Lottery Tickets Are Bearer Instruments?
If you buy a lottery ticket and you don't put your name and address on the back of the ticket, then the ticket is a bearer instrument. This means the lottery has to pay the person who presents the winning ticket. Right?
So, is the New York person who "won" the Iowa lottery in trouble because he filled out the back of the ticket?
- 9 years agoFavorite Answer
While you are right about the lottery ticket being a bearer instrument, you misunderstand what that means. A bearer instrument basically means that whoever possesses the ticket, owns the ticket. But owning the ticket does NOT mean the lottery "has to" pay you. Owning the ticket only means you can file a claim to receive the jackpot.
And once you file a claim, the lottery must verify who you are and other information before you can collect the jackpot. The lottery does this for several reasons such as to ensure rules of eligibility. For example, any person under the age of 21(In Iowa) is not eligible to claim a lottery prize and the lottery would need to verify that before paying out the prize money.
Crawford Shaw, the NY lawyer, did not give out the necessary information to the lottery agency in order to receive the prize. And before the deadline to do so came, he withdrew his claim. While Shaw is in no official trouble, he is under investigation by the Iowa Division of Criminal Investigation.Source(s): Former Ohio Lottery employee.
- Anonymous4 years ago
Bearer InstrumentSource(s): https://shrink.im/barFn