Don't think it is for Americans, LottoGuyBC, from homepokergames.com:
Do I have to pay taxes on a lottery prize from another country?
Yes, US citizens are subject to taxation on income they make which comes from anywhere in the world, including gambling wins.
Is it true that Canadian citizens don't pay taxes on lottery wins?
If a Canadian wins the Canadian lottery, the funds are given to the winner in cash, with no tax liabilities ever.All lottery payments are in cash, with no deductions. These winnings are not taxable in Canada if you win on this lottery. There is no further liability for any amount, and you actually get 100% of the prize amount that is forecast.
So if I won the Canadian lottery would I have to pay taxes to the US government?
Yes, as the above rule states. If a US citizen wins the Canadian lottery, they would also be given the winning amount all at once, without any tax liability in Canada. But the US tax code requires you to list this win on your US income tax form, and to pay taxes on it.
And this (found on yahoo answers):
From the OLG site:
18. How do I claim winnings if I am a resident of the United States?
OLG 's lottery games are designed to be enjoyed by adult residents of Ontario. Occasionally, residents from other jurisdictions play and win OLG's lottery games, and OLG treats everyone fairly. The same claiming procedures described in the "How do I claim a prize?" answer above apply, subject to any U.S. postal regulations. OLG cannot mail cheques into the U.S. In cases where U.S. winners are required to receive a cheque for their winnings, they must pick up their cheque in person at the OLG Prize Centre in Toronto. More information about claiming prizes is available by calling the OLG Customer Excellence Centre at 1-800-387-0098.
19. What tax implications are there for lottery winners?
Generally, Canadian tax authorities do not consider lottery winnings to be taxable for Canadian tax purposes. However, U.S. residents playing OLG lotteries should note that the Internal Revenue Service (IRS) does consider such winnings to be subject to U.S. tax. While OLG will not withhold the U.S. tax against Canadian winnings, U.S. residents must report such profits on their individual tax returns. For more information, U.S. residents should contact their local IRS office.
http://www.olg.ca/lotteries/faq.jsp#18
Those who run the lotteries love it when players look for consistency in something that's designed not to have any. So many systems, so many theories, so few jackpot winners.
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.