With the jackpot, the payments are different. If you take the payout, it's less cash. If you take the payments, you get more cash. It's also a completely different argument as many lottery winners should probably NOT take the lump sum as they are likely to screw up early on and lose the vast majority of it. However, if they were to take yearly payments, they could still rely on a known income stream. If they were more sophisticated investors and weren't average joes, it would be certainly a different discussion.