{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-4020.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-4020.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-4020.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-4020.1.html"}],"law_id":62937,"edition_id":1,"section_id":62937,"structure_id":13969,"section_number":"58.1-4020.1","catch_line":"Voluntary assignment of lottery prizes or pledge as collateral for a loan; requirements for the assignees and lenders","history":"2003, c. 924; 2004, c. 630.","full_text":"A\n\nLottery prizes, payable in installments over a period of time, excluding prizes payable for the winner’s life, may be voluntarily assigned or pledged as collateral for a loan, in whole or in part, by the person entitled to such installments, by written contract affirming that the requirements of this section have been met and endorsed by written order of a court of competent jurisdiction after a hearing. The order shall specify the name, address and social security number or tax identification number of the assignee or lender and shall specifically describe the payments be assigned or pledged as collateral by date and gross pre-tax amount. The Department shall be given notice of any hearing held pursuant to this section and shall have the right to appear and participate in such hearing. Venue for hearings held pursuant to this section shall be in the Circuit Court of the City of Richmond.\n\t\t\tThe rate charged for any such assignment or loan shall not exceed 15 percent.\n\t\t\tThe contract shall:1\n\nBe signed by the assignor and the assignee or the lender and the borrower, and the assignor or borrower shall affirm the assignment or loan has been voluntarily executed.2\n\nInclude or be accompanied by a sworn statement attesting that the assignor or borrower (i) is of sound mind and not acting under duress; (ii) has been advised in writing by the assignee or lender to seek independent legal counsel and independent financial counsel concerning the implications of the assignment or loan, including the tax consequences, and has either received such advice or knowingly waived such advice in writing; (iii) understands that he is relinquishing or limiting his rights to receive the lottery proceeds; and (iv) has received from the Virginia Lottery, in response to a written request therefor, confirmation of the assignee’s or lender’s registration with the Virginia Lottery in accordance with subsection E of this section.3\n\nInclude a disclosure statement setting forth (i) the amounts assigned or loaned; (ii) the dates such amounts are payable; (iii) the purchase price paid for the assignment or loan; (iv) the rate of discount to present value, assuming daily compounding and funding on the contract date; (v) the amount of any fees associated with the assignment or loan and by whom such fees are payable; and (vi) the tax identification number of the assignee.4\n\nExpressly state that the assignor or borrower has three business days after signing the contract to cancel the assignment or loan.5\n\nExpressly state that the assignee or lender is eligible to purchase, share or receive prizes of the Virginia Lottery pursuant to §§ 58.1-4015, 58.1-4016 and subsection A of § 58.1-4019, and that the Virginia Lottery has complied with subsection B of § 58.1-4019 in that the original prizewinner is (or if deceased, was) a natural person if and to the extent that the prize was awarded on or after the effective date pursuant to subsection B of § 58.1-4019.6\n\nExpressly state that no amounts assigned or loaned are subject to setoff pursuant to Article 21 (§ 58.1-520 et seq.) of Chapter 3 of this title.B\n\nThe Commonwealth, the Virginia Lottery and any employee or representative of either shall be indemnified and held harmless upon payment of amounts due as set forth in the court order.C\n\nThe Lottery may establish a reasonable fee to process the assignments provided for in this section and to receive, review and file the registration required by subsection E and confirm compliance with the registration requirements. The fee shall be reflective of the direct and indirect costs of processing the assignments or registrations.D\n\nNotwithstanding the provisions of this section, the Commonwealth and the Virginia Lottery shall not accept any assignment if either of the following has occurred:1\n\nFederal law provides that the right to assign lottery proceeds is deemed receipt of income in the year the lottery prize is won for all installment lottery prize winners. “Federal law” includes statutory law, rulings of courts of competent jurisdiction, and published rulings by the Internal Revenue Service.2\n\nState law provides that the right to assign lottery proceeds is deemed receipt of income in the year the lottery prize is won for all installment lottery prize winners. “State law” includes statutory law, rulings of courts of