Lottery bill could limit winner's take

Oct 20, 2010, 8:17 am (101 comments)

Michigan Lottery

Michigan welfare recipients couldn't claim major prizes

Michigan lawmakers are being asked to prevent any person receiving welfare from winning major Michigan State Lottery prizes, and the idea has area residents and business people at odds.

If signed into law, the proposed legislation would prohibit a person getting welfare, food stamps or Medicaid from collecting a lottery prize of more than $600. If the prize were larger, the portion not paid to the winner would go to the state School Aid Fund, as does all unclaimed lottery prize money.

House Bill 6534 was introduced Oct. 5 by state Rep. Tom McMillin of Rochester Hills and co-sponsored by House members Jim Stamas of Midland, David Agema of Grandville and Pete Lund of Shelby Township. All are Republicans.

McMillin, a freshman legislator, said he introduced the bill because the concept had been on his mind and he wanted to "open up debate."

"The lottery is a bad gamble for a lot of people," McMillin said. "Some people play it for recreation. One too many times, I saw people standing in line who appeared to be poor and they were buying tons of lottery tickets."

McMillin said his goal is to keep people in need from wasting money.

"They should save it and buy some clothes and food — and make sure they're looking good when they go out for a job interview," McMillin said.

"You can't stop somebody from buying the tickets," he added, "so this was the only way to dampen the desire to throw their money away."

Local views about the proposal seem mixed.

"That ain't right," Paul Schultz, 53, of Port Huron said. "That's not fair. They paid for their ticket. It might help them out."

"Why should they do that?" said Norene Ruel, 59, of Port Huron. "I don't think that's right. If they want to spend their money on the lottery, let them."

Tom Bachman, 66, of Port Huron had a different perspective.

"If they're on welfare," he said, "they've got no business spending their money on the lottery."

Bachman's view was echoed by Najib Kakos, who owns Buscemi's/Beverage Barrel in downtown Port Huron, where lottery tickets are sold. He said the legislation would have his support regardless of its impact on lottery sales at his business.

"We have family members that own businesses in the Detroit area, primarily in really poor neighborhoods," he said. "Their lottery sales are unbelievable compared to ours.

"If you're barely making it, you shouldn't be gambling," Kakos said. "The money should be used for food and shelter. It doesn't matter if it hurts our sales — it's about doing what's right."

One owner of a ticket outlet disagreed.

"If a person got a million-dollar ticket, then they should win a million — or $50,000 or whatever," said Dennis Zielke, owner of Adair Market in Casco Township. "They should be able to have it."

Owners of several local stores that sell lottery tickets declined comment.

Andi Brancato, director of public relations for the Michigan Lottery, said there are concerns about the idea.

"There are some questions about the enforcement provisions which we don't really feel are in the bill right now," she said. "So, without any enforcement provisions, it's difficult for us to elaborate on the bill."

McMillin said enforcement would occur at the state level because $600 is the maximum amount that can be paid out at the store where the winning ticket was bought.

For any greater prize, "the winner has to come to Lansing to get it," he said, "and they can match up the name and ensure that they're not on state assistance."

McMillin said he knows of no other state that has adopted such a plan but said a similar bill was considered — and rejected — in Tennessee.

As for his own proposal, "I don't expect it to necessarily pass this year," McMillin said.

Port Huron Times Herald

Comments

sully16's avatarsully16

When I see someone drop $800 IN FOOD STAMPS THEN WALK OVER TO THE LOTTERY COUNTER AND DROP ANOTHER $50 FOR LOTTERY THEN HOP IN TO A NAVIGATOR WITH GOLD RIMS AND RUNNING LIGHTS, I'M SORRY BUT, THEY ARE REALLY NOT THAT NEEDY.

Food stamp abuse is running wild in Michigan, we now have people moving here to get better welfare bennies.

There are truly people in need here and when the system is abused it takes away from families and the brink of disaster.

savagegoose's avatarsavagegoose

this is a toughy, how about  they take what theyve ben paid in welfare out the prize? take the whole prize just because someones down on their luck.

are not a lot of people out of work over there now?

winning a nice amount will disqualify them from payments, and they will spend the money like drunken sailors.

sure the cash was a handout.

but man people have to have some hope in their lives.

jackpotismine's avatarjackpotismine

Quote: Originally posted by savagegoose on Oct 20, 2010

this is a toughy, how about  they take what theyve ben paid in welfare out the prize? take the whole prize just because someones down on their luck.

are not a lot of people out of work over there now?

winning a nice amount will disqualify them from payments, and they will spend the money like drunken sailors.

sure the cash was a handout.

but man people have to have some hope in their lives.

