Yes, Noncitizens Can Win the Jackpot Too!

State lotteries have confirmed that noncitizens are eligible to claim lottery prizes as long as they purchase the tickets within the U.S.

In July, a Mexican citizen won a $1.325 million jackpot from the Texas lottery. This event sparked a flurry of questions and comments on social media, with many users curious about the eligibility of non-U.S. citizens in lottery winnings.

One commenter asked, “I thought u had to be a us resident to win?,” while another speculated that the winner might not have to pay taxes because they are not a U.S. resident.

THE QUESTION

Can noncitizens claim lottery prizes?

THE ANSWER

Yes, noncitizens can claim lottery prizes.

The rules of popular lotteries like Powerball and Mega Millions confirm that noncitizens are permitted to play and win. Verification through state lottery commissions also reveals no restrictions barring noncitizens from participating in local lotteries where they reside or visit.

Noncitizens can buy physical tickets in any state and, where available, purchase online tickets, provided they are physically in the U.S. at the time of purchase.

Mega Millions states, “Visitors to the United States are always welcome to purchase tickets for our game from an American lottery retailer while they are visiting this country; you do not need to be a resident or citizen to win.”

While no state bans noncitizens from claiming prizes, there are specific regulations for noncitizen winners. Generally, noncitizens are taxed at a higher federal rate, around 30%, as dictated by U.S. Code 1442. State taxes also apply in the state where the ticket was bought.

For instance, in Colorado, U.S. citizens face a 24% federal and 4% state tax rate on lottery winnings, whereas noncitizens pay 30% federally and the same 4% state tax.

Additionally, noncitizens may need to redeem winning lottery tickets in specific locations. States like Connecticut and Maryland mandate that noncitizens visit lottery offices for claiming winnings exceeding $600, unlike citizens who can claim these winnings at various other locations.

Powerball advises contacting local lotteries for detailed processes on prize claims by state.