Players lose confidence as budget stalemate halts winner payouts
Randall Lobello of Bensenville said he still plans to buy lottery tickets, despite the Illinois Lottery's announcement Wednesday that even more winners will be getting IOUs.
He'll just play in another state, one where winnings would be paid out immediately.
"I do a lot of traveling; I would just jump to the border and go to Wisconsin," said Lobello, 47. "I used to buy lottery tickets in Illinois, but I'm not purchasing them anymore. If they're not paying when they say they're going to pay, I have no confidence in the future."
As of Thursday, Illinois Lottery payments for any winnings over $600 are being delayed until the state budget stalemate is resolved. Lottery officials said the agency's check-writing account is depleted and no authority can replenish it, though winnings under $600 can still be retrieved immediately at retail kiosks.
The Illinois Lottery began delaying payments in July, at first only for prizes larger than $25,000 due to state law barring larger payouts because the legislature must authorize the state comptroller to release the funds.
Two winners sued the Illinois Lottery in federal court last month, alleging fraud.
Their attorney, Thomas Zimmerman Jr. of Zimmerman Law Offices, said he plans to file an amended complaint later this month, adding at least 20 other lottery winners whose payments have also been delayed. He expects more winners will join the class-action suit now that the lottery has lowered the amount for immediate payouts.
"The state is violating the lottery law by using the money to pay the lottery's operating costs and ongoing administrative expenses ... without first paying winnings," Zimmerman said. "Is the lottery director not earning a paycheck? And all of the employees who run the lottery, how are they getting paid?"
The lawsuit also named the lottery's acting director, B.R. Lane, the lottery's private management company Northstar Lottery Group and the Illinois Lottery Control Board. An Illinois Lottery spokesman said he could not comment on pending legal action.
Joe Joost, 62, a truck driver from Chicago's Belmont Cragin neighborhood, said he's joining the lawsuit. He was in a pool of 25 Illinois Lottery players who won $1 million in early September, with $28,500 in winnings for him after taxes, but the state hasn't released the prize yet.
Joost said he and his pool intend to keep playing the lottery, but they won't buy another ticket in Illinois. They're going to cross state lines.
"We have one gentleman who goes to Michigan about once a week," he said. "If he's going up to Michigan, we'll play in Michigan. We have another gentleman who goes to Indiana a lot."
A worker at Red Roof Liquor & Lottery in Columbia, Ill., near the Missouri state line, said about 80 percent of his clientele typically come from Missouri. With gas and cigarettes cheaper in Missouri, the Illinois Lottery used to be the biggest draw for patrons, but he said that's no longer the case.
"For the last two months we've seen a decrease, since September," said the worker, who did not want to be named. "People are saying the state won't pay them."
Casimir Soczyk, who works at Santori's Liquors in south suburban Lansing, said ever since lottery payments were delayed, customers keep talking about going to nearby Indiana to buy tickets.
"I've had people say 'I'm done with this,' but I've seen them come back," he said. "More people are bringing it up."
Tom Remsen, 33, of Rockford, said he buys lottery tickets about four times a year when there's a big jackpot. He said he'll continue to play in Illinois despite the payment delay, because it would still be worth it to win big even if he has to wait for payment.
"I'd just hope like heck that it would come," he said.
But he does wonder how Illinois officials would respond if the situation were reversed.
"How would the state react if we told them we don't have the money to pay taxes," he said, "but when it becomes available, we'll be sure to give it to you?"
This is good! Players are getting smart and boycotting these a$$holes.
Just bought my Mega Millions tickets in Lake Geneva, WI this past Thursday for 8 draws - I am good thru 11/10/15. It's only a 45 min drive one way & if I win I will save on state taxes. WI is @ 5.000% vs IL is @6.125%. On a Grand Prize winning of 100 million, I save over a million in state taxes. It's a Win Win situation.
P.S. Wisconsin does not pass out I.O.U.'s............................................................
Think Smart, Play Smart....................................................................................
Illinois State Legislators need to WAKE up & WISE up.............................................................
Just Think if all winners of prizes over $600.00 joined the class action Law suit against the STATE OF ILLINOIS.............................