I Agree! They should take out the money from the welfare benefits they received. I think that would be a fair way to deal with this because it's not always easy to know who abuses the system systematically.

dpoly1's avatardpoly1

The politicians stealing money from the citizens!

AGAIN! Mad

 

We are citizens .... not sources of income !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Todd's avatarTodd

I'm not saying I agree or disagree with this legislation, but to those who say "subtract the welfare payouts from a prize (if they win one)", that does not solve the problem they are trying to address.  It does not discourage welfare recipients from playing, because the amount of welfare payout removed from a jackpot is negligible, compared to the overall jackpot.  Meanwhile, the chances of actually winning the jackpot is very small, and the probability that the welfare money is being spent on losing lottery tickets is much higher.

One thing I do agree with, as far as this legislation is concerned, is that people should NEVER gamble with money that they cannot safely afford to lose.  The lottery is entertainment, not an investment.

On the other hand, I am very much against government intrusion.  I do not believe the government has any right to tell people not to gamble.  That includes over the Internet.  (Just like how the government should not take from one group of people and give it to another.)

Perhaps the politicians should just grow a backbone and reform the welfare system, rather than tinkering with the lottery.

dpoly1's avatardpoly1

Quote: Originally posted by Todd on Oct 20, 2010

I'm not saying I agree or disagree with this legislation, but to those who say "subtract the welfare payouts from a prize (if they win one)", that does not solve the problem they are trying to address.  It does not discourage welfare recipients from playing, because the amount of welfare payout removed from a jackpot is negligible, compared to the overall jackpot.  Meanwhile, the chances of actually winning the jackpot is very small, and the probability that the welfare money is being spent on losing lottery tickets is much higher.

One thing I do agree with, as far as this legislation is concerned, is that people should NEVER gamble with money that they cannot safely afford to lose.  The lottery is entertainment, not an investment.

On the other hand, I am very much against government intrusion.  I do not believe the government has any right to tell people not to gamble.  That includes over the Internet.  (Just like how the government should not take from one group of people and give it to another.)

Perhaps the politicians should just grow a backbone and reform the welfare system, rather than tinkering with the lottery.

I agree with the sentiment, but the "government" is so intrusive these days, that the list of what we are allowed to do will soon be very short!

I am on Social Security Disability. I spend $2 to $4 a week either Mega Millions or Powerball. This is my only hobby. Should I win; does the "government" have the "right" to limit my winnings?

"Life, Liberty and The Pursuit of Happiness" - kinda' in the Constitution!

We the People! ....... NOT ......... "We the Government"

jackpotismine's avatarjackpotismine

Quote: Originally posted by Todd on Oct 20, 2010

I'm not saying I agree or disagree with this legislation, but to those who say "subtract the welfare payouts from a prize (if they win one)", that does not solve the problem they are trying to address.  It does not discourage welfare recipients from playing, because the amount of welfare payout removed from a jackpot is negligible, compared to the overall jackpot.  Meanwhile, the chances of actually winning the jackpot is very small, and the probability that the welfare money is being spent on losing lottery tickets is much higher.

One thing I do agree with, as far as this legislation is concerned, is that people should NEVER gamble with money that they cannot safely afford to lose.  The lottery is entertainment, not an investment.

On the other hand, I am very much against government intrusion.  I do not believe the government has any right to tell people not to gamble.  That includes over the Internet.  (Just like how the government should not take from one group of people and give it to another.)

Perhaps the politicians should just grow a backbone and reform the welfare system, rather than tinkering with the lottery.

I'm proud to be American but since I've been here (China), it seems that the USA is becoming more and more NOT '"for the people, by the people". I've been away from the USA for over 4 years and so much has changed. Don't think I will go back for a long while, except to visit.

savagegoose's avatarsavagegoose

here in australia, they have something called, " quarantined payments "

there is half the welfare check goes onto a gov card. and it cant be spent on stuff like smokes, alcohol gambling, other half  can be spent how the person likes.

Stack47

"One too many times, I saw people standing in line who appeared to be poor and they were buying tons of lottery tickets."

I don't know how appearing to be poor proves the players are on welfare because I stopped on my way home from working in a factory many days and I certainly wasn't dressed in my Sunday best. Anybody would have thought I was very poor especially when I got into the beater car I drove to work.

This bill won't prevent anyone from buying tickets or collecting over $600 when they can simply get someone to cash it for them for a commission. Part of the Dateline NBC investigation was about the relatives of store owners collecting multiple jackpots. None of the store owners said they were cashing the tickets for players who didn't want it know they won, but it's obvious they were because of the large number of winners.

