After years of struggling financially, Susan Rick thought things were looking up when her boyfriend won $250,000 from the Illinois Lottery last month. She could stop working seven days a week, maybe fix up the house and take a trip to Minnesota to visit her daughter.
But because Illinois lawmakers have not passed a budget, she and her boyfriend, Danny Chasteen, got an IOU from the lottery instead.
"For the first time, we were finally gonna get a break," said Rick, who lives in Oglesby. "And now the Illinois Lottery has kind of messed everything up."
Under state law, the state comptroller must cut the checks for lottery winnings of more than $25,000. And lottery officials said that because lawmakers have yet to pass a budget, the comptroller's office does not have legal authority to release the funds.
Prizes of $25,000 or less will still be paid at lottery claim centers across the state, and people who win $600 or less can cash in their ticket at the place where they bought it.
But the bigger winners? Out of luck, for now.
While lottery officials could not immediately say how many winners' payments were delayed or provide the total amount of those payoffs, the agency's website lists multiple press releases for winners since the current fiscal year began July 1. Including Chasteen, those winners represent millions of dollars in prizes.
"The lottery is a state agency like many others, and we're obviously affected by the budget situation," Illinois Lottery spokesman Steve Rossi said. "Since the legal authority is not there for the comptroller to disburse payments, those payments are delayed."
While Rossi said winners will eventually receive their money once a budget is in place, the promise is cold comfort for Rick.
"You know what's funny? If we owed the state money, they'd come take it and they don't care whether we have a roof over our head," Rick said. "Our budget wouldn't be a factor. You can't say (to the state), 'Can you wait until I get my budget under control?' "
Rick, 48, and Chasteen, 56, were expecting the money to come this week after he turned in his winning ticket July 20 to the lottery claim center in Rockford. Instead, they got a phone call this week from lottery officials saying the payment would be delayed because of the budget impasse.
"I was kind of in shock," Chasteen said. "I called them back the next day (and) said, 'Why am I not getting my money?' ... I think it's all wrong they're doing it this way. They should pay the money we're owed."
Rick said she also spoke with another lottery official, who tried to reassure her that the couple would get their money as soon as lawmakers pass a budget.
"And he tries to tell me it could be any day now," she said. "So I went online, and every article I read says they're not even close (to passing a budget). So don't give me that line. It could be months. You're collecting interest on our money that we should be collecting."
Rossi would not speculate on what effect the delays might have on the lottery's revenues if people choose to stop playing until the state resolves the budget crisis, and he was not aware of any effort to pass a special measure to allow the comptroller to pay out winnings while lawmakers and the governor haggle over the budget.
State Rep. Jack Franks, D-Marengo, has been a frequent critic of the state's handling of the lottery and said this is just another example.
"I sort of like the business model, because if we take the money in and never have to pay, how do we lose?" Franks said sarcastically.
"Our government is committing a fraud on the taxpayers, because we're holding ourselves out as selling a good, and we're not — we're not selling anything," Franks said. "The lottery is a contract: I pay my money, and if I win, you're obligated to pay me and you have to pay me timely. It doesn't say if you have money or when you have money."
Longtime lottery and gaming consultant Matthew Smith said Illinois lawmakers and lottery officials should have found a way to ensure winners were promptly paid regardless of whether there was a budget in place because failing to do so risks destroying consumer trust in the lottery.
"Any other brand that would come back and say, 'Well, we promised we would have this product, this service, and you will get it but we just can't tell you when' — any other brand that would do that to you, you would never use again," said Smith, vice chairman of Shapiro+Raj. "Is it going to affect their play? I think in the short term, if the state is able to find a way to get (winners) paid and paid quickly, and kind of puts this aside as a glitch, they can probably save things."
But if the delays stretch on indefinitely, Smith said, word will spread — especially if it affects people who play regularly.
"If that news just continues to go viral, and it goes back to their neighborhoods and people are talking about it, I think it could have an impact," Smith said. "And even if it affects sales by a percent or two, that's bad for the lottery."
Rick said she and Chasteen had to cancel their trip to see her daughter, which they planned to pay for out of Chasteen's lottery winnings. She said delays in payment will only discourage people from playing because it will seem like false hope that they will win.
"Who do you think buys lottery tickets most of the time?" Rick said. "Not millionaires. People who don't have a lot of money. You're messing with all those dreams."
Thanks to goodlukman for the tip.
That's awful I would be upset the lottery has lots of money it's just the vp want to have more to spend on luxury
That's ridiculous. Shouldn't the lottery have its own budget which includes lottery payouts.
Strange that they have to take the money from the state budget directly.
This lottery will probably go bankrupt.
Why would Lottery Funds be tied into the States budget? Are they robbing Peter to pay Paul?
I've always thought The Lottery is a separate entity.
When they do get payment, will they get paid interest?
Common School Fund... All profits deposited there for payment. So no budget... No plan... No payments...
B.S.
shame on IL
Probably not. Unless Illinois has a statutory interest rate for delayed payments, then the winner could potentially pocket an extra few hundred to upwards of $1K per month.
However, if calculated at a typical banking interest rate, the extra amount will amount to very little, if anything. Some banks charge commercial account holders with large balances an extra fee - in effect, a negative interest rate.
A work-around for IL players is sticking with low domination games, in particular, 3 and 4 digit number games. Some players seek out games with low payouts (under $600) to avoid claim issues.
Anyone still think the lottery money goes into education?
The money goes in there at one end and an equal or greater amount is taken out t the other.
The non-payment situation should suspend the lottery until the budget is passed.
