Substantial lottery or gambling winnings are now considered a resource for SNAP households. Substantial winnings are defined as a cash prize won in a single game, before taxes or other amounts withheld, that is equal to or greater than the SNAP resource limit for elderly or disabled households. Refer to Appendix C-3, Maximum Food Benefit Allotments and Standards for Income and Deductions, for the current resource standard.
During the interview, it is important for workers to ask each client about lottery and gambling winnings. If the client states that they have had a ‘substantial winning’, it is important for the worker to request verification of the winnings and/or request a spenddown of the winnings.
Lottery winnings before the month of application or during a month the applicant did not receive benefits is not countable.
If the applicant won an amount over the maximum resource standard the application would be denied.
The worker must also code the resource as ‘other’ on the Resource tab in case information in FACS. The worker will deny the application on reason code 15A-Substantial Gambling or Lottery Winnings.
When the household reports or we receive information about substantial winnings, verification of the winnings is required. An Adm-92 would be mailed requesting verification of the winnings and spenddown. If the household fails to provide verification after being given 10-calendar days to do so, worker closes the SNAP food benefit for the entire household for “failure” to provide requested verification”. When verification is received even when the household states all of the winnings were spent. The worker also closes the SNAP food benefit on reason 15A-Substantial Gambling or Lottery Winnings
When they reapply for benefits they are now considered a non-categorically related household and must meet resource eligibility as well as show the spenddown for the funds received.
- EXAMPLE 1:
- Mr. Smith applies for SNAP on 10/15. During the interview, Mr. Smith reports he won $5000 in a single game from gambling back in September. Households that receive substantial lottery or gambling winnings prior to the month they initially apply for SNAP food benefits are not subject to this requirement. The monies are not counted as a resource as the winnings were obtained before the SNAP application. Remind the client to report any winnings obtained while the household is receiving SNAP benefits.
- EXAMPLE 2:
- Ms. Y has on-going SNAP benefits. She reports on 10/29 that she has received $10,000 in a single lottery play on 10/10. The worker explains SNAP policy and Ms. Y states she has spent the money down to $3,000. The worker explains she may reapply for benefits. Her case will be closed due to lottery winnings and when she reapplies; she will need to provide a spenddown of the winnings as well as verify household resources to be eligible.
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