Do Wheel of Fortune winners get to keep their money?
The quick answer: Yes! Wheel of Fortune contestants do get to take home any cash or prizes they earn through solving word puzzles on the show. However, winners do need to pay income tax on their total winnings.
As an avid game show fan and content creator focused on gaming entertainment, I decided to take a deep dive on the question of Wheel prizes. Read on for a comprehensive guide to everything from record winnings to selecting contestants and behind-the-scenes secrets.
Tax rates put a dent in winners‘ hauls
The most crucial factor around Wheel contestants‘ take-home money is taxes. All winnings count as taxable income, taxed at the winner‘s normal federal income and applicable state tax rates. With a top federal rate of 37% plus state taxes, a good chunk goes to Uncle Sam.
For example, Michelle Loewenstein won a record $1,026,080 total in 2008. Assuming a combined 50% total tax rate, she likely took home around $500,000. Still life-changing money, but not the full seven-figure prize total.
Here‘s a table showing take-home amounts on some recent big Wheel of Fortune wins:
| Contestant | Total Winnings | Estimated Take-Home |
|---|---|---|
| Michelle Loewenstein | $1,026,080 | $500,000 |
| Autumn Erhard | $780,000 | $390,000 |
| Sarah Manchester | $377,260 | $190,000 |
Based on my expertise analyzing game shows and prizes, I expect future big Wheel winners will continue taking home 40-50% of their total stated winnings after accounting for federal and state taxes.
Where does the prize money come from?
As a quick aside, readers may wonder where the prize money comes from for the show to give out in the first place. Wheel of Fortune, like most game shows, makes its money from advertising and corporate sponsorships. They likely allot a portion of those revenues to the prize budget awarded to contestants.
All-time record holders highlight huge payout potential
Now back to those record winnings. While taxes claim nearly half the stated amounts, Wheel still represents life-changing sums for those at the very top of the game.
As mentioned above, in 2008 Michelle Loewenstein became the first contestant to surpass $1 million in cumulative winnings. She nailed the final puzzle "leaky faucet" to top the magic million-dollar mark and take home over half a million after taxes.
Here‘s the full leaderboard of the show‘s biggest winners according to public data:
| Contestant | Total Winnings | Year |
|---|---|---|
| Michelle Loewenstein | $1,026,080 | 2008 |
| Autumn Erhard | $780,000 | 2013 |
| Sarah Manchester | $377,260 | 2019 |
| Ben Worth | $361,763 | 2012 |
| Brandon Saunders | $352,586 | 2021 |
With Autumn Erhard getting close in 2013, I anticipate we could see a new lifetime record holder in the next 5-10 years topping $1.5 million or more.
I‘ll also highlight Sarah Manchester who won an astonishing four episodes in 2019 taking home nearly $400,000. That kind of repeat staying power could point the way to future strategy for contestants.
What types of prizes can you win?
Thus far we focused only on cumulative cash winnings. But Wheel contestants also compete for luxurious trips, cars, and more at their solving puzzles. Approximately 45% of the show‘s budget goes towards these tangible prizes rather than straight cash.
Popular prizes include:
- Trips to destinations like Paris, Hawaii, ski resorts
- New cars from sponsors like Ford, Toyota, Kia
- Jewelry like diamond earrings, gold necklaces
- Home entertainment systems with TVs, soundbars
- Shopping sprees with clothing retailers
However, remember that winners pay income tax based on the full retail value of all non-cash prizes. That can seriously eat into the real amount they take home especially on big-ticket items like cars and international trips.
Which leads me to…
You may not want to take the car!
Winning a brand new luxury vehicle seems like a highlight for any contestant. But after accounting for taxes, you might be better off not taking the car at all.
Here‘s a comparison:
- You win a $50,000 BMW sedan
- Federal + state income tax could total 50%
- That‘s $25,000 owed in taxes!
- Plus you pay sales tax when registering, about 7% = $3,500
- Your out-of-pocket cost to claim the car: $28,500
Because of scenarios like that, approximately 1 in 3 Wheel contestants who win cars elect NOT to take the prize once learning the tax amount they‘ll owe. Something to consider if you spin the bonus wheel hoping it lands on that new Audi!
How do they pick contestants?
I get a lot of questions around eligibility and selection for Wheel of Fortune contestants. So let‘s explore that process.
Getting on the show starts with an online audition application where hopefuls share background, interests, and personality info. The studio receives over 30,000 applications every year!
From there, a few hundred are selected for in-person auditions held in 40 cities. The team looks for applicants with on-stage charisma, interesting personal stories, and energy/enthusiasm to create entertaining televised episodes.
Finally, 400-600 people are chosen as contestants. Interestingly, unlike shows like Jeopardy! there is no test of knowledge or skills. It‘s purely based on personality and how you‘ll present on camera.
Gameplay strategy tips
For those hoping to apply and make it on Wheel, I‘ll share a few high-level gameplay strategies to deploy:
- Pick letter R, S, T, L, N, E early – highest frequency
- Ask to buy popular vowels A, E, I, O, U
- Solve puzzles strategically to maximize earnings from your spins
- Hit the $5K space late in rounds for a nice boost
And some signs you may NOT be the ideal contestant:
- Struggle with pronunciation or enunciation
- Slow reaction time/processing
- Shy, low-energy personality
- Anxiety or nervousness under bright lights
I could write 10,000 words on nuanced Wheel strategy. But at a high-level: study most common letters/phrases, memorize the gameboard, and practice your solving speed.
What about Pat and Vanna‘s fortunes?
No article on Wheel would be complete without at least touching on beloved hosts Pat Sajak and Vanna White. While contestants take hope the big prize money, the hosts earn mega-salaries you likely can‘t even imagine.
Pat Sajak‘s current contract pays him over $15 million PER YEAR. Yes, you read that correctly. Vanna White also signed a new deal giving her $10 million annually through 2022.
For perspective, dividing Pat‘s salary by the typical 40-43 annual taping days comes out to over $300,000 per episode. It pays to be the face of America‘s Game!
Bottom line
While Uncle Sam takes a healthy cut, Wheel of Fortune contestants do indeed get to keep their cash and prize winnings. With the show‘s massive popularity, potential contestants should absolutely take their shot at applying for life-changing sums.
As a gaming commentator and content producer, I‘ll be keeping a close eye on future record-setting contestants and the next winner to potentially surpass $1.5 million in cumulative earnings. What an exciting possibility!
Hope you enjoyed this deep-dive analysis into Wheel of Fortune prizes and contestants. Please subscribe for more insights from the world of game shows and interactive entertainment in the future.
