Online Lottery Sales In Illinois

Buying lottery tickets online often opens up doors for fly-by Night companies that take advantage of naive consumers, then disappear just as quickly when they’re close to getting caught. Due to this very high risk for consumers, there currently are laws in several states and other jurisdictions which limit or outright ban online lottery sales altogether. Some states have had a legal war with these online sales since the beginning; some jurisdictions have even passed outright laws restricting these sales, and in some cases physical storefront lotteries have been converted into online outlets.

Online Lottery

For instance, in Pennsylvania, any person who conducts an online transaction in that state with a ticket purchased in that state to buy a lottery ticket must pay the tax on the purchase, whether the ticket is purchased within the state or beyond it. The first two states, Montana and New Jersey, also have ongoing battles between states regarding online lotteries. In New Jersey, a recent court case invalidated the online state lottery application in that state’s top prize draw because the winning numbers were submitted using a cellular telephone, which is against the state’s law. A similar situation has arisen in Pennsylvania where a federal probe discovered that the winner of a state Lottery prize had purchased her winnings from a cellular phone in another state. In both instances, lottery authorities have sought to levy criminal charges against the winners.

Illinois is not among the states which regulate the sale of online lottery tickets, but like New Jersey, its lottery laws are considered less restrictive than in other states. Illinois Lottery Control Agency rules do not require that any of the money you contribute to an Illinois lottery account be deposited in that state or by a means that it could be accessed there. Illinois Lottery Control Agency rules also allow the amount of your check to be deposited in any of your Illinois lottery accounts, but states that do not allow checks are expected to follow shortly. If you would like to ensure that all of the tax laws governing the lottery in Illinois are observed, you should consult your CPA, tax lawyer, or a lottery attorney in Illinois. There are two kinds of lottery registration in Illinois, and each of them have different requirements when it comes to depositing your money into them. Consult with a licensed public accountant, licensed tax professional, or lottery attorney in Illinois if you have questions about the lottery laws relating to deposits.