You’ve probably stood in line at a gas station, clutching a two-dollar slip of paper and daydreaming about quitting your job. It’s a classic American pastime. But in late 2022, that daydream turned into a reality so massive it actually felt fake. We aren't talking about a few million or even a couple hundred million. We are talking about the kind of money that lets you buy a small country or, at the very least, a fleet of private jets.
The record for the biggest Powerball jackpot ever was set on November 7, 2022. The number on the billboard? $2.04 billion.
It was the first time any lottery jackpot in history had crossed the two-billion-dollar mark. Honestly, the frenzy was a bit much. People who never play the lottery were suddenly buying ten tickets at a time. The drawing was actually delayed because of some technical glitch in another state, which only made the tension worse. When the numbers finally dropped the next morning, the world found out there was just one winning ticket. One.
The Man Behind the $2.04 Billion Prize
For months, nobody knew who won. In California, you can't stay anonymous like you can in some other states, but the winner took his sweet time coming forward. Finally, in early 2023, the California Lottery introduced us to Edwin Castro.
Castro didn't show up to the big press conference. He didn't want the spotlight, which, let’s be real, is probably the smartest move you can make when you suddenly have more money than most celebrities. He bought his ticket at Joe’s Service Center in Altadena, California. Joe Chahayed, the store owner, got a $1 million bonus just for selling the ticket. Talk about a good day at the office.
Where the Money Went
Everyone wants to know what you do with two billion dollars. Castro opted for the lump sum—the "cash option"—which was $997.6 million.
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He didn't get the full two billion because that number is based on an annuity paid out over 30 years. Most winners take the cash up front. After the IRS took their 24% off the top (and Castro likely paid the rest of his 37% federal tax bill later), he walked away with roughly $628 million. Still enough to buy a few nice things.
Since the win, he’s been spotted buying some incredible real estate:
- A $25.5 million mansion in Hollywood Hills (it has a game room, a gym, and a cold plunge).
- A $4 million Japanese-style home in Altadena.
- A $3.8 million beachfront property in Malibu (which, sadly, was destroyed in the California wildfires in January 2025).
- A vintage white Porsche 911.
Is It Getting Easier to Win Big?
Kinda, but not really. If it feels like these jackpots are getting bigger lately, you aren't imagining things. The lottery officials changed the rules back in 2015. They increased the pool of white balls and decreased the pool of red Powerballs.
Basically, they made it harder to win the jackpot but easier to win small prizes. By making the odds of the grand prize 1 in 292.2 million, the jackpot is more likely to "roll over" dozens of times. More rollovers mean more hype, more ticket sales, and those billion-dollar numbers that make the evening news.
The Top 5 Biggest Powerball Jackpots Ever
The $2.04 billion win is the king, but it has some company. As of 2026, the leaderboard for the biggest Powerball jackpot looks like a list of national GDPs.
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- $2.04 Billion (November 2022): The Edwin Castro win. Single ticket, California.
- $1.817 Billion (December 2025): A single ticket sold in Arkansas on Christmas Eve.
- $1.787 Billion (September 2025): Shared by two winning tickets in Missouri and Texas.
- $1.765 Billion (October 2023): One ticket sold in Frazier Park, California.
- $1.586 Billion (January 2016): This was the original "big one." It was split between three tickets in California, Florida, and Tennessee.
It’s interesting to note that Mega Millions also plays this game. The biggest Mega Millions jackpot was $1.602 billion, won in Florida in 2023. While that’s huge, Powerball still holds the world record for the highest amount ever reached.
The "After-Tax" Reality Check
People love to complain about taxes, and lottery winners are the ultimate example. When you hear "Two Billion Dollars," your brain pictures two billion in a bank account.
It never happens that way.
First, the advertised jackpot is the annuity. If you want the cash now, you lose about half the value immediately. Then the federal government steps in. They take a 24% withholding right away, but since you’re now in the highest tax bracket, you’ll owe 37% total.
If you live in a state like New York, you might lose another 8% to 10% to state taxes. If you’re in California or Florida, you’re lucky—those states don't tax lottery winnings. This is why Edwin Castro’s $2 billion turned into roughly $628 million. "Only" $628 million. Poor guy, right?
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Why These Massive Wins Matter
Beyond just making one person incredibly wealthy, these giant jackpots do a lot of heavy lifting for state budgets. In California, for example, the record-breaking 2022 run generated over $156 million for public schools. That’s a massive influx of cash that wouldn't exist without the hype.
There is also the "multiplier effect." Local stores that sell winning tickets see a huge spike in business. Joe’s Service Center became a local landmark overnight. People drive from miles away just to buy a ticket at a "lucky" store.
What to Do If You Actually Win
Look, the odds are terrible. You’re more likely to be struck by lightning while being eaten by a shark. But people do win. If you ever find yourself holding a ticket worth a billion dollars, there’s a specific "Expert Playbook" most winners follow:
- Sign the ticket. Unless you live in a state where you have to remain anonymous, that slip of paper is "bearer instrument." If you lose it, whoever finds it can claim it.
- Go dark. Shut down your social media. Change your phone number. Delete your LinkedIn. People you haven't talked to since third grade will suddenly have a "business opportunity" for you.
- Assemble a team. You need a tax attorney, a reputable financial advisor (not your cousin who "knows stocks"), and an estate planner.
- The "Wait" Period. Most states give you months, if not a year, to claim the prize. You don't have to run to the lottery office the next morning. Let the hype die down a little.
The story of the $2.04 billion jackpot isn't just about a guy named Edwin Castro. It’s about the shift in how lotteries work. They are designed now to create these "megafires" of excitement. We will likely see another $2 billion jackpot again, maybe even $3 billion, as long as the rules stay the same and the public keeps dreaming.
If you're planning to play, just remember to keep it fun. It's a two-dollar dream. The moment it becomes a financial plan, you've already lost. But hey, somebody has to be the 1 in 292 million. It might as well be someone who knows what to do with a cold plunge and a vintage Porsche.
To keep track of where the money is currently, you can always check the official Powerball website for the latest estimates and draw results. If the jackpot starts climbing toward that $2 billion mark again, expect the lines at the gas station to start growing right along with it.