Think you have problems now ------- Just Wait..........................
Gas and cigs are cheaper in Missouri, if you're close to the border now you can get your cigs,
fill your tank and buy lottery there.
Illinois loses money on all 3.
Is beer cheaper there also ?
"" But he does wonder how Illinois officials would respond if the situation were reversed.
"How would the state react if we told them we don't have the money to pay taxes," he said, "but when it becomes available, we'll be sure to give it to you?""
I would think you answered your own question. Another obvious question would be, why are you still playing
the Lottery in that State?
So do I,cross over to the better lands.
The states are so broke and this money was for education and now all they are doing is finding ways to steal the lottery money........ totally ruining a good thing......
Illinois and Missouri are the lottery labels that pay me.
When your State lottery has no problem collecting your money but fails to return the " favor"... desperate times calls for desperate measures.
Missouri will still pay you but I highly doubt you can cash in any large winners from Illinois anytime soon.
My GIF to you Illinois.
When the politicians get their act together and pass a budget they will no doubt see a shortfall in their lottery income, if they have not already seen it.
Maybe the folks in Illinois will actually see more money in their pockets at the end of the month, from not playing the lottery!
oooop! Wong topic!
Good for you!!! That might be what forces them to 'fix' this. If they start seeing a bunch of people from IL winning in other states, see how they feel missing the tax income!!
Can the lottery powers that be kick Illinois out of the PB & MM?
Even the latest problem, not paying prizes over $600 is because of the state budget. There is no benefit to MM, PB, or the players if Illinois stopped selling tickets.
I truly agree and was thinking about Chicago, Illinois' history which was full of corruptions in local government agencies going back to the beginning of the 20 century. Make some of us who know that state's history in the past see that something definitely not right. Kudos to the people there getting smart and buy their lottery tickets in other states which is the Illinois' lottery people's loss.
Why on earth would anyone support this foolishness??? I know it's the old lottery mentality "what if my numbers come when I don't play"??? Are the retailers being reimbursed for the payouts less than $600? I'm think I found out though that payouts less than $600 come out of the retailers budget anyway; I'm not quite clear on that though? People you have to stand up for yourself at some point! But, people don't do that anymore because they are scared to go against the "PC" politically correct crowd!
as for the taxes you think you will save...I think the taxes are still paid in the state in which you own or rent not where you buy the tickets. I could be wrong but don't think so.
This is why, when I'm faced with taking a lump-sum over annual payments, I'll choose the former. If you've ever wondered if the government can be trusted to live up to their obligations to you, you now have your proof. I'm cynical enough to suspect this won't be the last example.
How many former Illinois lottery winners who are taking annual payments are caught up in this crime?
Smart move. What's the point of buying a ticket if winnings won't be paid?
As for taxes, you probably have to pay taxes to the state you live in regardless of where the income comes from. Depending on tax laws in IL and WI, you may end up owing in both states. In my state, Louisiana, if I have to pay income taxes to another state and I resided in Louisiana the entire year, I can take a non-refundable credit on my Louisiana state income taxes for what I paid to the other state. However, I'd still have to claim the income on my Louisiana state taxes and even with the credit, who knows what I could end up owing? Of course, the IRS gets their share no matter what state you win in from.
No way to avoid taxes.
Who can blame them?! I now if I lived in IL I would be doing the same thing!
If anyone was ever wondering whether to take the annuity or cash option should they hit the lottery jackpot, I think it should be quite clear that the cash option is the only way to go.
A WarGames reference, fantastic!
MM and PB sales are down, but because the pick-3 payoffs are less than $600, those sales might not be down. If players believe their BP and MM will be drawn, they can still buy those tickets in a neighboring state.
It's easy to say the people should stand up, but will they at election time or will they blame the "other" assembly members?
yea elections are a whole other 'animal' ....
ROTFLOLing
Why Is Illinois So Corrupt?
The spirit of unrestrained self-interest expressing itself in a particular kind of politician, one who see's government not as a noble calling but as an opportunity for advancement and enrichment. Instead of serving the public interest, government is about power and control, personal advantage, and personal gain.