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Lottery Winnings and State Owned Debt
Lottery Winnings and State Owned Debt
Do you owe money on a student loan? Back child support? Back taxes and other debts? Then the North Carolina Lottery is definitely not for you! North Carolina sold its first lottery ticket in March 2006 and since then the state has collected $1.3 million in back child support, delinquent student loans, back taxes, and other debts including medical bills owed to state and local hospitals. Under North Carolina state law the lottery is required to check to make sure winners do not owe the government any money.
204 state lottery winners have paid over $274,000 in back child support since the North Carolina lottery was started. North Carolina lottery officials say that student debt and unpaid medical bills are common among lottery winners. Alice Garland, a spokeswoman for the North Carolina state lottery says that most lottery winners indicate that they are willing to pay their debts voluntarily. When asked what they will use lottery winnings for, most winners say that paying off their mortgage is their top priority.
For some lottery winners only a few hundred dollars are taken for debts while others have seen their entire jackpot confiscated by the state. Ms. Garland said that some winners who had their lottery winnings garnisheed were actually relieved to have past debts settled. One winner who won $100,000 on a scratch off ticket was happy his children were going to get the back child support he owed.
Of course many lottery winners are less than pleased to have their winnings seized. One $35,000 winner who walked out of the lottery office with nothing wondered aloud which former wife would get the money. Many state lotteries routinely check for state owned debt which includes back taxes and child support so it is wise for lottery winners to check the policies of the lottery in the state where they will collect their lottery winnings.
Several states are considering the possibility of offering online lottery tickets. Players could log on to a state website and make an online lottery purchase. Computer technology could also allow the state to check winners against a database of those who owe fines, back child support and other debts. Lottery players could also check for the latest lottery results and winners could be notified by email. Most players say they would appreciate the convenience that the ability to buy online lottery tickets would bring. Online lottery tickets would eliminate the need for a trip to a lottery retailer and most players would welcome the move online.
N Carolina to Add Mega Millions
North Carolina to Add Mega Millions
In the recent past most states offered lottery players either Powerball or Mega Millions. Many states are starting to offer players both mega jackpot lotteries in an attempt to boost lottery ticket sales and add more revenues to strapped state treasuries. Recently Tennessee agreed to offer its lottery players both lotteries and now North Carolina will offer players both Powerball and Mega Millions.
North Carolina’s lottery commission recently voted to add the multi state Mega Millions lottery to North Carolina’s lottery menu. The Mega Millions lottery is expected to be available for North Carolina lottery players by January 2010. The addition of Mega Millions will give players four chances to win every week during two weekly drawings. Mega Millions jackpots routinely top $100 million dollars. Despite astronomical odds both Powerball and mega Millions attract millions of players on a regular basis. Powerball odds stand at 1 in 195,249,054 and Mega Millions odds are 1 in 175,711,536.
States that offer lotteries usually offer only one of the multi state games. Both Virginia and Georgia are expected to offer both games in the future. Many see the addition of both lotteries in many states as a move towards a national lottery which could be offered as early as fall 2010. North Carolina Lottery Executive Director Tom Shaheen, who is also president of the association of Powerball states, expects a significant increase in ticket sales. An 18 to 25% increase in ticket sales is predicted which could mean $38 million to $52 million more lottery dollars.
Dipak Desai, manager of the Ballantyne BP on Ballantyne Commons Parkway which is one of the biggest Charlotte area Powerball ticket sellers stated, “In a bad economy like this, people are trying to look for every bit of luck they can find.” The addition of Mega Millions could actually create a few new jobs in North Carolina. Cathy Oreshack, a clerk at the BP station located at Spring Forest Road in Raleigh said, “Both of them are going to have huge jackpots two days a week, and that’s going to require more manpower in the store.”
If states want to get serious about increasing lottery generated revenue they may want to consider allowing the sale of online lottery tickets. Allowing players to buy online lottery tickets would boost sales and be a big convenience for players. Ideally players could buy online lottery tickets from a home computer or mobile device. Adding 21st century technology would easily benefit state lotteries and help states to close budget gaps.