California Lottery delaying payouts to winners

Mar 9, 2017, 7:53 am (51 comments)

California Lottery

If you win a California Lottery scratchers prize above $600, you'll now have to wait much longer to get that money.

The California Lottery says the reason is simple: they can't keep up with all the recent winnings.

Winners used to receive their payouts in less than 6 weeks, but due the high volume of recent winners the estimated time is now between 12 to 14 weeks.

While you can still redeem scratchers winnings of $599 or less at the stores where you bought them, $600 prizes require people to fill out a claims form which starts the claims process.

"It's not that we don't have the money," said Russell Lopez, California Lottery Deputy Director of Communication. "With all the recent winners, we're just playing catch up".

While some regular lotto players expressed skepticism over the delay, others understand and called it a big time first world problem.

"If I win $25,000, I can wait 12 to 14 weeks," said Artis Williams, manager at Lotto King in Downtown San Diego.

The surge in recent winnings of $600 or more has a little to do with luck, but it's also part of the California Lottery strategy.

"We are introducing more higher price-point Scratchers games that have a higher number of winners. We are finding that many of our players are liking the $10 and $20 games, and we recently introduced our second $30 Scratchers game," said Lopez.

Lopez said California Lottery is currently working on a plan to speed up the payouts on claims between $600 and $1000, which represents a large number of their claims.

NBC

Comments

Redd55

Call me skeptical.  They are claiming that due to all the high end winners that it has more than doubled the time for a pay out? If California scratchers were doing so well, I sure havent heard of it at my local store on on Lottery Post.  In fact, according to the store clerks, scratcher sales have dropped dramatically.

mypiemaster's avatarmypiemaster

Pure BS

ressuccess's avatarressuccess

Thanks for the information. Good thing I don't play these California lottery scratchers with huge payouts right now!

music*'s avatarmusic*

 I won $50.00 on a CA scratcher ($5 Million bonanzas) for my birthday present from a relative. I only play PB & MM so I am thankful. I purchased another set of PB & MM tickets for $40.00. I gave the remaining $10.00 to someone who will bet it in Reno, NV for me. 

After I win PB & MM here in CA I will have to wait for 6 - 8 weeks for my check. Plus the time I will use before claiming to get my ducks in a row.

 As an LP Member, I have experienced enough highs and lows living the lottery player life that I believe that I will be calm after a major win. I will be happy but not frantic. Thanks to all LP Members, Staff, and Todd.

Dance

Raven62's avatarRaven62

No Pity! Shades of Illinois!

GeneralMac

If you can't keep up, you fix the problem or get out of the lottery  business !

noise-gate

Quote: Originally posted by mypiemaster on Mar 9, 2017

Pure BS

I Agree!.. glad l don't play that game.

zephbe's avatarzephbe

Sounds like a cash flow problem.

paneagle

It's 1, 2, 3. ABZ. GET REAL. 

1) If you want to smell a rat, anyone can see the odor in California here. Not paying out winners is like the off-shore online casino that takes months to pay out, if at all.  States tax huge taxes out of winners after making the huge odds to win.

Lottery can pay out winners in seconds, as any bank can refund payments with a touch of a key.  2) Lottery is fixed and the scam of the Millenium (has been run since 1600's in the US) .  Money is for getting out of debt and control. This is why the States use it.  Education comes in a long last and way behind. 

We can still play and win. Judging from the comments here, not too many sharpies are out there to realize this, the scam nor the reality. 

3) If you 1) want to win the lottery or 2) Know what is going on with Lottery 3) read the paneagle blog on lotterypost.com

GeneralMac

Quote: Originally posted by paneagle on Mar 9, 2017

It's 1, 2, 3. ABZ. GET REAL. 

1) If you want to smell a rat, anyone can see the odor in California here. Not paying out winners is like the off-shore online casino that takes months to pay out, if at all.  States tax huge taxes out of winners after making the huge odds to win.

Lottery can pay out winners in seconds, as any bank can refund payments with a touch of a key.  2) Lottery is fixed and the scam of the Millenium (has been run since 1600's in the US) .  Money is for getting out of debt and control. This is why the States use it.  Education comes in a long last and way behind. 

