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A Jacksonville winner of a $10K scratch-off ticket was denied winnings due to ‘state-owed debt.’ But it was a mistake

JACKSONVILLE, Fla. – A $10,000 winning scratch-off ticket quickly turned into a headache for a local woman.

Sheila Magno said she was turned away at the Jacksonville lottery office and couldn’t collect her winnings because of a “possible state owed debt” to the Department of Economic Opportunity, which is now known as the Florida Department of Commerce.

“I was really excited. Perfect timing before Christmas,” Magno said.

Magno said it was a mistake.

“I won $10,000. That’s the first time I’ve ever won more than 200 on a scratch-off,” Magno said.

RELATED | Florida Lottery winners are losing money to DEO overpayments. Has this happened to you?

During a recent quick trip to Publix, Magno decided to stop at the lottery machine on her way out.

“Oh, I just got cashback and $20. And I got two of the $10 crosswords, the new one. And I didn’t even scratch it right away. I scratched it like that night. I couldn’t sleep because it was like midnight when I scratched it. So I was waiting till the lottery office opened, I couldn’t sleep that night. I was so excited,” Magno said.

The next morning was supposed to be a happy day at the lottery office — but Magno was surprised by the bad news.

“I went to the office and filled out a form with my information and she was like OK I’ll cut you a check, and I sat down,” Magno said. “About 15 minutes later, and another lady called me up and said ‘We’re sorry, your social has been flagged from unemployment.’”

Thousands of other lottery winners are losing money to the Florida Department of Commerce for overpayments, too. Their accounts are being flagged after getting unemployment assistance.

MORE | How checking old, potential winning lottery tickets has never been easier

News4JAX requested records from the Florida Lottery and found out that in the last two years, 17,637 winners received a potential outstanding state-owed debt alert.

FloridaCommerce’s website has an entire page dedicated to questions about overpayments that reads in part, “FloridaCommerce recognizes the frustrations surrounding overpayments and is actively working to alleviate the challenges being experienced by claimants.”

“It’s extremely unfair. That went from like, the best day in a long time to the absolute worst in a long time,” Magno said.

Magno said she had never gotten any notice about owing any money to the state.

On Friday afternoon, Florida Lottery representatives said they got the certification from the Department of Commerce stating that Magno’s “debt” was indeed, a mistake. She does not owe anything.

Magno will now be able to pick up her check at the Jacksonville lottery office — just in time for Christmas.

FloridaCommerce sent the following statement to News4JAX:

FloridaCommerce assisted Ms. Mango and worked with her to resolve her issue.

While winning the lottery can be exciting and many want to spend their winnings immediately, lottery winnings are garnished when a state debt of any kind is owed. Per Section 24.115(4), Florida Statutes the State of Florida appropriately withholds money from Florida lottery winners who owe any state debt, including Reemployment Assistance Overpayments. If this happens to a lottery winner, FloridaCommerce works with the claimant to resolve the issue as quickly as possible so that they can enjoy the lottery funds they were lucky enough to win.

It is important to note, proactive notifications are sent to all claimants with outstanding issues resulting in overpayments via the claimants’ preferred communication method. Overpayments remain on an account until the overpayment is resolved or a waiver is submitted.

Reemployment Assistance claimants are strongly encouraged to check their Reemployment Assistance accounts regularly, keep their contact information updated, and take action on their claim(s) when prompted.

Keep in mind that if a Floridian received unemployment benefits that they weren’t supposed to, a Florida employer could be paying a higher tax rate as well. It is important that anyone who has received Reemployment Assistance or who has filled out paperwork to receive assistance, is monitoring their account. Otherwise, an employer is being punished until the individual works with us to resolve the matter.

FloridaCommerce

About the Author
Tiffany Salameh headshot

Tiffany comes home to Jacksonville, FL from WBND in South Bend, Indiana. She went to Mandarin High School and UNF. Tiffany is a former WJXT intern, and joined the team in 2023 as Consumer Investigative Reporter and member of the I-TEAM.

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