A state lottery could help Alabama get its financial house in order
Fifty years ago, lotteries were illegal in every state, but they have proven so lucrative and politically irresistible that 44 states have since started selling tickets to the lottery. In 2013, state-run lotteries brought in $62 billion, which amounts to $257 in sales to every adult in the nation.
Six stubborn holdouts remain. Alaska and Hawaii are isolated enough that they do not feel pressured by sales from their neighbors. Nevada and Mississippi have gambling lobbies that don't want a stat ...
Apr 20, 2015, 9:15 pm - Lottery News forum
IRS scammed with losing lottery tickets
Here's one way to dodge the taxman buy thousands of losing lottery tickets.
It's true. Gamblers have concocted a scheme to repurpose the dud ducats to offset their winnings. A winner can go online and get $5,000 worth of losing lottery tickets to cover their $5,000 in gambling winnings. The lottery tickets serve as a sort of security blanket if the auditor comes calling.
Ads captured on Craigslist and eBay from Florida to California hawk the tickets so the potential lotto buyer can defraud ...
Apr 6, 2015, 4:54 pm - Lottery News forum
Will the Puerto Rico Powerball winner pay Federal tax? Nobody knows
For the first time ever, Puerto Rico has a Powerball winner with a whopping $188 million jackpot. And the island is celebrating.
The winning ticket holder will get one-third of the $564 million jackpot, the third-largest in Powerball history and the fifth-largest U.S. lottery prize.
But one mystery remains will the winner pay federal taxes on the prize, or will he or she be exempt, as has always been the case there? Lottery officials in Puerto Rico said they still have no answer to that qu ...
Feb 13, 2015, 7:31 am - Lottery News forum
NJ lottery winners dodge a tax bullet
A proposed extra tax on New Jerseyans' lottery winnings stalled today after it became clear it was unlikely to be approved by a key state Senate panel.
It didn't have the votes, said Senate Budget Committee Chairman Paul Sarlo (D-Bergen).
The bill (S1767) would impose an additional 0.5 percent tax on lottery winnings of more than $600.
The money would be used to fund after school programs run by non-profit groups in municipalities where at least 40 percent of the school district's stud ...
Oct 28, 2014, 10:39 am - Lottery News forum
Arkansas Lottery recoups $1M in unpaid taxes, child support
In its five years of operation, the Arkansas Scholarship Lottery has raised nearly a half-billion dollars in scholarships to help 135,000 Arkansas students attend in-state public and private colleges and universities. But thanks to an often-forgotten provision of the Arkansas Code, the Lottery has also benefited state operations by recouping nearly $1 million in unpaid taxes and child support payments.
The Arkansas Scholarship Lottery Act of 2009 requires the Lottery to cooperate in identifyi ...
Sep 3, 2014, 8:37 am - Lottery News forum
Cottage industry helps lottery winners dodge taxes
With few rules or law enforcement to stop it, a cottage industry has popped up to help lottery winners avoid taxes, child support, and other debts, potentially costing the state and federal governments millions in lost revenue.
Enterprising merchants risking charges of aiding tax evasion are openly hawking losing lottery tickets on Craigslist and eBay to help winners offset the profits with phony gambling losses.
If you need the losers to write off for taxes, read one ad, since removed, f ...
Aug 7, 2014, 11:33 am - Lottery News forum
How lottery legend Joan Ginther used odds, Uncle Sam to win millions
This story has been removed at the author's request.
By Peter Mucha, Philly.com
Second of three parts See Part 1
Joan Ginther wasn't necessarily lottery loco.
Maybe it wasn't a case of dumb luck, but smart luck.
She may have purchased at least 80,000 pricey tickets worth $2 million or more, according to expert analysis of 28 instant prizes she won, including three totalling $15 million.
If she also was the source of two dozen lesser wins by her friend Anna Morales, Ginther mig ...
Jul 2, 2014, 10:07 am - Lottery News forum
Tax on Kentucky Lottery tickets no longer being considered
Your outrage was heard
Kentucky lawmakers won't pursue a 6% tax on lottery tickets as a source of revenue to shore up the state's financially troubled pension system for government retirees.
House Speaker Greg Stumbo said that idea was rejected out of concern that a tax might have stifled sales of lottery tickets that generate money for education programs in Kentucky.
Instead, Stumbo said lawmakers will unveil legislation on Tuesday that will call for the lottery to create new games, in ...
Feb 26, 2013, 1:18 pm - Lottery News forum
Kentucky Democrats propose taxing lottery tickets
Democratic House leaders want to add a 6 percent sales tax to Kentucky Lottery purchases and expand the selection of lottery games as a way to increase funding for the state's ailing pension system.
House State Government Chairman Brent Yonts, D-Greenville, said adding a 6 percent sales tax on lottery games could generate about $49 million a year for the state. Adding additional games to the lottery could generate an additional $70 million to $90 million, he said.
Combined, Yonts predicted ...
Feb 22, 2013, 11:34 am - Lottery News forum
Pa. man pleads guilty in bizarre lottery tax case
A 70-year-old Pennsylvania man faces up to a year and half in prison for having more than 40 people cash in lottery tickets worth $520,000 so he could avoid paying federal income tax on the winnings.
Sherman Friend, of McClellandtown, faces a sentence of 12 to 18 months in federal prison when he is sentenced Feb. 15 on the tax evasion charge he pleaded guilty to Friday before U.S. District Judge Arthur Schwab in Pittsburgh.
Assistant U.S. Attorney Nelson Cohen said Friend won big when he b ...
Sep 28, 2012, 12:45 pm - Lottery News forum