This is not going to work out for the lottery. I can see them not passing a budget until after the last day to claim the ticket has passed. I can see it now the winners try to cash the ticket only to be told the ticket can not be claimed as it is passed the claim date. Who the hell puts the lottery budget in the state budget? How can you run out of money in a lottery?
Dirty rotten way to conduct the Lottery.
Next time my property taxes are due I will just slip in a nice little note saying that I can't pay yet because I have not finalized my yearly budget.
If the state is doing this, I feel that the winners are entitled to interest on the money that is being held until the budget is passed & funds are finally released. Plus a penalty on top of the interest. What would the state do if I didn't pay my taxes on time? What is good for the goose is good for the gander. What if all the players in the State of ILL stop playing the Lottery until the State budget is passed? I wonder if they are holding up payroll for the State House & Senate until the budget is passed???????????? How an amendment to the State Constitution that all Lottery Winners be paid no matter what circumstances.............
And I thought NC was a screwed up state Hey but our State Troopers get new cars all the time they got money for that but not for Schools
Another example where politicians don't care.
Illinois + politics = Crooked outcomes.
Sadly, a "separate budget" is not the norm now days as many states just want more and more and more to fund their pet projects in the general fund. Even more sad is the NCEL - North Carolina "Education" Fund which has been raided MANY years by the Governor, his Minions and getting worse by the day. I plan to start a petition (very soon) in NC that will ask for many changes to the blatant lottery "misnomers" (insert another word) in addition to the following as by mid September ALL teachers aid will be given walking papers due to budget short falls. 3.9 billion to the schools when they made a 500 MILLION profit with the fiscal year that just ended in June.........VERY SAD INDEED!
Part of the petition I will be starting soon:
7.) School Funding: As this has been trademarked as the North Carolina Education Lottery since its inception in 2006, there is a notion that ALL net funds are going towards education and NOT the general NC fund. In fact, the amount of money given to education from the lottery has continued to decline over the years as outlined in the news articles below, while profit continue to surpass all previous records (2 billion in ticket sales and 255million gross profit Q2-2015). In addition a direct quote from the news story outlines the following: "WRAL News found evidence that lawmakers have replaced or supplanted lottery dollars over time to help balance the state budget. Language prohibiting supplanting was included in the Lottery Act passed in 2005. However, a budget bill that same year eliminated the language, giving the General Assembly the freedom to move dollars." Supplanting language needs to be re-instated by the state General Assembly to ensure ALL available net profits from the NC Education Lottery are indeed ear marked ONLY for state education purposes and never diverted to the general fund.??
http://www.wral.com/news/local/wral_investigates/story/11319416/
?http://www.wsoctv.com/news/news/special-reports/9-investigates-schools-getting-less-lottery-years-/nSxqH/
?We the people demand this change.
Rick, 48, and Chasteen, 56, were expecting the money to come this week after he turned in his winning ticket July 20 to the lottery claim center in Rockford. Instead, they got a phone call this week from lottery officials saying the payment would be delayed because of the budget impasse.
Rick likes old chicks!
I agree 2,000,000% and NCEL is a prime example of your first point........IT DOES NOT!
I've been yelling about this for a long time, especially when they confiscate unclaimed lottery winnings and inform the public that it is going towards a good cause, namely education. If you look beneath the surface, it's complete
This may be an example of why taking an entire payment vs increments is something to think about...
Imagine the surprise that the megamillions or powerball jackpot winner in Illinois would exoerience, if they were to win now! The news headlines around the world.....
If that happened in the state I am in - MD, I would STOP playing any game that a win would be over $600. HIT THEM WHERE IT HURTS!!!
Stop playing and show them what happens when they pull this crap!
If you would read the story correctly you would realize that Rick is the "Old Chick" (your words not mine!).
It is Susan Rick and Danny Chasteen so by your standards I guess that Rick likes "Old Dudes".
And according to you when did a 8 year age difference become a big issue? Also, when did a 56 year old become an "Old Chick"? (Again, your words not mine).
I do hope they receive their lottery check soon!
If I were an resident in Illinois and was playing the jackpot games......I would take the time and energy to do a road trip to the neighboring state closest to my residence......
Illinois people, you can always take your gaming act to your neighbouring states..... go to Indiana, Kentucky, Missouri, Iowa, and Wisconsin.....I'm sure they will appreciate the business.....send Illinois a message.....
Screw you, Illinois!!!!!
They are still selling lottery tix???? And the masses are buying them????
If ever there was a reason to never take an annuity payment here it is. So many people here have told me payment is guaranteed regardless of what's going on in the state or country, and I've always said believing anything is 100% guaranteed when it comes to money is insane.
Seriously,who would have thought that they could tell you, "we acknowledge you won,we know we're contracted to pay you, but we've opted not to pay you until we work out our own stalemate".
I'm really surprised there aren't lawyers making a mad dash to the courthouses to sue on behalf of winners for breach of contract. I'm sure there's nothing in the consumer fine print saying the consumer has to be okay with receiving payment whenever the lawmakers feel like getting around to paying it. Who knew paying out a lottery win was a non-priority?
And how dare they keep holding drawings when they know full and well they aren't going to be paying the top winners? Stop taking money in until you can meet your obligations. Right now this is just fraud.
Ahh Illinois...just right across the river from me. Financially they are probably even worse off than Greece so this is not at all surprising.
This is why when I win big I am taking the lump sum. You cannot tell me u the ( government) know what kind of funds you are going to have in the future or what "changes" may be made. Give me my money now!
This story is complete B.S. The lottery is funded by ticket sales, not by the state. Players should immediately file a lawsuit against the state and ask for ten times damages.