We can still play and win. Judging from the comments here, not too many sharpies are out there to realize this, the scam nor the reality. 

3) If you 1) want to win the lottery or 2) Know what is going on with Lottery 3) read the paneagle blog on lotterypost.com

(4th paragraph)............."not too many sharpies out there "

 

and why are the "geniuses " who know how to win lotteries wasting their time posting here?

I would think they would be so filthy rich by now they would have better things to do with their time !

Redd55

There is no state tax on lottery winnings in California.  What they are checking for is:

  1. Back taxes owed -- Federal or State.
  2. Child support
  3. and they are with holding 25% for the feds.

There would have to be a court order for the above, meaning it would take seconds for the lottery people to check online if there are liens. So, it really shouldnt take double plus the time it did in the past. Since I doubt there are double the $600 and over scratcher winnings.

Bleudog101

Quote: Originally posted by Redd55 on Mar 9, 2017

There is no state tax on lottery winnings in California.  What they are checking for is:

  1. Back taxes owed -- Federal or State.
  2. Child support
  3. and they are with holding 25% for the feds.

There would have to be a court order for the above, meaning it would take seconds for the lottery people to check online if there are liens. So, it really shouldnt take double plus the time it did in the past. Since I doubt there are double the $600 and over scratcher winnings.

Correct me if I'm wrong.  Thought only federal taxes are taken out for wins over $1199.00 just the same as slot machines.  The IRS was going to change the rules on the casinos to $600, but thankfully the powerful lobbyists persisted and won and 'they' left it alone.  OTH the Nevada Constitution prohibits lottery games in the great state of Nevada...can hardly wait for Las Vegas next week!

Redd55

Quote: Originally posted by Bleudog101 on Mar 9, 2017

Correct me if I'm wrong.  Thought only federal taxes are taken out for wins over $1199.00 just the same as slot machines.  The IRS was going to change the rules on the casinos to $600, but thankfully the powerful lobbyists persisted and won and 'they' left it alone.  OTH the Nevada Constitution prohibits lottery games in the great state of Nevada...can hardly wait for Las Vegas next week!

That I dont know.

ortiz516

You put people in charge who do not know what they are doing.Here in Massachusetts you get your money the same day you put your claim in.Wait 6 to 12 weeks what a joke.Maybe when you buy a ticket tell the lottery you will pay them in six weeks.See how hard  they will laugh at you.Banana

Think's avatarThink

The Limit has been $600 forever now.

There has been plenty of inflation since it was first set at $600.

To reduce paperwork, the Limit should be bumped up to $1500.

Problem solved.

If a retailer cant pay $1500 they should post what they can pay. (We pay lottery claims up to $500 if that is what they can handle)

Most grocery stores could certainly pay up to $1500.

The stores that could pay the $1500 would probably be more popular than the ones that wouldn't.

Think's avatarThink

Quote: Originally posted by Bleudog101 on Mar 9, 2017

Correct me if I'm wrong.  Thought only federal taxes are taken out for wins over $1199.00 just the same as slot machines.  The IRS was going to change the rules on the casinos to $600, but thankfully the powerful lobbyists persisted and won and 'they' left it alone.  OTH the Nevada Constitution prohibits lottery games in the great state of Nevada...can hardly wait for Las Vegas next week!

I had heard that it is $1199 for slots and $1500 for Keno.

I have never hit for over $80 so I cant say if those limits are correct.

calady*714

Quote: Originally posted by Redd55 on Mar 9, 2017

There is no state tax on lottery winnings in California.  What they are checking for is:

  1. Back taxes owed -- Federal or State.
  2. Child support
  3. and they are with holding 25% for the feds.

There would have to be a court order for the above, meaning it would take seconds for the lottery people to check online if there are liens. So, it really shouldnt take double plus the time it did in the past. Since I doubt there are double the $600 and over scratcher winnings.

I Agree! On point! 

music*'s avatarmusic*

Quote: Originally posted by calady*714 on Mar 9, 2017

I Agree! On point! 

