Texas lawmakers are considering a bill that would allow big lottery winners to keep their identity a secret, but they would have to pay for that privilege.
Right now, Texas Lottery winners are not allowed to remain anonymous. In some cases, individuals have established a trust or turned their winning ticket over to a trust to claim the prize for them. But, Texas law requires that someone come forward to participate in a news conference and collect the money.
House Bill 1504 would change that and allow winners of more than $1 million to keep their privacy, if they are willing to part with some of their prize money. The proposed bill would allow winners to remain anonymous if they fork over 5% of their winnings.
The bill is titled, Relating to a lottery prize winner's choice to remain anonymous on authorization to withhold five percent of winnings, and was introduced Tuesday by Rep. Terry Canales (D).
The 5% would go to the state lottery account, which is used to payout prizes, for operation and administration of the lottery, and foundation school fund.
Another way for the government to make money..lol Key word "Bill"
5%? Hmmm.... If all states offer this option it would certainly be an improvement on the notion of making the game even harder to win as a means of earning more revenue.
Unbelievable, and they call themselves Americans. I think they should replace the majority of these lawmakers.
Just another fast Money scheme...
I think it's a great idea. If you want to be anonymous then just shell out some money, it really should be public information who has won though. Let's just keep it all transparent. Your biggest threats will come from people you already know anyways. We as lottery players have the right to know who we have lost money to and that the person who has won is a real person
South Carolina doesn't divulge the identities of lottery winners to the public if they don't want it to be known.
When you think about it there's some people out there that would consider the 5% a bargain if they owe money, child support, get divorced months after the winning numbers and then go collect on the down low. This opens up a whole world of problems.
Come on Texas this is crazy we are trying to get away from the Government taking our money and Texas offers something like this (SMH)
Totally agree Maddog. This sounds like extortion.
Definately need the option to claim anonymously but this is a crock.
Sounds like extortion to me.
It should not cost 5% in the first place.
The right to privacy should not be something Americans be forced to pay for;
but it may be worth the price to keep your name out of the media,when dealing with huge jackpot winnings.
Don't believe this will protect anyone who owes child support, alimony, back taxes, or judgements. Just think it keeps the winners information from the media.
I agree those debts will be taken from your funds before you ever receive your winnings.
What a crock of bull pucky. Allowing someone to be private with regard to lottery winnings should not have to cost them money. 5% seems like small amount but it's not really for every $1M they take $50K just to keep someone's name out of media i say no way.
Ridiculous !
They should have to pay you to use YOUR name and image, that is if you agree to the use.
Now playing the big $ games only when I go to Delaware.
No. This would NOT be the case. This is about Government making more money. This "bill" most certainly will include provisions to garnish any winnings based on things like "child support", back taxes, public debts, etc... THIS WILL NOT BE AN OUT FOR THAT
This bill will only allow the winner to remain anonymous to the General Public for purposes of reporting who wins.
It's Just a bill to garner more revenue and nothing else.
5% is quite a bit to fork over to maintain your privacy.
The lottery argues that publishing the winners names is all done to maintain the "integrity" of the games it sells.
This 5% payment option to maintain your anonymity if you win more than $1 Million dollars just goes to show you that the Lottery agencies are more concerned with more revenue than they are about publishing the winners names.
Pretty much speaks for itself
This bill is nonsense! Just another example of legalized extortion. Someone should slap the idiot who came up with this idea....not just one slap, but two!
This is a society of people who already give up their privacy with Facebook twit er and celebrity worship. Just show up claim sign keep your trap shut then leave.
It's deranged how several of these worldwide law makers think of their role in "representing" humanity!!!
lucky 4 me I have none of those problems .......
but I plan to have a currently trust worthy friend set up the dozen phoney accounts
I believe there is a special place for politicans and lawyers (generally, one in the same) to rot in hell.
The only reason they are still on earth is because of the overcrowding.
Okayyyyy. I think I have finally heard everything.
Considering Texas has no state tax on lottery prizes, 5% to go anonymous is fine.
