ohiolottery

Ohio Lottery retailers may one day redeem winning tickets with a payment card instead of cash.

(Joshua Gunter, The Plain Dealer)

CLEVELAND, Ohio - Instead of cash, Ohio Lottery winners might one day be handed a payment card or have their winnings electronically transferred to an account.

Lottery officials are considering new options to pay winners because the increasing use of credit and debit cards leaves lottery retailers with less cash in their tills.

"It is a hot topic in the lottery industry," Finance Director Greg Bowers told lottery commission members at a meeting Monday. "Some retailers do not have cash on hand for a $400 prize and we have to look at ways to offer alternatives to cash."

Ohio Lottery retailers can redeem winning tickets of up to $599. About 85 percent of all prizes are paid by retailers, Bowers said. He said he is unaware of any retailer who has been unable to pay a prize, but suspects the problem could occur.

Those who win between $600 and $5,000 can obtain a claim form at a retailer and send it to the lottery. Or they can receive the cash for a fee of $10 at 192 bank branches across the state, including 162 PNC banks. In 2014, 60,760 claims totaling $105 million were made at banks, he said.

Those who win more than $5,000 must contact a regional lottery office.

Bowers and Berg said younger players would likely prefer another option than cash since they often don't carry a lot of money.

Bowers said options being discussed include placing winnings on a payment card, which could be used as a debit card. He said low-tier winners could have the money electronically transferred to their accounts.

If cashless payouts are implemented, some retailers might be allowed to cash winning tickets between $600 and $5,000.

"This has been a struggle on how to get people their money because they want it fast," Lottery Director Dennis Berg said at the meeting. "And certain people in this culture want cash."

Prize claims paid by retailers differ in other states. Most states, including Ohio, require winners of large prizes to submit claim forms or claim their money at lottery headquarters or regional offices.

In Michigan, cash prizes up to $600 may be claimed at any lottery retailer. The lottery website said a store may not have the cash on hand. The lottery also has partnerships with banks.

In July, 2013, the Michigan Lottery introduced the WonCard Discover debit card. Players could buy tickets and have prizes up to $600 loaded on the card. The lottery discontinued the card this month and no explanation was provided.

Pennsylvania Lottery retailers can pay lottery prizes up to $2,500.

Illinois Lottery retailers cash tickets up to $600 if they have the cash to do so, it said. Winning tickets can be taken to regional offices or mailed to the claims department.

Lottery retailers in Indiana redeem tickets of $25 or less but some are authorized to redeem winnings up to $599.