01
Secure the documentation.
Protect tickets, claim notices, confirmation messages, official rules and other records associated with the prize. Avoid posting copies that expose identifying information.
Independent consumer information
Educational resources
Not a government agency
Winner resources
Winning is exciting. Knowing what comes next matters.
A lottery, raffle, sweepstakes, giveaway or contest win can introduce unfamiliar decisions very quickly. Start by understanding the process, protecting your information and verifying the people and organizations involved.
Understand the process. Verify before you act.
Start here
Five sensible steps after a win.
There is no single procedure that applies to every type of prize. These steps provide a practical starting point before you begin dealing with the details of a particular claim.
02
Confirm the prize independently.
Locate the lottery, sponsor or administrator yourself. Do not rely exclusively on a phone number, email address or link contained in a winning notification.
03
Review the claim instructions.
Identify the deadline, documentation required, submission procedure and any choices that must be made as part of the claim.
04
Understand the implications.
A substantial prize can create tax, privacy, legal and financial questions. Know which questions require authoritative or individualized guidance.
05
Give major decisions time.
Meeting a legitimate claim deadline can be important. Making unrelated purchases, investments or lifestyle decisions immediately usually is not.
Claiming a prize
Know what the claim requires before submitting it.
Requirements can differ according to the type of prize, sponsoring organization, game rules and jurisdiction.
Claim deadlines
Determine how long you have to submit the claim and which date or event controls the deadline. Do not assume every prize remains claimable indefinitely.
Identification and forms
Larger prizes may require formal claim forms, proof of identity and taxpayer information. Review the official instructions before preparing or submitting documents.
Original tickets and entries
If the prize depends on a physical ticket or other original entry, protect it carefully and follow the issuing organization's instructions for handling and submission.
Payment choices
Some large prizes may involve more than one payment structure or election. Understand the available choices and their consequences before making an irreversible selection.
Privacy and public disclosure
Winner-disclosure practices can differ. Before submitting a major claim, identify what information may become public and whether any options are available under the applicable rules.
Group or jointly owned winnings
If several people share ownership of a winning ticket or prize, determine the appropriate claim and tax-reporting procedure before one person collects or distributes the proceeds.
Taxes & reporting
Understand the tax question before spending the prize.
The Internal Revenue Service treats lottery and raffle winnings as taxable gambling income. Gambling income can include cash winnings as well as the fair market value of certain non-cash prizes.
Depending on the amount and circumstances, a payer may issue Form W-2G and federal income tax may be withheld. Winnings can still be reportable even when a Form W-2G is not issued.
Other types of awards, including certain contest, sweepstakes or promotional prizes, may raise different tax questions. For a substantial award, use official tax information as a starting point and obtain individualized advice when appropriate.
Protect yourself
New money can attract attention you did not ask for.
Treat access to your identity, prize information and finances as something that should be earned through verification.
Protect your privacy.
Avoid unnecessarily publishing or distributing sensitive information connected to a win.
- Do not publish ticket barcodes, claim numbers or identifying documentation.
- Limit disclosure of banking and investment account information.
- Be cautious with copies of identification documents or taxpayer information.
- Verify unexpected professionals or businesses before discussing your finances.
- Consider what information truly needs to be public before discussing a major prize broadly.
Recognize a suspicious prize notice.
Prize scams commonly depend on excitement, urgency and the appearance of authority.
- Be suspicious of demands for money before a supposed prize can be released.
- Question requests for gift cards, wire transfers, cryptocurrency or difficult-to-reverse payments.
- Do not provide banking, card or sensitive identity information to an unverified caller or sender.
- Slow down when someone insists that you act immediately or keep the prize secret.
- Independently locate the real organization's contact information rather than using only what the notice provides.
Managing a financial windfall
Winning money and managing money are two different events.
A substantial prize can expand your options without making every financial decision urgent. A structured process can make those choices easier to evaluate.
Step 01
Understand
Establish what you actually received, how it will be paid and which obligations or deductions may apply.
Step 02
Organize
Review savings, debts, expenses, insurance, existing investments and other financial responsibilities.
Step 03
Prioritize
Decide what the money should accomplish before selecting investments, products or major purchases.
Step 04
Plan
Separate immediate needs from medium- and long-term goals instead of treating the prize as one pool for every idea.
Step 05
Verify
Research any professional or company before giving them access to your money or relying on their recommendations.
Free resources worth using
Reliable information you can access yourself.
These outside resources can help you research a prize, financial decision or professional without requiring you to purchase a service first.
Independent resource
FINRA — Managing a Financial Windfall
Investor education addressing sudden financial windfalls, including lottery winnings, planning, financial organization, investing and avoiding costly mistakes.
Read the FINRA guide ↗
Independent research tool
FINRA BrokerCheck
A free tool for researching the professional backgrounds of brokerage firms, brokers and certain investment professionals before deciding whom to work with.
Search BrokerCheck ↗
Federal resource
CFPB — Your Money, Your Goals
Free financial-education tools covering goal setting, savings, cash flow, debt, financial products and protecting money.
Explore the toolkit ↗
Federal resource
IRS — Gambling Income and Losses
Federal tax information covering lottery and raffle winnings, non-cash prizes, Form W-2G and related reporting requirements.
Visit IRS.gov ↗
Federal consumer resource
FTC — Prize & Lottery Scam Guidance
Consumer guidance explaining common fake prize, sweepstakes and lottery scams, including warning signs and methods used by scammers.
Read FTC Consumer Advice ↗
Lottery directory
NASPL — Lottery Members Directory
A directory of North American state and provincial lottery organizations that can help you locate the appropriate lottery and continue to its official claim information.
Find a lottery ↗
Federal reporting service
ReportFraud.ftc.gov
The Federal Trade Commission's official reporting service for consumers who encounter suspected scams and fraudulent solicitations.
Report suspected fraud ↗
Choosing professional help
Know what kind of question you are trying to answer.
A major prize may create questions in several different areas. One professional does not necessarily replace another.
Tax Professional
For individualized questions involving taxation, withholding, estimated taxes and the tax consequences of future financial decisions.
Attorney
For questions involving legal rights, contracts, trusts, estate planning, ownership arrangements or jurisdiction-specific privacy matters.
Financial Professional
For longer-term financial planning, investment decisions, retirement considerations and portfolio management.
Insurance Professional
For evaluating whether a substantial change in assets, property or lifestyle creates different insurance needs.
Before hiring anyone:
independently confirm qualifications, licensing or registration
where applicable, professional history, fees and potential
conflicts of interest. A referral can be a reason to begin
researching someone — not a reason to stop researching them.
Consumer protection
Need to evaluate a suspicious prize notice?
Our Consumer Protection section goes further into common warning signs, independent verification and practical steps to take before sharing money or sensitive information.
One principle worth remembering
You are allowed to slow things down.
A legitimate organization should be able to explain its claim procedure. A legitimate professional should be willing to explain their qualifications and compensation. And a legitimate prize should withstand independent verification.
Educational information
The American Lottery Consumer Network provides general educational information and access to publicly available resources. We are not a government agency, lottery operator, law firm, accounting firm, investment adviser or tax-preparation service. Information on this website should not be considered individualized legal, tax, financial or investment advice. External organizations and resources are provided for informational convenience; inclusion does not imply sponsorship or endorsement.