Cancer victim struggles to get $1 million lottery prize in lump sum

Comment #18

dvdiva — Tue, 27 Feb 2007 03:16:31 GMT

Considering that it's his money he should just be able to sell the annuity. There are plenty of firms that buy annuities. After taxes though it's way less than $400k. Most jackpot games only have an after tax payout in the 25 - 33% range.

If he wants the actual jackpot he'll have to try his luck in Canada or Europe.

Comment #17

luckieStarr — Wed, 21 Feb 2007 19:02:42 GMT

His medical treatment sounds sky high? What is he paying that much money for? I am sure the hospital is not giving him any real assurance that the treatment will save his life. He should just take those money payments and perhaps the hospital can put him on a payment plan.. It's no use paying for treatments if you aren't around any longer, because the treatments faiil. The VA hospital should be able to get up to speed for his care and maybe refer him to the Eastern hospital for specialized... [ More ]

Comment #16

CASH Only — Wed, 21 Feb 2007 18:23:45 GMT

To me a lottery offering an annuity-only prize is a lose-lose situation. The player has one less choice, and the lottery ends up with overhead since the lottery has to keep track of the winner's address(es) for many years (and have a backup system in place,) and has to spend much more on postage, etc to such winners instead of sending a single payment. I wonder sometimes whether MA and/or NY, which between them have numerous annuity-only games, have personnel whose primary (if not sole) job... [ More ]

Comment #15

KY Floyd — Wed, 21 Feb 2007 15:51:44 GMT

I can say it because he didn't win $1 million and what he thought is meaningless. He won an annuity that will pay out $1 million over 20 equal annual payments. If there was a cash option it would be much less than $1 million. The rest of your rant suggests that you understand the concept.

If there was a cash option and he took it he would get the cash less tax withholdings. If he sells the annuty for its cash value and doesn't have taxes withheld he will have more money in his pocket until he... [ More ]

Comment #14

CASH Only — Tue, 20 Feb 2007 23:40:13 GMT

It sounds to me like he's probably lucky there's no cash option...

How can you say that? Mr Scheck probably thought the $1 million was lump sum. I'm sure he knows however that he would be liable for state and federal taxes regardless.

The NY Lottery, if it insists on annuity-only scratch games for those with fixed payouts (as opposed to the lose for life variety) should experiment with a $1 million scratch game with two versions with basically the same name. The lower tier prizes and od... [ More ]

Comment #13

KY Floyd — Tue, 20 Feb 2007 16:03:55 GMT

They've also been in discussions with several buyout firms, which would pay $467,000 to buy Schenk's ticket. But after taxes, that amount would be reduced by almost half.

What does he think he'll get if he convinces the state to give him a lump sum for a 20 year annuity payout of $1 million? The extra 6 years for a MM annuity payout makes a significant difference compared to the 20 payments, and the MM cash value is only about 58% of the anuity value. If he does get the state to pay him a... [ More ]

Comment #12

csfb — Mon, 19 Feb 2007 19:00:49 GMT

... and such is life. Win some, lose some.The beat goes on. Hope it works out well for him.

Comment #11

Raven62 — Mon, 19 Feb 2007 18:02:50 GMT

If a Lottery Players Knows and Understands the Rules of the Game,

and if that Lottery Player disagrees with the Rules of the Game,

then the Lottery Player should not Play that Game

Comment #10

justxploring — Mon, 19 Feb 2007 17:30:40 GMT

Yes, but if you look at the story again, it mentions that he will end up with very little. They charge a large chunk of money. Also, he still has to pay the taxes on the entire amount he won.

Cash Only wrote: He probably will (spend the remainder of his time trying to get a lump sum.) What does he have to lose?

T I M E

As I said before, I don't blame him one bit. But if it's a losing battle, the stress will just exacerbate his condition. Maybe he should just go on that long... [ More ]

Comment #9

CASH Only — Mon, 19 Feb 2007 17:30:25 GMT

He could try, but, again, after taxes, it probably would not be enough.

