Includes video report
Rhonda Rasche had a great plan for the $50,000 she won from a scratch-off Illinois Lottery ticket.
She wanted to help her best friend cope with the loss of her mother.
"I wanted to take her and her sister on a trip because they were doing at-home hospice for her, and it was pretty tough on all of them emotionally [and] physically," said Rasche, 48, of Homer Glen.
She never made that trip. Instead, Rasche became one of two plaintiffs in a class-action lawsuit filed Wednesday against the Illinois Lottery. The suit accuses the Lottery of fraud for withholding winnings over $25,000.
"They are still selling tickets. There's no signs posted anywhere," Rasche said. "Many of my family and friends were unaware of this. If you didn't catch the news that one Friday night, you pretty much didn't know about it."
On August 28, the Illinois Lottery confirmed payments over $25,000 would be delayed to winners, including scratch-off ticket wins.
"All winners will be paid in full as soon as the Lottery and the Illinois Comptroller have the legislative authority to do so," Lottery spokesman Steve Rossi said at the time.
The class action complaint filed Wednesday morning alleges plaintiffs Rasche and Danny Chasteen are among more than two dozen winners who are awaiting payment of a combined total of more than $288 million in prizes that should have been paid since the last state budget expired June 30.
The suit claims the lottery has continued to pay wages — including the $142,000 salary of acting lottery director B.R. Lane — and money owed to the agency's private management company, Northstar Lottery Group.
The suit is seeking a court order to prevent the Lottery from selling tickets and games with potential wins over $25,000; to stop making payments to finance the Lottery; to issue payments to the plaintiffs and to inform people buying tickets that they won't be getting their money if they win over $25,000.
It's also seeking any interest made on the winners' money, which the state is now holding onto.
The suit claims there have been 29 winners since July 1, ranging from $50,000 to a $262 million Mega Millions jackpot split by two winners — the second largest prize in the history of the Illinois Lottery.
Attorney Thomas Zimmerman said the state's withholdings of winnings is illegal.
"The Illinois Lottery Act requires a priority of payments. The first priority is that prizewinners get paid. They get paid first. After they're paid, then the money can be used to fund the operations of the lottery," Zimmerman said. "The state is using the money to fund the operation of the lottery and not paying the prizewinners, and that's a violation of the law."
Danny Chasteen is the other plaintiff in the suit. He won $250,000 on a $5 Cool Cash scratch-off. Susan Rick, his girlfriend of seven years, said she's upset the budget impasse is affecting jobs and services for low-income state residents, including Lottery players.
"Why is it always the lower income people, the ones that don't have money that suffer whenever the state is having an issue?" Rick, 48, of Oglesby, said.
Zimmerman said other winners have also reached out to join the class-action suit.
The Illinois Lottery Department, Illinois Lottery Control Board and Northstar Lottery Group are named as defendants.
The Illinois Lottery said it would not comment on the pending litigation.
VIDEO: Watch the press conference
Sure didnt take long for the lawyers to get involved...
Massive mismanagement.
Since lotteries are suppose to generate the funds that pay the prizes totally independent of the state budget it does seem strange that the state would continue to sell tickets, collect the monies and not paid the prizes. Most of the money for the MM prize came from other states that contributed 30% of their sales to the jackpot.
Well fellow LPer's, there we have it. 1 of 50 state governments(not including the A** clowns in Washington DC) that are in typical BS chaos when it comes to running something as simple as a lottery. Something that generates money by voluntary participation, NOT A TAX mind you, just a simple exchange of money by an individual who says, "here is my money for your ticket" to legally allow a chance to win some or a large sum of money. The government saying," sure, we will take your money but anything over $25K, well, we are going to hold onto it for an unknown amount of time".
The winners of the $262 Million/$159.7 Cash won their jackpot on June 2nd (Williams & Logue) haven't been paid ? And the budget expiration was June 30th ? <scratching head> Guess the may have waited a bit to collect orrrrrrrrrrrrrr the payout was not given before June 30th.
To the Government of Illinois - Shut lottery sales down completely or only sell tickets that you will legally honor up to the $25K payout until your budget is resolved. Then change it so the lottery is not tied to the budget.
To the Illinois residents - Don't buy any lottery tickets at all or go to neighboring states to purchase other tickets such as the PB/MM/ or game of your choice.
Now is the Time to get these people out of their elected jobs, and renew the whole field. The Lottery should be a Totally different Entity, and not connected to any type of State budget. The Lottery Fund is just that , The fund for the Lottery.
Great to read that the winner is taking legal action against the Illinois Lottery.
If they can't pay it they shouldn't book it.
Illinois deserves to be sued. Best of luck to the plaintiffs.
