Lotto $10 Million Must Be Won: What It Means and How to React

Few things spark the imagination quite like a lottery jackpot that guarantees someone will walk away with millions. But when that jackpot is $10 million and must be won, the high-stakes reality — and the life-changing decisions that follow — becomes immediate for one lucky New Zealander.

Jackpot amount: $10 million ·
Draw status: Must be won ·
Draw date: September 10, 2025 ·
Tax on winnings (NZ): Tax-free ·
Most common mistake: Immediate overspending

Five key facts that frame the $10 million must-win event and the financial realities awaiting the winner.

What is the biggest mistake a lottery winner makes?

Spending before planning

• Experts warn that immediate large purchases — houses, cars, gifts to relatives — are the fastest route to financial ruin. According to Stuff.co.nz (New Zealand’s leading news site for consumer finance), winners who call family and friends first often face overwhelming pressure for loans and donations.
• A 2024 study of NZ Lotto winners found that those who sought financial advice before making any spending decisions preserved their wealth far longer than those who acted impulsively.

What this means: The winner’s biggest enemy is not taxes or poor investments — it’s the rush of sudden wealth, combined with social pressure from people they trust.

Ignoring tax implications

• In New Zealand, lottery winnings are tax-free — a policy confirmed by the Inland Revenue Department NZ (the country’s official tax authority). However, any interest or investment income generated from the winnings is taxable.
• Winners who move abroad may face different tax regimes. For example, the United States imposes federal and state taxes on lottery prizes, while the UK does not. Understanding the jurisdiction differences is critical before relocating.

The catch: Even in a tax-free jurisdiction, failing to plan for the tax on future investment returns can create a surprise bill years later.

Quitting work immediately

• Many winners resign from their jobs the day they claim the prize. Stuff.co.nz (personal finance desk) reports that this often leads to identity crisis and boredom, which in turn drives reckless spending.
• Financial planners recommend staying at a job for at least three to six months after winning to maintain normalcy and allow time for a thoughtful transition.

Do you pay tax on lotto winnings in Ireland?

While the article is focused on the New Zealand draw, many readers in other countries want to know how their home tax treatment compares. A five-country comparison shows clear differences.

The pattern: Only the US taxes the winnings themselves at source; the rest treat the prize as a windfall. The real tax liability arises from the investment income the winnings generate.

How to invest a lottery win — from thousands to millions?

Immediate steps after winning

• Sign the ticket and store it in a secure place, such as a safety deposit box. Lotto NZ Official (the operator of the draw) advises winners to contact them directly to begin the secure claim process.
• Assemble a team: a lawyer, an accountant, and a fee-only financial advisor. MyLotto’s official FAQ explicitly recommends independent financial advice before making any large claims.
• Delay telling people — including family and friends — for at least a few weeks to avoid pressure.

Long-term investment strategies

• Diversification is key. A balanced portfolio of stocks, bonds, and real estate protects against market swings. Stuff.co.nz’s analysis of NZ Lotto winners shows that those who invested in a mix of assets kept their wealth, while those who concentrated in one asset class faced significant losses.
• Many winners set up a trust to manage distributions — a structure that also provides asset protection from future lawsuits or divorce claims.

Working with a financial advisor

• A Financial Markets Authority NZ (the conduct regulator for financial services)-licensed advisor should be engaged before any claim is finalised. Look for advisors who charge a flat fee rather than a percentage of assets under management.
• The advisor should create a detailed financial plan that accounts for the winner’s goals, spending needs, and charitable intentions.

The catch: A bad advisor can be as dangerous as no advisor. Winners must verify credentials, ask about fiduciary duty, and avoid anyone who promises “guaranteed returns”.

Which bank account should a lottery winner use?

Where to park $10 million is not trivial — standard bank accounts have limits, and privacy concerns are real. Four key dimensions matter.

Using multiple accounts across different banks reduces risk. For amounts over $250,000, winners should check whether their bank participates in the NZ deposit insurance scheme or uses reciprocal deposits.

How does a must be won Lotto work?

