PM 07-04-21: Substantial Lottery or Gambling Winnings

WAG 07-04-21

new manual textSubstantial Lottery or Gambling Winnings

  • Substantial lottery or gambling winnings is when a member of the household wins a cash prize in a single game, before taxes or other amounts are withheld, that is equal to or greater than the lottery or gambling resource (asset) limit New Manual Text$3,750 and is received in a lump sum payment. The household remains ineligible until the household spends the winnings below this standard.
  • All SNAP households are subject to the lottery or gambling winnings resource limit of New Manual Text$3,750. The $3,750 lottery gambling resource limit applies to both SNAP categorically eligible households (including households whose members receive TANF and SSI income) and noncategorical households (PM 05-07-00, PM 05-07-02, PM 07-04-01-c). This is a separate resource limit from the regular SNAP resource  limits in PM 07-04-01. If multiple individuals share in the purchase of a ticket, hand, or similar bet, then only the portion of the winnings allocated to the winning member(s) in the household is counted toward the eligibility determination.

new manual textWhen to Count as a Resource

  • Substantial Lottery or Gambling Winnings received prior to an initial application does not affect eligibility. Only consider winnings won during the certification period or won at the time of the Redetermination or Mid-Point Report.
  • The gross amount (before taxes or any other deductions) won in a single game is counted as a resource 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 the household member.
  • Lottery or gambling winnings received in monthly payments or on a recurring bases are budgeted as income and not considered as a resource.

new manual textReporting Requirement

  • The receipt of substantial winnings is a separate reporting requirement from a change in income or resources and requires a household with substantial lottery or gambling winnings to immediately lose eligibility for SNAP benefits. A SNAP household that spends all the winnings or reduces the amount below the resource limit is still required to report the substantial winnings within 10 calendar days of receipt. The SNAP case is closed based on the receipt of the winnings. Eligibility is lost even if the household no longer has the winnings.
  • Substantial lottery or gambling winnings received prior to an initial application does not affect eligibility. Only winnings won during the certification period or won at the time of the REDE or Mid-Point Report are considered. The household must report if they receive substantial lottery or gambling winnings:
    • at 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.

new manual textVerifications

  • The name of the winner(s), date of when the winnings were received and the gross amount of the winnings (before taxes or other amounts are withheld) must be verified.
  • If the winnings are won as a cash prize of New Manual Text$3,750 or more in a single game eligibility for SNAP is lost immediately, regardless of categorical eligibility. SNAP benefits are canceled for the first month that can be affected, providing for a  timely 10 calendar day cancellation notice.  SNAP benefits are canceled even if the household has spent the money below the limit during the 10-calendar day timeframe.

new manual textRegaining Eligibility

  • The SNAP household may reapply at any time and be determined eligible by New Material Textmeeting 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 SNAP household must meet allowable income and resource tests under regular SNAP rules to qualify for benefits. All assets and income must be verified. This applies to all SNAP households, including categorically eligible households whose assets would normally be exempt. SNAP households whose members receive TANF and/or SSI would not be categorically eligible, and their resource are considered. This applies only to the first time the household is approved following the loss of eligibility for substantial lottery and gambling winnings. This means:
    • qualifying member households must have countable resources of New Manual Text$3,750  or less;
    •  and all other households must have countable resources of New Manual Text$2,500 or less;
    • the household must have net income of less than the monthly net income limit.

new manual textMember Leaves the Household

  • 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 and any remaining members would be considered as a new household, if they chose to apply. The eligibility of the new household is not affected.

new manual textSubsequent Application after Losing Categorical Eligibility

After losing categorical eligibility for a certification period, the household may reapply and be determined categorically eligible, if all eligibility factors are met.