competent jurisdiction, and published rulings by the Department of Taxation.E\n\nAn assignee, prospective assignee, lender or prospective lender shall not make any representation in any written or oral communications with a lottery winner that implies that the assignee, prospective assignee, lender or prospective lender is associated with or an agent of the Virginia Lottery. Every prospective assignee or prospective lender shall register with the Virginia Lottery, prior to contracting for any assignment or loan pursuant to this section. The registration shall include (i) the assignee’s or lender’s standard information packet or materials given or sent to prospective assignees or borrowers, (ii) the assignee’s or lender’s standard form of agreement, (iii) the assignee’s or lender’s federal tax identification number, and (iv) where applicable, the assignee’s or lender’s most recent public financial statement. The Director may deny, suspend or revoke a registration for a violation of this chapter or for such other reason as the Board, by regulation, may establish.","order_by":null,"text":{"0":{"id":229570,"text":"Lottery prizes, payable in installments over a period of time, excluding prizes payable for the winner’s life, may be voluntarily assigned or pledged as collateral for a loan, in whole or in part, by the person entitled to such installments, by written contract affirming that the requirements of this section have been met and endorsed by written order of a court of competent jurisdiction after a hearing. The order shall specify the name, address and social security number or tax identification number of the assignee or lender and shall specifically describe the payments be assigned or pledged as collateral by date and gross pre-tax amount. The Department shall be given notice of any hearing held pursuant to this section and shall have the right to appear and participate in such hearing. Venue for hearings held pursuant to this section shall be in the Circuit Court of the City of Richmond.\n\t\t\tThe rate charged for any such assignment or loan shall not exceed 15 percent.\n\t\t\tThe contract shall:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":229571,"text":"Be signed by the assignor and the assignee or the lender and the borrower, and the assignor or borrower shall affirm the assignment or loan has been voluntarily executed.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":229572,"text":"Include or be accompanied by a sworn statement attesting that the assignor or borrower (i) is of sound mind and not acting under duress; (ii) has been advised in writing by the assignee or lender to seek independent legal counsel and independent financial counsel concerning the implications of the assignment or loan, including the tax consequences, and has either received such advice or knowingly waived such advice in writing; (iii) understands that he is relinquishing or limiting his rights to receive the lottery proceeds; and (iv) has received from the Virginia Lottery, in response to a written request therefor, confirmation of the assignee’s or lender’s registration with the Virginia Lottery in accordance with subsection E of this section.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":229573,"text":"Include a disclosure statement setting forth (i) the amounts assigned or loaned; (ii) the dates such amounts are payable; (iii) the purchase price paid for the assignment or loan; (iv) the rate of discount to present value, assuming daily compounding and funding on the contract date; (v) the amount of any fees associated with the assignment or loan and by whom such fees are payable; and (vi) the tax identification number of the assignee.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":229574,"text":"Expressly state that the assignor or borrower has three business days after signing the contract to cancel the assignment or loan.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":229575,"text":"Expressly state that the assignee or lender is eligible to purchase, share or receive prizes of the Virginia Lottery pursuant to §§ 58.1-4015, 58.1-4016 and subsection A of § 58.1-4019, and that the Virginia Lottery has complied with subsection B of § 58.1-4019 in that the original prizewinner is (or if deceased, was) a natural person if and to the extent that the prize was awarded on or after the effective date pursuant to subsection B of § 58.1-4019.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":229576,"text":"Expressly state that no amounts assigned or loaned are subject to setoff pursuant to Article 21 (§ 58.1-520 et seq.) of Chapter 3 of this title.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"7":{"id":229577,"text":"The Commonwealth, the Virginia Lottery and any employee or representative of either shall be indemnified and held harmless upon payment of amounts due as set forth in the court order.