Can You Buy Lottery Tickets Online From Another State

broken image


That rollover jackpot is getting huge again, which tends to get people thinking creatively about what happens if you buy a Powerball ticket in another state… i.e. typically, can you escape paying your own states higher tax rate!?

You can buy a lottery ticket in any State you wish. However if you have a winning ticket you must cash it in the State from which you purchased it. Every lottery has a WIN file for each game it sells. The WIN file belongs to that State. Can You Buy Lottery Tickets Online From Another State? Gambling laws can be tricky in the United States. US federal laws forbid gambling, but states have the right to allow lotteries— only within the state's borders. That's how you get places like Georgia and Illinois, which have laws that allow residents to buy tickets online.

Before I get into this, let's be really clear and get this out the way:-

DISCLAIMER: I am not a legal expert of any kind, nor a tax expert. I can tell you what generally happens, but if you want a definitive advice for your own personal situation then you need to ask your tax office or a licensed tax professional.

1. Are You Allowed To Buy A Ticket In Another state?

There's no rule against it. If you're on vacation in another state, you can play in that state. If you live near a state border and can easily reach a store in the other state, you can play. Even people from overseas can buy tickets too!

So you do NOT have to be a state resident to be able to play in that state, or indeed any state.

2. Who Pays The Prize?

Can You Buy Lottery Tickets Online From Another State

The next thing to realise if you buy a lottery ticket in another state, is that you cannot claim the prize in your state. You have to claim from the state where you bought the ticket.

Yes, this even applies to multi-state games like Powerball and Mega Millions. This is because each state has it's own lottery company that runs all the games that you can play there.

So for small prizes you can still claim from a store as normal – but it will have to be a store in the state where the ticket came from. Your local store will not be able to pay it. For larger prizes you will have to send in a claim form to the lottery company for that state where you bought the ticket.

3. What About The Tax Then?

Can i buy lottery tickets online from another state

Some people think they can beat the tax system by crossing state lines to buy their tickets.

'My state has higher tax than the neighboring state, so I'll be cunning and get my ticket there. Then when I hit that massive Powerball jackpot I'll save millions in tax…'

Wrong!

This kind of cunning lottery system to beat the tax man will not work anyway. And of course tax evasion will get you a jail sentence.

For a jackpot the lottery company will deduct the tax before you even get the prize anyway. So the federal and state taxes for the state where the ticket was bought will already have been paid before the money hits your bank account.

However, your state will want their state taxes too!

So you have to pay double tax?

Well no, typically not. Because you will have already paid a chunk of state tax to the ‘other state', your state will take this into account. So you only have to pay the ‘difference'. That is, the extra that you thought you were saving by playing in the neighbor state!

Then there are the smaller wins of course – taxes are due on these too of course, but not deducted in advance. You should be entering these as 'other income' on your IRS returns anyway, but what if they are wins from another state? And can you deduct the cost of what you spent on tickets from those winnings?

Online

This rapidly becomes a very confusing area as we're talking about 47 different jurisdictions each with their own unique tax laws. Bottom line – get a tax expert to do your returns for you!

So Is It Worth Buying A Lottery Ticket In Another State?

Well not if you think it's a cunning system to beat the tax – because it isn't :-).

If it's convenient though because you're travelling, on vacation, there for work, or you would miss out on getting your ticket otherwise, then sure, why not.

Can You Buy Lottery Tickets Online From Another State

If however you want to avoid any greater tax complications, then you might want to just stick to buying in-state. Your lottery company would prefer it that way too.

What can I do with an Illinois Lottery account?

Can You Buy Lottery Tickets Online From Another States

An Illinois Lottery account allows you to perform the following:

  • Purchase draws or subscriptions to Powerball, Mega Millions, Lotto, Lucky Day Lotto, Pick 3, and Pick 4 on the Illinois Lottery website, iOS app, and Android app*;
  • View previous purchases and wins;
  • Check your subscription details and status;
  • Receive immediate deposits for winnings up to $600; and
  • Receive notifications for draw times, winning numbers, and your wins.

*Due to Google's policy regarding online gaming, the Illinois Lottery app available on the Google Play store does not permit you to make purchases. However, you can still scan tickets and check game results.

If you would like to purchase games and subscriptions on your Android device, download the version of the Android app available on the Illinois Lottery website.

Create your account today and start playing.

Lottery

The next thing to realise if you buy a lottery ticket in another state, is that you cannot claim the prize in your state. You have to claim from the state where you bought the ticket.

Yes, this even applies to multi-state games like Powerball and Mega Millions. This is because each state has it's own lottery company that runs all the games that you can play there.

So for small prizes you can still claim from a store as normal – but it will have to be a store in the state where the ticket came from. Your local store will not be able to pay it. For larger prizes you will have to send in a claim form to the lottery company for that state where you bought the ticket.

3. What About The Tax Then?

Some people think they can beat the tax system by crossing state lines to buy their tickets.

'My state has higher tax than the neighboring state, so I'll be cunning and get my ticket there. Then when I hit that massive Powerball jackpot I'll save millions in tax…'

Wrong!

