# How would a mega-lottery winner remain anonymous? **URL:** \ **Category:** Factual Questions\ **Created:** [March 30, 2012, 12:06am UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221 "2012-03-30T00:06:46Z")\ **Posts on this page:** 20\ **Page:** 3
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [April 1, 2012, 6:10pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/41 "2012-04-01T18:10:51Z")
> [@jtgain](#): > > It seems like if that were the case, then a person could make a good business buying lottery tickets in a state like CA and mailing them to residents of other states that tax lottery winnings. What kind of premium do you think that people would pay for such a service? ---
**Author:** ![bizerta](https://avatars.discourse-cdn.com/v4/letter/b/3be4f8/32.png) [@bizerta](https://boards.straightdope.com/u/bizerta)\ **Post date:** [April 1, 2012, 7:52pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/42 "2012-04-01T19:52:31Z")
> [@jtgain](#): > > … If the terms state that you pay income tax in the state where the ticket was purchased, and no other state, then we could all buy tax-free (state tax) tickets. It doesn’t work that way. The general rule of taxation is: If one lives in one jurisdiction (e.g. Ohio), but earns money in another jurisdiction (e.g. Iowa) goes as follows: The total tax paid is the higher of the two jurisdictions. Tax is paid to the jurisdiction where the money is earned first. If IA tax is higher than OH tax, then no tax is due in OH. Otherwise, the higher OH tax is collected, but credit is given to the IA tax already paid. So if CA doesn’t tax lottery winnings but your home state does, you still have to pay your home state. Even though Canada doesn’t tax lottery winnings, if you live in the USA and win an Ontario lottery, you have to pay the difference, which means that USA and your home state get to tax it all. ---
**Author:** ![UltraVires](https://avatars.discourse-cdn.com/v4/letter/u/ecccb3/32.png) [@UltraVires](https://boards.straightdope.com/u/UltraVires)\ **Post date:** [April 1, 2012, 7:56pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/43 "2012-04-01T19:56:22Z")
> [@bizerta](#): > > It doesn’t work that way. The general rule of taxation is: If one lives in one jurisdiction (e.g. Ohio), but earns money in another jurisdiction (e.g. Iowa) goes as follows: The total tax paid is the higher of the two jurisdictions. Tax is paid to the jurisdiction where the money is earned first. If IA tax is higher than OH tax, then no tax is due in OH. Otherwise, the higher OH tax is collected, but credit is given to the IA tax already paid. > > So if CA doesn’t tax lottery winnings but your home state does, you still have to pay your home state. > > Even though Canada doesn’t tax lottery winnings, if you live in the USA and win an Ontario lottery, you have to pay the difference, which means that USA and your home state get to tax it all. But say I bought the ticket in Iowa. Did I “earn” the money there? I would contend that the ticket I bought had no value until the winning numbers came back. And when those numbers came back I was not in Iowa. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [April 1, 2012, 8:01pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/44 "2012-04-01T20:01:43Z")
> [@jtgain](#): > > But say I bought the ticket in Iowa. Did I “earn” the money there? I would contend that the ticket I bought had no value until the winning numbers came back. And when those numbers came back I was not in Iowa. Guess: Lottery winnings aren’t earned income. It’s gambling income which is treated differently. You get a 1099G for gambling money. ---
**Author:** ![bizerta](https://avatars.discourse-cdn.com/v4/letter/b/3be4f8/32.png) [@bizerta](https://boards.straightdope.com/u/bizerta)\ **Post date:** [April 1, 2012, 11:08pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/45 "2012-04-01T23:08:47Z")
> [@jtgain](#): > > But say I bought the ticket in Iowa. Did I “earn” the money there? I would contend that the ticket I bought had no value until the winning numbers came back. And when those numbers came back I was not in Iowa. I don’t know for sure, but my hunch is that you would still owe Iowa tax. The winnings probably can only be claimed in Iowa. Hence, the ticket has no value in your home state. ---
**Author:** ![Sunspace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sunspace/32/1250_2.png) [@Sunspace](https://boards.straightdope.com/u/Sunspace)\ **Post date:** [April 1, 2012, 11:22pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/46 "2012-04-01T23:22:10Z")
So, these people who set up limited-liability corporations and blind trusts and all that… doesn’t that cost money too? Money that you’d have to have before you presented the winning ticket to be redeemed? Would the lawyers and accountants essentially work for free, knowing that they’d eventually be paid from the winnings claimed by the corporation or trust? Would the buyer of the winning ticket just walk into their office and say, “Here’s the winning ticket for last nights Mega Umpty Trillions lottery. Can you do this work for me?” ---