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6","next_prefix":"C"},"8":{"id":229578,"text":"The Lottery may establish a reasonable fee to process the assignments provided for in this section and to receive, review and file the registration required by subsection E and confirm compliance with the registration requirements. The fee shall be reflective of the direct and indirect costs of processing the assignments or registrations.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"9":{"id":229579,"text":"Notwithstanding the provisions of this section, the Commonwealth and the Virginia Lottery shall not accept any assignment if either of the following has occurred:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"10":{"id":229580,"text":"Federal law provides that the right to assign lottery proceeds is deemed receipt of income in the year the lottery prize is won for all installment lottery prize winners. “Federal law” includes statutory law, rulings of courts of competent jurisdiction, and published rulings by the Internal Revenue Service.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"11":{"id":229581,"text":"State law provides that the right to assign lottery proceeds is deemed receipt of income in the year the lottery prize is won for all installment lottery prize winners. “State law” includes statutory law, rulings of courts of competent jurisdiction, and published rulings by the Department of Taxation.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"E"},"12":{"id":229582,"text":"An assignee, prospective assignee, lender or prospective lender shall not make any representation in any written or oral communications with a lottery winner that implies that the assignee, prospective assignee, lender or prospective lender is associated with or an agent of the Virginia Lottery. Every prospective assignee or prospective lender shall register with the Virginia Lottery, prior to contracting for any assignment or loan pursuant to this section. The registration shall include (i) the assignee’s or lender’s standard information packet or materials given or sent to prospective assignees or borrowers, (ii) the assignee’s or lender’s standard form of agreement, (iii) the assignee’s or lender’s federal tax identification number, and (iv) where applicable, the assignee’s or lender’s most recent public financial statement. The Director may deny, suspend or revoke a registration for a violation of this chapter or for such other reason as the Board, by regulation, may establish.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D2"}},"ancestry":[{"id":13969,"edition_id":1,"name":"Powers and Duties of Virginia Lottery Board; Administration of Tickets and Prizes","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13968,"metadata":{},"date_created":"2026-06-26 03:46:27","date_modified":"2026-06-26 03:46:27","permalink":{"id":259077,"object_type":"structure","relational_id":13969,"identifier":"1","token":"58.1\/IV\/40\/1","url":"\/58.1\/IV\/40\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13968,"edition_id":1,"name":"Virginia Lottery Law; Sports Betting","identifier":"40","label":"chapter","depth":3,"order_by":1,"parent_id":13501,"metadata":{},"date_created":"2026-06-26 03:46:27","date_modified":"2026-06-26 03:46:27","permalink":{"id":259075,"object_type":"structure","relational_id":13968,"identifier":"40","token":"58.1\/IV\/40","url":"\/58.1\/IV\/40\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13501,"edition_id":1,"name":"Other Sources of State Revenue","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:45:05","date_modified":"2026-06-26 03:45:05","permalink":{"id":259073,"object_type":"structure","relational_id":13501,"identifier":"IV","token":"58.1\/IV","url":"\/58.1\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":56298,"structure_id":13969,"section_number":"58.1-4000","catch_line":"Short title","url":"\/58.1-4000\/","token":"58.1\/IV\/40\/1\/58.1-4000","metadata":false},{"id":66405,"structure_id":13969,"section_number":"58.1-4001","catch_line":"Establishment of state lottery","url":"\/58.1-4001\/","token":"58.1\/IV\/40\/1\/58.1-4001","metadata":false},{"id":70493,"structure_id":13969,"section_number":"58.1-4002","catch_line":"Definitions","url":"\/58.1-4002\/","token":"58.1\/IV\/40\/1\/58.1-4002","metadata":false},{"id":78216,"structure_id":13969,"section_number":"58.1-4003","catch_line":"Virginia Lottery established","url":"\/58.1-4003\/","token":"58.1\/IV\/40\/1\/58.1-4003","metadata":false},{"id":59963,"structure_id":13969,"section_number":"58.1-4004","catch_line":"Membership of Board; appointment; terms; vacancies; removal; expenses","url":"\/58.1-4004\/","token":"58.1\/IV\/40\/1\/58.1-4004","metadata":false},{"id":55760,"structure_id":13969,"section_number":"58.1-4005","catch_line":"Appointment, qualifications and salary of