$1.08 Billion Powerball Jackpot: Mark Cuban Shares How Winners Should Spend The Money

Mark Cuban, a self-made billionaire and star of ABC's "Shark Tank," has advised winners of lottery jackpots against investing the money.

An unnamed player in California on Wednesday night won the $1.08 billion Powerball jackpot, the third-highest in history, after it went three months without a winner. The ticket, which was purchased in the Las Palmitas Mini Market in downtown Los Angeles, had the winning numbers 7, 13, 10, 24, 11 and the Powerball was 24, per the California State Lottery.

The winner would have the option to either take a lump sum of $558.1 million upfront or receive $1.08 billion through an annuity over 30 years that increase by 5% annually.

Many winners choose the lump sum payout, but Cuban advised against getting the cash upfront. In a 2018 interview, he argued that it is not worth the risk of choosing to take the lump sum to reinvest it on things that may not pay off.

"Don't take the lump sum. You don't want to blow it all in one spot," Cuban told the Dallas Morning News. "You don't become a smart investor when you win the lottery. Don't make investments. You can put it in the bank and live comfortably. Forever. You will sleep a lot better knowing you won't lose money."

In addition, Cuban suggested hiring a tax attorney and an accountant before claiming the money. Doing so, he said, could help the winner figure out a plan to ensure they are making the most of the money they won.

The self-made millionaire also advised against giving friends and relatives some of the winnings, arguing that "anyone who asks is not your friend."

"Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs 1m dollars for anything. No one needs 100k for anything," he continued.

Powerball jackpot winners in California have one year to claim their winnings. They are also given 60 days after they claim their prize to choose how they want the money to be paid out.