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565.28565.28Lottery prize payment option.
565.28(1)(1)A person who becomes entitled to receive payment of a lottery prize under s. 565.30 (1) on or after October 29, 1999, may elect to receive payment of the lottery prize in the form of a lump sum or in installments over a period of years if the lottery prize is payable over at least 10 years.
565.28(2)(2) A person who chooses to make an election under sub. (1) shall make the election no later than 60 days after becoming entitled to the lottery prize. An election made under sub. (1) is final and may not be revoked.
565.28(3)(3) If a person eligible to make an election under sub. (1) does not make an election within 60 days after becoming entitled to a lottery prize, the administrator shall make payment in the form of an annuity.
565.28 HistoryHistory: 1999 a. 9; 2023 a. 138.
565.30565.30Lottery prizes.
565.30(1)(1)Payment of prizes.
565.30(1)(a)(a) The administrator shall direct the payment of a prize, in the form elected under s. 565.28, if applicable, to the holder of the winning lottery ticket or lottery share or to a person designated under sub. (2), except that a prize may be paid to another person under a court order or, upon the death of a prize winner, any prize money that has not been paid shall be paid to the prize winner’s estate.
565.30(1)(b)(b) If prize money, other than prize money from a multijurisdictional lottery, is being paid in the form of an annuity to a person at the time of his or her death, and if the personal representative of the deceased person’s estate petitions the administrator within 18 months after November 1, 2013, or within 18 months after the date of death of the person, whichever is later, to have the remaining prize money paid in the form of a lump sum, the administrator shall direct that the payment be made as a lump sum.
565.30(1)(c)(c) If prize money, other than prize money from a multijurisdictional lottery, is being paid in the form of an annuity to a person, other than a prize winner, and if the person petitions the administrator within 18 months after November 1, 2013, or within 18 months after the date of the receipt of the first annuity payment by the person, whichever is later, to have the remaining prize money paid in the form of a lump sum, the administrator shall direct that the payment be made in a lump sum.
565.30(1)(d)(d) The administrator shall establish a procedure for submitting petitions under pars. (b) and (c).
565.30(1)(e)(e) The department, administrator, state and any contractor for materials, equipment or services of the game in which the prize is won are discharged of all liability upon payment of the prize to the holder of a winning lottery ticket or lottery share.
565.30(2)(2)Payment of prizes to minors. If the prize for a winning lottery ticket or lottery share given to a minor is less than $1,000, the administrator may make payment of the prize by delivering to an adult member of the minor’s family, or to the minor’s guardian, a check or draft payable to the minor. If the prize is $1,000 or more, the administrator shall make payment to the minor by paying or delivering the money to a broker or financial institution under s. 54.870 (1) (b).
565.30(2m)(2m)Prizes over years. If the prize for a winning lottery ticket or lottery share is monetary and is payable in installments over a period of years, any informational material about the lottery must state the number of years over which the prize shall be paid.
565.30(3)(3)Unclaimed prizes.
565.30(3)(a)(a) Period to claim.
565.30(3)(a)1.1. Except as provided in subds. 2. and 3., the holder of a winning lottery ticket or lottery share may claim a prize within 180 days after the drawing or other selection in which the prize is won.
565.30(3)(a)2.2. The holder of a winning lottery ticket or lottery share for an instant game or scratch-off game may claim a prize within 180 days after the game’s end date, as determined by the administrator.
565.30(3)(a)3.3. As determined by the administrator, multijurisdictional lottery secondary or subsequent chance drawings or games may have a shorter claim period for holders of a winning lottery ticket or lottery share, which shall be prescribed in the features and procedures for the secondary or subsequent chance drawing or game.
565.30(3)(b)(b) Retailer bonuses. Any bonuses offered by the department to retailers who sell winning lottery tickets or lottery shares shall be paid to the retailer regardless of whether the prize is claimed if the retailer can be identified as the seller of the winning ticket or share.