Director","url":"\/58.1-4005\/","token":"58.1\/IV\/40\/1\/58.1-4005","metadata":false},{"id":75231,"structure_id":13969,"section_number":"58.1-4006","catch_line":"Powers of the Director","url":"\/58.1-4006\/","token":"58.1\/IV\/40\/1\/58.1-4006","metadata":false},{"id":77989,"structure_id":13969,"section_number":"58.1-4006.1","catch_line":"Use of the phrase \"Virginia is for Bettors\" prohibited; civil penalty","url":"\/58.1-4006.1\/","token":"58.1\/IV\/40\/1\/58.1-4006.1","metadata":false},{"id":74431,"structure_id":13969,"section_number":"58.1-4007","catch_line":"Powers of the Board","url":"\/58.1-4007\/","token":"58.1\/IV\/40\/1\/58.1-4007","metadata":false},{"id":86024,"structure_id":13969,"section_number":"58.1-4007.1","catch_line":"Lottery tickets to bear telephone number for compulsive gamblers","url":"\/58.1-4007.1\/","token":"58.1\/IV\/40\/1\/58.1-4007.1","metadata":false},{"id":62905,"structure_id":13969,"section_number":"58.1-4007.2","catch_line":"Repealed","url":"\/58.1-4007.2\/","token":"58.1\/IV\/40\/1\/58.1-4007.2","metadata":false},{"id":85895,"structure_id":13969,"section_number":"58.1-4007.3","catch_line":"Posting of illegal gaming tip line; 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exceptions","url":"\/58.1-4013\/","token":"58.1\/IV\/40\/1\/58.1-4013","metadata":false},{"id":55730,"structure_id":13969,"section_number":"58.1-4014","catch_line":"Price of tickets or shares; who may sell; penalty","url":"\/58.1-4014\/","token":"58.1\/IV\/40\/1\/58.1-4014","metadata":false},{"id":72082,"structure_id":13969,"section_number":"58.1-4014.1","catch_line":"Method of payment for purchase of tickets or shares","url":"\/58.1-4014.1\/","token":"58.1\/IV\/40\/1\/58.1-4014.1","metadata":false},{"id":72946,"structure_id":13969,"section_number":"58.1-4015","catch_line":"Sale of ticket or share to person under eighteen prohibited; penalty","url":"\/58.1-4015\/","token":"58.1\/IV\/40\/1\/58.1-4015","metadata":false},{"id":85845,"structure_id":13969,"section_number":"58.1-4015.1","catch_line":"Voluntary exclusion program","url":"\/58.1-4015.1\/","token":"58.1\/IV\/40\/1\/58.1-4015.1","metadata":false},{"id":78837,"structure_id":13969,"section_number":"58.1-4016","catch_line":"Gift to minor prohibited","url":"\/58.1-4016\/","token":"58.1\/IV\/40\/1\/58.1-4016","metadata":false},{"id":59245,"structure_id":13969,"section_number":"58.1-4017","catch_line":"Alteration and forgery; presentation of counterfeit or altered ticket or share; penalty","url":"\/58.1-4017\/","token":"58.1\/IV\/40\/1\/58.1-4017","metadata":false},{"id":57248,"structure_id":13969,"section_number":"58.1-4018","catch_line":"Prohibited actions; penalty","url":"\/58.1-4018\/","token":"58.1\/IV\/40\/1\/58.1-4018","metadata":false},{"id":56776,"structure_id":13969,"section_number":"58.1-4018.1","catch_line":"Larceny of tickets; fraudulent notification of prizes; penalty","url":"\/58.1-4018.1\/","token":"58.1\/IV\/40\/1\/58.1-4018.1","metadata":false},{"id":55029,"structure_id":13969,"section_number":"58.1-4018.2","catch_line":"Ticket discounting; civil penalties","url":"\/58.1-4018.2\/","token":"58.1\/IV\/40\/1\/58.1-4018.2","metadata":false},{"id":60303,"structure_id":13969,"section_number":"58.1-4019","catch_line":"Certain persons ineligible to purchase tickets or shares or receive prizes","url":"\/58.1-4019\/","token":"58.1\/IV\/40\/1\/58.1-4019","metadata":false},{"id":81045,"structure_id":13969,"section_number":"58.1-4019.1","catch_line":"License required for \"instant ticket\" games or contests","url":"\/58.1-4019.1\/","token":"58.1\/IV\/40\/1\/58.1-4019.1","metadata":false},{"id":75369,"structure_id":13969,"section_number":"58.1-4020","catch_line":"Unclaimed prizes","url":"\/58.1-4020\/","token":"58.1\/IV\/40\/1\/58.1-4020","metadata":false},{"id":62937,"structure_id":13969,"section_number":"58.1-4020.1","catch_line":"Voluntary assignment of lottery prizes or pledge as collateral for a loan; requirements for the assignees and lenders","url":"\/58.1-4020.1\/","token":"58.1\/IV\/40\/1\/58.1-4020.1","metadata":false},{"id":61896,"structure_id":13969,"section_number":"58.1-4021","catch_line":"Deposit of moneys received by agents; performance of functions, etc., in connection with operation of lottery; compensation of agents","url":"\/58.1-4021\/","token":"58.1\/IV\/40\/1\/58.1-4021","metadata":false},{"id":84585,"structure_id":13969,"section_number":"58.1-4022","catch_line":"Virginia Lottery Fund","url":"\/58.1-4022\/","token":"58.1\/IV\/40\/1\/58.1-4022","metadata":false},{"id":77736,"structure_id":13969,"section_number":"58.1-4022.1","catch_line":"Lottery Proceeds Fund","url":"\/58.1-4022.1\/","token":"58.1\/IV\/40\/1\/58.1-4022.1","metadata":false},{"id":63848,"structure_id":13969,"section_number":"58.1-4023","catch_line":"Post-audit of accounts and transactions of Department; post-compliance audits","url":"\/58.1-4023\/","token":"58.1\/IV\/40\/1\/58.1-4023","metadata":false},{"id":78705,"structure_id":13969,"section_number":"58.1-4024","catch_line":"Employees