Would you agree if you were in his shoes? No lottery winner should be forced to receive annuity payments in lieu of a lump sum. This situation probably wouldn't happen in South Carolina.

Comment #8

chasingadream — Mon, 19 Feb 2007 17:26:01 GMT

i agree with u on this.....

can't he sell the payments for a lump sum to one of those companies that advertise on tv all the time

Comment #7

CASH Only — Mon, 19 Feb 2007 17:25:57 GMT

He probably will (spend the remainder of his time trying to get a lump sum.) What does he have to lose?

Several years ago a NY woman won 50k a year in 20 installments (not realizing there was no cash option.) She ended up giving the ticket to her son. The NY Lottery covered up by telling the media that she gave the ticket to him as a birthday present .

Comment #6

justxploring — Mon, 19 Feb 2007 16:19:58 GMT

On a personal level, I agree with Cash Only. On a business level, I don't. Although his situation is unique, once you begin making exceptions for an individual, everyone will feel he can file a claim when things don't turn out as planned, including past winners. There might be several winners who chose to sell their annuity because of a family emergency and took the loss. Will they be reimbursed? Rules are rules. I might feel the same way as this man, but I hope he doesn't spend the rest of... [ More ]

Comment #5

CASH Only — Mon, 19 Feb 2007 15:57:10 GMT

US online jackpot games all have a cash option, except of course for MA Megabucks (there are also two lifetime online games in the US.) But for some reason a number of scratch games, especially in MA and NY, are still annuity-only, and few people give a dam (except me.) MA and NY are able to get away with this as they are the two most successful US lotteries (not counting video lottery, which NY has.)

Companies which sell annuities to lotteries still have pull, and continue to be able to sw... [ More ]

Comment #4

CASH Only — Mon, 19 Feb 2007 15:47:19 GMT

The NY Lottery does not do a good job of letting players know before buying such tickets that they are annuity-only (only the four versions of LOSE for Life actually do this.) TV and radio advertising leave out the fact that there is no cash option on these games.

Of course, this problem would not happen if NY followed much of the rest of the country in giving players a 60-day window after winning of taking cash in lieu of the annuity.

I hope you are not trying to defend the NY Lottery's r... [ More ]

Comment #3

tg636 — Mon, 19 Feb 2007 15:44:27 GMT

This is too bad, but unfortunately there is no special rule about people who only have a year to live or desperately needing the money to get the money in a lump sum.

It does say something about medical care in this country when even a lottery winner can't afford life saving cancer treatments and the treatment center won't save his life first and then discuss the bill.

If people would vote with their wallets and refuse to buy any lottery game where the grand prize was not available in... [ More ]

Comment #2

Raven62 — Mon, 19 Feb 2007 15:26:03 GMT

A Player needs to know and understand the Rules of the Game they are Playing!

NY Highstakes Blackjack: Jackpot: $50K/Year/20 Years!

NY Highstakes Blackjack

Comment #1

CASH Only — Mon, 19 Feb 2007 14:46:01 GMT

For those of you who get on me because I frequently complain about NY's annuity-only scratch games, this is exactly why I do so. Any bill introduced into legislation to give Mr Schenk the money upfront should apply to ALL lottery winners in NY state. I also think Mr Schenk should try to contact new Gov Eliot Spitzer. This has given the NY Lottery a black eye, just as with Louise Outing with MA Megabucks. NY does have a new lottery director. I seem to be encouraged by him (the NY Lottery took a s... [ More ]

Cancer victim struggles to get $1 million lottery prize in lump sum

Lottery Post — Mon, 19 Feb 2007 14:33:44 GMT

On Jan. 12, Wayne A. Schenk thought he was the luckiest man alive.

A month earlier, he'd been diagnosed with inoperable lung cancer. But on this afternoon, the 51-year-old Marine veteran was hanging out with his buddy Domonick Gallo, enjoying the unseasonably warm weather in their hometown of Naples, N.Y., by indulging a favorite ritual: scratching off lottery tickets.

One of Schenk's $5 High Stakes Blackjack tickets hit it big, winning the $1 million prize. It was more than enough money... [ More ]