HomePublicationsNewsletter ArchiveNewslettersVolume 23Issue 30Michigan Lottery Considering Rule Changes

The Michigan Lottery is in the process of amending its rules with respect to eligibility and collection process for prizes.  In the proposed revision, the Lottery proposed that contractors should not be eligible for any prizes.  The proposed rules also restrict prize winners to natural persons and exclude entities.  The draft rules were approved by the Office of Regulatory Reinvention (“ORR”) on August 1, 2017.  The Lottery submitted the required Regulatory Impact Statement to ORR on September 20, 2017.

In its statement, the Lottery indicated that the proposed rules “do not exceed standards in similarly situated states.”  It noted that the previous rules allowed a trust or other entity to claim a prize, which could be used to circumvent eligibility rules and payment of debts owed to the State.  Lottery stated: “If the rule is unchanged, the Lottery must continue to investigate entities that claim prizes to identify all persons entitled to a portion of the prize through that entity and whether they are ineligible or owe certain debts to the State.” 

If the ORR approves the proposed changes, the Lottery will have to publish a notice indicating the deadline for any written comments in the Michigan Register, including the date of the public hearing at which Lottery will discuss the proposed rules.

Michigan is not the only state that has dealt with eligibility and rules for claiming prizes.  In Iowa, the former computer information security director for the Multi-State Lottery Association recently testified in his sentencing hearing in a Wisconsin courthouse that he wrote software to allow him to predict winning numbers which led to him cashing in a $14 million jackpot in 2010.  Iowa made changes to its security and access procedures as a result.  For more information, see here.


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