565.30(3m)(3m)Value of certain prizes. A prize that is a lottery ticket or lottery share in the same lottery game in which the prize is won or in another lottery game shall, for prize structure accounting purposes, be valued at the same percentage of the retail price, as specified under s. 25.75 (3) (a), as are other prizes in the same lottery game in which the prize is won.
565.30(4)(4)Withholding of income taxes. The administrator shall withhold from lottery winnings any federal income taxes required to be withheld under 26 USC 3402 (q) (3) (B) and any state taxes required to be withheld under s. 71.67 (4) (a).
565.30(4m)(4m)Carry over of prize money. The department may carry over unexpended lottery prize money that is not unclaimed lottery prize money from one drawing of a game to another drawing of the same game.
565.30(5)(5)Withholding of delinquent state taxes, child support or debts owed the state. The administrator shall report the name, address and social security number or federal income tax number of each winner of a lottery prize equal to or greater than $600 and the name, address and social security number or federal income tax number of each person to whom a lottery prize equal to or greater than $600 has been assigned to the department of revenue to determine whether the payee or assignee of the prize is delinquent in the payment of state taxes under ch. 71, 72, 76, 77, 78 or 139 or, if applicable, in the court-ordered payment of child support or has a debt owing to the state. Upon receipt of a report under this subsection, the department of revenue shall first ascertain based on certifications by the department of children and families or its designee under s. 49.855 (1) whether any person named in the report is currently delinquent in court-ordered payment of child support and shall next certify to the administrator whether any person named in the report is delinquent in court-ordered payment of child support or payment of state taxes under ch. 71, 72, 76, 77, 78 or 139. Upon this certification by the department of revenue or upon court order the administrator shall withhold the certified amount and send it to the department of revenue for remittance to the appropriate agency or person. The department of revenue shall charge the winner or assignee of the lottery prize for the department of revenue’s administrative expenses associated with withholding and remitting debt owed to a state agency and may withhold the amount of the administrative expenses from the prize payment. The administrative expenses received or withheld by the department of revenue shall be credited to the appropriation under s. 20.566 (1) (h). In instances in which the payee or assignee of the prize is delinquent both in payments for state taxes and in court-ordered payments of child support, or is delinquent in one or both of these payments and has a debt owing to the state, the amount remitted to the appropriate agency or person shall be in proportion to the prize amount as is the delinquency or debt owed by the payee or assignee.
565.30(5m)(5m)Withholding of child support, spousal support, maintenance or family support.
565.30(5m)(a)(a) The administrator shall report to the department of children and families the name, address, and social security number of each winner of a lottery prize that is payable in installments and the name, address, and social security number or federal income tax number of the person who has been assigned a lottery prize that is payable in installments. Upon receipt of the report, the department of children and families shall certify to the administrator whether any payee or assignee named in the report is obligated to provide child support, spousal support, maintenance, or family support under s. 767.531, 2019 stats., or s. 767.001 (1) (f) or (g), 767.225, 767.34, 767.511, 767.56, 767.804 (3), 767.805 (4), 767.85, 767.863 (3), 767.89 (3), 767.893 (2m), or 948.22 (7) or ch. 769 and the amount required to be withheld from the lottery prize under s. 767.75. Subject to par. (b), the administrator shall withhold the certified amount from each payment made to the winner or assignee and remit the certified amount to the department of children and families.
565.30(5m)(b)(b) The administrator may not withhold from any payment to an assignee of a lottery prize any child support, spousal support, maintenance or family support specified in par. (a) that is owed by a winner of a lottery prize, nor may the administrator withhold from any payment to a winner any child support, spousal support maintenance or family support that is owed by an assignee.
565.30(5r)(5r)Withholding of assessments, fines, restitution and surcharges.
565.30(5r)(a)(a) Annually, the administrator shall provide each municipal court and clerk of circuit court in the state with a list of the winners or assignees of a lottery prize that is payable in installments. The list shall include each winner or assignee since the date of the previous list.
