot reached $1bn after no tickets matched all six numbers on Monday night’s drawing. Players who purchased a Powerball ticket this week failed to pick five, eight, nine, 17 and 41 with a red Powerball of 21 as the winning numbers.

Now, players have another chance to match all six numbers during the next drawing on Wednesday. The lucky winner will have the option to take home the $1bn paid out over 30 years, or be given a cash lump sum option of $516.8m before taxes.

Powerball is played in 45 states across the US, as well as Washington DC, Puerto Rico, and the US Virgin Islands. While stores across the country have seen an increase in Powerball ticket sales ahead of the estimated $1bn jackpot, the question still remains whether tourists or non-US citizens can have their chance at winning the lottery too.

According to the Powerball website, players do not have to be US citizens or residents to play the lottery.

The lottery is open to all players over the age of 18, regardless of their citizenship status. In order to play, those who live in jurisdictions where Powerball tickets are not sold must purchase a lottery ticket from a licensed or authorised retailer – typically at convenience stores, gas stations, or food markets.

When a non-US citizen buys a lottery ticket, they will need to show proof of identity with an official identification document issued by their country of origin, such as a passport or other form of valid ID, to verify their age.

The odds of winning the Powerball jackpot are one in 292.2 million. However, if one lucky foreigner or tourist were to beat those odds, they may be subjected to various taxes on their prize winnings.

Federal and jurisdictional income taxes apply to both the cash lump sum and the annuity payment option. For starters, the IRS requires a mandatory 24 per cent withholding for winnings of $5,000 or more.

On top of that, winners must also give up an additional federal income tax. For example, if a winner opts for the cash lump sum payment, they would be subjected to a federal income tax at the top tax rate, which is 37 per cent. That means, after 24 per cent is taken from the IRS, another 13 per cent would be taken for federal income tax.

An additional tax could come from the state, depending on where the Powerball winner lives. State tax rates can range from about three per cent to 11 per cent, while some states don’t tax lottery winnings at all.

If a tourist or non-US citizen were to win the Powerball, they would face the same tax implications as an American citizen. They must also pay taxes in the state where the ticket was purchased, and their country of origin’s tax laws.

Powerball lottery players, regardless of whether they’re a US citizen or not, should consult a financial advisor if they take home the $1bn jackpot.

The next Powerball drawing is on Wednesday 19 July at 10.59pm ET.