If it's true that some Welfare recipients have enough money left over to purchase "tons of lottery tickets", the legislators ought to be investigating their Welfare Department and not worry how people dress when buying lottery tickets.

Jordans121's avatarJordans121

Just another way the rich get richer and the poor get more poor.

B$Rizzle's avatarB$Rizzle

If this thing does end up getting approved, at the very least they should allow welfare recipients to collect the winnings MINUS the amount they have been given in welfare. That way they would have all of their welfare checks paid back. I do not agree with disqualifying people from being able to win just because they are on welfare.

 

There are many of times where less wealthy people have won large jackpots. Its all about being lucky. Some less wealthy people are in financial ruin due to unforseen circumstances.

 

What if a child had to have a heart transplant which cost the parents every penny they had, and ended up having to recieve welfare? Why should those parents not be able to claim a jackpot if they won?

 

Not fair to ban them all

time*treat's avatartime*treat

If they really wanted to quit wasting taxpayer money, they'd close the State House.

BaristaExpress's avatarBaristaExpress

Look I think everyone here is missing the point! I think it needs to be done just like what ALL the states that have lotteries do already to those who win money over the $600.00 dollars that owe back state taxes or child support, take as much of it to satisfy just what they owe! And yes the Federal Government does the same thing to those who owe back child support or back Federal taxes that are getting a tax refund for any given year! They pay up every penny of what they owe before they can get any refund check!

And that's exactly what needs to be done to those who receive state assistance. Anyone who is on any state assistance program shouldn't be spending the money that's given to them by that states tax payers on gambling PERIOD! And those who are getting that assistance check and gambles that said money and wins any money over the the $600.00 dollars should have to forfit all of the winnings to that states assistance check program to satisfy all or part of what they have already received from that states assistance check program!!!!! No ifs ands or butts about it!

It's only fair to the tax payers of those states!

stripesnsolids's avatarstripesnsolids

Are they serious?  I sure hope this doesn't pass.  Did it ever occur to these lawmakers that these people are playing to get OFF welfare.  SMH

mjwinsmith's avatarmjwinsmith

Quote: Originally posted by dpoly1 on Oct 20, 2010

I agree with the sentiment, but the "government" is so intrusive these days, that the list of what we are allowed to do will soon be very short!

I am on Social Security Disability. I spend $2 to $4 a week either Mega Millions or Powerball. This is my only hobby. Should I win; does the "government" have the "right" to limit my winnings?

"Life, Liberty and The Pursuit of Happiness" - kinda' in the Constitution!

We the People! ....... NOT ......... "We the Government"

Social Securtiy payments are NOT welfare, you paid for that benefit during your working years each week by FICA taxes. Therefore, as you get benefits which you are well entitled to you should be able to do whatever the HELL you want and screw the Government for telling you what you can or cannot do.

Delta Draw

Quote: Originally posted by Todd on Oct 20, 2010

I'm not saying I agree or disagree with this legislation, but to those who say "subtract the welfare payouts from a prize (if they win one)", that does not solve the problem they are trying to address.  It does not discourage welfare recipients from playing, because the amount of welfare payout removed from a jackpot is negligible, compared to the overall jackpot.  Meanwhile, the chances of actually winning the jackpot is very small, and the probability that the welfare money is being spent on losing lottery tickets is much higher.

One thing I do agree with, as far as this legislation is concerned, is that people should NEVER gamble with money that they cannot safely afford to lose.  The lottery is entertainment, not an investment.

On the other hand, I am very much against government intrusion.  I do not believe the government has any right to tell people not to gamble.  That includes over the Internet.  (Just like how the government should not take from one group of people and give it to another.)

Perhaps the politicians should just grow a backbone and reform the welfare system, rather than tinkering with the lottery.

"Perhaps the politicians should just grow a backbone and reform the welfare system, rather than tinkering with the lottery."

I thought you just said you did not like government intrusion? You do not agree or disagree,... how wishy-washy. Government is not telling people they cannot gamble, read it again. Nowhere does it say they are tinkering with the lottery. State governments that have lotteries do not tinker, but rather run it like a business. Is there something wrong with the welfare department doing the same? Do you know the terms of use the recipient signs to? There are use restrictions by LAW. That is backbone.

 

This is reform. I like these Republicans! They have backbone!

Wait until you hear the entertainment entitlements like subscription TV and internet are withdrawn. Persue happiness on your own dime. Welfare people are malcontent when it comes to what they think the government should do for them so there is no happiness they could ever be granted or persue through welfare. Entertainment is not a constitutional entitlement, anybody who thinks it is, is touching themselves.