565.30(5r)(b)(b) Subject to par. (c), if the administrator receives a notice under s. 778.30 (2) (a), 800.095 (1) (c), or 973.05 (5) (a) of the assignment of lottery prizes under s. 778.30 (1) (c), 800.095 (1) (c), or 973.05 (4) (c) and determines that the person subject to the assignment is a winner or assignee of a lottery prize that is payable in installments, the administrator shall withhold the amount of the judgment that is the basis of the assignment from the next installment payment. The administrator shall submit the withheld amount to the court that issued the assignment. At the time of the submittal, the administrator shall charge the administrative expenses related to that withholding and submittal to the winner or assignee of the lottery prize and withhold those expenses from the balance of the installment payment. The administrator shall notify the winner or assignee of the reason that the amount is withheld from the installment payment. If the initial installment payment is insufficient to pay the judgment and administrative expenses, the administrator shall withhold and submit to the court an amount from any additional installment payments until the judgment and administrative expenses are paid in full and the assignment is no longer in effect. The administrative expenses received by the department shall be credited to the appropriation under s. 20.566 (1) (h).
565.30(5r)(c)(c) The administrator may not withhold from any payment to an assignee of a lottery prize the amount specified in par. (b) that is owed by a winner of a lottery prize, nor may the administrator withhold from any payment to a winner the amount specified in par. (b) that is owed by an assignee.
565.30(5t)(5t)Priority of withholding. The administrator shall withhold payments under this section from a winner or assignee of a lottery prize in the following order:
565.30(5t)(a)(a) For any federal or state taxes required to be withheld under sub. (4).
565.30(5t)(b)(b) For any delinquent state taxes, child support or debt owed the state required to be withheld under sub. (5).
565.30(5t)(c)(c) For any child support, spousal support, maintenance or family support required to be withheld under sub. (5m).
565.30(5t)(d)(d) For any assignment of lottery prizes required to be withheld under sub. (5r).
565.30(6m)(6m)Use of lottery prize as security for loan.
565.30(6m)(a)(a) Definition. In this subsection, “prize winner” means a person who has won a lottery prize and any other person who is authorized by law to use a lottery prize as security for a loan.
565.30(6m)(b)(b) Security for a loan. A prize winner may use a lottery prize or part of a lottery prize as security for a loan only pursuant to a court order issued under this subsection.
565.30(6m)(c)(c) Judicial process for using lottery prizes as security for loans. Any prize winner who intends to use part or all of a lottery prize as security for a loan shall petition the circuit court of the county in which the prize winner resides or the circuit court of Dane County for a court order confirming the use of a lottery prize as security for a loan. The circuit court of the county in which the prize winner resides or the circuit court of Dane County shall issue an order confirming the use of a lottery prize as security for a loan only if all of the following occur:
565.30(6m)(c)1.1. The prize winner is represented by independent legal counsel.
565.30(6m)(c)2.2. A copy of the contract that provides for using any part of the lottery prize as security for the loan is attached to the petition.
565.30(6m)(c)3.3. The contract is executed by the prize winner, is subject to the laws of this state and provides that the prize winner has the right to cancel the contract until midnight of the 3rd business day after the date on which the prize winner entered into the contract.
565.30(6m)(c)4.4. The prize winner attests, by sworn affidavit, that he or she is of sound mind, is not acting under duress and acknowledges that the state will not make any of the lottery prize payments or parts of lottery prize payments to the prize winner that are being used as security for the loan in the event the prize winner defaults on the loan.
565.30(6m)(c)5.5. The prize winner, by sworn affidavit, provides the court with an accounting of all claims to, or judgments, liens, security interests, garnishments, assignments or attachments against, all or any part of the lottery prize payments.
565.30(6m)(c)6.6. The prize winner provides the court a certification from the administrator that lists the amounts of the lottery prize payments, if any, that the administrator is required to withhold for the prize winner under subs. (4), (5), (5m) and (5r).
