Legislative Analysis
Phone: (517) 373-8080
ANONYMOUS LOTTERY WINNERS
http://www.house.mi.gov/hfa
House Bill 4218 as reported from committee
Analysis available at
Sponsor: Rep. Pat Outman http://www.legislature.mi.gov
Committee: Regulatory Reform
Complete to 5-18-21
BRIEF SUMMARY: House Bill 4218 would amend the McCauley-Traxler-Law-Bowman-McNeely
Lottery Act to allow a person who wins a multistate lottery game (such as Powerball or Mega
Millions) to remain anonymous or to allow, in writing, his or her name to be disclosed.
FISCAL IMPACT: The bill would have an indeterminate fiscal impact on the Michigan Bureau of
State Lottery. (See Fiscal Information, below, for more information.)
THE APPARENT PROBLEM:
At the time Michigan first joined with other states to offer multistate lottery games, winners
were prohibited from keeping their identities a secret. At least ten states now allow winners to
remain anonymous, even for multistate games such as Powerball and Mega Millions, with more
states looking at changing their laws to allow anonymity for the big winners. Michigan
currently only allows a person who wins more than $10,000 in a state lottery game to choose
to remain anonymous. Unfortunately, individuals who win large sums of money in multistate
lottery games are often subjected to unwanted publicity, as well as becoming targets of scams
and harassment from others asking for money. Legislation to allow Michigan winners to
protect their identity when winning a multistate game has been introduced in almost every
session since 2011 and once again is being offered.
THE CONTENT OF THE BILL:
House Bill 4218 would amend the McCauley-Traxler-Law-Bowman-McNeely Lottery Act to
prohibit the lottery commissioner, or an officer or employee of the Michigan Bureau of State
Lottery, from disclosing certain information about an individual who has won a prize in a
multistate lottery game unless that individual agrees in writing to the disclosure.
Currently, the commissioner or an officer or employee of the bureau may disclose the name,
address, or any other personal information concerning a winner of a prize awarded under a
game played pursuant to a joint enterprise to the extent required under the joint enterprise
participation agreement. (By comparison, the information of an individual who has won a prize
of greater than $10,000 in the state lottery may not be disclosed unless that individual agrees
in writing to the disclosure.)
As used in the act, joint enterprise means any lottery activity in which the bureau
participates pursuant to a written agreement between the state of Michigan and any
state, territory, country, or other sovereignty as executed by the commissioner. The
term does not include the state lottery created under the act.
The bill would also make several other technical, nonsubstantive changes.
MCL 432.25
House Fiscal Agency Page 1 of 2
BACKGROUND INFORMATION:
Similar bills have been proposed beginning with the 2011-12 legislation session, when HB
4585 was introduced and SB 1222 was passed by the Senate. In the 2015-16 legislative session,
HB 4433 was passed by the House of Representatives. Similar bills were introduced in
subsequent sessions but did not receive a committee hearing.
FISCAL INFORMATION:
House Bill 4218 would have an indeterminate fiscal impact on lottery revenues and subsequent
distributions to the School Aid Fund. Any fiscal impact estimate would depend on assumptions
related to the bill’s effect on lottery sales. According to the Michigan Bureau of State Lottery,
the bill would reduce the bureau’s ability to generate publicity and advertise prizes won for
multistate games (Mega Millions, Powerball, and Lucky for Life). The Bureau of State Lottery
has indicated that this likely would reduce sales, thereby reducing the annual distribution to the
School Aid Fund. As background, the distribution to the School Aid Fund was approximately
$1.18 billion in FY 2020.
There would be no administrative costs associated with the changes required under the bill.
ARGUMENTS:
For:
The stated intent of the bill is to allow winners to be publicly identified by the state lottery only
if they first grant written permission. Individuals who win a prize of more than $10,000 in
Michigan-only lotto games already have this ability. Unfortunately, winners of large prizes
often become targets of fraudsters and scams, not to mention pleas from so-called down-and-
outers. Sudden wealth can be difficult to handle, and horror stories abound of even large
winners depleting their millions in just a few years. The bill would afford a modicum of
protection by allowing a winner to keep his or her name out of the public eye.
Against:
The Michigan Bureau of State Lottery has long opposed legislative attempts to allow winners
of multistate lottery games to remain anonymous, believing that that the publication of
winners’ names grants a level of transparency to the lottery system by allowing nonwinners to
verify that someone has, indeed, won the big prize. To a lesser extent, the Michigan Lottery
also claimed a benefit of increased advertising exposure by using in-state winners in
promotional material.
POSITIONS:
No positions were offered on the bill.
Legislative Analyst: Susan Stutzky
Fiscal Analyst: Ben Gielczyk
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations, and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4218 as reported from committee Page 2 of 2


Statutes affected:
House Introduced Bill: 432.25
As Passed by the House: 432.25