CHICAGO — With Illinois delaying payouts of more than $600 because of its budget mess, neighboring states are salivating at the chance to boost their own lottery sales. Businesses near borders, particularly in Indiana, Kentucky and Iowa, say they've already noticed a difference.
The Lottery problems stemming from Illinois' budget impasse have led to a lawsuit and come amid questions about Illinois revenues and a shake-up in lottery management.
Many gas stations, smoke shops and convenience stores in states bordering Illinois say they first noticed an increase in August, when the state said payouts over $25,000 would have to wait because there wasn't authority to cut checks that big. Now those businesses are reporting a bigger flurry since Oct. 14 when the Illinois Lottery announced it had lowered that threshold to payouts over $600.
Idalia Vasquez, who manages a GoLo gas station in Hammond, Indiana, said irked Illinois residents have been streaming in to buy lottery tickets. She estimates ticket sales are up as much as 80 percent since Illinois' second delay announcement.
"We have long lines, but they're patient with it because Illinois is not paying," Vasquez said of the store roughly 20 miles from Chicago. "They're all coming here and saying, 'I'm from Illinois, how do you play it here?'"
The Hoosier Lottery even issued a statement welcoming Illinoisans.
Lotteries in Missouri, Indiana, Iowa and Kentucky say sales have increased since Illinois first set a cap on prize payouts. But they all caution that other factors might be in play.
In Kentucky's McCracken County, along Illinois' southern border, there was a 13 percent jump in scratch-offs from July 1 through Oct. 9, compared with a 9 percent jump statewide.
One retailer with higher sales is Paducah's Kentucky Tobacco Outlet, where most of customers are already from Illinois. According to manager Michael Coomer, those customers are now buying more and say trust in Illinois is gone.
"It's definitely known and very vocal," he said of Illinois' problems. "It's definitely going to be better for us."
Ticket sales in the St. Louis area were up 3.8 percent from June to Oct. 17, while Missouri saw a 3 percent jump. Iowa Lottery officials said five counties bordering Illinois are seeing recent sales that far outpace the overall 3.66 percent increase statewide this fiscal year compared to last. Hoosier Lottery officials said northwestern Indiana counties near Illinois also posted an increase. Wisconsin couldn't provide figures.
The Illinois Lottery declined to release its ticket sales data, and spokesman Steve Rossi refused to answer questions about the impact of delaying payouts. He said revenues are still going to a school fund, which is required by law.
It's hard to say when Illinois lottery payouts will resume. The Illinois Lottery is one casualty of the budget stalemate and there's no sign of when it'll end.
First-term Republican Gov. Bruce Rauner and the Democrats who control the Legislature haven't been able to agree on a spending plan for the fiscal year that began July 1. Rauner wants to enact pro-business changes before signing off on a budget. Democrats want Rauner to support new taxes. Meanwhile, most state money is being spent at unsustainable rates through state laws and consent decrees.
An attempt in the Legislature last week to release money to lottery winners and others didn't make it to the floor.
For now, anyone who wins more than $600 won't get their money right away because the office doesn't have money in the account used to pay those winnings.
Winners have already filed a federal lawsuit seeking payment with interest.
Complicating matters for the lottery is its search for a new lottery manager after terminating its contract with private company, Northstar Lottery Group, over concerns about management. A legislative report showed the Lottery saw a drop in proceeds last year for the first time since 2009.
The state has put out feelers for a replacement, with responses due Wednesday. After that, there will be requests for proposals.
It will take time. Under the termination agreement Chicago-based Northstar will continue operations until 2017 when a new company is expected to take over.
For lack of a better word.." F- Yeah". Serves Illinois right.
This is what happens when states such as Illinois, become derelict in their duties.
People see what's happening and go to sources nearby to meet their demands for a
chance to win and not have to wait for payment until the budget issues are settled.
Well, good for them.
It's a double whammy, no dollars to the Illinois Lootery and take dollars out of the state.
If your playing Iowa and win big, Move there, stay long enough to be a resident then claim the prize and screw Illinois out any chance of getting tax revenue.
Iowa has 1 year to claim and I think you need to be a resident at least half the year to counted as Iowaian.
The other states, I'd find a family member or very close friend and broker a deal so they claim the prize and yet again, screw Illinois out the tax revenue.