565.30(6m)(c)7.7. The part of the lottery prize that is being used as security for the loan does not include the amounts of any withholdings specified under subs. (4), (5), (5m) and (5r).
565.30(6m)(c)8.8. The court determines that the interest rate on the loan does not exceed the weekly prime rate for the week prior to the date on which the court received a copy of the contract, as reported by the federal reserve board in federal reserve statistical release H. 15, plus 6 percent. In making the calculation under this subdivision, the court shall subtract from the compensation received by the individual or organization making the loan any required fees or other costs charged the prize winner.
565.30(6m)(d)(d) Contents of court order. A court order issued under par. (c) shall include all of the following:
565.30(6m)(d)1.1. The name of the prize winner.
565.30(6m)(d)2.2. The prize winner’s social security number if the prize winner is an individual, or federal income tax identification number if the prize winner is an organization.
565.30(6m)(d)3.3. The name of the individual or organization that is making the loan to the prize winner.
565.30(6m)(d)4.4. The social security number of the individual or the federal income tax identification number of the organization that is making the loan to the prize winner.
565.30(6m)(d)5.5. If an individual is making the loan to the prize winner, the citizenship of the individual. If the individual is not a citizen of the United States of America, the order shall include the individual’s resident alien number.
565.30(6m)(e)(e) Administration. Upon receipt of a court order issued under par. (c), the individual or organization making the loan shall provide a certified copy of the court order to the administrator. The administrator shall acknowledge receipt of the court order in writing to the individual or organization making the loan and shall make all lottery prize payments according to the terms specified in the court order. The administrator may charge an initial processing fee, in an amount determined by rule, to cover any costs associated with processing the lottery prize payments in accordance with the terms specified in the court order.
565.30(6r)(6r)Voluntary assignment of lottery prize.
565.30(6r)(a)(a) Definition. In this subsection, “assignor” means a lottery prizewinner or a person who has the right to assign all or part of a lottery prize.
565.30(6r)(b)(b) Voluntary assignment. An assignor may make a voluntary assignment of a lottery prize or part of a lottery prize only pursuant to a court order issued under this subsection.
565.30(6r)(c)(c) Judicial process for assignment. Any assignor who intends to voluntarily assign part or all of a lottery prize to any individual or organization shall petition the circuit court of the county in which the assignor resides or the circuit court of Dane County for a court order confirming the assignment. The circuit court of the county in which the assignor resides or the circuit court of Dane County shall issue an order confirming the assignment only if all of the following occur:
565.30(6r)(c)1.1. The assignor is represented by independent legal counsel.
565.30(6r)(c)2.2. A copy of the assignment is attached to the petition.
565.30(6r)(c)3.3. The assignment is in writing, is executed by the assignor and is subject to the laws of this state.
565.30(6r)(c)3m.3m. The contract for the assignment provides that the assignor has the right to cancel the contract until midnight of the 3rd business day after the date on which the assignor entered into the contract.
565.30(6r)(c)3r.3r. The contract for the assignment provides that the assignor, from the proceeds received from the individual or organization to whom part or all of the lottery prize is assigned, agrees to pay in full any delinquent payments that may be owed by the assignor under subs. (4), (5), (5m) and (5r).
565.30(6r)(c)4.4. The assignor attests, by sworn affidavit, that he or she is of sound mind, is not acting under duress and acknowledges that the state will not make any of the assigned lottery prize payments or parts of lottery prize payments to the assignor.
565.30(6r)(c)5.5. The assignor, by sworn affidavit, provides the court with an accounting of all claims to, or judgments, liens, security interests, garnishments, assignments or attachments against, all or any part of the lottery prize payments.
565.30(6r)(c)6.6. The assignment does not include the amounts of any withholdings specified under sub. (4), (5), (5m) or (5r).
565.30(6r)(c)7.7. The assignor provides the court a certification from the administrator that lists the amounts of the lottery prize payments, if any, that the administrator is required to withhold for the assignor under subs. (4), (5), (5m) and (5r).
