Have you ever sold your WINNING TICKET to a 7-11 clerk?Prev Topic Next Topic

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d1nnl2

CHERRY HILL, NJ
United States
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July 9, 2012
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Oct 10, 2013, 11:40 am

There is a racket going on with the clerks at 7-11. They are willing to buy your winning ticket at a discount. No need to fill that claim form or head to your lottery office. COLD CASH NOW!

I think they profit from this at TAX TIME, when they offset their winnings with supposed losses and since they have modest incomes, they can win with paying little or no income taxes.

Just a reminder to winners that there's an alternative to the complications of winning the lottery for you.
billionaire2bee

United States
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July 25, 2012
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Oct 10, 2013, 1:15 pm

Quote: Originally posted by d1nnl2 on Oct 10, 2013
There is a racket going on with the clerks at 7-11. They are willing to buy your winning ticket at a discount. No need to fill that claim form or head to your lottery office. COLD CASH NOW!

I think they profit from this at TAX TIME, when they offset their winnings with supposed losses and since they have modest incomes, they can win with paying little or no income taxes.

Just a reminder to winners that there's an alternative to the complications of winning the lottery for you.

Unless I owed money to a leg breaking loan shark...I'd go cash in my own ticket....
Stack47

Kentucky
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February 14, 2006
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Oct 10, 2013, 6:40 pm

Quote: Originally posted by d1nnl2 on Oct 10, 2013
There is a racket going on with the clerks at 7-11. They are willing to buy your winning ticket at a discount. No need to fill that claim form or head to your lottery office. COLD CASH NOW!

I think they profit from this at TAX TIME, when they offset their winnings with supposed losses and since they have modest incomes, they can win with paying little or no income taxes.

Just a reminder to winners that there's an alternative to the complications of winning the lottery for you.

It's been a pick-4 racket for years and sometimes in pick-3. If you you have a winning ticket that might be difficult to cash because of a number of reasons, clerks will find someone to cash it at a price. Usually at a 20%+ price too. Whomever signs the back of the ticket and fills out the claims form is responsible to pay whatever taxes there are.
LottoMetro

Happyland
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September 1, 2013
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Oct 10, 2013, 6:53 pm

Russ Richards tried that and it didn't turn out as planned. lol

I don't think I would ever do this. Where I live they don't take out taxes except on winnings $5,000 and up.

I don't see player clerks as having any more losses than the average player. The only thing I can think of that would encourage them to do this is 1) keeping losing tickets that players throw away to offset taxes as well as get extra (aka discounted prize to player), or 2) offsetting with lotto ticket commissions (usually 5-10% depending on state). Or potentially both.

If the chances of winning the jackpot are so slim, why play when the jackpot is so small? Your chances never change, but the potential payoff does.
If a crystal ball showed you the future of the rest of your life, and in that future you will never win a jackpot, would you still play?

P&L % = Total Win($)/Total Wager($) - 1
Coin Toss

Zeta Reticuli Star System
United States
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January 17, 2006
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Oct 10, 2013, 7:44 pm

No, the clerk's name tag said Patel.

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.
tony869

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March 31, 2012
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Oct 10, 2013, 7:46 pm

Quote: Originally posted by Coin Toss on Oct 10, 2013
No, the clerk's name tag said Patel.

I have seen a clerk name tag say -->Dipshet
Jon D

Los Angeles, California
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January 5, 2011
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Oct 10, 2013, 8:10 pm

Quote: Originally posted by d1nnl2 on Oct 10, 2013
There is a racket going on with the clerks at 7-11. They are willing to buy your winning ticket at a discount. No need to fill that claim form or head to your lottery office. COLD CASH NOW!

I think they profit from this at TAX TIME, when they offset their winnings with supposed losses and since they have modest incomes, they can win with paying little or no income taxes.

Just a reminder to winners that there's an alternative to the complications of winning the lottery for you.

Yes, this has been reported in many news stories and undercover busts, catching clerks doing this.

It happens a lot with Scratch games. Some people would prefer not to deal with the taxes and reporting for a >$600 claim. So they make a deal with the clerk to give them a lesser amount in cash. The clerk can then easily scoop up bunches of losing scratch games from the trash can to offset any wins that he claims, so it would appear that there is no net income from those wins on his returns. It's a win-win situation.

The problem is, it's your burden to prove that the gambling win is NOT income to the IRS. If your records and tax preparation is not good and you didn't keep losing tickets, you could be challenged.(or audited) For most people, small 1K-2K wins do not mean they are profiting from the lottery that year. But they still have to prove that.

I have seen some things myself, but won't elaborate. We know Google crawls this forum, so that means the NSA sees everything that Google sees, and then the IRS can potentially see that info too. The IRS shouldn't be going after small time gambling wins with all the extra required paperwork and reporting. Such a waste of time and money.
RJOh

100

mid-Ohio
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March 24, 2001
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Oct 10, 2013, 8:32 pm

Quote: Originally posted by LottoMetro on Oct 10, 2013
Russ Richards tried that and it didn't turn out as planned. lol

I don't think I would ever do this. Where I live they don't take out taxes except on winnings $5,000 and up.

