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 $3,750, 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 $3,750 or more must be won in one bet (e.g. one “hit” on a machine, one ticket, or one raffle). Households are not required to report multiple wins that equate to the $3,750 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). 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.
Consider a household CE again if the disqualified individual is no longer part of the household.
Entering the win:
Accept the client’s statement of gross winning over the $3,750 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.
Give the client advance notice of the termination of Basic Food.
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.
Regaining Eligibility
Accept a new application from the client.
We must close clients with substantial winnings with advance notice, except at MCR, and provide notice of their lottery/gambling disqualification. Even when they spend all of the winnings prior to the end of the month, they must 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.