The viral claim has been repeated for 20+ years. We traced the source, analyzed 180 Powerball winners, and found the truth.
"70% of lottery winners go bankrupt within 5 years"
Only 4 of 162 winners with documented outcomes
Tracing a misquote that became "fact"
The statistic is attributed to the National Endowment for Financial Education (NEFE). But in January 2018, NEFE officially stated:
"The NEFE does not have any research to support the claim that 70% of lottery winners go bankrupt within a few years."
- NEFE Official Statement, 2018
180 documented winners, 32 years of data
Based on documented Powerball jackpot winners from 1992-2024, verified through public records, court documents, and news archives.
Comparing headlines to reality
| Claim | Media Says | Data Shows |
|---|---|---|
| Bankruptcy rate | "70% go broke" | 2% (4/162) |
| Typical story | "Misery & regret" | Most stay stable |
| Murder risk | "Blood money" | 2 cases in 30 years |
| Representative | Jack Whittaker | "Vanishers" - 0% broke |
Despite thousands of winners each year, media recycles the same 5-10 tragic stories from 20+ years ago:
If 70% really went broke, there would be thousands of recent examples - not the same 6 stories for 30 years.
Spending patterns predict outcomes, not lottery wins
Pre-existing vulnerabilities, not lottery curse
West Virginia, 2002
Already wealthy before winning. Alcoholism led to poor decisions. Granddaughter died of overdose, wife divorced him.
Kentucky, 2001
Already a convicted felon with drug history. Spent $12M in first year. Died penniless in hospice care.
Kentucky, 2000
Existing alcoholism. Went through money in just 3 years. Died at 45 from alcohol complications.
Pennsylvania, 2008
The outlier - no addiction, no criminal record. Failed business venture took 11 years (longest of any case).
What data actually shows about winner challenges
The biggest real risk isn't bankruptcy - it's identity fraud targeting.Learn more →
70% → 2%. The "lottery curse" isn't about the money. The 4 winners who did go broke had pre-existing vulnerabilities that the money amplified.
Winners who spend conservatively, hire advisors, and avoid addiction have a 0% bankruptcy rate.
Source: CazPoint Powerball Winners Study, 180 documented winners (1992-2024). Financial outcome data available for 162 winners (90% coverage).