Winning the lottery has a bigger effect on the economy then you might think. According to research from the University of Texas McCombs School of Business, when Powerball and Mega Millions winners deposit their funds, the lucky bank recipients see an increase in deposits and lending.
Continue Reading Below
Lottery winners’ deposits lead to just over a four percent increase in bank deposits and almost a 4.3 percent change in small business lending. However, the research found that depositing lottery sized funds does not increase the probability of lending. Instead, it increases the amount of lending to small businesses and therefore, the growth in lending is to current borrowers, not new clients.
With today’s Powerball ringing in at $1.5 billion, the highest ever, it’s likely that these funds could spur a hefty amount of loans.