The multi-state Powerball lottery pays winners of tickets below $600 in cash at any Powerball retail outlet in the same state where the ticket was purchased if the outlet has enough cash on hand, according to the Multi-State Lottery Association. Winners of higher amounts are paid by check at state lottery headquarters.
Winners of jackpots have the option of claiming a lump sum prize about two weeks after the Powerball prize has been drawn; they can also claim the first of 30 annuity payments immediately. These prizes must be claimed at the state lottery headquarters. The prize is given in check form with a portion of state and federal taxes withheld just as they would be with a paycheck. For second and all subsequent annuity payments, prize checks can be picked up, mailed or direct-deposited according to the winner's preference.