buying a Euro Millions ticket while in EuropePrev TopicNext Topic

• henny penny

  

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  October 20, 2006
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  Oct 20, 2006, 11:28 pm

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  Hello, everyone!    LONGTIME lurker here.  I finally have some questions. 

  A.  Does the illegality of playing foreign lotteries pertain only to online-bought tickets? 

  B.  If yes, and an American were to vacation in Europe and buy what would turn out to be a winning lottery ticket while there, would that American then be able to legally (according to the IRS) claim the prize?

  C.  If yes, and that American is a resident of California, where there is no state tax on lottery prizes, would the foreign lottery prize apply to the no-state-tax rule?  Or, would the foreign lottery prize be subject to federal and state tax as if it were regular income?

  Does anyone know the answers?  Any replies appreciated.
• Prob988

  

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  Oct 21, 2006, 9:30 am

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  Here is what I believe, although I'm not guaranteeing my answers.

  I believe it is only illegal to buy on line tickets.

  I believe you could buy a ticket while visiting Europe and claim it and that this would not be any more illegal than winning in a casino at Monte Carlo.

  In most states, the tax immunity for lottery prizes applies only to tickets purchased in that state.
• dvdiva

  

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  Oct 21, 2006, 9:42 am

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  It is illegal to buy tickets in the US online and in WA state it's a felony. If you buy tickets online in a different country then it would depend on the rules of that country even if you are a US citizen.

  Winning any foreign lottery you bought tickets for would be subject to US income tax. As far as state income tax you would have to hire a tax attorney to figure that out but if you won a lottery you could afford it. 
• Todd

  

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  Chief Bottle Washer

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  Oct 21, 2006, 10:24 am

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  In response to Prob988

  Quote: Originally posted by Prob988 on Oct 21, 2006

  Here is what I believe, although I'm not guaranteeing my answers.

  I believe it is only illegal to buy on line tickets.

  I believe you could buy a ticket while visiting Europe and claim it and that this would not be any more illegal than winning in a casino at Monte Carlo.

  In most states, the tax immunity for lottery prizes applies only to tickets purchased in that state.

  It's good that you're not guaranteeing your answers, because I believe they are all wrong.

  Your "on line tickets" statement is misleading and wrong, since most online places do not sell tickets.  They have a special arrangement that makes it so you're buying a service, rather than buying a lottery ticket.  Those looking for more detail on this should search the archives here at Lottery Post, where the topic has been discussed numerous times.

  The issue is not whether you can buy a ticket in Europe (obviously you can), the real issues are (a) whether it is legal to transport the ticket into the United States, (b) if it is legal to claim the prize in Europe as a USA citizen, and (c) if it is legal to bring winnings from a European lottery prize back into the USA.

  The answer to (a) is NO, but (b) and (c) are YES.

  Last, there is no "tax immunity" whatsoever for any state, no matter where you buy your ticket.  You will owe federal taxes on your prize from any lottery.  State taxes may be another matter, depending on what state you live in, and if they consider lottery prizes to be taxable income.  A tax attorney could only give you an answer in this circumstance after doing some substantial research, so any answer here on the forums on state taxes on a European lottery prize is an unreliable guess.

  There may be ways to never bring the money into the United States, and hence stave off taxes, but I don't know the legality of doing that.

   

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• Todd

  

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  Chief Bottle Washer

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  Oct 21, 2006, 10:26 am

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  henny penny,

  By the way, glad you decided to come out of the shadows and join us on the forums!

   

  Check the State Lottery Report Card
  What grade did your lottery earn?

   

  Sign the Petition for True Lottery Drawings
  Help eliminate computerized drawings!
• konane

  

  USA
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  Oct 21, 2006, 10:58 am

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  All the more reason to push for Fair Tax where income is not subject to any federal taxes. 

   

  A big welcome henny penny!!   

  Have fun and the best of luck to everyone!