This kind of cunning lottery system to beat the tax man will not work anyway. And of course tax evasion will get you a jail sentence.

For a jackpot the lottery company will deduct the tax before you even get the prize anyway. So the federal and state taxes for the state where the ticket was bought will already have been paid before the money hits your bank account.

However, your state will want their state taxes too!

So you have to pay double tax?

Well no, typically not. Because you will have already paid a chunk of state tax to the ‘other state', your state will take this into account. So you only have to pay the ‘difference'. That is, the extra that you thought you were saving by playing in the neighbor state!

Then there are the smaller wins of course – taxes are due on these too of course, but not deducted in advance. You should be entering these as 'other income' on your IRS returns anyway, but what if they are wins from another state? And can you deduct the cost of what you spent on tickets from those winnings?

This rapidly becomes a very confusing area as we're talking about 47 different jurisdictions each with their own unique tax laws. Bottom line – get a tax expert to do your returns for you!

So Is It Worth Buying A Lottery Ticket In Another State?

Well not if you think it's a cunning system to beat the tax – because it isn't :-).

If it's convenient though because you're travelling, on vacation, there for work, or you would miss out on getting your ticket otherwise, then sure, why not.

Can You Buy Lottery Tickets Online From Another State

If however you want to avoid any greater tax complications, then you might want to just stick to buying in-state. Your lottery company would prefer it that way too.

What can I do with an Illinois Lottery account?

Can You Buy Lottery Tickets Online From Another States

An Illinois Lottery account allows you to perform the following:

  • Purchase draws or subscriptions to Powerball, Mega Millions, Lotto, Lucky Day Lotto, Pick 3, and Pick 4 on the Illinois Lottery website, iOS app, and Android app*;
  • View previous purchases and wins;
  • Check your subscription details and status;
  • Receive immediate deposits for winnings up to $600; and
  • Receive notifications for draw times, winning numbers, and your wins.

*Due to Google's policy regarding online gaming, the Illinois Lottery app available on the Google Play store does not permit you to make purchases. However, you can still scan tickets and check game results.

If you would like to purchase games and subscriptions on your Android device, download the version of the Android app available on the Illinois Lottery website.

Create your account today and start playing.

What if I forget my password?

If you forget your password, you can easily reset your password online.

What if I forget my username?

The email address associated with your lottery account will serve as your username. If you cannot remember the email address associated with your account, contact the Player Hotline at 1-800-252-1775.

How do I make Lottery purchases online?

In order to make Illinois Lottery purchases online, eligible players will need to create an account, then add funds to their wallet via a credit or debit card (Visa®, Mastercard® or Discover®) in the Deposit Funds section of their account. You must add a minimum of $10 to play.

Once you have funds in your wallet, head to the Games section, and click Play to select your game. You can then click How to Play How to bet on bovada. to get complete instructions on how to complete your purchase.

There is a possibility that your credit or debit card may not be accepted for Illinois Lottery purchases. Please contact your credit or debit card provider for more information.

Can I purchase tickets for a single Mega Millions, Powerball, Lotto, Lucky Day Lotto, Pick 3, or Pick 4 drawing?

As of August 12th, single draw tickets are now available for all Illinois Lottery games, including Lucky Day Lotto, Pick 3, and Pick 4. To purchase a single draw, select your numbers and add-ons, if any, then select 1 draw within the Single Purchase option.

Which games can I purchase on the Illinois Lottery website?

You can purchase draws or subscriptions to Powerball, Mega Millions, Lotto, Lucky Day Lotto, Pick 3, and Pick 4 games. Create your account today to start playing.

How do I know if I've won?

We'll let you know if you've won by email as well as in the My Games section within your account. Log in to your account to make sure your current email address is provided.

Can You Buy Lottery Tickets From Other States Online

How do I claim my prize?

Winnings of $600 or less are automatically deposited into your account. However, if such winnings cause your total account balance to exceed $2,500, the excess winnings will be sent to you via check.You can either transfer the winnings in your Lottery account to your bank account, request a check, or use them to play again.

Winnings over $600 will be processed by the Illinois Lottery Claims Department. You'll receive an email that will explain how to complete the claims process. Compare sportsbook.

Can I Buy Lottery Tickets Online From Another State

How do I check my wallet balance?

To view your wallet balance, click the login link located in the top right corner of your screen. Once you log in to your account, your wallet balance will be displayed to the right of your account name.

Is there a minimum amount of funds I must maintain in my wallet?

There is no minimum amount of funds you need to maintain in your wallet. However, if you would like to deposit funds into your wallet, the minimum deposit amount is $10.

Can I add funds to my wallet from my bank account?

Can You Buy Lottery Tickets Online From Another State To State

No. You can only add funds to your wallet with a credit card or debit card.

How do I withdraw my winnings from my online account?

Once you log in to your account, locate your wallet, and select Withdraw Funds. Once you enter your withdrawal amount, you can either add it to your bank account or request a check.

What should I do if I experience technical problems while purchasing a Lottery ticket online?

For assistance with technical issues, please send an email to support@illinoislottery.com or call the Player Hotline at 1-800-252-1775.





broken image