Man Goes To Redeem Lottery Ticket After Winning $288M, State Refuses To Pay Him

Illinois lottery winners were left outraged after the state refused to pay out winnings worth more than $600, even as it continued running television advertisements promoting the lottery. The unpaid prizes totaled a staggering $288 million.

The crisis began during Illinois’ historic budget impasse, which left the state without a spending plan for months. Without an approved budget, the Illinois Lottery announced it could not issue checks for prizes above $600 — leaving thousands of winners in limbo.

Danny Chasteen was among those affected. After winning $250,000 on a lottery ticket, Chasteen went to redeem his prize only to be told the state could not pay him. He was far from alone.

Susan Rick, another Illinois lottery winner, told Inside Edition, “We won. We finally can have a comfortable life. Suddenly you’re gonna pull the rug out from under us.” Rick had a winning ticket worth $250,000 but received nothing.

Rhonda Rasche, a 49-year-old hospital clerk, won $50,000 on a scratch-off ticket and was told she would receive a check in four to six weeks. The check never came.

A group of Chicago city employees who had pooled their money and won $1 million together also found themselves unable to collect a cent of their winnings.

Attorney Tom Zimmerman, who represented several of the affected winners, filed a class-action lawsuit on their behalf. “If any private business would engage in this kind of conduct — selling tickets and not paying out the winner — the state would shut them down and indict them for fraud,” Zimmerman said.

The lawsuit alleged fraud due to false advertising, as the state continued promoting immediate prize payouts while simultaneously withholding payments. If successful, the winners would receive their winnings plus 5 percent interest.

The situation drew national criticism and raised questions about the ethics of a state government continuing to sell lottery tickets while being unable — or unwilling — to honor winning ones. Illinois eventually resolved its budget crisis and began paying out the backlogged prizes, but the episode left a lasting mark on public trust in the state lottery system.