Question of the Day - 22 December 2025

We can dispense with Megabucks first.

As we've seen time and time again in QoD answers, whoever pulls the handle is awarded the jackpot. It doesn't matter if someone else's players card is in the machine, all 50 of your buddies are standing there screaming, or a notarized contract is presented to the slot floor with all 50 signatures. Good-Time Charlie, the designated handle puller, gets the check for at least $10 million. Made out to him. And him alone. Personally.

Charlie is morally obligated to share if the terms of the "deal" have been spelled out and agreed on by the participants and legally obligated if those terms have been enshrined in a contract that is, ultimately, enforceable by a court of law. Assuming he's willing to abide by an agreement, either in writing or otherwise, he issues checks to his partners, then provides 1099s to account for the division of the jackpot and taxes owed. If he's not willing to share, the lawyers rub their hands together with glee.

The lottery is a slightly different story. 

When a group of coworkers wins a big lottery jackpot, the legality of splitting the money usually comes down to agreements and paperwork, similar to our Megabucks example. However, unlike casinos, most lottery commissions allow groups to claim prizes under some sort of legal entity, such as a trust, LLC, partnership, or even just a lottery pool agreement form. And since most lottery winners have at least a few months to claim their prize, these can be established after the fact of winning, so proof of the group can be presented to the lottery, which will divvy up the jackpot accordingly. 

Of course, it's always wisest and safest to have such an agreement in place before the jackpot is won. A written document would spell out: Who's in the pool; how much each participant contributed; how often the pool plays; what happens if someone doesn't pay for a drawing; who holds the tickets; etc. This can be as formal as a contract drawn up by a lawyer or as simple as an email chain; courts usually accept either, as long as it clearly shows intent and participation.

The group should also appoint a representative to file the claim, but the lottery will issue checks directly to each group member or to the entity, which then pays members and handles the tax paperwork. Each member of the group must provide the lottery with name, address, Social Security number, signature, and percentage of prize they’re entitled to. Many states have official “multiple claimant” forms for exactly this situation.

Common protections for lottery groups include keeping receipts of collected money, keeping copies of the purchased tickets, sending a group text/email with photos of the tickets before the draw, having rules written down for missed payments, and the like. Lawsuits generally stem from a participant who missed a week claiming they’re still entitled, someone claiming they were “in the pool that week,” someone saying they weren’t notified of the win.

Tomorrow, we'll take a look at some of the lottery groups that won jackpots, with some going right and others going terribly wrong.