SUBSTANTIAL LOTTERY OR GAMBLING WINNINGS
ISSUE DATE: 03/2026
MFIP, MSA, GA, HSP:
No provisions.
SNAP:
Active SNAP units that receive Substantial Lottery or Gambling Winnings must close, allowing for 10-day notice. See 0002.65 (Glossary: Substantial…) for the definition of a Substantial Lottery or Gambling Winning including the threshold amount. See TE02.05.112 (SNAP Substantial Lottery Gambling Winnings) for information on how to properly close SNAP due to Substantial Lottery or Gambling Winnings.
● | For multiple winnings (including multiple winnings in one day), consider each single winning separately. When none of the single winnings exceed the threshold amount, the winnings are not considered Substantial Lottery or Gambling Winnings. This applies even when the winnings together exceed the threshold amount. |
● | When winnings are split between more than one person, only consider the portion of the winnings allocated to the member of the SNAP unit. |
Accept verbal attestation of Substantial Lottery or Gambling Winnings unless questionable.
Document all reported lottery or gambling winnings and actions taken in case notes.
Reporting Requirements
All active SNAP units must report when a member receives a Substantial Lottery or Gambling Winning. See 0007.03.02 (Six-Month Reporting) and 0007.03.05 (Change Reporting).
Assess for overpayments when Substantial Lottery or Gambling Winnings are not reported timely. See 0025.03 (Determining Incorrect Payment Amounts).
Regaining Eligibility
After a SNAP closure due to a Substantial Lottery or Gambling Winning, the unit may reapply for SNAP at any time. However, the earliest a unit could be eligible for SNAP is the first day of the month after SNAP closes.
When the SNAP unit reapplies, the unit is non-categorically eligible unless there was a change in unit composition (see below). Non-categorically eligible units must meet an asset limit, the 130% gross income limit, and/or the 100% net income limit depending on their unit composition. See 0013.06 (SNAP Categorical Eligibility/Ineligibility) for more information on non-categorical eligibility policies and TE02.10.104 (Non-Categorically Eligible SNAP Units) for non-categorically eligible procedural instructions.
If at reapplication the SNAP unit composition has changed from the unit composition at the time of the winning, the unit would be considered a new unit and is categorically eligible. Document in case notes when these situations occur to indicate why these regaining eligibility policies were not applied.
Non-categorical eligibility due to Substantial Lottery or Gambling Winnings applies:
● | Only to the first time a unit is approved following the loss of eligibility for substantial lottery or gambling winnings. |
● | The unit reapplies for SNAP and there is no change in unit composition from the unit composition at the time of the winning. |
Substantial Lottery or Gambling Winning When SNAP is Set to Close or is Inactive
When a Substantial Lottery or Gambling Winning occurred while SNAP was active, but the county or Tribal Nation learns about the winning when SNAP is scheduled to close or is inactive:
● | Do not reinstate SNAP even when the original closure reason is resolved. |
● | SNAP must remain closed until the unit reapplies. |
● | To regain eligibility the unit must be processed as non-categorically eligible unless there was a change in unit composition. See the regaining eligibility section above for more information. |
See TE02.05.112 (SNAP Substantial Lottery Gambling Winnings) for information on documentation. ![]()
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PREVIOUS REVISIONS
| Date | Notes |
|---|---|
| 05/2025 | new section on SNAP Substantial Lottery or Gambling Winnings. |
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