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Lottery ends payouts over $600

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Illinois

* I told you this was coming last week. From a press release…

Due to the ongoing budget stalemate in Springfield, the Illinois Lottery is announcing a change in winner payment policy. All winners over $600 will experience a delay in payments. Previously, this policy only applied to those winnings over $25,000. Once a budget is passed in Springfield, all outstanding claims will be paid.

Since July 1, 2015, Illinois Lottery winners over $25,000 have experienced payment delays, since the Illinois Comptroller has not had the legal authority to disburse their winnings. Those players who have won under $25,000 have continued to receive their winnings, as they were paid at Illinois Lottery claim centers.

Beginning on October 15, 2015, the Illinois Lottery anticipates its check writing account will be exhausted, as there is no legal authority to replenish it with funds. Players who win $600 and below can continue to receive their winnings at any of the Lottery’s 8,000 retail locations statewide.

* More from the Tribune…

Two lottery winners whose payments were delayed last month filed a federal lawsuit against the Illinois Lottery, acting director B.R. Lane, its private management company Northstar Lottery Group and the Illinois Lottery Control Board. The suit is attempting to force the lottery to release prizes over $25,000 with interest and prevent the lottery from paying administrative and operational costs until winnings are released. The suit would prevent the sale of tickets for prizes over $25,000 until the money can be paid without delay.

“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, previously told the Tribune.

Emphasis added because that seems to be a bit much.

posted by Rich Miller
Thursday, Oct 15, 15 @ 8:04 am

Comments

My personal commentary only but I think winners should be entitled to interest.

Comment by Stones Thursday, Oct 15, 15 @ 8:11 am
State law already provides for interest. I’m uncertain how it would work for the lottery but I’m assuming it would work like any other invoice.

As for seeking to halt the payment of administrative costs, they are seeking to have one judge override another judges order (i.e. the order to pay employees).

I do think, though, that the lottery should have to cease selling tickets until they can pay out winnings. Unless they have legal authority to pay out winnings then it’s a fraudulent game right now in my opinion.

Comment by Demoralized Thursday, Oct 15, 15 @ 8:14 am
Lottery payments are made by voucher submitted by the Dept of Revenue so unless there is a special exemption interest should begin to accrue at the end of the proper waiting time. Unless it’s been changed in the last couple of years that would be 1% a month. More piling on the deficit…

Comment by Mouthy Thursday, Oct 15, 15 @ 8:20 am
Choosing to not pay winners, but continuing to pay various contractual providers (the private management company, administrative costs, the purchase of advertising, etc) are all a means of prioritizing and authorizing obligations. The Illinois Constitution mandates that this be done in a budget bill. This spotlights the problem that the Lottery prioritizes spending without the approval of the GA nor even the Governor.
The injunction to stop ALL administrative spending is exactly what should be ordered by a court.
If the Gov and the GA do not want to agree on a budget, then government operations should all stop except for very serious life, health and safety.

Comment by Anonymous Thursday, Oct 15, 15 @ 8:22 am
Paying interest is a no brainer, and I think the better case to make is that selling tickets without having the payout is fraud. Gaming, in general, requires the house to hold enough in reserves to meet projected payout.

But guaranteeing interest simply makes a lot of this go away in my mind.

Comment by Downstate GOP Faithless Thursday, Oct 15, 15 @ 8:30 am
Winners can sue, but then they only have a judgement against the state of IL. Once they get through the judgement though, they would be entitle to judgement interest. The problem is the case will likely take longer than the budget crisis.

But really, I am not a big fan of social programs, but I tend to worry a bit more over parents needing child care, elderly needing electricity, and folks needing healthcare, more than someone who has to wait for lottery money.

Comment by the Patriot Thursday, Oct 15, 15 @ 8:32 am
Enough of this mess, I want to hear more about the breakfast horseshoe at Charlie Parkers!

Comment by Anonymous Thursday, Oct 15, 15 @ 8:41 am
New motto for the lottery: You can’t win if you don’t play! And you can’t get paid if you don’t “reform”!

Comment by OutHereInTheMiddle Thursday, Oct 15, 15 @ 8:53 am
Lawyers win!
Lawyers win!

