The Powerball jackpot has jumped to an estimated $1.2 billion, the third largest jackpot in history according to the lottery.

The next drawing will be held on Wednesday night — here's what you need to know if you want to participate.

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How much is the Powerball jackpot worth?

As of Wednesday, the Powerball jackpot stands at an estimated $1.2 billion with a cash value of $551.7 million.

In November, the largest Powerball jackpot ever was won — $2.04 billion. The second largest was a $1.586 billion jackpot in January 2016.

When do drawings occur?

Powerball drawings are at 10:59 p.m. Eastern time every Monday, Wednesday, and Saturday.

Which states participate?

The Powerball lottery game is played in 45 states as well as Washington D.C., the U.S. Virgin Islands, and Puerto Rico. Alabama, Alaska, Hawaii, Nevada, and Utah do not participate in statewide or multi-state lottery programs.

How are winners paid out?

Winners can choose to receive their payment as an annuity or a lump sum.

The lump sum option is the path most winners take and is a one-time payment of the jackpot. The IRS takes a major cut of the earnings, requiring a mandatory 24% withholding for funds over $5,000. Winners must pay taxes on their prize, depending on which state they reside in.

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Winners who select the annuity option will have their winnings paid out over 30 payments over 29 years, with the disbursement increasing at a rate of 5% per year. Taxes need to be paid out throughout the distribution period, and rates can vary over the years.

How can I participate?

Those who are feeling lucky can buy a ticket to play the Powerball at participating convenience stores, gas stations, and grocery stores. Players pick five numbers between one and 69 for the white balls and select one number between one and 26 for the red Powerball. If all numbers match, the jackpot is won.