 Do you know anything new about the papers that need to be filled out when you claim the prize?

 I am thinking that if you decline the media availability and the grip and grin photo it should not take very long to do the rest.

 There will be a form to fill out for the CALottery to send you a W-2G next January.

 A form to claim the prize as a Lump Sum. 

 I have already filled out the Claim form with the exception of the numbers from the winning ticket.

Maybe an hour at the most?

 These CA Lottery District offices double check your forms and then send them to Sacramento. The Controller is the Department that cuts you the check. 

Then it is time to celebrate!Party

MotoX2

This makes me very wary of buying anymore scratchers.

Bleudog101

I'm positive it is $1199.00 for slots.  On newer machines a ticket will spit out if you are going over the taxable amount.  I have hit about 4-5 times over $2K and you are given the option of fed taxes on these low amounts, though not sure if you hit it really big.  I opted not to pay the feds until tax time on all the wins.  I can do much more with MY MONEY than the government could wasting it away in no time flat.

Kingofearth's avatarKingofearth

Quote: Originally posted by Bleudog101 on Mar 9, 2017

Correct me if I'm wrong.  Thought only federal taxes are taken out for wins over $1199.00 just the same as slot machines.  The IRS was going to change the rules on the casinos to $600, but thankfully the powerful lobbyists persisted and won and 'they' left it alone.  OTH the Nevada Constitution prohibits lottery games in the great state of Nevada...can hardly wait for Las Vegas next week!

Federal witholdings on lottery winners are for prizes worth $5,001 or more. 

Really? They're so confident that the casinos will remain forever that they changed the constitution to prohibit lottery games?

noise-gate

Quote: Originally posted by paneagle on Mar 9, 2017

It's 1, 2, 3. ABZ. GET REAL. 

1) If you want to smell a rat, anyone can see the odor in California here. Not paying out winners is like the off-shore online casino that takes months to pay out, if at all.  States tax huge taxes out of winners after making the huge odds to win.

Lottery can pay out winners in seconds, as any bank can refund payments with a touch of a key.  2) Lottery is fixed and the scam of the Millenium (has been run since 1600's in the US) .  Money is for getting out of debt and control. This is why the States use it.  Education comes in a long last and way behind. 

We can still play and win. Judging from the comments here, not too many sharpies are out there to realize this, the scam nor the reality. 

3) If you 1) want to win the lottery or 2) Know what is going on with Lottery 3) read the paneagle blog on lotterypost.com

You not making any sense: First you say the lottery is fixed and is a scam, then you say " we can still play and win." So which is it Pan? Did that thought come from your cloven hoof?

rcbbuckeye's avatarrcbbuckeye

This is kinda funny.

Most everyone here jumps on the "Lottery is fixed/crooked/scam, etc" bandwagon because there is a delay in payments from what CA lottery is claiming more winning tickets to pay. Even comparing it to Illinois's mess.

The thing that I'm wondering is if anyone is so suspicious, or untrusting, and maybe not just California, why in the world are you playing in the first place?

Redd55

Quote: Originally posted by rcbbuckeye on Mar 9, 2017

This is kinda funny.

Most everyone here jumps on the "Lottery is fixed/crooked/scam, etc" bandwagon because there is a delay in payments from what CA lottery is claiming more winning tickets to pay. Even comparing it to Illinois's mess.

The thing that I'm wondering is if anyone is so suspicious, or untrusting, and maybe not just California, why in the world are you playing in the first place?

I dont think it is a scam, I do think they are being grossly inefficient and it should be corrected.

rcbbuckeye's avatarrcbbuckeye

Quote: Originally posted by Redd55 on Mar 9, 2017

I dont think it is a scam, I do think they are being grossly inefficient and it should be corrected.

That's why I said "most".

Also, in the last paragraph it says they are working on a plan to speed up payouts on claims between $600 and $1000, which represents a large number of the claims.

So, the way the article reads is that they were caught by surprise, and they are working to correct it.