I don't see player clerks as having any more losses than the average player. The only thing I can think of that would encourage them to do this is 1) keeping losing tickets that players throw away to offset taxes as well as get extra (aka discounted prize to player), or 2) offsetting with lotto ticket commissions (usually 5-10% depending on state). Or potentially both.

"Where I live they don't take out taxes except on winnings $5,000 and up."

They don't where I live either, but at the end of the year the state sends you a W-G form for any winnings over $600 to be filed with your taxes.

* you don't need to buy every combination, just the winning ones *
LottoMetro

Happyland
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September 1, 2013
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Oct 10, 2013, 9:19 pm

Quote: Originally posted by RJOh on Oct 10, 2013
"Where I live they don't take out taxes except on winnings $5,000 and up."

They don't where I live either, but at the end of the year the state sends you a W-G form for any winnings over $600 to be filed with your taxes.

True....which means that technically, selling your ticket to a clerk could be seen as a form of tax evasion.

If the chances of winning the jackpot are so slim, why play when the jackpot is so small? Your chances never change, but the potential payoff does.
If a crystal ball showed you the future of the rest of your life, and in that future you will never win a jackpot, would you still play?

P&L % = Total Win($)/Total Wager($) - 1
noise-gate

* In hot pursuit of $ *

White Shores- California
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December 12, 2012
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Oct 11, 2013, 9:51 am

Quote: Originally posted by d1nnl2 on Oct 10, 2013
There is a racket going on with the clerks at 7-11. They are willing to buy your winning ticket at a discount. No need to fill that claim form or head to your lottery office. COLD CASH NOW!

I think they profit from this at TAX TIME, when they offset their winnings with supposed losses and since they have modest incomes, they can win with paying little or no income taxes.

Just a reminder to winners that there's an alternative to the complications of winning the lottery for you.

That happens from time to time with people who win under a grand, they want to avoid paying back child support etc. How anyone can attempt to evade a thing such as that shows a lack of moral & ethical standards.
Jon D

Los Angeles, California
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Oct 11, 2013, 10:52 am

Quote: Originally posted by noise-gate on Oct 11, 2013
That happens from time to time with people who win under a grand, they want to avoid paying back child support etc. How anyone can attempt to evade a thing such as that shows a lack of moral & ethical standards.

I wouldn't automatically assume there is illegal activity on the part of the player.

Maybe the guy didn't keep any tickets or record of what he plays, he just knows he blows a few grand a year on lottery. So one lucky year he wins $1K, and thinks, darn, now it's reported to the IRS as income, but I'm still a grand in the hole! (not to mention past years) Tough luck. The IRS don't care. So he goes to his friend at the liquor store and they make the deal.

It's really the clerk that is avoiding income taxes by claiming losses he did not incur come tax time to offset the win. That's why they go after clerks that do this in sting operations. The player is just doing paperwork avoidance.

The way the law is written, the >$600 win is assumed to be income unless you prove that you have a net gambling loss.(no income) And you can't carry forward losses from previous years. Is this fair? That's the way the law is written, a bit of government social engineering to discourage gambling I guess.

Myself, I keep a detailed record of every single ticket I buy, to be available if it's needed at tax time.
noise-gate

* In hot pursuit of $ *

White Shores- California
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December 12, 2012
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Oct 11, 2013, 12:38 pm

Quote: Originally posted by Jon D on Oct 11, 2013
I wouldn't automatically assume there is illegal activity on the part of the player.

Maybe the guy didn't keep any tickets or record of what he plays, he just knows he blows a few grand a year on lottery. So one lucky year he wins $1K, and thinks, darn, now it's reported to the IRS as income, but I'm still a grand in the hole! (not to mention past years) Tough luck. The IRS don't care. So he goes to his friend at the liquor store and they make the deal.

It's really the clerk that is avoiding income taxes by claiming losses he did not incur come tax time to offset the win. That's why they go after clerks that do this in sting operations. The player is just doing paperwork avoidance.

The way the law is written, the >$600 win is assumed to be income unless you prove that you have a net gambling loss.(no income) And you can't carry forward losses from previous years. Is this fair? That's the way the law is written, a bit of government social engineering to discourage gambling I guess.

Myself, I keep a detailed record of every single ticket I buy, to be available if it's needed at tax time.

Point well taken JonD- however you will note l posted " from time to time" not all the time, besides Chris Hansen did a piece on this exact same thing in the Bay Area where they conducted a sting operation and the vendor said that he " helps" people out who are trying to avoid reporting the full amount to the IRS & state local agencies who would pull off the sum owing for both back taxes & child support.l highlighted the child support aspect of my argument which to me is more serious of the two IMHO.
Like l said- you make a good point nonetheless.

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