Okla. lawmaker aims to stop lottery winners from staying anonymous

Oct 6, 2006, 12:03 pm (33 comments)

Oklahoma Lottery

An Oklahoma state senator from Edmond plans to introduce legislation to prohibit people from forming anonymous trusts after learning they have won a lottery prize.

Sen. Clark Jolley, R-Edmond, said this proposed legislation stems from instances including one this week where a trust claimed a lottery prize.

"We were told the lottery would be open, it would be transparent — full accountability. We would know the name and towns of everyone who had won," Jolley said. "I think winners being anonymous trusts instead of real people causes problems with both accountability and trust of the lottery."

Deadbeat dads who owe thousands of dollars in child support could avoid paying it if they won the lottery and created a trust, Jolley said.

People also could avoid paying taxes on the prize, Jolley said.

However, the state Lottery Commission collects federal and state taxes on any lottery prize over $5,000, said Beverly Hughes, the commission's director of sales and marketing.

A trust claimed a $400,000 Powerball prize Wednesday but didn't have all the paperwork to collect the prize money.

The needed paperwork was a copy of the original trust agreement, Hughes said.

The trust is going to send that information to the Lottery Commission, she said.

A trust that wins a lottery prize must provide the Lottery Commission with a claim form, a tax identification number and a copy of the original trust agreement, Hughes said.

The lottery commission collects 25 percent in federal taxes and 4 percent in state taxes from every prize over $5,000, Hughes said.

Hughes said she thinks people form a trust to protect their privacy after winning a lottery prize.

She declined to comment on Jolley's proposal.

Jolley said his legislation would allow a trust to collect lottery winnings if it can show that it bought the lottery ticket.

This can be done by having a copy of the check or debit card that was used to purchase lottery tickets, he said.

His proposed legislation will be introduced for consideration in the legislative session that begins next year.

Oklahoman

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wreakshavok777's avatarwreakshavok777

I think its a good thing ...you should have your name and town posted up online. It gives other people the hope that one day it will be them getting all the phone calls from long lost relatives... friends and whoever else that might feel the urge to call you ask for that small personal loan. Its the rockstar status we all want, show me the winning ticket and i'll deal with everything else that comes with it later.   thanks

                                                                  RSU  trust company

                                                                          LOL

Skylaquisha

I think that all states should allow lottery winners their anonymity.  I would have major reservations about having my name and winnings posted somewhere for everyone to see.   Buuuutttt....If that's what is required to receive the money, I guess I would have to accept having my name out there....right before moving out of town....

wpb's avatarwpb

This can be done by having a copy of the check or debit card that was used to purchase lottery tickets, he said.

 

Are there any states that allow you to buy lottery tickets with a check?

GASMETERGUY

Quote: Originally posted by Skylaquisha on Oct 6, 2006

I think that all states should allow lottery winners their anonymity.  I would have major reservations about having my name and winnings posted somewhere for everyone to see.   Buuuutttt....If that's what is required to receive the money, I guess I would have to accept having my name out there....right before moving out of town....

I totally disagree.  I think winners should be named, photos taken, home phone numbers published, addresses given out, and maps to their home distributed along the highway as well as that 10 foot tall bull's eye they tack on your house after you won the lottory.  Just the bull's eye alone is not getting the job done.  People are still claiming jackpots.

Skylaquisha

Quote: Originally posted by GASMETERGUY on Oct 6, 2006

I totally disagree.  I think winners should be named, photos taken, home phone numbers published, addresses given out, and maps to their home distributed along the highway as well as that 10 foot tall bull's eye they tack on your house after you won the lottory.  Just the bull's eye alone is not getting the job done.  People are still claiming jackpots.

Hahaha.....NO! That's too much.

dvdiva's avatardvdiva

I personally can't wait for the issue to be resolved once and for all. Eventually a winner will warn the lottery not to release his/her name for security reasons, the lottery will refuse and the winner dies or is seriously injured. The lawsuit resulting from such an act will cause the estate of the winner to have more to give out and give a wake up call to lotteries exposing winners to potential crime.

Winners should always have the final say in how monies should be distributed not the state. 

Coin Toss's avatarCoin Toss

Quote: Originally posted by wpb on Oct 6, 2006

This can be done by having a copy of the check or debit card that was used to purchase lottery tickets, he said.