Since the Illinois Comptroller is not performing their job and signing lottery winner checks during the budget talks, then they should not be receiving a paycheck -- either now or retroactively when the budget is finalized.
This story highlights the tremendous chasm of responsibility and fairness between the private sector and government. This is the reason people are fed up with government and are turning to private sector folks like Donald Trump to get things done.
I'm sure Illinois is honoring its commitment to transfer 30% of its sales to MUSL for the MM and PB jackpots or they wouldn't be selling PB and MM tickets. Government can't and won't be any more responsible than the people elected to run it. Irresponsible politicians should be booted out of government.
Back in Wisconsin and here we call 'em FIB's.
'I' is for Illinois.
Now, the 'B' has a new name, Bureaucrats.
If you want to know what the 'F' is, you can guess, or PM us.
Well said!!!
This situation seemingly eliminates any quandary as to the annuity payment-cash value option where applicable- get your money and eliminate your government partner ASAP.
Amen
Illinois should pay interest on the winnings from date of win to date of payment @ 18.90% interest, same rate the Banks charge on credit card purchases.
And that is if you got good credit, LOL (Smile).
This should cut down lottery sales. Does anyone know if it has? Why by a ticket for a game that won't be paid if it is over $25,000?
This news story is the exact reason why I would choose the lump sum no matter what.
The State should be responsible in paying interest until they make right on their payment and temporarily stop all lottery sales they cannot afford to payout, or at the very least, make everyone aware that they will not be paid right away until they sort everything out.
Glad they are suing. These folks beat the odds to win a nice prize and now they can't collect. That's just wrong.
NICE!!!!
This should be a WAKE UP CALL to all states - dont do what IL did.
Exactly
Our family can't agree on a budget... Does this mean we can skip out on this year's tax bill?
I was wondering why it was taking so long for someone to sue to get their money. About time. I still don't understand why they are being allowed to sell tickets when they have no plans on actually paying anyone until they feel like it. It most certainly is fraud. How many ponzi schemers are serving jail time right now because they promised to pay out money and didn't, yet these idiots should be given a pass because they get to hide behind bureaucratic red tape? Absolutely not. Hopefully this case will go in front of a judge with balls, who isn't afraid to do the right thing here. That MM jackpot came from monies collected all over the nation and these politician still won't pay it out? Bet if it was their money being held up they'd be much more incentivized to break the deadlock. But no, they still get to collect their salaries, so there's no reason for them to care, and it's obvious that they do not.
As for the Donald Trump statement, considering the man's companies declared bankrupt four times, really don't see why he should be used as a bastion of fiscal responsibility. To claim his creditors weren't nice people so it was okay to not pay them is pretty even with this Illinois fiasco in terms of despicable actions.
In any case, all of this boils down to, NEVER EVER EVER play the lottery in Illinois and ALWAYS take the lump sum. I used to think that if I won over a certain amount, I might consider taking the annuity, thank goodness these crooks pulled this stunt so now I know better.
I remember a business law teacher saying that putting coins in a soda machine was an implied contract between you and the machine. Once you put the coins in you rightfully expect the machine to deliver the soda.
I'm no lawyer but wouldn't the payout schedule on the back of the play slip or the possible prizes on a scratcher be an implied contract, once the ticket is played or the scratcher is purchased?
The only winners in this fiasco are the attorneys. Knowing the financial circumstances why in the world would anyone purchase any lottery ticket that had a potential prize of more than $25k?
Stick to pick 3/4 drawings or purchase your larger prize tickets like Powerball or Mega Millions in a neighboring state.
DRenick1,
That's what I'm doing, scratchers that pay under $25K, Pick 3/4.
Right now the Lucky Day Lotto is $450,000 but what's the point of playing it?
"Since the Illinois Comptroller is not performing their job"
Based on the story you posted 2 weeks ago it appears that the comptroller is doing exactly what his job requires - not writing checks because the lack of a budget means he doesn't have the proper authority to do so. It also seems clear that it's not actually a lottery problem. Under Illinois law rather than having the lottery disburse large winnings it's done by the state comptroller. Based on that it seems to me that the plaintiffs have a lousy attorney who hasn't filed suit against the proper defendant.
"I'm sure Illinois is honoring its commitment to transfer 30% of its sales to MUSL for the MM and PB jackpots"
I'm guessing that disbursing prize money to either MUSL or directly to other states may actually be done directly by the lottery. In that case the comptroller wouldn't be involved, and the lack of a budget wouldn't matter.