**Author:** ![Great\_Antibob](https://avatars.discourse-cdn.com/v4/letter/g/e47c2d/32.png) [@Great\_Antibob](https://boards.straightdope.com/u/Great_Antibob)\ **Post date:** [April 1, 2012, 11:57pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/47 "2012-04-01T23:57:55Z")
> [@jtgain](#): > > But say I bought the ticket in Iowa. Did I “earn” the money there? I would contend that the ticket I bought had no value until the winning numbers came back. And when those numbers came back I was not in Iowa. The answer is given in the terms of the lottery. The rules of the lottery (publicly available before you buy the ticket and also printed on the back of the ticket) state in no uncertain terms that you owe taxes on lottery winnings in the state you purchased the ticket. There’s also usually a requirement that winnings are collected in person. That could potentially be used (not that it’s necessary) to argue that you didn’t really “earn” anything until you collected within the state, making you subject to that state’s taxes. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [April 2, 2012, 1:43am UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/48 "2012-04-02T01:43:17Z")
> [@Sunspace](#): > > So, these people who set up limited-liability corporations and blind trusts and all that… doesn’t that cost money too? Money that you’d have to have before you presented the winning ticket to be redeemed? > > Would the lawyers and accountants essentially work for free, knowing that they’d eventually be paid from the winnings claimed by the corporation or trust? Would the buyer of the winning ticket just walk into their office and say, “Here’s the winning ticket for last nights Mega Umpty Trillions lottery. Can you do this work for me?” I imagine it’s like most interactions with a lawyer. They’d do the work and send a bill. ---
**Author:** ![joebuck20](https://avatars.discourse-cdn.com/v4/letter/j/74df32/32.png) [@joebuck20](https://boards.straightdope.com/u/joebuck20)\ **Post date:** [April 10, 2012, 1:42pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/49 "2012-04-10T13:42:40Z")
It looks someone has come forward in Maryland, one of the few states that allows you to claim your winning anonymously: > **[Maryland winner steps forward to claim share of Mega Millions jackpot | CNN](https://www.cnn.com/2012/04/09/us/maryland-lottery-winner/index.html)** > > The holder of one of three winning tickets in a record $656 million Mega Millions drawing has come forward, Maryland Lottery says. The story notes that “no winners” will be at the press conference. > [@](#): > > The holder of one of three winning tickets in a record $656 million Mega Millions drawing has come forward to claim a share, Maryland Lottery officials said Monday. > > They scheduled a news conference for Tuesday morning, at which “no winners will be present,” said Carole Everett, a spokeswoman for the Maryland Lottery. When asked whether there was more than one winner, she responded: “Perhaps.” ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [April 10, 2012, 1:51pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/50 "2012-04-10T13:51:25Z")
Three public school employees will split the MD jackpot. They will remain anonymous. ---
**Author:** ![champkind](https://avatars.discourse-cdn.com/v4/letter/c/df705f/32.png) [@champkind](https://boards.straightdope.com/u/champkind)\ **Post date:** [April 10, 2012, 5:34pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/51 "2012-04-10T17:34:45Z")
You definitely can opt out in the UK. why would you not ? Although I’m sure the begging letters will still find you somehow. ---
**Author:** ![LynnM](https://avatars.discourse-cdn.com/v4/letter/l/b2d939/32.png) [@LynnM](https://boards.straightdope.com/u/LynnM)\ **Post date:** [April 10, 2012, 11:33pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/52 "2012-04-10T23:33:16Z")
By SARAH BRUMFIELD Associated Press BALTIMORE […] "The three [Maryland winners] claimed their prize Monday with a financial advisor and **chose to remain anonymous** , which is allowed under Maryland law. The winning Maryland ticket is one of three nationally that split the biggest jackpot in Mega Millions history on March 30. The others were picked in Kansas and Illinois. **Kansas’ winner claimed a share of the jackpot Friday, but also decided to remain anonymous**." Interesting–so far the holders of two of the three winning tickets remain anonymous–total of four people. The Illinois winner could do the same, using a trust or LLC. So much for the skeptics… ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [April 10, 2012, 11:42pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/53 "2012-04-10T23:42:48Z")
