No money to pay Chicago lottery winners

Lottery winners in Illinois are unable to get the cash because of the state's budget crisis. Photo / iStock

Lottery winners in Illinois are being forced to accept an IOU rather than cash because the state has been unable to solve its budget crisis.

Gamblers who win more than $600 (NZ$880) will not be given cash until the financial situation is brought under control. In July the state said that payments of more than $25,000 (NZ$36,000) would be temporarily suspended, but Friday's announcement of the lower threshold has left winners furious.

"You know what's funny? If we owed the state money, they'd come take it and they don't care whether we have a roof over our head," said Susan Rick, 48, who won $250,000 (NZ$366,000) in July. "Our budget wouldn't be a factor. You can't say to the state, 'Can you wait until I get my budget under control?'?"

Two lottery winners last month filed a law suit against the lottery, demanding their money with interest.

"If I was the one selling raffle tickets and I didn't pay, I would be sued or in jail, or both," said Rhonda Rasche, one of the winners who filed the suit, in an interview with The Chicago Tribune.

Millions of dollars in backdated claims are now owed to winners.

The problem has arisen because the state of Illinois has, for five months, been unable to agree on its budget. Bruce Rauner, the Republican governor, has failed to secure approval for his "Turnaround Agenda" from the Democrat-ruled General Assembly.

It has meant that state-funded services have been reduced. Programmes for subsidised child care, victims of domestic violence, people with disabilities, and the elderly who receive home care have suffered from cuts. No deadline has been set for the budget agreement.

"For the first time, we were finally going to get a break," added Ms Rick. "And now the Illinois lottery has kind of messed everything up."

Jack Franks, a Democrat representative in Illinois, has been a stern critic of the state's lottery system.

"I sort of like the business model, because if we take the money in and never have to pay, how do we lose?" he said sarcastically. "Our government is committing a fraud on the taxpayers. The lottery is a contract: I pay my money, and if I win, you're obligated to pay me and you have to pay me timely." But the state of Illinois said it had little choice.

"The lottery is a state agency like many others, and we're obviously affected by the budget situation," said Steve Rossi, the Illinois lottery spokesman.

"Since the legal authority is not there for the comptroller to disburse payments, those payments are delayed."

Winners, however, remain unimpressed.

"Who do you think buys lottery tickets most of the time?" said Ms Rick. "Not millionaires. People who don't have a lot of money. You're messing with all those dreams."