DD

KY Floyd's avatarKY Floyd

"Did it ever occur to these lawmakers that these people are playing to get OFF welfare."

Did it ever occur to you to consider the odds that they'll get off welfare that way? The lotteries generally pay out 50 cents on the dollar, and jackpots have odds starting at about 10 million to 1. On average it takes $10 million to win a jackpot of $5 million.  If you think it makes sense to let people who claim to need government assistance to get by to spend $10 million so that one of them can win a jackpot and stop collecting government assistance there's a major flaw in your thinking process.

"The politicians stealing money from the citizens!"

Where do you think the money  that people on government assistance get comes from? It's money from taxpayers. You know, money that you think  politicians stole from people. I've got no problem with the government collecting taxes for things that are essential, but giving money to people on welfare so that they can play the lottery misses that list by a wide margin.

It's really simple. If you're on welfare and you can find $10 to spend on lottery tickets then your welfare payments are at least $10 more than they should have been.

computerhead723's avatarcomputerhead723

wow  now  I  have  heard  everything !!!!  this  simpleminded   lawmaker  is  a  complete  fool  ;

this   attitude  driven  Klansmans   and  his  folowers  need  to  re-exaim  their  own  lives  before  telling  someone  elese  how  to  spend  their  moneyt.....

what  about  state contractors  and  lobbiest  for  the  wine and beer  industry???

they  get  tax  dollars  and  who  rents  to  the  government  office  space  ???

the  pennys  we  give  our  citizens  should  be  there  money  to-do  what  they  think  best.....

a  lucky  number  could  chang  their  whole  life  in  an  instant.........I Agree!

sully16's avatarsully16

Quote: Originally posted by stripesnsolids on Oct 20, 2010

Are they serious?  I sure hope this doesn't pass.  Did it ever occur to these lawmakers that these people are playing to get OFF welfare.  SMH

Getting a job, is getting off welfrare , not gambling with tax payer money.

gonnawinwatchme's avatargonnawinwatchme

I guess if this bill would move one state over, I wouldn't be allowed to play the lottery at all either.  Our family went on food stamps when my husband lost his job in April.  Our amount that we receive has since been reduced since he found another job that pays a fraction of what he was making.  So because we receive foodstamps ($88/mo., mind you...for a family of 5), I'm not allowed to spend a few dollars a week on a lottery?

time*treat's avatartime*treat

Quote: Originally posted by mjwinsmith on Oct 20, 2010

Social Securtiy payments are NOT welfare, you paid for that benefit during your working years each week by FICA taxes. Therefore, as you get benefits which you are well entitled to you should be able to do whatever the HELL you want and screw the Government for telling you what you can or cannot do.

When running for office, the pols like to TELL you it's a "benefit" or "entitlement" but it's nothing but a tax; the money goes into the General Fund. People think that by "paying into the system", they have the right to get payments back, later, but the courts have ruled otherwise.

Congress can change the rules on what they do with that money and who is "entitled" to receive it, at any time. See Flemming vs Nestor.

TheGameGrl's avatarTheGameGrl

Quote: Originally posted by gonnawinwatchme on Oct 20, 2010

I guess if this bill would move one state over, I wouldn't be allowed to play the lottery at all either.  Our family went on food stamps when my husband lost his job in April.  Our amount that we receive has since been reduced since he found another job that pays a fraction of what he was making.  So because we receive foodstamps ($88/mo., mind you...for a family of 5), I'm not allowed to spend a few dollars a week on a lottery?

Gonnawin, technically if you held a job thru life and paid in state taxes, you deserve the programs offered when times get ruff. Sorry that some folks arent understanding of that dynamic to life.

I disagree with any law that inhibits a tax paying citizen yet allows any person ( non american) to claim and leave with the winnings....we dont seem to have a problem with that antic....

If the laws are over 18 and breathing...then that is that....

The state made it profits...this is double dipping....