> [@LynnM](#): > > So much for the skeptics… What exactly the hell is this supposed to mean? Do you really think that you proved anyone wrong with that post? As everyone said, you can do it in some states and not in others. As it happens, the two winners so far came from states where it is allowed to be anonymous. If there was a California winner, they would not be anonymous. What is your difficulty understanding this? ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [April 10, 2012, 11:46pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/54 "2012-04-10T23:46:15Z")
Lookie here, from Post #7: > [@Terr](#): > > “All but five states (DE, **KS** , **MD** , ND, OH) have laws that require the lottery to release the name and city of residence to anyone who asks.” Oooh. I can bold stuff too. Only in my case the bolded portion is relevant. ---
**Author:** ![Cugel](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cugel/32/1199_2.png) [@Cugel](https://boards.straightdope.com/u/Cugel)\ **Post date:** [April 11, 2012, 1:15am UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/55 "2012-04-11T01:15:48Z")
> [@champkind](#): > > You definitely can opt out in the UK. why would you not ? Although I’m sure the begging letters will still find you somehow. I seem to recall a few years ago in Australia’s biggest jackpot at the time (a meagre 30 mill), the recipients were keen to remain shadowy figures in the background. But the media tracked them down and exposed them anyway. ---
**Author:** ![LynnM](https://avatars.discourse-cdn.com/v4/letter/l/b2d939/32.png) [@LynnM](https://boards.straightdope.com/u/LynnM)\ **Post date:** [April 12, 2012, 5:21pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/56 "2012-04-12T17:21:44Z")
> [@hajario](#): > > What exactly the hell is this supposed to mean? Do you really think that you proved anyone wrong with that post? > > As everyone said, you can do it in some states and not in others. As it happens, the two winners so far came from states where it is allowed to be anonymous. If there was a California winner, they would not be anonymous. What is your difficulty understanding this? Overreact much? ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [April 12, 2012, 6:39pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/57 "2012-04-12T18:39:07Z")
> [@LynnM](#): > > Overreact much? Rarely and certainly not then, unless amusement is an overreaction. ---
**Author:** ![Aji\_de\_Gallina](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/aji_de_gallina/32/260_2.png) [@Aji\_de\_Gallina](https://boards.straightdope.com/u/Aji_de_Gallina)\ **Post date:** [April 12, 2012, 6:53pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/58 "2012-04-12T18:53:10Z")
In Peru, the usual way is to have a representative of a bank receive the big check. Noone would appear on TV taking a 3 million-dollar check. Since it’s alwyas a lump sum, taxes are collected prior to your receiving the check, so it say the actual ammount you receive. ---
**Author:** ![drachillix](https://avatars.discourse-cdn.com/v4/letter/d/48db29/32.png) [@drachillix](https://boards.straightdope.com/u/drachillix)\ **Post date:** [April 12, 2012, 10:29pm UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/59 "2012-04-12T22:29:50Z")
> [@Sunspace](#): > > So, these people who set up limited-liability corporations and blind trusts and all that… doesn’t that cost money too? Money that you’d have to have before you presented the winning ticket to be redeemed? > > Would the lawyers and accountants essentially work for free, knowing that they’d eventually be paid from the winnings claimed by the corporation or trust? Would the buyer of the winning ticket just walk into their office and say, “Here’s the winning ticket for last nights Mega Umpty Trillions lottery. Can you do this work for me?” Incorporating is actually really easy. Once you have that, the corporation could claim the win. The IRS will however reject the purchase of lottery tickets as an expense so just be happy you won. In the grand scheme of things there has to be a way to have your lawyer claim the prize on behalf of your trust or newly formed corporation. ---
**Author:** ![AndyMatts](https://avatars.discourse-cdn.com/v4/letter/a/b38774/32.png) [@AndyMatts](https://boards.straightdope.com/u/AndyMatts)\ **Post date:** [July 13, 2012, 12:23am UTC](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221/60 "2012-07-13T00:23:27Z")
> [@hajario](#): > > What if the rules for MegaMillions state that you pay taxes (if necessary) in the State where you bought the ticket? It’s not where you live most of the time that determines whether you get taxed there. It’s not where you happen to be at the exact time that determines either. It’s where you earn/make the money that determines this. It’s not the drawing that makes you the money, it’s the purchase of the ticket, which had to be done at the point of sale. Therefore, your winning lottery ticket was purchased in that state, and that’s where the money was earned. You pay state taxes on that money to the state that issued the ticket. [Previous page](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221.md?page=2) [Next page](https://boards.straightdope.com/t/how-would-a-mega-lottery-winner-remain-anonymous/617221.md?page=4)