Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 1770 - LOTTERY (GENERAL) › Section 1770.190 - Prize Payment, Claiming or Redeeming of Prizes and Transfers to Common School Fund

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 The prize structure may vary with each game and will be established at the
			 beginning of the game by the Private Manager, subject to the approval of the
			 Department. The prize structure, odds of winning, the manner in which winners
			 are determined, the claim period for the game and various procedural matters
			 will be set forth in game rules and play instructions.
b) A winning Lottery game ticket with a face
			 value of $599 or less may be redeemed by submitting the winning ticket to a
			 Lottery retailer that sells the type of game won, and may be paid by the Agent
			 directly from ticket sales funds on hand after the Agent follows verification
			 procedures that establish that the ticket is a winning ticket, examines the
			 ticket for alteration, verifies that the prize claim period has not expired,
			 and requests proof of age from the claimant if appropriate. iLottery claims up
			 to $599 or less are posted automatically to the player's Lottery internet
			 account, with no further action required by the internet player, unless the
			 player's winning exceed the maximum wallet threshold of $2000 at which point
			 the player's winnings will automatically by mailed to them via a check.
			 However, when a winning ticket is presented for payment at a Lottery retailer
			 after the expiration of any Agent claim period established in game rules, and
			 the winning ticket has a face value in excess of $600, or as the Department's
			 verification procedures require, the Agent shall follow the claim procedures
			 set forth in subsection (c).
c)
			 Winning Lottery Game Tickets with a face value of up to $25,000 may be redeemed
			 at Lottery prize centers, provided that the claimant is an individual or is a
			 partnership or other legal entity receiving payment under a Federal Employer
			 Identification Number and is not subject to offset of the prize due to amounts
			 owed the State of Illinois. Payment of prizes at prize centers is subject to
			 established claim periods, procedures and validation tests.
d) All claims for prizes of more than
			 $25,000, as well as claims for lesser prizes not paid by the Department at a
			 prize center or by an Agent pursuant to subsection (b), must be paid centrally
			 by the Department. Claimants may obtain claim forms from any Lottery office, by
			 mail or from the Lottery's website. When initiating a claim in person, a
			 claimant shall complete the name and address area on the reverse of the Lottery
			 game ticket and present proof of identification and the winning ticket. The
			 Department employee will assist the claimant in filling out the claim form,
			 which will be signed by the employee and by the claimant or his or her
			 authorized representative. The claimant or authorized representative will
			 receive a copy of the claim form as a receipt. The winning Lottery game ticket
			 and a copy of the claim form will be sent to the Department's offices in
			 Springfield, Illinois, for verification. When the ticket is verified as a
			 winning ticket, the prize will be mailed to the claimant.
e) Prizes in the amount of $1,000,000 or more
			 may be claimed only at the Department's prize centers or administrative offices
			 in Springfield and Chicago, or an alternate site mutually agreed to by the
			 Department and the claimant, and, absent extenuating circumstances, only by
			 appointment so that appropriate Department personnel are available to assist in
			 the claim process. The Director may require claimants, or the claimant's
			 authorized representative if the Department determines it necessary (e.g.,
			 claimant is physically unable, fear for the safety of the claimant) to
			 participate in a press conference as part of the claim process, in order to
			 assure the public that prizes are being awarded and maintain public trust in
			 the Lottery. For purposes of press conference requirements, the claimants are
			 the ultimate recipients of the prize, such as the beneficiaries of a trust, the
			 partners in a partnership, or the members of a club or group.
f) Prizes with a face value of up to $599 not
			 redeemed at a Lottery retailer but instead claimed by multiple winners playing
			 as partners or as a group, with common ownership of a winning Lottery game
			 ticket at the time of the prize drawing, shall be claimed in the individual
			 name of one of the partners or members of the group. Payment of any claim filed
			 on behalf of an individual group member shall be in the same manner as if filed
			 on behalf of a single claimant.
g)
			 Prizes of over $600 but less than $1,000,000 claimed by multiple winners
			 playing as partners or as a group, with common ownership of a winning Lottery
			 game ticket at the time of the prize drawing, may be claimed in the individual
			 name of one of the partners or members of the group, but must be accompanied by
			 a form 5754 setting forth the names, addresses, social security numbers (SSNs)
			 and prize shares of all other persons entitled to a share of the prize. The
			 Department will process a voucher payable to each individual listed on the form
			 5754, dividing the winnings as designated on the form 5754. The Department will
			 then process payment vouchers to the Office of the Comptroller for preparation
			 of warrants and end of year income tax withholding documents. Claim and payment
			 may be made in a partnership name only if the partnership furnishes a Federal
			 Employer's Identification Number (FEIN).
h) Prizes in the amount of $1,000,000 or more
			 claimed by multiple winners with common ownership of a winning Lottery game
			 ticket at the time of the prize drawing must be claimed in the name of a
			 partnership, group or other entity, subject to the limitations set forth in
			 this subsection (h).
1) If the prize claim is
			 made in the name of a partnership, the claim must be supported by a copy of the
			 partnership agreement signed by all partners, confirming that the partners had
			 agreed to share any prize prior to purchasing the winning Lottery game ticket
			 and specifying each partner's share of the prize. Payment will be made out to
			 the partnership as a single payee under the partnership's FEIN, or to each of
			 the individual partners under their SSNs, as requested in writing by the
			 partnership's authorized representative. The ticket and claim form must be
			 signed by one of the general partners on behalf of the partnership, and the
			 claim form must be accompanied by a form 5754 setting forth the names,
			 addresses, and SSNs of each partner. The partnership agreement shall be subject
			 to review by the Department's legal staff and may not contain provisions
			 contrary to law. When separate checks have been requested, the partnership must
			 additionally furnish payment instructions for each partner.
2) If the prize claim is made in the name of
			 a group, the claim must be supported by a written document signed by all group
			 members confirming that the members had agreed to share any prize prior to
			 purchasing the winning ticket. Group claims shall include a group name and the
			 address and SSN of the representative signing the ticket and claim form and
			 shall be accompanied by a form 5754 setting forth the names, addresses, SSNs
			 and prize shares of all group members.
3) Claims by other entities such as
			 corporations or trusts must be in the name of the entity as established
			 according to applicable law, provide the taxpayer identification number of the
			 entity and be signed by an authorized representative. Payment will be in the
			 name and under the taxpayer identification number of the claiming
			 entity.