Payout situation getting worse for Illinois lottery winners

Oct 15, 2015, 4:32 pm (44 comments)

Illinois Lottery

Suspends lottery payouts for winners of $600 or more

Feeling like you've hit the jackpot through the Illinois Lottery? Well, think again. 

State officials announced Wednesday that winners who are due to receive more than $600 won't get their money until the state's ongoing budget impasse is resolved. Players who win up to $600 can still collect their winnings at local retailers.

In a statement, the Illinois Lottery said that its account for writing out checks to winners would be exhausted as of Thursday, and the agency does not have the legal authority to replenish its own funds. Officials say the legislature must authorize the state comptroller to release the funds.

Despite the payment delay, lottery officials have continued selling tickets. 

Last month, the Illinois comptroller's office announced that without a budget for the July 1 fiscal year, the agency didn't have the authority to write checks of more than $25,000 and payments would be delayed.

"Once a budget is passed in Springfield, all outstanding claims will be paid," according to the statement.

Two lottery winners have filed a federal lawsuit against the Illinois Lottery for stopping payouts of prizes above $25,000 because of the budget impasse. The lawsuit seeks to force the lottery to pay winners of more than $25,000 with 5 percent interest and asks that the lottery be barred from paying its administrative or operational costs until the winners receive their prizes. The lawsuit alleges dozens await more than $288 million in prizes.

"If I was the one selling raffle tickets and I didn't pay, I would be sued or in jail or both," Rhonda Rasche, one of the winners who filed the suit, said in a recent interview.

Tuesday's announcement came the same day state Comptroller Leslie Munger said the budget impasse means next month's $560 million payment to Illinois' pension system will be delayed. She said retirees will still receive benefit checks as scheduled. But the impasse has led to an immediate cash shortage, altering the way her office will dole out payments to the system.

Despite the budget impasse, money is still being allocated through state laws and consent decrees at last year's rates while less revenue is coming in.

Lottery Post Staff

Comments

JordanT1021's avatarJordanT1021

just shut it down...

and what happened?

poor managment of funds

Drenick1's avatarDrenick1

This debacle will not end well. I have a feeling this is only the beginning for the financially crisis Illinois is currently experiencing.

Long Odds

Why is this story being recycled? No updated information, just the original story.

MADDOG10's avatarMADDOG10

Simple, just stop playing the Lottery for a week and see how quick the State reacts...!

savagegoose's avatarsavagegoose

you do know its only limited to $600, because that's the amount the stores have to payout! if i was stores i wouldnt pay any prizes, and say " send it to state lotto, i cAnt get nay money out of them " even the $2 ones

Drenick1's avatarDrenick1

Quote: Originally posted by savagegoose on Oct 15, 2015

you do know its only limited to $600, because that's the amount the stores have to payout! if i was stores i wouldnt pay any prizes, and say " send it to state lotto, i cAnt get nay money out of them " even the $2 ones

You bring up a good point. Retailers better be careful about paying out winners because there is a good chance they will not get reimbursed. I have a feeling even if they withheld lottery ticket sales proceeds as ransom for winning ticket payouts that the state would quickly come down on them. What what I have been told most retailers keep 5% of ticket sales and send the balance to the state lottery commission.

Gleno's avatarGleno

10/15/15 

The State of IL is getting nasty, suspending payments over $600.00

Their  lottery income must be hurting , just a little?

No Nod

sully16's avatarsully16

States surrounding Illinois

Wisconsin

Iowa

Missouri

Kentucky

Indiana

Those close enough can go play in those states.

mypiemaster's avatarmypiemaster

So why are state officials still getting their paychecks?

Technics's avatarTechnics

Quote: Originally posted by MADDOG10 on Oct 15, 2015

Simple, just stop playing the Lottery for a week and see how quick the State reacts...!

Best answer, they always seem to understand the loss when it happens. People can simply stop playing for a period of time. Problem solved. Smile

Stack47

Quote: Originally posted by MADDOG10 on Oct 15, 2015

Simple, just stop playing the Lottery for a week and see how quick the State reacts...!

I Agree! 

And there is no point in playing if they can't collect their winnings period.

dr65's avatardr65

The state needs to stop selling lottery altogether.

I would be livid if I couldn't collect a $1,000 winner....not collecting over $600

is PATHETIC.

There are going to be a lot of angry people. I wonder what notifications

they are posting at terminals...do most people know they won't be paid over $600??

I highly doubt it. If a state sinks to the level of...OR fails miserably like this one did...

selling but not paying winners….first of $25k and over, now of $600 and up, they

should be stripped of the priviledge of selling tickets....period. Where is the over-

seer for this abomination? They all need to be fired. Total mismanagement and greed

is bringing the house down and the players are suffering for it when THEY are the ones

that funded this out of control monster.

DELotteryPlyr's avatarDELotteryPlyr

Quote: Originally posted by Technics on Oct 15, 2015

Best answer, they always seem to understand the loss when it happens. People can simply stop playing for a period of time. Problem solved. Smile

I Agree!

so, the money is coming in FROM the players BUT only $600 or less gets paid??? WOW!! The funds in the accounts which receive/hold the lottery funds must be BUSTING from not paying any of it out!! 

