Aren’t lottery winners able to opt for a lump sum instead of annual payments?
Sometimes yes and sometimes no, depending on when and where the award was won. Each state has its own laws governing lotteries, casino jackpots and other gambling awards. This means that not every winner is initially given the option of a lump sum—and many more don’t fully understand their options and make poorly informed decisions. In any case, the lump sum would be far less than the “face value” of the award. Basically, lottery winners who elect a lump sum receive the funds that the government would invest on their behalf. But in all cases it’s an all-or-nothing proposition. When the option is given, the winner must accept the 20 year schedule or take it all at once and walk away. Sometimes it’s better to have a financial company to buy your lottery payments for cash.
