Millions in lottery winnings go unclaimed every year
They’re discarded in the trash, hopelessly lost or rejected as worthless. And it’s causing millions of dollars to go down the tubes.
Ticket holders who let lottery cash prizes expire lose nearly $4 million a year in Wisconsin.
The money isn’t technically wasted, since it’s returned to state residents as property tax relief. But the winnings aren’t going to the rightful owner.
Kailey Bender, Wisconsin Lottery spokesperson, told USA TODAY NETWORK-Wisconsin that from fiscal year 2017 to 2019, unclaimed lotto prizes — which includes Powerball and Megabucks games — totaled about $11.9 million, an average of roughly $3.9 million each year.
The totals don’t include instant scratch tickets.
Bender said there are several possible scenarios behind unclaimed lottery winnings.
“The winner might be waiting until the last minute to claim the prize, the ticket could have been lost or it could have been tossed in the trash because it was deemed to be worthless,” she said.
“Players could also hear that the jackpot has been won elsewhere and think their ticket isn’t a winner ... when in fact, they could be the winner of a lower tier prize of $1 million, $50,000, $100, $7 or $4. That’s why we encourage everyone to always check their tickets. Even if you haven’t won the jackpot, you may have won another prize.”
Bender stressed that the majority of winnings don’t fall by the wayside.
From fiscal years 2017 to 2019, claimed lotto winnings totaled nearly $1.32 billion, an average of about $439.3 million for each of those years. The winnings include jackpots, along with payments made to the Multi-State Lottery Association to fund Powerball and Mega Millions prizes.
Unclaimed lottery winnings had been rising by millions of dollars before 2017.
USA TODAY NETWORK-Wisconsin reported in October 2016 that, dating back to 1997, more than $60 million in lotto winnings went unclaimed, according to lottery and state revenue officials. The total included more than $3.7 million in fiscal year 2016.
The amount typically ranged from $2 million to $4 million annually, state officials said.
While a major share of unclaimed winnings were of lesser amounts, there have been some eye-opening jackpots that were lost, including a $1 million Powerball prize.
That ticket, which was purchased in Eau Claire in September 2015, wasn’t redeemed before the 180-day deadline expired in March 2016. The odds of capturing a $1 million Powerball prize at the time were 1 in 5,153,633.
In July 2019, a lotto ticket worth $100,000 was bought in Menasha. The ticket-holder didn’t claim the winnings within 180 days, and the money was forfeited.
In addition, a Madison store sold a Powerball ticket that won $50,000, and the ticket-holder didn’t come forward by the May 7 deadline.