One of Powerball's biggest winning tickets yet was finally claimed just hours prior to it expiring. The $1 million ticket was redeemed in Indiana, as a couple from the small town of Kendalville found the ticket on Christmas Day after they searched for a few days.

In a heartwarming twist this holiday season, an Indiana couple narrowly avoided missing out on a $1 million Powerball prize. The winning ticket was redeemed just five hours before the deadline on the 26th of December, 2024, at the Hoosier Lottery Prize Payment Office in Indianapolis. The couple, who hail from Kendallville and chose to remain anonymous, found the ticket on Christmas Day after a frantic yet determined search.

Their win stemmed from the June 29 Powerball drawing, where their ticket matched the five white balls: 26, 51, 54, 61, and 69. Unfortunately, it missed the red Powerball number, 25, which would have secured them the $115.5 million jackpot. Nevertheless, their $1 million prize was a welcome holiday miracle.

A holiday discovery

The couple shared their journey to claiming the prize with lottery officials. After hearing repeated announcements about an unclaimed $1 million ticket in their area, they initially dismissed the idea that they might be the lucky winners. The couple saw news coverage and signs at the local gas station, they explained in a statement from the Hoosier Lottery. But since the gas station wasn't a place they visited often, they assumed they didn't buy a ticket for that drawing.

Despite their doubts, they decided to search their home and vehicle in the days leading up to Christmas. Their initial search proved fruitless, and they resigned themselves to the belief that they hadn't purchased the ticket. However, after hearing more reminders about the expiring ticket, they made one last attempt. Rising early on Christmas morning, they scoured their vehicle and finally found the winning ticket lodged between the seats.

A race against time

Under Indiana law, lottery prizes must be claimed within 180 days of the drawing, significantly shorter than the one-year window provided in some states. With the clock ticking, the Hoosier Lottery launched a public awareness campaign to alert players of the unclaimed prize. The campaign included news coverage and signage at local retailers, which ultimately prompted the couple's successful search.

Had the couple failed to claim their prize, the $1 million would have been returned to the Hoosier Lottery's prize fund or used for programs supported by the lottery. Thankfully, their persistence paid off, turning what could have been a costly oversight into a joyous holiday celebration.

The couple's $1 million prize will be reduced by federal and state taxes. At the federal level, the IRS withholds 37% of lottery winnings, amounting to $370,000 in this case. Additionally, Indiana imposes a 3.05% tax on lottery income, deducting another $30,500. This leaves the couple with a substantial, albeit smaller, windfall of $599,500.

The problem of unclaimed prizes

While this story ended happily, many lottery prizes go unclaimed each year. Estimates suggest that unredeemed tickets across the US total approximately $3 billion annually, with most being small-value tickets. However, large jackpots occasionally slip through the cracks as well.

For instance, in 2011, a $77 million Powerball jackpot went unclaimed in Georgia, and a $50 million prize expired in Florida two years later. More recently, a $68 million Mega Millions ticket in New York went unredeemed in 2022, followed by a $46 million Mega Millions prize in Brooklyn the next year.

When major prizes go unclaimed, the funds are typically returned to the contributing state lotteries. These funds are often reinvested into prize pools or allocated to state programs.

Digital solutions to lost tickets

The rise of online lottery sales offers a potential solution to the issue of unclaimed prizes. Digital tickets are automatically recorded and linked to the buyer, ensuring that winnings are credited to the correct account. Online lottery courier services also help players secure their tickets and avoid misplacing them.

For the Kendallville couple, their lucky Christmas Day discovery will undoubtedly remain a cherished memory. Their perseverance serves as a reminder to lottery players everywhere: always check your tickets.