SPRINGFIELD, Ill. -- The state of Illinois is delaying Illinois Lottery payouts of more than $600 because of budget problems, and neighboring states are welcoming the chance to boost their own lottery sales, reported the Associated Press.
Businesses including convenience stores near borders, particularly in Indiana, Kentucky and Iowa, said that they have already noticed a difference.
The Lottery problems stemming from Illinois’ budget impasse have led to a lawsuit and come amid questions about Illinois revenues and a shakeup in lottery management, said the report.
Many gas stations and convenience stores in states bordering Illinois said they first noticed an increase in August, when the state said payouts of more than $25,000 would have to wait because there was not authority to cut checks that big. Now those businesses are reporting a bigger flurry since October 14 when the Illinois Lottery announced it had lowered that threshold to payouts of more than $600.
The Illinois Lottery posted the following notice on its website and on social media:
Questions About Payment Delays?
If you won $600 or less: You may present your winning ticket at any one of our 8,000 retailers statewide for immediate payment.
If you won over $600 (all games, including Powerball and Mega Millions): Because of the ongoing budget situation in Springfield, payments to players who have won over $600 will be delayed.
Payment delays will occur because there currently is no legal authority for the Illinois Comptroller or the Illinois Lottery to issue checks. Please note that the funding to pay winners exists, but the legal authority to issue checks does not.
Once the budget has been passed and signed into law, prize payments will be processed in the order they were received, along with other State bills.
All players with valid claims will receive the amount of the prize less applicable taxes and any debt owed to the State.
We apologize for the delay and thank you for your patience.
Please make sure you present your winning tickets without delay.
Idalia Vasquez, who manages a GoLo gas station in Hammond, Ind., said irked Illinois residents have been streaming in to buy lottery tickets. She estimates ticket sales are up as much as 80% since Illinois’s second delay announcement.
“We have long lines, but they’re patient with it because Illinois is not paying,” Vasquez told AP of the store, approximately 20 miles from Chicago. “They’re all coming here and saying ‘I’m from Illinois, how do you play it here?’.”
The Hoosier Lottery even issued a statement welcoming Illinoisans.
Lotteries in Missouri, Indiana, Iowa and Kentucky say sales have increased since Illinois first set a cap on prize payouts. But they all caution that other factors might be in play.
In Kentucky along Illinois’ southern border, there was a 13% jump in scratchoffs from July 1 through October 9, compared to a 9% jump statewide.
One retailer with higher sales is Paducah’s Kentucky Tobacco Outlet, where most of customers are already from Illinois. According to manager Michael Coomer, those customers are now buying more and say trust in Illinois is gone.
Ticket sales in the St. Louis area were up 3.8% from June to Oct. 17, while Missouri saw a 3% jump, said the report. Iowa Lottery officials said five counties bordering Illinois are seeing recent sales that far outpace the overall 3.66% increase statewide this fiscal year compared to last. Hoosier Lottery officials said northwestern Indiana counties near Illinois also posted an increase. Wisconsin couldn’t provide figures.
The Illinois Lottery declined to release its ticket sales data and spokesperson Steve Rossi refused to answer questions about the impact of delaying payouts, said AP. He said revenues are still going to a school fund, which is required by law.
First-term Republican Governor Bruce Rauner and the Democrats who control the Legislature haven’t been able to agree on a spending plan for the fiscal year that began July 1. Rauner wants to enact pro-business changes before signing off on a budget. Democrats want Rauner to support new taxes. Meanwhile, most state money is being spent at unsustainable rates through state laws and consent decrees.
An attempt in the legislature last week to release money to lottery winners and others didn’t make it to the floor.
Winners have already filed a federal lawsuit seeking payment with interest.
Illinois is seeking a new lottery manager after terminating its contract with private company, Northstar Lottery Group, over concerns about management, the news agency reported. A legislative report showed the Lottery lost money last year for the first time since 2009. Under the termination agreement, Chicago-based Northstar will continue operations until 2017 when a new company is expected to take over.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.