And wonder what the fall out might be? Nothing? will the players just go back to playing when its is cleared up? 

marcie's avatarmarcie

What ... that is Crazy somebody going in the Pot  I hope that doesn't happen in Ohio although we have had some crooked officials from the Ohio Lottery trying to Cash a winning Jackpot but he got busted..

Todd's avatarTodd

Quote: Originally posted by Long Odds on Oct 15, 2015

Why is this story being recycled? No updated information, just the original story.

No, it's not recycled, you didn't read the story.  As stated in the story, previously winners of $25,000 or more couldn't get a payout.  Now it's everyone $600 or greater.  Things are getting worse.  The headline even states that.

Coin Toss's avatarCoin Toss

From the OP:

"If I was the one selling raffle tickets and I didn't pay, I would be sued or in jail or both," Rhonda Rasche, one of the winners who filed the suit, said in a recent interview.

Bingo!

Tony Numbers's avatarTony Numbers

Leading is easy. Following is the hard part. That's why you won't get the masses to stop playing outright. Mabye 70 percent are addicted and can't stop. I know I'd stop if they told me I won't get paid if I win.

Romancandle's avatarRomancandle

Wow and yet they continue to operate business as usual in terms of sales and promotions... No disclaimers anywhere.

Wow.

butch2030's avatarbutch2030

It is making the news on all the TV channels here in IL.  I for one went to WI this afternoon to buy my Mega Millions tickets there.  Purchased tickets for the next 8 drawings which will cover me until Nov 15.  After that, I will head back for another 8 drawings.  Illinois new name should be called  "The Titanic State."  It's not the Illinois Lottery that's doing this; its the Representatives in the State House.  By the time they agree on a budget, it will all ready be too late.  They will not have the funds to support it.  They cannot hear what the people are telling them as they all ready have their heads up their A##.... I certainly don't want to be a politician when the next election comes around......................

butch2030's avatarbutch2030

Quote: Originally posted by Tony Numbers on Oct 15, 2015

Leading is easy. Following is the hard part. That's why you won't get the masses to stop playing outright. Mabye 70 percent are addicted and can't stop. I know I'd stop if they told me I won't get paid if I win.

You don't have to stop playing, just go to a border state, and play their Lottery...............

Tinker

Why is the Lottery even tied to the State Budget? That is stupid.

Coin Toss's avatarCoin Toss

And Illinois is still pimping the Halloween raffle.

That should not be allowed. Hopefully they won't sell enough tickets.

Bang Head

RedStang's avatarRedStang

Quote: Originally posted by Tinker on Oct 15, 2015

Why is the Lottery even tied to the State Budget? That is stupid.

The Lottery is a huge cookie jar and all the Agencies have their hands in it. They say all the $ goes to education but we know that's BS.

maximumfun's avatarmaximumfun

... sure they arent paying over 600$ now - BUT they ARE giving out mugs to the winners who come in and get an I.O.U.  (as told by a co-worker who now HAS one of these mugs!!!)

 

What more could you ask for - a free mug!

ekem6078's avatarekem6078

If you know you're not going to get paid, WHY play in the state of ILL.  It should be against the law for them to even sell anymore tickets, knowing they can't paid off to the winners.  You're just giving away your money lol lol

lucky6025

So when you get your bills to pay in Ill you can send them an IOU along with taxes and any other outgoing bills tell them will pay them when you get this straightened out. Plus I said it before when this first started its time to get these people in charge impeached out of office NOW. when these people feel money coming  from their pockets things will get done.

Long Odds

Quote: Originally posted by Todd on Oct 15, 2015

No, it's not recycled, you didn't read the story.  As stated in the story, previously winners of $25,000 or more couldn't get a payout.  Now it's everyone $600 or greater.  Things are getting worse.  The headline even states that.

My mistake. Thanks for the clarification.

lucky6025

I think another way to correct this problem would be for the people of Ill to write to powerball and megamillion and state how disgusted they are with this practice and going to stop playing and i am sure those two organizations can threaten to remove their games from the state of Ill meaning alot of money for state use gone.I am pretty sure its up to these two organization if the games are allowed in each state and if people are not being paid what is owed them on time and people are not going to play then money being lost due to non play is a big thing..

KathyIL

My thoughts exactly.  Isn't that plagiarism? I read the exact same report on another website.  Our state comptroller announced Tuesday that next month's $560 million payment to the Illinois pension system will not be made.  Most people don't realize that the state employees pay a good deal of money into this retirement system.  It comes out of their pay checks.  I've quit playing, even scratch offs.

Smoke Fan

I live in Southeastern Illinois 10 miles west of Vincennes, IN.

No big deal to me if the Illinois lottery wants to commit fraud against it's players. I just cross the state line and play the Hoosier Lottery. And if I were to win, I would pack my rags and move to Indiana.