 

Are there any states that allow you to buy lottery tickets with a check?


wpb

Exactly. This is just another example of what can happen when someone who is absolutely clueless gets involved in something they have no business being involved in.  

Surge's avatarSurge

I think anyone and everyone has to right to remain anonymous if they win the jackpot.  Not everyone wants that "rockstar status" that wreakshavock mentioned.  I'd want to walk around with a big bankroll and have people in awe and "wonder" what the heck I do for a living, and how I got my money.  I don't want a soul knowing how much I have in my bank account.  It's no one's business!!!

Perhaps the government and the state should do a "background check" when they're taking out taxes to make sure someone doesn't owe backtaxes or child support.  I don't agree with the person's name, address, photo and any relavant information given out to the public.  Just because the person has money now doesn't mean the world needs to know.

mr twentyone

MORNING PEOPLE :  i agree with surge , there must be  a way that  you can remain anonymous to the public safety, while i  understand that some people might owe thousands in child support, i feel that  the lottery commission should know who they are paying this money to, they should be able to do a proper background check on people,  i feel if you make a winners name public you are also makeing a way for them to be victums to crimes , just remember mr senator , it could be you or your family who win some money , do you want to be a target  ?  IT  COULD  HAPPEN  TO  YOU ."PokeChairSmashBash

nc6string

"Deadbeat dads who owe thousands of dollars in child support could avoid paying it if they won the lottery and created a trust, Jolley said."

Lottery winners might be illegal drug users, cheats and sneaks too, I say slap on a rubber glove and do a strip search.  In addition to the bullseye on the house and the billboards on the interstate with detailed directions to the winners house.   Yes, the public would feel so much better about the lottery then Mr. Jolley.  Good to see you're not wasting time and taxpayer money in the Okla. legislature.  If that's the biggest problem in Oklahoma now, the anonymity of the many millions of lottery winners, then I just may have to consider moving there.

KY Floyd's avatarKY Floyd

Quote: Originally posted by wpb on Oct 6, 2006

This can be done by having a copy of the check or debit card that was used to purchase lottery tickets, he said.

 

Are there any states that allow you to buy lottery tickets with a check?


I'm guessing that the statement is the result of a stupid politician meaning that it would be okay for a trust to claim a prize if the trust was formed before the ticket was purchased. The article suggests that his issue is with people forming a trust specifically to claim a prize they have already won.  Since trusts and corporations are already legal entities they have the right to buy and own lottery tickets, as well as other property. Of course that begs the question of what his legislation would require as proof that individuals had bought and legally own the tickets they were submitting to claim prizes. As a side note, I'm sure the lottery agents will be thrilled that their records not only have to note that the check or debit card was used to buy a lottery ticket, but will also have to note *which* lottery ticket was bought.

As far as keeping the lottery honest and collecting child support from deadbeat parents, there's no reason the rules couldn't require a check of the individuals who hold the ticket while still keeping their names and other personal information private. I believe some states already do this, as I'm pretty sure I recall stories about winners who apparently didn't form a trust but still remained anonymous. Perhaps Jolley should submit a bill that makes it illegal, and sets the penalties, for any lottery employee to disclose information that is supposed to be confidential.

hsg2000

We should have right to remain annonyimpus because of being harassed by lots of deadbeats and stalkers.  The child support stuff is bull

tmcdill

The law that allows trusts to be created is federal, not state. Another attempt by a hick state legislator to get some ink with a crazy press release.

 

The only law change that would help lotteries is to exempt lottery winners from state ,and especially, federal taxes. The amount of new people playing the lottery would greatly offset the slight amount of revenue lost. 

rdc137

Quote: Originally posted by tmcdill on Oct 9, 2006

The law that allows trusts to be created is federal, not state. Another attempt by a hick state legislator to get some ink with a crazy press release.

 

The only law change that would help lotteries is to exempt lottery winners from state ,and especially, federal taxes. The amount of new people playing the lottery would greatly offset the slight amount of revenue lost. 

The Delaware Lottery, while allowing anonymous winners, will keep after tax winnings if you have a state judgement against you for back taxes or child support.

If that law passes I say boycott Oklahoma's lottery. That will be easy for me because I don't live anywhere near it. Proposals like this make me want to Puke.

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