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How NC lottery ticket swappers avoid taxes, scrutiny

North Carolina LotteryNorth Carolina Lottery: How NC lottery ticket swappers avoid taxes, scrutiny
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Reselling winning lottery tickets — known as ticket discounting — can be profitable for both parties.

Buyers claim prizes and sellers go undetected by the government. Some sellers owe back taxes or child support, money automatically withheld from lottery winnings. Others may simply want to remain anonymous.

Here's a look at how the practice works:

  • In Florida, a man told investigators that he teamed up with several retailers who bought tickets from customers. He cashed the tickets, clearing the store owners of any scrutiny.
  • In a June Craigslist post, a Cumberland County, N.C., lottery winner offered to sell a $1,000 ticket for $800. "My tire is bad and I don't think I will make it to Raleigh (to claim the ticket)," the ad read. "You can make a quick ($)200 today."
  • Cecil Etheridge, the brother of former N.C. Congressman Bob Etheridge, paid two store clerks near Raleigh $100 each time he asked them to cash a winning ticket, investigative records show. The clerks gave him the prize money the next day.

The clerks claimed nine tickets, data show, all worth $1,000 or more. They said most were from Etheridge.

Etheridge also cashed in 52 tickets for $73,000 under his own name and beat odds of 1 in 1,143 some 30 times.

He refused to comment.

East of Raleigh around Wilson, people funneled winning tickets though Darren Skinner, an avid lottery player.

Skinner said he'd buy a $1,000 winner for $700 or $750. He only bought tickets from people he knew, and he said he never asked questions.

The original ticket holders remained anonymous, as did Skinner. He had his wife — whom Skinner said never played the lottery — cash all his tickets. She claimed 13 tickets for $46,700, data show.

Skinner is now a lottery retailer. According to state reports, his license was suspended for a month in 2014 after he had his wife claim someone else's tickets. Skinner said the seller was a tenant who owed him rent.

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News & Observer

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10 comments. Last comment 2 months ago by Stack47.
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dr65's avatar - black panther.jpg
Pennsylvania
United States
Member #74096
May 2, 2009
22978 Posts
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Posted: October 1, 2016, 10:00 am - IP Logged

Good story.

    Avatar
    New Member
    Clearwater, FL
    United States
    Member #68897
    January 1, 2009
    10 Posts
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    Posted: October 1, 2016, 10:13 am - IP Logged

    No big deal- it's a way of life at the track.

      LottoAce's avatar - WWI Flying_Ace.gif
      N.C.
      United States
      Member #56005
      October 28, 2007
      841 Posts
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      Posted: October 1, 2016, 1:27 pm - IP Logged

      I'm sure were not the only state with this problem.
      I don't see the big deal about it.

      "know your limitations, but excede your expectations"

        EZMONEE's avatar - Lottery-057.jpg
        Pick3 Analyst
        All States
        United States
        Member #106260
        February 15, 2011
        17391 Posts
        Online
        Posted: October 1, 2016, 5:32 pm - IP Logged

        NC isn't the only state that does this, if ur state have a lottery, tickets are being resold there too

        Type EZ$

          TheGameGrl's avatar - character catafly.jpg
          A long and winding road
          United States
          Member #17084
          June 10, 2005
          4533 Posts
          Online
          Posted: October 2, 2016, 1:34 pm - IP Logged

          A bit side tracked yet true to where our future gaming is heading. 

          In the near future they will start rolling out electronic play cards. This will effect those who are currently active in what is called the VIP clubs or wish to  join the electronic age of play.

          From this they will link the card to your account. So all payouts or costs  will be shown, think of it like a credit card. 

          So this will deter and also monitor your play ...your activity and your account balance.  The current delay is the fact that the rules are that the only requirement is you be of age. States will need to change the play rule to include this new system. It's still in the test phase , but do not be surprised when this comes about in certain areas of testing. I'ts to thwart off the players who are utilizing the work around to collect without paying taxes. I'm sure they'll use some kind of marketing ploy to interest those who "lose" their ticket or need a running tab for tax claims. 

          I personally think if I gift a ticket to someone its not the lotterys' business.  Its bad enough that they can cancel at leisure games  or cap certain numbers from being played in areas .

          The Lottery still gets its taxes no matter who claims..so what is it to them?

          ~~Is it true, Is it kind,Is it necessary. ~~~

          christmas holly jolly numbers: 255,303,6911, 474,477 silver:47,gold:79.

            Avatar

            United States
            Member #164725
            March 12, 2015
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            Posted: October 2, 2016, 1:55 pm - IP Logged

            The problem with it is that the taxman wants his cut. People who owe back taxes, court order child support, or have court liens, are using this to avoid the lottery seizing their winnings which they must do by law.

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              Framingham,Ma
              United States
              Member #87369
              February 23, 2010
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              Posted: October 5, 2016, 8:12 am - IP Logged

              This always cracks me up. Government always looking how to catch the person trying to get away with not paying taxes on lottery tickets, yet people like Donald Trump have ways built right into the system to steal Hundreds of MILLIONS in tax payer money and brag about it on national tv.Always the working class that gets stiffed.

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                United States
                Member #164725
                March 12, 2015
                343 Posts
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                Posted: October 5, 2016, 9:44 am - IP Logged

                This always cracks me up. Government always looking how to catch the person trying to get away with not paying taxes on lottery tickets, yet people like Donald Trump have ways built right into the system to steal Hundreds of MILLIONS in tax payer money and brag about it on national tv.Always the working class that gets stiffed.

                Wow. You just cant control yourself and have to pollute every thread with your politics.  Trump broke no laws therefore he did not steal anything.  Enough with your lame class warfare.

                  Coin Toss's avatar - shape barbed.jpg
                  Zeta Reticuli Star System
                  United States
                  Member #30470
                  January 17, 2006
                  10355 Posts
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                  Posted: October 8, 2016, 12:32 am - IP Logged

                  The problem with it is that the taxman wants his cut. People who owe back taxes, court order child support, or have court liens, are using this to avoid the lottery seizing their winnings which they must do by law.

                  Redd55,

                  Not just the tax man wanting a cut.

                  The government is always looking for any potential money laundering schemes.

                  Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                  Lep

                  There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                    Avatar
                    Kentucky
                    United States
                    Member #32652
                    February 14, 2006
                    7322 Posts
                    Online
                    Posted: October 8, 2016, 9:48 pm - IP Logged

                    This always cracks me up. Government always looking how to catch the person trying to get away with not paying taxes on lottery tickets, yet people like Donald Trump have ways built right into the system to steal Hundreds of MILLIONS in tax payer money and brag about it on national tv.Always the working class that gets stiffed.

                    From the IRS perception taxes are paid by whoever validated the tickets so collecting taxes isn't a problem. Us regular players have to swear on a stack of Bibles we don't owe back child support before we get paid and that's what their real priorities are. Granted there a lots of dead-beat-dads and probably some moms too, but should the lotteries be their collection agents?