Get paid's avatarGet paid

Now this is some bullsh*t.Every person in Illinois should stop playing the lottery immediately.Until the politicians get their sh*t together.

Get paid's avatarGet paid

Quote: Originally posted by Get paid on Oct 16, 2015

Now this is some bullsh*t.Every person in Illinois should stop playing the lottery immediately.Until the politicians get their sh*t together.

This sh*t has made national news.

jjtheprince

Anyone still playing the lottery in Illinois is an idiot at this point.

A massive boycott would fix this.  If lottery money quit rolling in altogether for a few months, I'm sure the bumbling idiots in Springfield would be scrambling to figure out a way to pay winners in full.

If you're in driving distance of MO, come play here.

JADELottery's avatarJADELottery

Looks like the scariest thing this Halloween is winning the Lootery in Illinoisss.

Scared

hearsetrax's avatarhearsetrax

Quote: Originally posted by JADELottery on Oct 16, 2015

Looks like the scariest thing this Halloween is winning the Lootery in Illinoisss.

Scared

but I could see that happening Green laugh

savagegoose's avatarsavagegoose

Quote: Originally posted by jjtheprince on Oct 16, 2015

Anyone still playing the lottery in Illinois is an idiot at this point.

A massive boycott would fix this.  If lottery money quit rolling in altogether for a few months, I'm sure the bumbling idiots in Springfield would be scrambling to figure out a way to pay winners in full.

If you're in driving distance of MO, come play here.

I agree , IL players have to boycott.

Coin Toss's avatarCoin Toss

Inside Edition says that a lawyer says the non-payments now equal $288M

http://news.yahoo.com/families-outraged-illinois-fails-pay-210047539.html

Teddi's avatarTeddi

Quote: Originally posted by butch2030 on Oct 15, 2015

It is making the news on all the TV channels here in IL.  I for one went to WI this afternoon to buy my Mega Millions tickets there.  Purchased tickets for the next 8 drawings which will cover me until Nov 15.  After that, I will head back for another 8 drawings.  Illinois new name should be called  "The Titanic State."  It's not the Illinois Lottery that's doing this; its the Representatives in the State House.  By the time they agree on a budget, it will all ready be too late.  They will not have the funds to support it.  They cannot hear what the people are telling them as they all ready have their heads up their A##.... I certainly don't want to be a politician when the next election comes around......................

Sorry, but absolutely the lottery is partly to blame. I know of no successful business that has no deadline requirements. This is essentially a business enterprise handling millions of dollars which had nothing in its contract saying the state MUST pay out funds within a set period of time. They have a system set up to keep collecting funds no matter what financial upheaval the state is in, but that same system isn't set up to disburse the funds within a contractually designated timeframe. 

These are the very same people who tell you you better present your ticket within x months or we get to keep your money. You think they just overlooked the flipside to that?

Winners have to jump through very specific hoops to get access to that money, and Illinois can present them with an IOU instead?

And how is it they don't have the authority to stop the sale of tickets until funds can be released? Illinois can legally keep filling their coffers with lottery money and they don't have to pay out a dime until they feel like it. Who were the lottery attorneys who never thought to have contingent measures in place?

The state can ruin their brand (which they love to claim is very important to them and the reason winners identities have to be revealed) and they have no measures in place to make sure that would never have happened. Are they kidding? Oh yes, I most definitely think they have their share of blame in this.

CSense's avatarCSense

Quote: Originally posted by mypiemaster on Oct 15, 2015

So why are state officials still getting their paychecks?

Exactly. They should not get their paychecks if they're not doing their job.

Seattlejohn

Such BS.  State lottery funds are kept in separate accounts from general budget funds, because state officials know if the lottery refused to or couldn't pay out, players wouldn't play.  As they're seeing now, with Illinois players deciding to play in neighboring states.  Per an article I recently read, a state budget audit disclosed that the payout monies are there in their accounts.  For all intents & purposes, what state officials (including the Governor) are doing is holding state lottery winners hostage for political purposes, to exert pressure on others to agree to budget cuts/changes.  A lawsuit, which was just filed on behalf of state lottery winners, will itself be a winner in court, and will, more than likely, cost numerous politicians their careers.

ArizonaDream's avatarArizonaDream

good post ^^^^

Rep. Franks HB4295 (releasing lottery funds) was referred to the rules committee.   

A new bill,  HB4316, (suspending lottery sales) unless funds for winnings are also appropriated, was just introduced.

I'll bet the lawsuit by winners awaiting payment gets action before either of those bills goes anywhere. 

[ I tried to post links to the actual bills, but as a new member, I'm not allowed to post links]

myturn's avatarmyturn

Players should just boycott the Illinois lottery until the issue is resolved. Play other state lotteries, in some cases you may need an instate address to participate.

ArizonaDream's avatarArizonaDream

I'm sure sales are down. When/where/how do they release numbers so we can see by how much?

petelozia

Illinois unpaid lottery winners can get their tickets paid at WindyCityInvestments. Several winners have already received funds from this source.

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