565.30(6r)(c)8.8. The payment that the assignor will receive as compensation for the assignment is at least equal to the present value of the assigned lottery prize payments, discounted at a rate no greater than the weekly prime rate for the week prior to the date on which the court received a copy of the assignment, as reported by the federal reserve board in federal reserve statistical release H. 15, plus 6 percent. In making the calculation under this subdivision, the court shall subtract from the compensation received by the assignor any required fees or other costs charged the assignor.
565.30(6r)(c)9.9. The individual or organization to whom part or all of the lottery prize is assigned specifies in an affidavit that the individual or organization agrees to report and pay any state income or franchise tax that is owed on any income or gain realized from the purchase and subsequent sale or redemption of any lottery prize.
565.30(6r)(c)10.10. The individual or organization to whom part or all of the lottery prize is assigned specifies in an affidavit that the individual or organization agrees to withhold from any payment made to an assignor for the assignment of a lottery prize the amount calculated under s. 71.67 (5m) and agrees to deposit that amount as required under s. 71.67 (5m).
565.30(6r)(d)(d) Contents of court order. A court order issued under par. (c) shall include all of the following:
565.30(6r)(d)1.1. The name of the prizewinner or the name of the assignor, if different from the prizewinner.
565.30(6r)(d)2.2. The assignor’s social security number if the assignor is an individual, or federal income tax identification number if the assignor is an organization.
565.30(6r)(d)3.3. The name of the individual or organization to whom part or all of the lottery prize is assigned.
565.30(6r)(d)4.4. The social security number of the individual or the federal income tax identification number of the organization to whom part or all of the lottery prize is assigned.
565.30(6r)(d)5.5. If part or all of the lottery prize is assigned to an individual, the citizenship of the individual. If the individual is not a citizen of the United States of America, the order shall include the individual’s resident alien number.
565.30(6r)(d)6.6. The number of assigned lottery prize payments and the dates on which the assigned lottery prize payments are to be paid.
565.30(6r)(d)7.7. The gross amount of each of the lottery prize payments that are subject to withholding for tax purposes and that are assigned.
565.30(6r)(e)(e) Administration of lottery prize assignment. Upon receipt of a court order issued under par. (c), the individual or organization to whom the lottery prize is assigned shall provide a certified copy of the court order to the administrator. The administrator shall acknowledge receipt of the court order in writing to the individual or organization to whom the lottery prize is assigned and shall make all lottery prize payments according to the terms specified in the court order. The administrator may charge an initial processing fee, in an amount determined by rule, to cover any costs associated with processing the lottery prize payments in accordance with the terms specified in the court order.
565.30(7)(7)Payment from terminals prohibited. If computer terminals or other devices are used to play lottery games, no coins or currencies may be dispensed, as prizes, to players from the terminals or devices.
565.30 AnnotationAdvising Lottery Winners. MacGregor & Gawart. Wis. Law. July 1994.
565.32565.32Promotional advertising; advertising, ticket and share contents.
565.32(1)(1)Promotional advertising prohibition. The expenditure by the department or any other state agency of public funds or of revenues derived from lottery operations to engage in promotional advertising of the state lottery or any multijurisdictional lottery is prohibited.
565.32(2)(2)Promotional advertising by retailers or vendors.
565.32(2)(a)(a) A retailer or a combination of retailers, a vendor or a combination of vendors or a combination of retailers and vendors may engage in promotional advertising of the state lottery or any multijurisdictional lottery in which the state participates.
565.32(2)(b)(b) Promotional advertising by vendors under par. (a) shall clearly indicate that the advertising is paid for by the vendor.
565.32(3)(3)Required contents of advertising, tickets and shares.
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2021-22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on November 8, 2024. Published and certified under s. 35.18. Changes effective after November 8, 2024, are designated by NOTES. (Published 11-8-24)