If, if... they have more winning tix now than in the past, that's a good thing.

sully16's avatarsully16

Quote: Originally posted by Raven62 on Mar 9, 2017

No Pity! Shades of Illinois!

That's their story and they are sticking it, I mean sticking to it.

Bleudog101

It is specifically written in the Constitution of Nevada prohibiting lotteries.  Personally I think it is stupid.  As mentioned in previous posts can play lottery inside casinos in OH, RI and MA and just outside the main casino areas in Atlantic City.  Done it all the aforementioned states.

 

So it is mandatory for federal withholding for $5001 and above?  That's the most I've ever won was $5K and didn't have the feds touch that money, just Indiana 3.4% which you don't get a choice.  Thank you for enlightening me.

Redd55

Quote: Originally posted by rcbbuckeye on Mar 9, 2017

That's why I said "most".

Also, in the last paragraph it says they are working on a plan to speed up payouts on claims between $600 and $1000, which represents a large number of the claims.

So, the way the article reads is that they were caught by surprise, and they are working to correct it.

If, if... they have more winning tix now than in the past, that's a good thing.

They know in advance how many winners there will be so there was no reason for them to be caught by surprise. And we are not talking about a minor delay but more than double the time previously.

atoz

I too call BS on that..... they are collecting the money in advance....  Now Hire More People to get things done.

what a bunch of bull hocky.

msharkey2001's avatarmsharkey2001

Quickest way for Cali Lotto to solve their problem is make like Powerball and Mega Millions and greatly increase the odds of winning a worthwhile prize. They'll get caught up real quick like then I'd bet.

ckrakowski

Quote: Originally posted by Raven62 on Mar 9, 2017

No Pity! Shades of Illinois!

My first thought as well.

TheGameGrl's avatarTheGameGrl

I do understand the need to do a background check on the claim an authenticity of the ticket. So I present a quick resolution, don't pay for the cost of the ticket and tell them you are simply waiting til you have vetted them for their state legitimacy. Seems fair to me ;). 

I do not believe they are understaffed. They are holding payouts to accumulate as much bank interest as they can. 

It all comes down to money...No matter how they spin this alternative fact.

Groppo's avatarGroppo

.

Did the lottery folks in Californy have any idea that the questions/comments here, would be raised.?

I hate controversy.  Especially  when something like delay in payments, when all the
Californy Lottery brain power, should be there, in Californy,
and not left up to [us] to figure out.

I find it upsetting, especially since someone here already made the comment that

they know how many winning tickets there are

So, like what's the delay about?

Even if one particular winner owes child support, then OK, tell them what they owe.
What is it that would stump Californy Lottery into delaying payments.

Major disappointment for its winners.  Does Californy even care?
Or are they just enjoying their weather so much, and all the beauty they have with all the sunshine, with all the medical pot, that they don't care? 

Yes, I've said I'll relocate there, and I will, if I win a significant prize. If I win, it'll mean I won here, first, and then I relocate, and then Californy Lottery can do whatever the heck it wants.
(except take my prize money back. . . . who knows? maybe they can find something. naw, horrible thought).

weshar75's avatarweshar75

When mom won $5000 off of a vlt machine she got her check from the main office in salem oregon in less than 30 minutes from the time we got their at 8:00 a.m.  We had to wait for the bank in salem to open to cash her check.  I sure do like winning money.-weshar75

US Flag

grwurston's avatargrwurston

Quote: Originally posted by Redd55 on Mar 9, 2017

Call me skeptical.  They are claiming that due to all the high end winners that it has more than doubled the time for a pay out? If California scratchers were doing so well, I sure havent heard of it at my local store on on Lottery Post.  In fact, according to the store clerks, scratcher sales have dropped dramatically.

Sounds like a bunch of BSto me.  They have the money, but it takes 3 to 3 1/2 MONTHS to cut the check. Yeah, right.

How many winners do they have, that it takes that long?

Bleudog101

Off the subject here New Hampshire mssharkey2001, but where was the million dollar Mega  Millions ticket sold???  Hope it was YOU!

