Illinois gives lottery winners IOUs

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Last month, two winners, who won $50,000 and $250,000 prizes in July but had yet to be paid, launched a class-action suit against the Illinois Lottery.

The lawsuit estimated the lottery had failed to pay out more than $288 million in prizes since the last state budget expired on June 30.
Illinois gives lottery winners IOUs


Joe Mobley
  • Profile picture of the author Kay King
    I think they should be forced to suspend the lottery - winnings should be paid out of proceeds before the proceeds are spent.

    If the lottery payouts are at the whim of state budgets - it will become a common problem that occurs every time a state runs in financial difficulty.
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  • Profile picture of the author sbucciarel
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    I agree with Kay. Shut be shut down if they are funding something else rather than the owed payouts. That would probably take care of the problem pretty quickly. I'll bet they'd manage somehow to get those winners paid. Or just die.
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    • Profile picture of the author Kay King
      The Illinois state lottery announced Wednesday it's no longer a lottery; it's more of a voluntary collection agency. That's because the lottery, due to gridlock in passing a new state budget, no longer has the money to pay people who win. Selling lottery tickets? Not a problem. Paying out winning tickets? Problem.



      The issue of non-payment has been escalating for the state, which limited payouts to $25,000 earlier this year and this week slashed the maximum winnings to $600, offering winners an IOU on the balance. "Without a budget, we can't, by law, make any payments on an appropriated fund without a court order or consent decree or statutory continuing appropriation," according to the state comptroller's office. The court order might just be coming, as a federal class action lawsuit filed against the state by a group of winners alleges they are waiting on a whopping $288 million in winnings.
      I always find it interesting when something like this happens...they can't make any "payments out" but they have no problem with money being paid in....

      I think the lottery should be shut down until winners are paid - but that won't happen.
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      • Profile picture of the author ThomM
        Originally Posted by Kay King View Post

        I always find it interesting when something like this happens...they can't make any "payments out" but they have no problem with money being paid in....

        I think the lottery should be shut down until winners are paid - but that won't happen.
        I think they need to talk to some old time "bad guys". Running numbers was always a profitable endeavor for small time gangsters and bartenders (among others). The take was almost always more then the payout and when it wasn't the money was there in the "bank".
        If I remember right that's where the idea for state lotteries and numbers games came from.
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  • Profile picture of the author Kurt
    I don't think it's best that if a state is having trouble paying bills to remove a revenue stream. Instead, they should simply tell people upfront that big winners may not be paid immediately and let the lotto players decide for themselves if they still want to play.
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  • Profile picture of the author whateverpedia
    As ThomM said, if it had been run properly, there would've been enough money to pay out the winners and fund whatever else it was supposed to fund.
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    • Profile picture of the author lanfear63
      If the funds to pay out people are not available from the takings from the game then that means the State concerned is plundering them. It's called theft.

      Allocation's should be:

      Paying the prize money to the winners.

      Paying the lottery administration company their fees.

      Paying out to the chosen charities bodies that were chosen to receive funds.

      The state of course earns it's revenue from the taxes it takes from the players and of course the lottery administration company used.

      It's black and white, no deviation or it's theft. It's just a daily/weekly pot to divide up.

      Telling people that it's more than just an odd's thing and they may not get there bigger wins straight away and they play at there own risk of this happening is complete nonsense.

      I am well aware of course that over here, States offer people weekly/monthly payments on big wins for the incentive of overall less taxation and and that allows the State to earn interest in a bank. Nothing wrong with that. Both benefit in the long run.

      However, it's still a pot or revenue to be divided up and nothing should be syphoned off for any reason. Theft, corruption, prosecution for misappropriation of funds is all I see here.

      In the UK and Europe the Lotto is tax free. What you win is what you get. No silly need for offering payments etc.

      Whats the deal in Australia I wonder?
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      • Profile picture of the author rondo
        Originally Posted by lanfear63 View Post


        Whats the deal in Australia I wonder?
        Winnings are tax-free here too.

        My state actually sold their state lottery company a few years ago to raise funds.
        I didn't support that move, but if Illinois really can't pay up then maybe they should sell their lottery too.

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      • Profile picture of the author joseph7384
        Originally Posted by lanfear63 View Post

        If the funds to pay out people are not available from the takings from the game then that means the State concerned is plundering them. It's called theft.

        That's exactly what's going on, out right theft. If people stopped playing you'll see how fast the issue gets resolved when the state loses all the tax revenue from the winnings.
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        • Profile picture of the author Kay King
          The people won't stop "playing" becuase they will believe others have stopped - and think their odds have increased - and assume they will be paid in full at some point.

          With every month that goes by (this began last June) the state owes more money to winners. What if more months go by and the money isn't there to pay off the debts? Could the lottery put the state into default?

          The Feds are so willing to jump into state business for some circumstances - seems this would be a good place for some "oversight".

          Basically - if you can only pay out is $600 ....then $600 should be the MOST you can win in that lottery. Otherwise, it's a scam/false advertising/etc....

          I agree with the State Rep's quote at the end of this article:

          http://www.zerohedge.com/news/2015-1...ayout-just-600
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    • Profile picture of the author ThomM
      Originally Posted by whateverpedia View Post

      As ThomM said, if it had been run properly, there would've been enough money to pay out the winners and fund whatever else it was supposed to fund.
      Yep here in New York the state learned from the pros

      Heck we even came out with an app for your smart phone to make playing the numbers even easier. Playing the lottery? There’s an app for that
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