Before anything really changes in Illinois they'll have too see a MM or PB jackpot won by a resident of their state in a neighboring state. Then and only then will they realize how much the state is losing in lottery money to the neighboring states.
Good point. I also think the other states should run promos for games they want Illinois residence to 'try' which they might normally not. For me a good promo is buy 3 get 2 games free, as its close to 1/2 price per game.
I don't blame them. I would do the same if my State ever had the nerve to present me with an I.O.U.
I'd tell them F-YOU! After I've taken my I.O.U. of course. LO L
No money in the lottery account?? what happened to it?
I believe it is time for the voters to rise up and demand change in Illinois. They are already voting with their feet and cash.
I find it odd that the lottery money wasn't held in a separate account as it should be it's own entity. Mixing all the lottery proceeds into the states account just leaves itself vulnerable to being siphoned away by another branch of the government.
I hope other states don't utilize the same practice or this same scenario will play out again in the near future.
I would think the take not covering wages for operations would be a critical point, as they point out, payouts dont matter, but missed wages bring the whole business down
Lottery in the Politician's Eyes
Cash driven
With tonight's Mega Millions at $117M, anyone willing to bet that their sales are not going to go up because of their budget impasse?
Any protest calls being made by the public of Illinois to get that budget through for approval ?
I wish I lived closer to Indiana or Wisconsin.
A Republican Governor plus a Democrat legislation equals gridlock. Electing a Democrat Governor with a Republican legislation will be the same. The real problem is checks are issued to some agencies, but the lottery winners fund isn't one of them. Add that to the fact paying off lottery winners is not a priority.
Glad I'm not from ILL. If Tennessee did that. I'll head to KY with the quickness. They need to be made to shut it down, until a budget is approved. But they continue to sale tickets that they know they can't payoff on. That's not right at all. I don't blame the people of Ill. for going to the closets state to play.
Why any resident or person passing through Illinois would want to play either MM or PB while this debacle continues is mystifying.Can you imagine being a MM/PB jackpot winner and being told " Sorry Sir/ Madam- you will just have to wait for us to sort through this mess before you see any of your money. By the way, we do sincerely apologize for the delay.
Somebody please explain something to us. I've heard people saying that the reason it takes MUSL a few weeks, to pay out the Jackpot when it's won, is because they have to collect all the necessary cash wagered from all the participating states before they pay out. Is this a fact?. If so, will they be willing to accept this useless{for the time being} I.O.U. from Illinois if somebody wins the jackpot while this nonsense is still going on in Illinois or do they have to kick out Illinois?.
10/28/15
Mega millions now up to $129M.
Has anyone in the Illinois budget process figured out how much they are losing on lost sales because of their inaction?
Sound like a lot of posturing there with antagonistic personalities?
They are supposed to serve the people, but know that's not how they think when folks are in "control mode" and control the power of the purse.
Good Luck to the people of Illinois.
I feel sorry for those people in Illinois, who have neither the means nor the inclination to travel to another state to purchase tickets. I guess they are truly hosed. Letting all this cash flow from Illinois to other states, is not helping their budget one bit but politicians are too stupid to understand that.
Gleno,
A couple of weeks ago one Illinois politician was quoted as saying "How many people does this really effect"....... sounds like he was thinking of the winners yet to be paid and had no clue what it was doing to the lottery as far as ticket sales.
With the current JP, Ill would be losing around 3 million dollars if someone did that. I'm ornery enough that I would do it just to make a point if I won there!
Great question. I have been wondering what PB & MM are doing in regards to this?? Unless someone has already posted what they are and I missed it?
I have two questions I'm hoping someone here might know the answer to:
I will say this much, even if Illinois broke this impasse tomorrow and started paying out the funds, I would still never buy a lottery ticket from that state until they separate state funds from lottery funds. Best predictor of future behavior is past behavior. They did this once, they can and will do this again.
Texas Lottery Exec Director Gary Grief told TLC's commissioners that Illinois has been making their payments to MUSL.
Well then, that raises more questions than answers.
This means that lottery payments aren't on a complete lockdown as they would have us believe.
They're able to pay out lottery funds, as long as those funds aren't going to an Illinois resident???? I'd LOVE to hear that explanation.
Good to be the surrounding states.
the pickings are digital are they fair or is selective based on the number of bets. it is wrong to not pay winners but the people who make decisions have money so they do not play the lottery illinios is ill