Igamble's avatarIgamble

Ponzi scheme ? Pay the big wins first then the smaller ones ?

alta-babe's avataralta-babe

Quote: Originally posted by TheGameGrl on Mar 9, 2017

I do understand the need to do a background check on the claim an authenticity of the ticket. So I present a quick resolution, don't pay for the cost of the ticket and tell them you are simply waiting til you have vetted them for their state legitimacy. Seems fair to me ;). 

I do not believe they are understaffed. They are holding payouts to accumulate as much bank interest as they can. 

It all comes down to money...No matter how they spin this alternative fact.

"I do not believe they are understaffed. They are holding payouts to accumulate as much bank interest as they can. 

It all comes down to money...No matter how they spin this alternative fact."

 

I completely agree with the above statements.  They are full of BS.  When claiming pick 3 prizes over $599 last Sept they gave me the same story.  They said they have lots of winners, and can't process them fast enough.  So I asked why don't they hire more staff ??  Their answer.........."Oh we did, but it takes a while to train them"  So it's been at least 6 months and they still don't have enough trained staff ??  Yeah, right. 

Mad

noise-gate

In a way l can see how my State Lottery operates. Given that it takes a lottery jackpot winner " up to 8 weeks"   to collect their cheque out here, they probably figure that if those winners can wait- why not these guys. It's pretty vexing for the winners of both games.

msharkey2001's avatarmsharkey2001

Quote: Originally posted by Bleudog101 on Mar 10, 2017

Off the subject here New Hampshire mssharkey2001, but where was the million dollar Mega  Millions ticket sold???  Hope it was YOU!

Hey Bluedog that wasn't me but I wish! $1,000,000 winner was sold about 30 miles south of me in the seaside community of Hampton. Interesting to note that it was sold at a Hannaford's Supermarket there, which is the same supermarket chain that sold the massive Powerball jackpot winning ticket in Raymond, NH last July. I always get my lottery tickets at Hannaford's in my hometown in hopes that I can continue the tradition of winning! Good luck to you with your lotto purchases.

rcbbuckeye's avatarrcbbuckeye

Quote: Originally posted by alta-babe on Mar 10, 2017

"I do not believe they are understaffed. They are holding payouts to accumulate as much bank interest as they can. 

It all comes down to money...No matter how they spin this alternative fact."

 

I completely agree with the above statements.  They are full of BS.  When claiming pick 3 prizes over $599 last Sept they gave me the same story.  They said they have lots of winners, and can't process them fast enough.  So I asked why don't they hire more staff ??  Their answer.........."Oh we did, but it takes a while to train them"  So it's been at least 6 months and they still don't have enough trained staff ??  Yeah, right. 

Mad

Maybe they are holding payouts. Who knows.

Bank interest is probably not one of the reasons. Just take a look at what interest rates are that banks are paying.

.50%

wander73's avatarwander73

That is rediculous.  I have never heard of that one before.  Here in Philly there was one place that I recall that if you had a winning ticket of anything they didn't have enough money to pay back.  So I wound up going to the beer store right behind it.   

 

Someone needs to audit the CA lottery then.

Raven62's avatarRaven62

Quote: Originally posted by rcbbuckeye on Mar 9, 2017

This is kinda funny.

Most everyone here jumps on the "Lottery is fixed/crooked/scam, etc" bandwagon because there is a delay in payments from what CA lottery is claiming more winning tickets to pay. Even comparing it to Illinois's mess.

The thing that I'm wondering is if anyone is so suspicious, or untrusting, and maybe not just California, why in the world are you playing in the first place?

If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.

Raven62's avatarRaven62

Quote: Originally posted by ckrakowski on Mar 9, 2017

My first thought as well.

Like the elephant: It might be hard to describe but you'll know it when you see it.

Bleudog101

Quote: Originally posted by msharkey2001 on Mar 10, 2017

Hey Bluedog that wasn't me but I wish! $1,000,000 winner was sold about 30 miles south of me in the seaside community of Hampton. Interesting to note that it was sold at a Hannaford's Supermarket there, which is the same supermarket chain that sold the massive Powerball jackpot winning ticket in Raymond, NH last July. I always get my lottery tickets at Hannaford's in my hometown in hopes that I can continue the tradition of winning! Good luck to you with your lotto purchases.