BaristaExpress's avatarBaristaExpress

Quote: Originally posted by gonnawinwatchme on Oct 20, 2010

I guess if this bill would move one state over, I wouldn't be allowed to play the lottery at all either.  Our family went on food stamps when my husband lost his job in April.  Our amount that we receive has since been reduced since he found another job that pays a fraction of what he was making.  So because we receive foodstamps ($88/mo., mind you...for a family of 5), I'm not allowed to spend a few dollars a week on a lottery?

gonnawinwatchme, I nor anyone else is saying that at all. I think most of us here have a problem with the assistance check that most welfare recipients receive is spent on the lottery instead of the children/family as intended (clothes, utility bills etc.)! I don't believe that a person who receives an assistance check is to spend any part of that money on any form of gambling, cigarettes or alcohol! That's the tax payers money that the state is giving away to people who can not support their family for whatever reason! And that's the only thing that cashed assistance check is to be spent on THE PEOPLE IN THAT FAMILY AS INTENDED, not the lottery!

dingo's avatardingo

He's a freshman legislator, who needs to build up some credits in the political arena, not protecting people. He must provide a more solid statistical research to convince people.

Just wait to see what happen to his votes next term. Because during this economic woes there are many people receiving "government" aids playing lottery. Their $1 dreams are being attacked; they will respond.

MADDOG10's avatarMADDOG10

Quote: Originally posted by Todd on Oct 20, 2010

I'm not saying I agree or disagree with this legislation, but to those who say "subtract the welfare payouts from a prize (if they win one)", that does not solve the problem they are trying to address.  It does not discourage welfare recipients from playing, because the amount of welfare payout removed from a jackpot is negligible, compared to the overall jackpot.  Meanwhile, the chances of actually winning the jackpot is very small, and the probability that the welfare money is being spent on losing lottery tickets is much higher.

One thing I do agree with, as far as this legislation is concerned, is that people should NEVER gamble with money that they cannot safely afford to lose.  The lottery is entertainment, not an investment.

On the other hand, I am very much against government intrusion.  I do not believe the government has any right to tell people not to gamble.  That includes over the Internet.  (Just like how the government should not take from one group of people and give it to another.)

Perhaps the politicians should just grow a backbone and reform the welfare system, rather than tinkering with the lottery.

The main reason I think they don't tackle welfare reform, is because they lack Intestonal fortitude, nor testicles or both...!..

They need to stay out of peoples lives, instead of trying to lead them..

TheGameGrl's avatarTheGameGrl

Quote: Originally posted by BaristaExpress on Oct 20, 2010

gonnawinwatchme, I nor anyone else is saying that at all. I think most of us here have a problem with the assistance check that most welfare recipients receive is spent on the lottery instead of the children/family as intended (clothes, utility bills etc.)! I don't believe that a person who receives an assistance check is to spend any part of that money on any form of gambling, cigarettes or alcohol! That's the tax payers money that the state is giving away to people who can not support their family for whatever reason! And that's the only thing that cashed assistance check is to be spent on THE PEOPLE IN THAT FAMILY AS INTENDED, not the lottery!

Barista, I respectfully differ with you ....a larger amount of folks are on it that use it wisely, yet its overshadowed and magnified by some of the incidences that are seen in larger city area groupings as opposed to small town workers who get yanked from jobs because the business ran off to mexico. In the matter of assistance checks...its very much managed the same way child support. PLease contact a lawyer on this, as I had to do, not a red cent needs to go to the child! Not one dern dime..its technically for the custodial adult , so until the laws change that child support actually goes to the childs welfare or care, we have no right to spew less then positive commentaries for welfare folks...statistically the average state residence(employed) pays less then half a percent  a year to welfare assitance...most is contributed by the business tax's...You pay more in gas tax each time you fill up the pump!!! yet no complaints for folks who fuel up....

I disagree with any law that impedes someone who is poor to begin...surpressing them.....THink about it...if the person wins, they will go BUY things...increasing the economy.. (which Republicans LOVE!! ) and this should be a positive.....

I really think some class actions could transpire against Michigan if they discriminate in this manner...

Daveyl

dpoly1, we are the exploited, taxed, bankrupted, audited, feed, fined, foibled and fund-generating mice in the cage with the wheel. Your declaration doesn't mean much to a lifelong purveyor/recipient of government largess, who bows only to lobbyists and BIG Business. Sorry to burst your bubble, but we lost the "Citizen" status quite awhile back.

Daveyl

mjwinsmith, you can thank your lucky stars for the Obama "Miracle of Hope", as the Emperor revamps healthcare, social security, Medicare and the economy. Why, you might even have FIVE DOLLARS to wager, once Obama implements his full agenda!

Diamon Life's avatarDiamon Life

Quote: Originally posted by dpoly1 on Oct 20, 2010

The politicians stealing money from the citizens!

AGAIN! Mad

 

We are citizens .... not sources of income !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Yes I agree. Also, this is discrimination of poor people and its unconsitunial and aginst our laws. What they should do is take what

monies they owe the system from their winnings, New York has a law that does just that.

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