Sell Your Illinois Lottery Payments for a Lump Sum

How Illinois Lottery Payments Work

If you won an Illinois Lotto, Mega Millions, or Powerball jackpot and chose the annuity option, you’re receiving annual installment payments managed by the Illinois Department of the Lottery. Powerball and Mega Millions annuities pay 30 graduated installments increasing by 5% each year, while Illinois Lotto annuities are paid in annual installments over the game’s specified payout period. These payments are backed by investments in government securities.

While the annuity guarantees income over time, many Illinois lottery winners find that a lump sum better serves their current financial goals, whether that’s eliminating debt, purchasing property, investing in a business, funding education, or handling unexpected expenses.

Illinois Lottery Assignment Law: 20 ILCS 1605/13.1

Illinois lottery prizes paid in installments may be voluntarily assigned in whole or in part via court order under 20 ILCS 1605/13.1. The petition is filed with a court of competent jurisdiction in the judicial circuit where the winner resides or where the Department’s headquarters is located. Illinois has several unique provisions:

• WSJ prime + 10% discount rate cap: The purchase price must represent the present value of the assigned payments, discounted at an annual rate not exceeding 10 percentage points over the Wall Street Journal prime rate published on the business day prior to contract execution.
• Buyer (assignee) affidavit required: Illinois requires the buyer to submit a sworn affidavit on a form established by the Department, covering: a summary of contacts with the winner, any lawsuits or claims from lottery winners regarding the buyer’s conduct, good standing certification, business history, nature of business, and privacy/non-harassment policies followed in Illinois.
• 30-day pre-hearing notice: Written notice to the Department’s counsel at least 30 days before any court hearing, tied with New York for the longest notice period among lottery-transfer states.
• 30-day certified copy deadline: The certified court order must reach the Department at least 30 days before the assigned payment date.
• Seller’s sworn affidavit (6 elements): Sound mind, independent legal and financial/tax advice, understanding of lost payments, one-page 14-point boldface disclosure statement with payment details and fees, and confirmation of the 3-business-day cancellation right.
• 3-business-day cancellation right in the contract: The assignment contract itself must expressly include the cancellation right, not just mentioned in the affidavit.
• Co-owned prizes: If husband and wife are co-owners, the assignment must be made jointly.
• Maximum 3 assignees per payment at any one time.
• Indemnification: Both the seller and buyer must hold harmless and indemnify the Department, the State of Illinois, and its employees from all claims related to the assignment.

Payments subject to child support, non-wage garnishment, criminal restitution, or state-agency debts are excluded from assignment and offset first against remaining payments to the winner.

Current Maximum Discount Rate for Illinois Lottery Transfers

Under 20 ILCS 1605/13.1(a)(2), the discount rate on an Illinois lottery payment assignment cannot exceed 10 percentage points over the Wall Street Journal prime rate on the business day prior to contract execution. The WSJ prime rate tracks the bank prime loan rate published in the Federal Reserve H.15 Statistical Release.

As of March 31, 2026, the prime rate is 6.75%, which means the current maximum allowable discount rate for Illinois lottery payment transfers is 16.75% APR. This floating cap adjusts with market conditions and protects Illinois lottery winners from excessive discounting.

This rate is updated automatically from Federal Reserve data. The actual cap applicable to your transfer depends on the WSJ prime rate on the business day before your contract is signed.

Tax Implications for Illinois Lottery Winners

Illinois imposes a flat 4.95% state income tax on all income, including lottery winnings. Combined with the federal top rate of 37% (24% withheld at payment), Illinois winners face a combined burden that’s moderate compared to states like New York (10.9%) or New Jersey (10.75%), but higher than no-tax states like Florida or Texas.

Because Illinois uses a flat rate, the same 4.95% applies whether you receive payments annually or convert to a lump sum, there are no graduated brackets to create a tax penalty for taking a large lump sum in a single year. Use our lottery calculator to estimate your after-tax proceeds based on Illinois’s flat 4.95% rate.

How CSF Buys Illinois Lottery Payments

Catalina Structured Funding handles the entire Illinois lottery transfer process, including the extended 30-day notice requirement:

1. Free quote: Call (800) 317-3769 or request a quote online. We calculate your offer within the WSJ prime + 10% discount rate cap.
2. Accept the offer: Review the terms at your own pace. Illinois law requires independent legal counsel and financial/tax advice. The assignment contract includes your 3-business-day cancellation right.
3. Buyer affidavit: CSF prepares and files the required assignee affidavit disclosing our business history, privacy policies, good standing, and practices in Illinois, transparency required by law.
4. Court approval: CSF files the petition and provides the required 30-day advance notice to the Department’s counsel. If you and your spouse co-own the prize, both must participate in the joint assignment. The typical timeline is 30–60 days.
5. Get your lump sum: After court approval and the 30-day certified copy process, funds are transferred directly to you. CSF offers cash advances upon signing.

Why Illinois Lottery Winners Choose CSF

• Transparent pricing: The amount we quote is the amount you receive
• Rate cap compliance: Our offers stay within the WSJ prime + 10% statutory cap
• Buyer transparency: We file the required assignee affidavit disclosing our business history and practices
• 30-day timeline management: We build Illinois’s extended notice period into the process from day one
• Competitive rates for Illinois Lotto, Mega Millions, and Powerball annuity payments
• Cash advances available upon signing
• Flexible options: Sell some or all of your remaining payments
• Free, no-obligation quotes: call (800) 317-3769 or request a quote online

For official information about Illinois lottery prize payments, visit the Illinois Lottery website.