Comment by BIG R. Ph. Thursday, Oct 15, 15 @ 8:59 am
Say what you will about the Outfit’s numbers runners, they always paid.

– MrJM

Comment by MrJM Thursday, Oct 15, 15 @ 9:00 am
Dear Hawthorne Race Course Management,
I have an idea for a TV/radio/internet advertising campaign: “Unlike the Lottery, at Hawthorne Race Course, when you win, we actually PAY YOU your winnings!”
Include some pictures of happy people cheering and such. Should be a good ad campaign.

Comment by Roamin' Numeral Thursday, Oct 15, 15 @ 9:10 am
stop selling the tickets then…this state is ridiculous!!!

Comment by concern1 Thursday, Oct 15, 15 @ 9:15 am
I’ve hear that a new lottery game is being released. It’s called, “Pick the Budget Day.” The good news with this game is that the winner who selects the date when the budget gets signed knows he/she will get paid.

Comment by Norseman Thursday, Oct 15, 15 @ 9:16 am
So Bruce’s Big Plan to “shake up Springfield” is to stop paying lottery winners to break up unions to convince us that lower wages are a good thing for all of us.

I suppose with enough Jack Daniels I could draw that correlation.

Comment by Jack Stephens Thursday, Oct 15, 15 @ 9:17 am
All ticket sales should be suspended until full payments can resume. My guess is that most lottery ticket proceeds come from the folks that can least afford to play anyway, it would probably be a “win” for poor people if the lottery was abolished altogether.

Comment by Hokey Horner Thursday, Oct 15, 15 @ 9:18 am
Maybe they can get in on Vendor Assistance Program, or some version of it.

Comment by Cheswick Thursday, Oct 15, 15 @ 9:30 am
This could finally push Rauner to drop his unreasonable demands and get to work to figure out real solutions and end the budget stalemate. Just announce that these tickets will no longer be sold until a budget is reached, meaning that not only temporary but permanent damage will occur to the funding of education within Illinois.

Comment by Primary Target Thursday, Oct 15, 15 @ 9:32 am
How is this not criminal?

Comment by Criminal law ? Thursday, Oct 15, 15 @ 9:50 am
You’d think a bust out schemer could run a kosher numbers racket.

For a good yarn, check out “Kings: The True Story of Chicago’s Policy Kings and Numbers Racketeers” by Nathan Thompson.

It tells the story of the homegrown South Side numbers racket, and how the original operators re-invested the money back into the community, opening banks, pharmacies, grocery stores, etc.

It all went swell before Sam Giancana made his bones in the Outfit by murdering his way in and taking over.

Great stories from Ted “Double Duty” Radcliffe.

Comment by Wordslinger Thursday, Oct 15, 15 @ 9:58 am
I will say it was a bit weird to see IL Lottery commercials selling Halloween raffle tickets during Blackhawks games when they can’t even pay out their winners.

If the Court simply orders interest to be paid, nothing is going to happen. If the Court also says ticket’s can’t be sold that could result in payouts over $600 (basically only some of the $1 instants and Pick-3 without the fireball) then you might see some action to at least give the Lottery the authority to write checks to save the cash cow.

Comment by mrpapageorgio Thursday, Oct 15, 15 @ 10:24 am
Rich -

It doesn’t seem like too much to me.

I heard a new lottery ad last night, it begs the question, is the Lottery paying its advertising crew, but not winners? The priority ought to be paying winners.

Comment by Juvenal Thursday, Oct 15, 15 @ 10:43 am
Don’t think lottery winners are covered under the prompt pay statute. Lottery will lose revenue from tickets but have a windfall from interest earnings-how ironic.

http://ilga.gov/legislation/ilcs/ilcs3.asp?ActID=539&ChapterID=7

Comment by eeriter Thursday, Oct 15, 15 @ 10:51 am
How is it possible to advertise and sell tickets for multi-million-dollar jackpots when you know that the legal authority to pay them does not exist?

How is that not fraud?

Comment by Wordslinger Thursday, Oct 15, 15 @ 10:53 am
Simple solution here. stop playing the lottery. It’s a rip off anyway.

Comment by Arizona Bob Thursday, Oct 15, 15 @ 10:58 am
Just when you think it couldn’t get goofier in Illinois. BVR and the superstars become more and more like bumbling cartoon characters everyday.