I know it sounds like legalized extortion but Texas does not have a state income tax. In NC, they withhold 6% for state income taxes initially but then hit you with the balance of an additional 1.75% when you file your taxes.
If I bought a winning jackpot ticket in TX, I would bypass the anonymity tax and just hire my own security for a year. After a year, even the most hardcore moochers/criminals will have long given up.
Looks like a form of extortion, but I would probably used the offer to keep the anonymity.
Anonymity is standard for lottery winners in Norway.
"The bill is titled, Relating to a lottery prize winner's choice to remain anonymous on authorization to withhold five percent of winnings, and was introduced Tuesday by Rep. Terry Canales (D)."
Well there is the problem. Rep Terry Canales (D) <--- the problem
They got this one backwards.
Because the state wants to remain transparent the state should have to assign a security team to big winners and at taxpayer expense.
The team should have to stay on and protect the winner for the duration of what the annuity payout period is regardless of whether the winner takes the annuity or cash.
Problem solved and the state gets their transparency.
So if I won the next jackpot, they'd want $3m to keep my name private? I think I'd prefer to just hire an attorney for a fraction of that and claim via a trust or LLC. My name would still be discoverable via an open records request, but at least I would still be fairly anonymous and would have those extra millions.
I don't like it, but I really don't think this is that terrible, simply because the winnings currently aren't taxed on the state level and it's on par with those states that do have that (and it is optional).
Also, Todd, I think this statement is wrong:
But, Texas law requires that someone come forward to participate in a news conference and collect the money.
I'm pretty certain winners can opt for "minimal publicity", which means they don't have to participate in a news conference.
Doesn,t matter one way or the other huge jackpot,that gets national attention,I want to be anonymous,5% or trust.
Absolutely ridiculous...
I didn't know Texas didn't collect state taxes on lottery winning...
Propose a bill to collect state taxes on the lottery then... don't disguise it as a "privacy" tax.
"Propose a bill to collect state taxes on the lottery then... don't disguise it as a "privacy" tax."
If they did that they would probably tax all winners, even the ones with the lower prizes.
What am I missing here? Wouldn't you want, be willing and grateful you were given the ability to pay bills, child support etc?
Taxes, now THAT is another story.
A decent person would want to do that. But there are plenty of people that try their best to shirk their responsibilities.
My home state doesn't allow anonymous claims but if they did, I don't believe that they would ever do something like this.
And for those defending Texas because they have no state income tax, who's to say they won't introduce one and/or specifically impose it on lottery winnings?
Remaining anonymous will mean the lottery won't give the winner's name to the media, but the store selling the ticket will get a bonus and making it possible to still find out the identity.
Jack Whittacker got sued by folks he knew from business, personal, and folks he didn't know for several years. However, I don't believe in paying this additionally proposed, astonishingly high pre-taxed "Mob Tax."
This wouldn't stop someone from having to pay back money on child support, back taxes, school loans and other things. Those get taken out before you receive your money. I believe most states check to see what you owe first. Being allowed to be anonymous won't stop that from happening.
And.......
I just read that a state rep from McKinney introduced a bill that would make it illegal to sell lottery tickets after Sept 1, 2015.
Politicians don't know if they're coming or going.
50 grand per million bucks? I believe I can handle my own security for that amount, thanks all the same. Mr. Smith and Mr. Wesson will be my constant companions.
These off-the-wall bills come up more often than you'd think. The Texas Legislature meets only once every couple of years and for a max period of 140 days, although the governor CAN call them back in for a special session for a max of 30 days. I like it that way; the less time they spend meeting, the less damage they can do.
In between sessions, some of these people have their minds warped by excessive druggin', drinkin' and whorin'. (they're gettin' in shape for a Congressional run) I'm not exactly sure what the women reps/senators do in their free time between sessions but some of them come up w/ nutty bills, too, along with voicing idiotic thoughts. -cough- Sheila Jackson Lee - cough-
To be fair, the "D" after his name doesn't mean he has the franchise on stupid; there are plenty of folks with "R" after their names that fit right in with him.
It is not a good deal. With family, friends and social media, people will find out and the media will find you. Then you'll have more publicity and 5% less money to hide in seclusion.
