This section shows who is disqualified from Basic Food due to a substantial lottery or gambling win and when they can regain eligibility for Basic Food.
WAC 388-483-0005 – Do I qualify for food assistance if I have a substantial lottery or gambling win?
Reporting the Win:
Defining Cash Prize:
A “substantial lottery/gambling” win is a cash prize of at least $4,500, before taxes or withholdings, regardless of whether the household is considered disabled/elderly. The substantial lottery/gambling limit matches the basic food “elderly or disabled resource limit.” This lottery/gambling limit adjusts annually and matches the amount indicated in WAC 388-470-0005(8)(a).
Do not consider prizes such as goods, vehicles, etc., a cash prize.
A cash prize equaling $4,500 or more must be won in one bet (e.g. one “hit” on a machine, one ticket, or one raffle). Households aren't required to report multiple wins that equate to the $4,500 limit.
Only count the amount allocated to the household member when the household member shared in the purchase of the “ticket” with other persons.
Impacts to cash programs:
A client may remain active on cash assistance and be disqualified from Basic Food if the win results in resources under the resource limit for cash programs. See Lump Sum Cash Assistance and TANF/SFA-Related Medical Assistance.
A household that wins an amount over the TANF resource limit is not eligible for Transitional Food Assistance (TFA) when TANF closes. See WAC 388-489-0005(5)(b).
See Worker Responsibilities below for information on how to enter winnings and impacts to other programs.
Overpayments:
A household may incur an overpayment if they do not report a lottery or gambling win timely, according to change reporting rules. See Effective Date – Change of Circumstances.
Regaining eligibility:
After disqualification, the household must reapply to establish eligibility for Basic Food. The disqualified household is not categorical eligibility (CE) at reapplication.
Under regular Basic Food rules:
The household must meet the Basic Food resource and income limits when they reapply, regardless of whether they spend all their winnings.
The household remains non-CE during the new certification. They may be considered CE again at recertification or if they are terminated and then reapply.
Household Composition:
A member with a substantial win impacts the entire Basic Food household. Close the entire household with advance notice regardless of the winner.
When someone who is disqualified for lottery/gambling winnings is later added to an active food AU, the household is no longer Categorically Eligible (CE). [Note: the disqualification will show in ACES on the Sanctions page.] To re-qualify, the household must have income under 130% FPL and resources under the applicable resource standard.
Consider a household CE again if the AU reapplying has a different household composition than the AU that received the substantial win..
Demi calls to report the marriage and add Ariana to her case. Due to Ariana’s lottery/gambling disqualification the household must meet non-CE eligibility during the add person case action. Demi’s case is terminated as Ariana’s liquid resources are over the resource limit and Ariana is a mandatory household member.
After the case action to terminate benefits and apply the sanction, Demi and Ariana could reapply and have eligibility determined using CE rules.
After the disqualification was committed, Milda could reapply for Basic Food with an effective date of 05/01. Milda and Tallulah could then be approved under CE rules as the household composition of the previously disqualified AU has changed.
Entering the win:
Accept the client’s statement of gross winning over the $4,500 limit in one hand/bet/ticket. If multiple people won in the same household, count only their portion over the limit and enter appropriately on the Resource Details page.
Provide clients with substantial winnings with advance notice of termination, except at MCR, including notice of their lottery/gambling disqualification.
Advise the client they can reapply if they choose to in the future.
Impacts to other programs:
Determine if the information is a reporting requirement for any active cash and medical programs.
Treat reported winnings as indicated in Lump Sum Cash Assistance and TANF/SFA-Related Medical Assistance in the EAZ Manual for cash programs.
Treat reported winnings as indicated in Resources Overview Worker Responsibilities in the HCA Manual for medical programs.
Add a Person: Adding a client with a lottery/gambling disqualification to an existing AU (original AU with the substantial win already closed)
Determine if the client received the winnings as a lump sum (resource) or recurring income and code appropriately.
Document the client’s statement about what happened to the winnings and appropriately code the remaining resources, vehicles, and income. See How Resources Affect Eligibility.
Request verification of resources (e.g. checking, savings balance).
Request verification of the use of the winnings only when questionable.
When the individual disqualified for a substantial win reapplies in an AU with different household members, manually remove the lottery/gambling disqualification and process the case with standard CE rules.
When members of an AU terminated due to a substantial win reapply without the individual that received the substantial win, process the case with standard CE rules.
Regaining Eligibility
Accept a new application from the same AU the received the substantial win (a one person household or multiple person household with all of the same household members).
When a disqualified AU has spent all of the winnings prior to the end of the month, they must still reapply and have their eligibility re-determined.
Screen an application received prior to the benefit end date as of the first of the following month. ACES 3G supports using a future date; do not make the client return in the following month to reapply.
Determine if the client received the winnings as a lump sum (resource) or recurring income and code appropriately.
Document the client’s statement about what happened to the winnings and appropriately code the remaining resources, vehicles, and income. See How Resources Affect Eligibility.
Request verification of resources (e.g. checking, savings balance).
Request verification of the use of the winnings only when questionable.