WAG 07-04-21: Substantial Lottery and Gambling Winnings

PM 07-04-21

new manual textSubstantial Lottery or Gambling Winnings

  • Substantial Lottery or Gambling Winnings received prior to an initial application does not affect eligibility. As a part of the explanation of the household's rights and responsibilities, inform the household at the initial interview of the immediate loss of eligibility for SNAP if a member receives substantial lottery and gambling winnings and the reporting requirement.
  • Only consider winnings won during the certification period or won at the time of the REDE or Mid-Point Report. At the REDE, inform active SNAP households of their new reporting requirement as a part of the explanation of the household's rights and responsibilities during their interview.
  • For households whose next recertification does not require an interview or because their interview requirement has been waived, the Notice of Decision (New Manual MaterialIL444-0360c) includes the lottery and gambling reporting requirement as part of the rights and responsibilities and serves as notification to the household. Change in Reporting Requirements (New Manual MaterialIL444-3324) includes the reporting requirement.
  •  Cash, Medical, SNAP Redetermination Application (New Manual MaterialIL444-1893) includes questions about substantial lottery or gambling winnings.
  • For SNAP households in Mid-Point Reporting, TANF and SNAP Mid-Point Report (New Manual MaterialIL444-2890) includes questions about lottery or gambling winnings. 

new manual textAction to take on Reported Substantial Lottery or Gambling Winnings

Action Procedure
Reporting Requirement

Must report when a single substantial lottery or gambling winning of New Manual Text$3,750 or more is received;

at the REDE; and

Mid-Point Report; and

for Change Reporting households, within 10 calendar days of the date of receipt during the certification period; or

for Mid-Point Reporting households, by the 10th calendar day of the month after the month that the income or winnings were received during the certification period. A Mid-Point Reporting household cannot wait until the Mid-Point Report or REDE to report the receipt of substantial lottery or gambling winnings.

The household must report even if the winnings are spent or reduced below the limit within the reporting time-frame . The SNAP case is still closed based on the receipt of the winnings.

This includes categorically eligible and noncategorically SNAP households in Change Reporting and Simplified Reporting. Categorically eligible includes SNAP household members receiving TANF and/or SSI oncome whose resources would normally be exempt.

Example: Ms. B wins $5,000 from a scratch-off lottery ticket. Ms. B spends $1,700 after 7 days and now has $3,300 remaining from her scratch-off winnings. Ms. B must report her total winnings of $5,000 to the FCRC. The FCRC must then act on this information by closing Ms. B's SNAP case. Ms. B may choose to reapply for SNAP benefits at any time and have her eligibility determined under regular SNAP income and resource limits. She would not be considered categorically eligible at this application and her resources would be compared to the regular SNAP resource limit.

Example: Mr. J won $2000 off of a scratch off ticket and then won $2000 off of another ticket. Mr. J's total winnings is $4000. However, the winnings would not be considered as a substantial lottery or gambling winning of New Manual Text$3,750 because it is two separate winnings

FCRC/Data Crossmatch Report If the information is received on a data crossmatch and not reported by the household, consider as unclear information. Send Verification Checklist (New Manual MaterialIL444-0267) to confirm the accuracy of the match, request verification and take the appropriate action on the SNAP case.

FCRC/IES

Verification Request

IES pends the case when the Lottery/Gambling questions are not answered, or verification is needed.

Sends Verification Checklist (New Manual MaterialIL444-0267) to request proof of the gross amount of lottery or gambling winnings before taxes and the date received.

A statement from the lottery commission or gaming facility may be used to establish the winnings amount and bank statements to track the amount spent.

Verification should include name of winner(s), gross amount before taxes or any other deductions, date of receipt. Verification may include but is not limited to:

  • Illinois Lottery Claim Form;
  • Another State's Lottery Claim Form;
  • Certain Gambling Winnings (Form W 2-G);
  • Letter from the lottery commission or gaming entity;
  • Income Tax record;
  • any document that identifies the source of the payment, winner(s) name, address, date of the winnings, the gross amount before taxes.

FCRC

Eligibility Determination

Count the gross amount (before taxes or any other deductions) won in a single game when the amount is New Manual Text$3,750 or more.

When multiple persons share in the purchase of a ticket, hand, or bet, count only the portion of the winnings allocated to a household member.

FCRC/IES

Denial/Cancellation

If the winnings are received at REDE, deny the application.

If the winnings are received at the Mid-Point Report or during the certification period, cancel SNAP benefits.

If the winnings have been spent or reduced, the SNAP case is still closed based on the receipt of the winnings.

IES will close the SNAP case when the household receives lottery or gambling winnings equal to or more than the resource limit.

Notice of Change (IL444-360C) is sent to the household with the notice reason:  Your household has received Lottery/Gambling winnings exceeding the maximum asset amount allowed by the agency".  PM 07-04-21.

Enter a detailed summary of the case circumstances and the cancellation in Case Comments.

Example: Ms. Z reports to the FCRC that she won $10,000 from the State lottery. Upon receipt of this information, the FCRC must then act on this information by requesting verification and then denying or canceling the SNAP case, whichever is applicable. SNAP is closed regardless of whether the winnings have been spent or reduced.