"wouldn't the payout schedule on the back of the play slip or the possible prizes on a scratcher be an implied contract"
Where's the part of the contract that specifies how soon payment has to be made? Every lottery ticket I've seen says that playing is subject to official rules, but those rules aren't on the tickets. It's entirely possible that the official rules cover situations such as this.
Ironically, a "government partner" would be safer than how many lotteries actually implement annuities. Some lotteries, such PA Lottery, treat annuities as a contractual obligation held by various private-sector annuity companies; winnings not directly government backed.
To be fair, typical large jackpots, while seemingly relatively huge, are small change for annuity companies, so it's highly unlikely any of them would default so badly they couldn't pay out, but it could happen. A lot can change over 10+ years. Heck, look at all the big name financial companies that went belly up several years ago. Lotteries utilize various annuity companies - some of which may not be considered too big to fail, and hence could be allowed to fail leaving winners left with smaller or even no payments.
On a related note, I'm amazed other lotteries / licensed operators haven't publicly pressured the Illinois Lottery to pay out winners pronto. Withholding payments hurts player confidence nationwide. Many states, including Pennsylvania, still haven't passed their annual budgets yet. While PA Lottery has a history of continuing to operate as usual during past budget stalemates, the IL Lottery situation makes me wonder whether it could happen in PA.
In short, you're spot on, take the cash and run.
I hope they sue the hell out of them. I would be steaming too if i hit the jackpot and still had to go to work.
If an Illinois ticket were to win this weeks Powerball jackpot, they wouldn't get the money
I'm in Illinois and play Lucky Day Lotto daily and Illinois Lotto each draw. I had not heard a word about payments being suspended until a few days ago. When I first heard that they were suspending the payments until a budget is agreed on, I wasn't worried. I figured they would eventually come up with a budget and everyone would be paid if the reason they are suspending payments is really due to the budget fight.
What has me concerned now is that I haven't read one article that says "don't worry, the money is still there". I want to know if the greedy Illinois politicians have pilfered the lottery fund like they have every other fund in this state. The fact that no-one is reassuring us that the money is still there is making me think payment suspensions may not be due to a lack of budget agreement but actually a lack of funds. I would also like to know why we haven't heard about this before now if it has been going on since June? Seems pretty sketchy to me.
We all know this state is broke. I am sadly suspecting they have even raided our lottery fund and it is gone too.
That would really be something to see. I'm not holding my breath because I intend to win it myself and save Illinois the embarrassment.
C'mon relax. This is Illinois we are talking about. One way or the other, they find a way to screw the people anyway.
Food for thought: Next time you win a jackpot, just take the cash and run. Better to squander your own money by yourself than have somebody else do it for you.
LonniC,
Illinois kept the non-payments hushed up from July 1st until there were some winners of over $25,000. Then they had to fess up.
Had this discussion on how when budgets are halted, money is still allowed to flow into the government. take Car Registrations, Toll booths, Fines, Tax collections. Each flowing in and being applied. Issuance of payments that are outgoing (halted), ergo, no Monies released til Budget is approved. Some State contracts that are pre allocated are considered part of the former contingency of payments.
Has anyone researched how long Illinois has from time of claim to make payment?
Side note: Business's that utilized the bankruptcy laws did so to REGROUP a company game plan. Its legal and not to be considered a poor business decision. Chrysler did the same thing and by doing so, regrouped and started to modify the changes necessary. I care zilch for the platform of Trump, yet as a business man, he utilized the laws to his benefit. No different then folks who chose that recourse during the real estate collapse.
It doesn't matter how it's phrased. No one ever files for bankruptcy because they're financially sound. Berkshire Hathaway isn't filing bankruptcy for any restructuring they'd do. Just because the law makes these provisions isn't a sign of great business acumen to have to utilize them. The person running a company well enough so they don't have to file bankruptcy is the smart one. There's a reason filing for bankruptcy is always the last resort and not the first. In the same way I wouldn't take budgeting advice from someone who's been on welfare four different times, though, to paraphrase you, it's a legal provision and a smart move for those who need to regroup, I'm not going to hold up anyone as being a financial wiz who's had to regroup on four different occasions. But that's just me.
The only problem is that no lottery game I've seen gives you a definite date of disbursement. It's always phrased like "disbursement of funds are usually within x weeks". It varies and it's ambiguous. Maybe we need the rules of the game and the laws in the state amended so that disbursements must be made within a certain period of time or the state will have to pay interest as well as penalties. When a resident owes the state, fees and penalties are tacked on when payment is late. Why can't the reverse be true. Right now all they need to say is that funds will be paid eventually and the implied contract still holds. There's no breach of it. That's a problem and it's a problem no one thought to address until now.
one of the laws governing raffles and lotteries and basically any prize draw out here in Australia, is that the company running the draw has to actually have the prizes on offer before the draw. not qute sure if that applies to state lottos tho. i know there are now tele marketting scams , or well much like a scam, but also techinaclly legal offering all sorts of prizes. on late night TV, so i know its not just charity raffles having to follow the rules. Amazing the state over there can get away with this.
