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Typically, winnings are placed in a structured settlement providing consistent payments for a determined period of time.
But what if you want the winnings now?
In this case, winners can choose to sell a portion or all of their casino settlement in exchange for a lump sum of cash.
While receiving a one-time lump sum allows winners to address bigger financial emergencies, including paying for college tuition or medical expenses, receiving a lump sum payment can also negatively influence spending and saving habits.
In addition, lump sum payments are taxed as ordinary income, though you only have to pay them one time.
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While you are still in the casino, you will need to provide identification and sign IRS tax forms in order to accept your prize.
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This option may work best for those looking to pay off debt or address other immediate financial needs.
Claiming a casino annuity means committing your winnings to a long-term payment plan that can take 20 to 30 years to fully disburse.
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Inflation Inflation can affect the buying power of payments in a negative way if the dollar substantially drops.
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