HANNAFORD:POWERBALL, same amount of letters, so hope your strategy works.

We used to go to Hampton Beach, NH, growing up in Mass.  Folks sometimes look @ me crazy when I tell them the Atlantic Ocean touches New Hampshire.  I even remember it was a Jeopardy! clue years ago.

No advance plays for next week; Las Vegas dethaw here I come.

Millionaireclub

With modern technology, kind of odd that there is a waiting process. Seems like a transaction should take place, which allows to have the money wired to one's account within 1-3 days.

fos1474

Late to the party...lived and played CA lottery...won pick 3, 4 and scratch offs. Won over $6K in pick 4 in 2014. Had to wait almost 2 months for my money. CA claimed it takes them that long to check for debts owed to state. I call BS in this day of technology. Think of the millions in interest CA and other states make by "holding" your money.

Look at GA (played there too)...they pay quickly and state on their website how long you have to wait for your money. I won pick 4 and got my check the same day I filed my claim form!  If GA can do it, other states can too! 

Lotteries want to know how to attract players? Pay out more prizes! And the state legislatures (especially the ones who vehemently opposed gambling) need to quit stealing the revenues to pay "Paul". 

1 last rant..the gambling posse in NV that wrote out a lottery in their constitution but approved a hockey and football team ain't thinking straight. They will eventually change their tune when their voters demand the money going to CA lottery be spent in NV. I spent thousands playing CA games while living in Las Vegas. The lines are huge at the CA-NV state line (Primm) and this location has many NV winners, including me!

JAMORA's avatarJAMORA

Quote: Originally posted by ortiz516 on Mar 9, 2017

You put people in charge who do not know what they are doing.Here in Massachusetts you get your money the same day you put your claim in.Wait 6 to 12 weeks what a joke.Maybe when you buy a ticket tell the lottery you will pay them in six weeks.See how hard  they will laugh at you.Banana

No kidding! They don't take a promissary note when I buy the ticket...don't give one if I win! Who would even play?

MaximumMillions

Quote: Originally posted by fos1474 on Mar 28, 2017

Late to the party...lived and played CA lottery...won pick 3, 4 and scratch offs. Won over $6K in pick 4 in 2014. Had to wait almost 2 months for my money. CA claimed it takes them that long to check for debts owed to state. I call BS in this day of technology. Think of the millions in interest CA and other states make by "holding" your money.

Look at GA (played there too)...they pay quickly and state on their website how long you have to wait for your money. I won pick 4 and got my check the same day I filed my claim form!  If GA can do it, other states can too! 

Lotteries want to know how to attract players? Pay out more prizes! And the state legislatures (especially the ones who vehemently opposed gambling) need to quit stealing the revenues to pay "Paul". 

1 last rant..the gambling posse in NV that wrote out a lottery in their constitution but approved a hockey and football team ain't thinking straight. They will eventually change their tune when their voters demand the money going to CA lottery be spent in NV. I spent thousands playing CA games while living in Las Vegas. The lines are huge at the CA-NV state line (Primm) and this location has many NV winners, including me!

If you use the Lottery Places App that's advertised on the side bar of this web site, it shows you the next nearest place to play the lotto. There are a few stores 5 minutes from that Primm place, just to let you know.

RL-RANDOMLOGIC

Anyone else smell something fishy???  If the time to receive a check doubled then does that mean winners have also doubled?

RL

RL-RANDOMLOGIC

Quote: Originally posted by ortiz516 on Mar 9, 2017

You put people in charge who do not know what they are doing.Here in Massachusetts you get your money the same day you put your claim in.Wait 6 to 12 weeks what a joke.Maybe when you buy a ticket tell the lottery you will pay them in six weeks.See how hard  they will laugh at you.Banana

Here in MO they pay up to 25K the day the claim is filed but it can take up to two weeks for larger prizes.

The lottery says it has to collect all the money from retailers before it cuts the check.  12 to 14 weeks, I

wonder if they pay interest?

RL

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