What happens to lottery winners if states go broke?

They go back to eating squirrels.

 

CA is apparently now out of cash and not making payments on some things or sending IOU's. They did announce IOU's for tax returns. At any rate I think a similar thing would happen with lottery winnings(that is if the money doesn't just come from a separate fund) and if they defaulted it'd be law suit time. I'm sure paying out lottery winnings isn't high on their priority list.

 

I know some lotteries are actually insured "against" winning (After all, it's a casuality like any other, quite easy to compute, unlike many others).

Then again, if AIG is the insurer, it all gets one big mess

 

D@mn! There goes the THIRD leg of my retirement plan.

 

They will pay out in IOUs. Hope you don't need those to make interest payments because last I checked the Bank doesn't take monopoly money.

CA is now borrowing against 'Future' lottery winnings -- now that's a scary thought.

 

I'm hopeful to know in the next day or two if I'll be getting a cash return for my State tax filing I submitted last Friday. All I get on the number you call for status is their canned 'Your return has been received and is in process. Please check back for an update'. Did the smart people who won lotto money not take a lump sum (and from most stories I have read, most of them are broke!)?

 

I predict someone will make a fortune buying those California IOU's for pennies on the dollar and cashing them in when the state makes good on the certificate. Or is that illegal?

 

You would have thought the smart people would have accepted the 20 year payment for the full amount, took out an annuity, take their lump sum and let the annuity company deal with the state.

 

i don't know if its legal or not, but i'd imagine there would be a ton of people that would take them up on an offer like that.

the missouri lottery can't be hurting too much, i put 5 bucks into a scratcher machine, lo and behold i'm walking out of the store with 100 bucks in my pocket
first my college closes because of snow, and then i win 100 bucks, i'd say it's been a pretty good day for me,

 

hey Scott, can I borrow $100?