Audit: Stores Buying Winning Lottery Tickets From Players
DETROIT (AP) - State auditors are urging the Lottery Bureau to crack down on stores that buy winning tickets from players at a discount.
The practice is illegal. Players apparently are willing to sell a winning ticket at a discount because they don't want the state to learn their identity. They might owe back taxes or other debts.
An audit released Tuesday says 37 store owners turned in winning tickets worth at least $3.6 million in 2012 and 2013. One retailer collected $346,000 last year.
The audit found that some retailers failed to report the prizes as income.
Lottery officials acknowledge that stores might be buying winning tickets at a discount from customers. It says it has disciplined at least 13 lottery retailers but is pledging to do more.
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