Lottery and Casino Winnings

Payout Options

You generally have two options to receive your lottery winnings: lump sum or an annuity. Casino options are essentially the same but may depend in part on the amount won and casino policies.

Placing your winnings into a structured annuity or taking the lump sum payout both result in a guaranteed payout of the amount you won, but there are major differences in how the money is paid to you.

Lump Sum

Take the entire amount of your winnings in one lump-sum payment. Winnings are taxed in accordance with federal income tax laws for the year you won and the money was received. In the case of casino winnings, additional casino withholdings may apply.

Annuities may have stipulations that limit winners from changing the payout conditions in the case of an unexpected family emergency or financial crisis.


Put the money into an annuity to be paid out in regular, scheduled payments over a designated period of time. The money is only taxed when the payments are disbursed, meaning the entire amount of the annuity can generate interest over time to help subsidize tax requirements.

The scheduled payments may prevent a winner from making large investments to potentially generate more cash compared to interest earned on annuities.

With a lump sum, you receive the total amount in one payment. With an annuity, you are paid out over a period of time. If you decided to elect an annuity as your payout path and are considering selling your lottery payments for a lump sum of cash, we’re here to help.

How to Sell Lottery or Casino Payments

Selling your lottery or casino payments is possible if you meet the criteria and take the right steps. In order to sell your payments, you will need to do the following:

  1. Contact a JG Wentworth representative
  2. Receive a quote for your annuity payment sale
  3. Agree to and accept the lump sum offer for your payments
  4. Receive court approval for the transaction (if applicable in your state)
  5. Receive your money in a lump sum


  1. Lottery Winnings: Take the Lump Sum or Annuity? (2017, April, 3).
  2. Gambling Winnings Taxed Wall, G. (2021, May 6).

Get a Quote

If you are interested in selling your lottery payments, casino winnings, or are interested in any of the other payment purchasing options JG Wentworth provides, please contact us today. We can provide a free, no-obligation quote for your lottery annuity.