Ahh Illinois lol, Greece is in far better shape financially than this state.
LOL!!!!!!! Seems like it, doesn't it. Bet any winners in Greece of 'El Gordo' were not effected.
I go to the Illinois Lottery Website and I can't find anything about giving out IOUs instead of a jackpot. That tells you something right their.
This story hit the national news, saw it last night on the 6:30 national news!
Amen brother
This scandal in IL has hit major media outlets.
Do you think it will shame the politicians into resolving their budget issues.
This must be hurting their lottery income with this policy of not paying out over $25K .
Exactly, what they're doing is robbing the winners illegally. At the same time the people who withheld the winners' money should be fired or resign. They now gave their state a bad name because this is bad business so there will be less sales of lottery tickets.
"Based on the story you posted 2 weeks ago it appears that the comptroller is doing exactly what his job requires - not writing checks because the lack of a budget means he doesn't have the proper authority to do so. "
We have the opposite problem in KY where a County Clerk went to jail for refusing to do their job.
Here is some additional information I located on this subject.
"
The Illinois Legislature isn't scheduled to return until later this month. But state representative Jack Franks says he's asked the governor to call a special session. And he'll introduce a bill that will allow the comptroller to pay out big lottery awards.
JACK FRANKS: I don't think this can wait 'cause this is a very, very important asset of the state which - we generate almost a billion dollars in revenue a year for the state. And it could dry up overnight if people lose confidence."
Well, at least one of them gets it!
Illinois residents -- vote out the rest of the jokers, but keep Jack Franks. Next time he runs he can use the campaign slogan: Jack Franks: He's got a clue.
Last week someone in the Illinois legislature was quoted as saying, "Oh how many people does this non-payment of winning tickets affect - there aren't that many winners."
Pitiful that someone in his position has no clue what this situation does to ticket sales.
Hey Illinois lottery:
IF YOU'RE NOT GOING TO PAY WHY SHOULD WE PLAY!
CT, I'm really sorry you are in this state with these idiots running the lottery. If you live close to the border of another state, it would good to just spend your money in that state.
rcbuckeye,
Yeah, there's Missouri, Kentucky and Indiana not too far....in fact, if you win anything significant Illinois puts you mug and amount on monitors where tickets are sold. I've often though of just playing in one of the bordering states where nobody knows you!
TYPICAL, the response from the legislature. Political nature is - unless it affects me - I don't care!
(or is it 'effects'? Always get those words reversed!- LOL)
I think that the lawsuit should asked the courts to have the state reimburse the winners not only the prize money but also penalty & interest for non-payment & base it on the same criteria as the IPASS. Where a .50 cent IPASS toll violation turns into a $80.00 bill based on their calculations of penalty & interest. Lets see it if they like it if the pants are on a different foot. I also hope that they are including legal fees in the lawsuit as the lottery winners should not have to pay for their attorneys.
As for buying future PB MM tickets, WI is only a 45 min drive away. I won't have to worry about getting paid from them if I win. You can buy a months worth of drawings on one trip with no problems. I did it in the past when IL didn't have the PB.
PS - Wi & IN have lower tax rates than IL, so you will get to keep even more money..............................
Correction: The top 4 collar states are MO, WI, IA, & KY
Current State (BASE) Tax Rates
MO - 4.225%
WI - 5.000%
IA - 6.000%
KY - 6.000%
IL - 6.250%
IN - 7.000%
Let's see difference between WI & IL is 1.250% PB is (200M+) times 1.25% = 2.5M in savings by buying your ticket in WI.
Is a 45 min trip to WI worth it -- you bet your sweet A## it is........................................... And Yes, I am a turtle.
The damage is all ready done & it has already started to dry up overnight. Went to my local store where I buy my tickets, and the owner states he has definitely seen an increasing loss in sales on the big games over the past few weeks. Even his regular customers are telling him that it is a bunch of Bull S### and are not buying any tickets until this problem is rectified. The Lottery in Illinois is biting off the hand that feeds them. Time to clean house & get rid of the dead wood...............................
sad to say this but GOOD TO SEE - power to the people on this!!
Well stated, Todd.
Just saw the news about the Illinois lottery and the announcement that any winnings over $600 can no longer be immediately paid. They will be issuing I.O.U.'s but with interest. With current interest rates at 0.25% I doubt any big winners In that state will be too thrilled.