How To Sell Your Lottery Payments

Winning the lottery may present you with a choice between a one-time payout and a long-term payment plan. If you are on an extended-term payout plan in the form of an annuity, we can assist you in the selling of your lottery payments for a lump sum of cash.

How Can I Receive My Lottery Payout?

There are two ways to receive your lottery winnings:

  1. Annuity – A long-term payout agreement. Annuities provide consistent, scheduled payouts over an extended period of time while building interest on the money in the annuity.
  2. Lump Sum – Receive the whole amount of your lottery winnings in a single lump sum payment. Winnings are taxable in accordance with applicable tax regulations for the year the lottery was won and the money was disbursed.

If you elected for an annuity as your preferred payout plan, but are now hoping to sell your lottery payments for a lump sum, we are here to help.

What Are The Differences Between Annuities and Lump Sums?

Annuities and lump sums both guarantee a payout of your entire winnings, but the payment schedule and tax regulations have significant differences.

  • One-time lump sum payouts mean winners are taxed once, and only once, on the full amount.
  • Annuities have limiting stipulations that keep winners from altering the payout conditions, even in the event of a financial crisis or an unexpected family emergency.
  • Annuities may prevent a winner from making large investments that would otherwise be possible with a large lump sum payout. Immediate lump sum payouts open up investment opportunities that have the potential to accumulate a stronger investment profile compared to what would be possible with an annuity.

Do Annuity Lottery Payouts Provide Better Tax Benefits?

If you choose a lump sum payout, the money is treated the same as any other form of income and is therefore subject to income tax withholding on the entire amount of the disbursement at the rate of that particular tax year.

This could place you in the highest possible tax bracket, but if you already plan to build and accumulate your wealth, this will be an inevitable outcome and may not be a deterring factor.

Can I Sell My Lottery Annuity Payments?

Reach out to your lottery company to determine whether your annuity can be sold. If it can be, consider the following:

  • Not all states permit the aftermarket sale of lottery annuities for lump-sum payouts. Be sure to check with your home state and, if the ticket was bought elsewhere, the state that the ticket was sold in.
  • If permissible, sell all or part of your future payments by negotiating and determining the terms of sale.
  • Court approval is required in almost all states to make a final determination as to whether you can sell the future payments.

How Do I Sell My Lottery Annuity Payments?

If you meet the prerequisite criteria and take the right steps, selling your lottery payments is not a complicated process. To sell your lottery annuity payments, follow these steps:

  1. Contact a Peachtree Financial Solutions Representative
  2. Retrieve a Quote for Your Lottery Annuity Payment Sale
  3. Agree to and Accept the Lump Sum Offer for Your Annuity Payments
  4. Obtain Court Approval for the Transaction
  5. Receive Your Cash in a Lump Sum

Are Taxes Withheld if I Sell My Lottery Payments?

Yes. Cashing in some or all future lottery annuity payments is considered a taxable event. Federal taxes are withheld from the disbursement according to federal tax regulations on the day the annuity is sold and the lump sum payment is paid out.

Get A Quote

If you intend to sell your annuity payments from lottery or casino winnings, or you are interested in any of the other structured settlement purchasing options we provide, please contact Peachtree Financial Solutions today. We provide free, no-obligation quotes for your lottery annuities.

The process generally takes between 60 and 90 days to complete, except in Massachusetts, which can take between 90 and 120 days. When you’re ready to sell all or part of your payments from lottery winnings, the first step is to connect with a Peachtree representative. From there, the process works like this:

Step 1: We listen.We’ll ask about your financial needs, and your plans for the money you’ll be receiving, as these are relevant to the courts that will review the sale of your payouts.

Step 2: We discuss your options.When we know more about your lottery payment stream, we’ll help you understand all the options you have, such as how much you’d like to sell, how you’d like to structure the sale, and how much we will offer you for your future payments are worth today.

