Illinois Lottery Winners Go Unpaid

More Illinois Lottery winners are expected to sign on to a class action lawsuit since the state recently dropped its no-pay limit from $25,000 to $600. Lottery officials said their checking account is empty and can't be refilled until the state passes a budget. Prizes less than $600 can be claimed at retail locations.

Illinois Lottery winners of 0 or more will not receive their prize payments until the state passes a budget, according to the Associated Press. Agency officials said its checking account is depleted and cannot be refilled for now. Prizes of 0 or less can be claimed at the state’s 8,000-plus lottery retail locations.

In July the lottery began delaying payments for prizes of $25,000 or more. State law prohibits larger payouts since the legislature has to authorize the state comptroller to release the funds.

Last month two winners filed a class action suit against the Illinois Lottery, alleging fraud. Their attorney, Thomas Zimmerman Jr., said he plans to file an amended complaint later this month, with at least another 20 lottery winners whose payments also have been delayed. Zimmerman said more winners likely will join the lawsuit since the lottery has lowered the amount for immediate payouts. The lawsuit asks for the more than $288 million owed to Illinois lottery winners, plus 5 percent interest.

 “The state is violating the lottery law by using the money to pay the lottery’s operating costs and ongoing administrative expenses without first paying winnings. Is the lottery director not earning a paycheck? And all of the employees who run the lottery, how are they getting paid?” Zimmerman asked.

The lawsuit also named Illinois Lottery Acting Director B.R. Lane, its private management company, Northstar Lottery Group, and the Illinois Lottery Control Board.

Joe Joost of Chicago said he will join the lawsuit. He has not been able to collect $28,500 he won in a pool of 25 lottery players who won $1 million September. Joost said he and his pool will keep playing the lottery but not in Illinois. “We have one gentleman who goes to Michigan about once a week. If he’s going up to Michigan, we’ll play in Michigan. We have another gentleman who goes to Indiana a lot,” Joost said.

At Red Roof Liquor & Lottery in Columbia, near the Missouri state line, a worker said about 80 percent of his business comes from Missourians who cross the state line to play the Illinois Lottery, even though gas and cigarettes generally are cheaper in Missouri. But, he said, “For the last two months we’ve seen a decrease, since September. People are saying the state won’t pay them.”

Illinois Lottery proceeds dropped by $125 million, the first decrease since 2009, to $690 million during the fiscal year ending June 30.

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