Note: Lottery or gambling winnings received in monthly payments or on a recurring bases are budgeted as income and not considered an asset.

new manual textAction to take when SNAP Household reapplies for benefits

Action Procedure
Household Reapplies for Benefits May reapply at any time and be determined eligible by meeting the applicable resource limit for their household size. The next time the household reapplies and is certified for SNAP after losing eligibility under the substantial lottery or gambling resource limit rule, it is not considered categorically eligible. The household must be certified under regular SNAP rules.
FCRC/IES Verification Request

IES pends the case when the Lottery/Gambling questions are not answered, or verification is needed.

Sends Verification Checklist (New Manual MaterialIL44-0267) to request verification of the household's total resources and income. This applies to all SNAP households, including categorically eligible households whose assets would normally be exempt.

FCRC /IES Eligibility Determination

IES will identify the case  as not categorically eligible the next time the household applies for SNAP and is approved,

All SNAP households that lost eligibility due to the lottery or gambling resource rule, must meet allowable income and asset tests under regular SNAP rules at reapplication to qualify for benefits. The household is not categorically eligible at this application. This applies only to the first time the household is approved following the loss of eligibility for substantial lottery and gambling winnings.

When determining eligibility:

  • a qualifying member household must have countable resources of New Manual Text$3,750 or less;
  • all other households must have resources of New Manual Text$2,500 or less;
  • the household with or without a qualifying member must have net income of less than the monthly net income limit.

This applies to all households, including categorically eligible households whose resources would normally be exempt.

Example: Ms. H won $8,000 from a scratch-off lottery ticket and reported this information to the FCRC on April 1. The FCRC closes Ms. H's SNAP case. On June 1, Ms. H applies for SNAP benefits and must have her eligibility determined under regular SNAP rules. Ms. H must meet the income and resource limits as she is not considered to be categorically eligible at this application. Ms. H is disabled and must meet the net income limit for a qualifying member household of 1, have countable resources of New Manual Text$3,750 or less, and meet all other eligibility requirements in order to be eligible.

Member Leaves the Household

IES determine the household categorically when there are different household members, or the household is approved again after the first certification.

Substantial lottery of gambling winnings applies only to the household where the member resided when the winnings were won. If the composition of the household changes (a member left), then the household would no longer exist as it did when the winnings were won. Any remaining members would be considered as a new household, if they chose to apply. The eligibility of the new household is not affected.

If the member moves into another household, eligibility is not affected. The requirement that a previously disqualified household must meet income and resource standards due to the loss of eligibility under the substantial lottery or gambling rule does not apply to either household since neither household as they currently exist was disqualified for substantial lottery winnings.

These households may qualify for SNAP at their next application under categorical eligibility rules. Their resources are not verified. The net income is only used to determine the benefit amount.

Example: Mr. T, his spouse J and children BJ and TJ are one SNAP household. Mr. T wins $5,000 and reports it within 10 days of winning. The FCRC closes the SNAP case for the entire household.

TJ subsequently leaves the household and joins his grandmother's household. The household with TJ and his grandmother may apply for and receive SNAP, if determined eligible. Mr. T, his spouse J and child BJ may also apply for and receive SNAP, if determined eligible.

FCRC/IES

Subsequent Application after reapplication and loss of Categorical Eligibility.

After losing categorical eligibility for a certification period, the household may reapply and be determined categorically eligible.

Deleted Manual Material

IES will determine the household categorically when there are different EDG members, or the household is approved again after the first certification.

new manual text ABE and IES System Lottery/Gambling Additional Information

  • ABE in the Mid-Point Reporting, Report My Change and Renew My Benefits flows.
  • IES Lump Sum asset screens and gatepost questions and the Mid-Point Reporting received screen.
ABE Additional Information
Report My Change Gatepost Has anyone in your household received Substantial Lottery/Gambling Winnings over the amount of $3,750?
More about page More about (name)'s Lottery or Gambling Winnings.

You told us (name) has received money from Lottery/Gambling Winnings.

Please tell us a little bit more about this.

More about page

What is the gross value (before taxes/deductions) of (name)'s lottery/gambling winnings?

What is the net value (after taxes/deductions) of (name)'s lottery/gambling winnings?

Date of the winnings?

Is the payment one-time or ongoing?

If ongoing how often?

Are the winnings jointly owned?

If so, with whom?

If Other

Joint owner's gross amount of the winnings?

Mid-Point Report (MPR) Has anyone in your household received New Manual Materialover $3,750 in New Manual MaterialSubstantial Lottery/Gambling Winnings? Please upload proof of the gross amount of lottery/gambling winnings before taxes.
Renew My Benefits Gatepost Has anyone in your household received New manual materialover $3,750 from New Manual MaterialSubstantial Lottery/ Gambling Winnings?
More about page

More about (name)'s Lottery or Gambling Winnings

You told us (name)'s has received money from Lottery/Gambling Winnings.

Please tell us a little bit more about this

More about page

What is the gross value (before taxes/deductions) of (name)'s lottery/gambling winnings?

What is the net value (after taxes/deductions) of (name)'s lottery/gambling winnings?

Date of the winnings?

Is the payment one-time or ongoing?

If ongoing how often?

Are the winnings jointly owned?

If so, with whom?

If Other

Joint owner's gross amount of the winnings?