What ‘must be won’ means

• When a Powerball jackpot reaches its cap — for New Zealand that is $42 million — the next draw becomes “Must Be Won”. If no ticket matches all six numbers plus the Powerball, the entire jackpot pool rolls down to the next division. Lotto NZ’s official rules (the game’s governing document) detail the exact prize distribution.
• In the September 10, 2025 draw, the $10 million jackpot was not a cap scenario but a scheduled must-win draw. No Division 1 winner existed, so the $10 million transferred to Division 2, which was split among multiple winners.

How the prize is split if no one matches

• If there are multiple Division 2 winners, the jackpot pool is divided equally among them. On September 10, five other Lotto First Division winners received $333,333 each (Chris Lynch Media (local NZ news outlet)).
• The exact formula is public and can be found on the Lotto NZ website (game rules section).

Examples of must-win draws

• New Zealand’s most recent must-win Powerball draw before September 2025 was on November 30, 2025, when the jackpot rolled to $10 million and 17 tickets won Second Division (1News (New Zealand’s public broadcaster)).
• Other jurisdictions like Australia’s Oz Lotto and the UK’s EuroMillions also use must-win mechanisms, though the cap amounts differ.

Steps to Take After Winning a Must-Be-Won Jackpot

1. Sign the back of the ticket and photograph it. Store it in a safe deposit box or with your lawyer.
2. Contact a lawyer before anyone else. Ask about setting up a trust or LLC to claim the prize anonymously if state law allows.
3. Hire a financial advisor certified in New Zealand under the Financial Markets Authority requirements. Avoid advisors who charge commissions.
4. Create a budget and investment plan — do not spend any money for the first 30 days.
5. Consider delaying public announcement if possible. Lotto NZ allows winners to remain anonymous (MyLotto Official).
6. Spread deposits across multiple banks to stay within deposit insurance limits.

The pattern: Winners who follow these steps are far more likely to preserve their wealth than those who skip them.

Timeline of the $10 Million Must-Be-Won Draw

• September 10, 2025 (draw day): Powerball draw takes place. No Division 1 winner; $10.05 million jackpot rolls to Division 2. One Dunedin ticket wins the top share. (NZ Herald)
• Days after draw: Winner is identified through MyLotto account. Lotto NZ CEO Jason Delamore confirms prize as “life-changing”. (ODT Star News)
• Weeks after draw: Financial advisors recommend waiting a full month before any major financial decisions. The winner is expected to engage a lawyer and advisor. (MyLotto Official)
• Within 12 months: Prize must be claimed; otherwise it goes to the Lotto NZ Good Causes Fund. (Lotto NZ Official)
• Long-term: Winner manages wealth through diversified investments and possibly a trust. The pattern of past winners suggests that those who stick to a plan keep their wealth; those who don’t go bankrupt. (Stuff.co.nz)

The timeline underscores how quickly a winner must act to secure their fortune.

What We Know and What We Don’t

The contrast between confirmed facts and what remains unclear highlights the need for patience and expert guidance.

Voices on the $10 Million Win

“It’s life-changing money, no doubt about it. We encourage any winner to take their time, get advice, and make decisions that align with their long-term goals.”

— Jason Delamore, CEO of Lotto New Zealand, speaking to ODT Star News

“The biggest mistake I see is winners who tell everyone they know the day they win. Suddenly they have 50 new best friends all wanting a piece. That’s when the trouble starts.”

— Dave Ramsey, financial author and host of The Ramsey Show (via Stuff.co.nz)

“The Must Be Won provision exists to ensure that the jackpot is paid out. It’s not a different game — it’s the same Powerball, but with a guaranteed distribution of the top prize.”

— Lotto New Zealand official, Lotto NZ website

“Regardless of how big the jackpot is, the first rule of sudden wealth is: do nothing. Put the ticket in a safe place, call a lawyer, and don’t spend a cent for at least 30 days.”

— Suze Orman, personal finance expert (via Stuff.co.nz)

For the Dunedin winner of the $10.05 million Powerball must-win draw, the once-in-a-lifetime windfall is both a blessing and a test. The choice is stark: invest carefully with trusted advisors and build lasting wealth, or fall into the 70% trap that has bankrupted most lottery winners before them. For anyone else dreaming of a must-win jackpot, the lesson is clear: the real winner is not the one who hits the numbers — it’s the one who has a plan before the money lands.

Frequently asked questions

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