Step 3: PaperworkThis step is one of the most important parts of the process – and it’s a process that Peachtree has down to a science. We will have you send us all the documentation you have from your lottery payout. If there are additional documents that we need or that you do not have readily available, we will either use our many resources to obtain them or help you obtain them.

Step 4: Court processAll transfers of lottery payments from you to a funding company must be approved by a court. Peachtree has extensive experience with this court order process. As the filing party, Peachtree’s attorney files a petition with the court and requests a court date. Your Peachtree representative will keep you informed as the case progresses. Your representative will also let you know if you need to be at the hearing for the transfer and what to expect.

Step 5: We transfer your fundsOnce the court approves the sale of your lottery payments, we will receive a signed order from the judge and will complete our final underwriting review. We will then electronically transfer or send you a check for the purchase price.

The documentation required for the sale of lottery payouts can vary based on the state you reside in and your individual circumstances. The following list is meant to give you an idea of which documents you may need.

  • Disclosure/Sale Agreement/Terms Rider (This document spells out transaction details)
  • Affidavit
  • Authorization to release lottery prize information
  • Designation of Counsel (names the attorney who is representing the winner)
  • Marital status (If married, spouse has to sign off on sale)
  • Award letter issued by lottery
  • Photo ID
  • Proof of Social Security Number
  • Fair Credit Report Act (Allows Peachtree to run credit/background check)
  • Declaration of Residence (Lists all residences winner has resided in past 7 years)
  • Cash Advance Agreement
  • Method of Payment
  • W9 forms (Winner and spouse if married)

Instead of choosing to sell any of your payments, you can opt for a Next Check Loan and borrow against your next payment instead. We offer a 0% interest rate with no hidden fees or charges, and you don’t have to make any payments for up to a year. This can be a great way to get cash for your immediate needs if you’re comfortable with your long-term lottery payout structure.

Our Asset Advantage® program lets you change how your lottery winnings are paid out by selling your payments to Peachtree. This is different from a typical “cash now” sale of payments.

With Asset Advantage®, you can structure the amount and frequency of your payments, with payments up to four times a year for up to 30 years. And you’ll only pay taxes on the amount you receive in cash when you receive it, rather than the full amount of your original winnings. This makes Asset Advantage® a great way to benefit from extra money for the future if you don’t need your full winnings right now.

There are many ways to structure the sale and we’ll make sure you understand all your options before you choose a plan.

Determining Value

Because there are so many kinds of lottery payouts, and each will typically be further customized for each recipient, there’s no one answer to determine how much your particular lottery payment stream is worth. For example, the size and frequency of your lottery payments, as well as the timing of these payments can impact their value quite a bit.

The best way to determine the present value of your unique lottery payout stream is to talk to a Peachtree representative, who can get you an accurate, no-obligation quote quickly.


The purchase price can be paid in as little as 60 days from the day you complete your sale contract. The process can take longer in some states because of different rules and regulations.

Because we are partnered with some of the strongest financial institutions in the world, our capital resources are unmatched in the field. This means we can process transactions from $20,000 up to $100,000,000.

Our lottery transactions are available in CA, CO, CT, FL, GA, LA, IL, IN, MA, ME, MI, MO, MT, NH, NJ, NY, OH, OR, PA, RI, TX, VA, WA, WI, and WV. If you live elsewhere, we may be able to help meet your needs with our other solutions.

Yes, we can structure the purchase in whatever way works best for you. For example, we can buy all remaining payments, a partial number of payments or a partial percentage of future payments. We can even arrange to have your future payments stretch further into the future.

No. Peachtree Financial Solutions pays all closing costs on the transactions. The only fees you may incur would be those paid to your own private attorney or financial planner you use to review the transaction, should you choose to do so.

It depends upon which state you live in, but in most cases you’ll only pay taxes on the amount you receive in cash, rather than the full amount of your original winnings. Peachtree does not provide tax advice. If you have questions regarding the tax implications of your transaction please consult with your tax or financial advisor.

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