Comment by Flynn's Mom Thursday, Oct 15, 15 @ 11:01 am
I know it may be a rip off and a sucker bet, but I still give the State about $5 each week.

And if I ever win big I would not mind waiting until the mental giants running this State get their act together!

Comment by illini Thursday, Oct 15, 15 @ 11:59 am
Ok. 600 is the cutoff for the vendor to pay the ticket. Are the vendors being reimbersed?? If the state is “delaying” reimbursement this could be 0 prizes paid.

Comment by Mason born Thursday, Oct 15, 15 @ 12:38 pm
Mason, good point. I suspect they are not.

Comment by Wordslinger Thursday, Oct 15, 15 @ 12:46 pm
Arizona Bob, that may be the solution to a problem, but not the problem we’re discussing here.

Comment by Cheswick Thursday, Oct 15, 15 @ 1:15 pm
Hey- we (Illinois!) made Here and Now on NPR about the Lottery, et.al. today.

Comment by Anon221 Thursday, Oct 15, 15 @ 2:13 pm
Information please. Where is the revenue going that is coming in from ticket purchases? Isn’t the lottery self contained and can cover these costs?

Comment by Dr. X Thursday, Oct 15, 15 @ 2:43 pm
Dr. X-

http://www.iasb.com/pdf/lottery.pdf

What is really ironic is the graphic on Page 2!

Comment by Anon221 Thursday, Oct 15, 15 @ 3:23 pm
Even when the state is paying winners, the lottery does make a bit of money for the state.

If the lawsuit is successful and the state can’t sell tickets with high payouts, fewer people play, lottery revenue decreases, and therefore the budget crisis gets even worse.

Comment by Robert the Bruce Thursday, Oct 15, 15 @ 3:28 pm
Gambling addicts will continue to play no matter what. If the state continues to sell lottery tickets, it will continue bringing in some money for the state/schools. However, I think false advertising is illegal, & the state should shut it down.

Comment by Mama Thursday, Oct 15, 15 @ 4:22 pm
Lottery money goes into the general fund. It does not add to the school budget.

Comment by Enviro Thursday, Oct 15, 15 @ 4:46 pm
“Lottery money goes into the general fund. It does not add to the school budget.” Since when?

Comment by Mama Thursday, Oct 15, 15 @ 5:04 pm
Lottery money goes into the general fund. It does not add to the school budget. This is how it has always been done. It was false advertising to justify the lottery to voters.

Comment by Enviro Thursday, Oct 15, 15 @ 5:16 pm
The reality is that the lottery doesn’t exist to increase education funding above what the state would provide without it.

Comment by Enviro Thursday, Oct 15, 15 @ 5:23 pm
Point of information:

One of the more enduring urban legends in Illinois is that the lottery was created to fund education.

Actually, when the legislation establishing the lottery was approved by the Illinois General Assembly in the fall, 1973 veto session, the proposal was part of a 17-bill, negotiated package that included creation of a regional transit authority for the Chicago area.

Because the deal included providing state assistance to mass transit in the Chicago region– most notably, the CTA– its architects saw the lottery as a way to replenish state funds they envisioned being used to subsidize the RTA. The bill’s sponsor said the lottery would generate an estimated some $60 million annually for the state’s general revenue fund.

Indeed, during House debate on the bill, some legislators who previously supported a lottery for education declared their opposition to the measure because lottery money would NOT go to schools.

Source: “Lottery, RTA bills OKd, go to Walker,” Chicago Sunday Sun-Times, December 2, 1973.

Personal note: I authored the lottery story as a member of the Sun-Times Statehouse bureau.

Comment by Charlie Wheeler Thursday, Oct 15, 15 @ 6:30 pm
Sad that Tony Accardo could appear to be a better
manager than the current administration, but on the brighter side won’t this make any arguments
that the pension debt is not a responsibility of the state of Illinois near impossible?

Comment by Illinoisvoter Thursday, Oct 15, 15 @ 6:56 pm
===Mason, good point. I suspect they are not.===

I believe the vendors’ lottery sales are swept into the Lottery Fund daily net of payouts and vendors fee they retain for selling tickets.

Comment by eeriter Thursday, Oct 15, 15 @ 11:00 pm