I wonder if they give you the 5% back if you are outed.
Correction: my "cough" insinuation up there is about a U.S. Congress rep. from Texas. She was just the first one I thought of when I was searching my brain for "idiotic thoughts" from politicians.
There are plenty to choose from.
Since there a few states right now that allow winners to be anonymous for 'free' this bill would set a very bad precedent....... other states would copy it, perhaps even the current anonymous starts.
Also the concept of paying for a ticket, winning a jackpot, and being charged 5% of the jackpot to remain anonymous is nothing but a shakedown. Any guess whether that 5% would be pre-tax or not?
From the OP:
The 5% would go to the state lottery account, which is used to payout prizes, for operation and administration of the lottery, and foundation school fund.
Hey Texas, that's what the losing tickets do. Sounds to me like the Texas lottery official/s and the author of the bill are looking for some $$$$ on the side.
Every large lottery winner who sits in front of a camera to answer questions should address the scam that Texas is trying to do by belittling it on a National level. Could you imagine the amount of fear mongering Ads Texas would put out trying to scare people into paying this.
Very stupid bill, and a complete waste of time. It'll be challenged (if it passes), and will be shot down. It's really simple; either the state offers anonymity or it doesn't; paying for it should not be an option, as it's nothing more than state sponsored extortion.
You should not have to pay for what should be a right.
Anonymity for those who win big should be a right, having to pay to have it is extortion, it would be like paying the mafia for protection.
Umm, this seems slightly corrupt and borderline illegal.
I would counter that with this is the exact sort of thing that requires transparency in all facets of an entity that is in charge of any lottery in any state...which is in turn overseen by the state govt. You can trust them if you want...not me.
I'm not worried about Ohio or Oklahoma's policy on anonymity, only the one in Texas. Unless you live here, you shouldn't either, it's "nunya".
I've said this before several times in other threads, but history shows you have much more to fear from friends and family members after winning than you do strangers, plus the real thieves have always been dressed in a suit and tie who promise you they'll "take good care of your money", not the ones in a hoodie and pullover mask and a gun pointed at you.
That's terrible. I hope it doesn't happen.
I think we've got a favorite to win the award for biggest dick move of the year.
It comes down to greed. I was able to be anonymous for up to 1 year after a large prize back in 2014 for free
Wrong on all levels.... Greedy asses... Where does the money go?
Texas lottery says; if you want to remain safe and protect your privacy pay us money. Sounds like blackmail to me.
The 5% would go to the state lottery account, which is used to payout prizes, for operation and administration of the lottery, and foundation school fund
Willing to wager that the bulk of the 5% collected would go towards lining the pockets of these "administrators".
This bill would also set a bad precedent for every other state and more so for those who don't charge a state tax or are already offering anonymity.
I agree with everyone who opposes this proposed bill. The U.S. Supreme Court has ruled that American citizens have a constitutional right to privacy in most areas of their lives, and I believe this is one of the areas where the right to privacy exists, and people shouldn't have to pay for a constitutional right.
If this dubious bill passes, hopefully it will be with a reduced fee of 1% of the winnings, with the 1% figure made permanent and not allowed to increase ever.
We as lottery players have the right to know that it was a real person who has won. Is the lottery a government office or a private funded office? If it is a public office then names and faces should be released to the general public. Hey if you want privacy do not play the lottery for fear that one day you will win and be hounded. You can stay in your current financial state and still be happy...right??
No, you don't have any such "right" under the law.
South Carolina and some other states already have laws allowing winners to remain anonymous, and these laws have been upheld by the courts.
If you don't like the anonymity laws and the court decisions upholding them, you're certainly free not to play the lottery.
To me this is another invasion of our privacy. I dont care if they charge 1%, it is just wrong period. Obviously they have been thinking 1) how to "exhort" more money for the lottery (and for the administrators) or 2) they honestly think winners of big wins are at risk? All those associated with the lotteries and this is the best they can come up with? What would that 5% be used for? Why not use some of the funds they already hold back from the wins to provide anonymity or protection? Of course that will never happen.