Lottery Scandals & Big Wins
While some are winning big, the operators of major lotteries are under fire for “rigging” allegations.
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Texas Lottery Rigging Scandal: The primary operator for the Texas Lottery, IGT, is currently rebranding to “Brightstar Lottery” in an attempt to distance itself from scandals. Allegations include the rigging of a $95 million jackpot in 2023 and questionable terminal deliveries to specific resellers. A lawsuit by a winner of an $83.5 million jackpot remains tied up in an investigation ordered by Governor Greg Abbott.
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Maryland vs. Prediction Markets: The Maryland Lottery has issued a stern warning to its licensees: if they offer sports prediction markets (like Kalshi or Crypto.com) anywhere in the U.S., they could lose their state license. This has sparked a legal battle over whether states have the authority to regulate these “event contracts.”
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Recent Millionaires:
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A woman in Newport News, VA, just claimed a $1 million prize from Cash4Life on January 7, opting for the lump sum.
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A Michigan man found a $1 million Powerball win sitting in his online account on January 8 after matching five white balls.
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⚖️ 2026 Regulation & Tax Changes
If you gamble in the U.S., your tax bill just got a lot more complicated.
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The “90% Rule” (U.S.): Starting January 1, 2026, the IRS has implemented a new rule limiting the deduction of gambling losses to 90% of winnings. Previously, you could deduct 100% of losses up to the amount of your wins. This means even if you “break even” for the year, you may still owe taxes on “phantom income.”
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UK Ad Crackdown: On January 19, 2026, new UK Gambling Commission rules take effect, strictly limiting wagering requirements on bonuses and banning the “mixing” of products (e.g., forcing a sports bettor to use a casino bonus).
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Australia’s Ad Ban Debate: Pressure is mounting on PM Anthony Albanese to pass a nationwide ban on gambling ads during sports broadcasts, though the government is currently resisting a total prohibition.
