Won the lottery? It pays to know your rights
The chance of winning a division 1 prize in this Saturday's $20 million Gold Lotto superdraw is one in 8,145,060.
That's tempting for many, and with the odds increasing with more games played, a syndicate with friends, family or work colleagues is enticing.
A lottery operator has the right to ask a person claiming a prize to provide proof of their identity and a statutory declaration.
Photo: SuppliedWe've all heard of winning syndicates and someone later claiming they should have been entitled to a share of the winnings, such as factory worker Brendan King, who said he was rightfully entitled to a share of $40 million won by his co-workers.
What legal rights do lottery winners hold?
The Australian lottery industry is regulated by state and territory governments and all lottery organisations have also voluntarily committed to being regulated by their own codes of practice.
A lottery operator has the right to ask a person claiming a prize to provide proof of their identity and a statutory declaration confirming they are the owner of the winning ticket.
What if you have a lost or stolen ticket? Or if someone is claiming the winnings that are lawfully yours?
You can make a request to the lottery agency (usually on a form provided by the agency) to stop payment of the prize.
If the agency decides to withhold payment, they must investigate the claim and ensure they are satisfied with who is the rightful owner of the prize before releasing it.
If it's too late and the prize has already been distributed to someone or a group of people, you will need to seek legal advice and bring a civil claim. This is the action multimillionaire Gary Baron faced, after work colleagues and syndicate members became suspicious after he purchased two homes and a luxury car.
The first step in a civil claim would be applying to the court to ensure the money or assets of the person who received the prize are seized.
The court would need to look at the agreement between the individuals involved and determine if there was a contract, which allows the person claiming the winnings to be given a share.
To avoid what can be an expensive and lengthy legal battle, when entering a lotto syndicate with a group of people, you should:
- Set up a formal syndicate online, rather than via a water-cooler discussion with your work colleagues, most lottery agencies allow this to occur;
- Decide how much each person is going to contribute to the ticket, how often and how the winnings will be distributed;
- Decide what will happen if someone forgets or can't contribute their ticket money and the group wins;
- Confirm this in writing, an email to the group outlining what you have all agreed on will be enough.
If someone wins a prize but unfortunately passes away before they receive it, or before they receive the full instalment (such as with a "set for life" win), then the winnings will go to the person's estate – the lottery agency just needs proof of it.
Good luck!
Alison and Jillian Barrett are both principals at Maurice Blackburn Lawyers. The Queensland sisters are experienced lawyers and passionate social justice campaigners. Alison juggles motherhood, as well as heading up a major legal practice area. Younger sister Jillian also leads a team of lawyers and sports a double degree in Law and Journalism.
Alison and Jillian Barrett are both principals at Maurice Blackburn Lawyers. The Queensland sisters are experienced lawyers and passionate social justice campaigners. Alison juggles motherhood, as well as heading up a major legal practice area. Younger sister Jillian also leads a team of lawyers and sports a double degree in Law and Journalism.
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