of the Department","url":"\/58.1-4024\/","token":"58.1\/IV\/40\/1\/58.1-4024","metadata":false},{"id":69602,"structure_id":13969,"section_number":"58.1-4025","catch_line":"Exemption of lottery prizes and sales of tickets from state and local taxation","url":"\/58.1-4025\/","token":"58.1\/IV\/40\/1\/58.1-4025","metadata":false},{"id":56528,"structure_id":13969,"section_number":"58.1-4026","catch_line":"Set-off of debts to the Commonwealth from prizes","url":"\/58.1-4026\/","token":"58.1\/IV\/40\/1\/58.1-4026","metadata":false},{"id":75836,"structure_id":13969,"section_number":"58.1-4027","catch_line":"Judicial review","url":"\/58.1-4027\/","token":"58.1\/IV\/40\/1\/58.1-4027","metadata":false},{"id":84494,"structure_id":13969,"section_number":"58.1-4028","catch_line":"Repealed","url":"\/58.1-4028\/","token":"58.1\/IV\/40\/1\/58.1-4028","metadata":false},{"id":78868,"structure_id":13969,"section_number":"58.1-4029","catch_line":"Disclosure of identity of winners by the Department","url":"\/58.1-4029\/","token":"58.1\/IV\/40\/1\/58.1-4029","metadata":false}],"previous_section":{"id":75369,"structure_id":13969,"section_number":"58.1-4020","catch_line":"Unclaimed prizes","url":"\/58.1-4020\/","token":"58.1\/IV\/40\/1\/58.1-4020","metadata":false},"next_section":{"id":61896,"structure_id":13969,"section_number":"58.1-4021","catch_line":"Deposit of moneys received by agents; performance of functions, etc., in connection with operation of lottery; compensation of agents","url":"\/58.1-4021\/","token":"58.1\/IV\/40\/1\/58.1-4021","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-4020.1\/","history_text":"

This law was first created in 2003. The record of its establishment is cataloged in chapter 924<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2004, chapter 630<\/a>.<\/p>","references":[{"id":83088,"section_number":"58.1-4013","catch_line":"Right to prize not assignable; exceptions","order_by":null,"url":"\/58.1-4013\/"}],"refers_to":[{"id":72946,"section_number":"58.1-4015","catch_line":"Sale of ticket or share to person under eighteen prohibited; penalty","order_by":null,"url":"\/58.1-4015\/"},{"id":78837,"section_number":"58.1-4016","catch_line":"Gift to minor prohibited","order_by":null,"url":"\/58.1-4016\/"},{"id":60303,"section_number":"58.1-4019","catch_line":"Certain persons ineligible to purchase tickets or shares or receive prizes","order_by":null,"url":"\/58.1-4019\/"},{"id":57268,"section_number":"58.1-520","catch_line":"(Contingent effective date) Definitions","order_by":null,"url":"\/58.1-520\/"}],"permalink":{"id":259199,"object_type":"law","relational_id":62937,"identifier":"58.1-4020.1","token":"58.1\/IV\/40\/1\/58.1-4020.1","url":"\/58.1-4020.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-4020.1\/","token":"58.1\/IV\/40\/1\/58.1-4020.1","dublin_core":{"Title":"Voluntary assignment of lottery prizes or pledge as collateral for a loan; requirements for the assignees and lenders","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-4020.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Lottery<\/span> prizes, payable in installments over a period of time, excluding prizes payable for the winner’s life, may be voluntarily assigned or pledged as collateral<\/span> for a loan, in whole or in part, by the person entitled to such installments, by written contract<\/span> affirming that the requirements of this section have been met and endorsed by written order<\/span> of a court<\/span> of competent jurisdiction<\/span> after a hearing<\/span>. The order<\/span> shall specify the name, address and social security number or tax identification number of the assignee or lender and shall specifically describe the payments be assigned or pledged as collateral<\/span> by date and gross pre-tax amount. The Department<\/span> shall be given notice of any hearing<\/span> held pursuant to this section and shall have the right to appear and participate in such hearing<\/span>. Venue<\/span> for hearings<\/span> held pursuant to this section shall be in the Circuit<\/span> Court<\/span> of the City of Richmond.\n\t\t\tThe rate charged for any such assignment or loan shall not exceed 15 percent.\n\t\t\tThe contract<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Be signed by the assignor and the assignee or the lender and the borrower, and the assignor or borrower shall affirm<\/span> the assignment or loan has been voluntarily executed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Include or be accompanied by a sworn statement attesting that the assignor or borrower (i) is of sound mind and not acting under duress; (ii) has been advised in writing by the assignee or lender to seek independent legal counsel<\/span> and independent financial counsel<\/span> concerning the implications of the assignment or loan, including the tax consequences, and has either received such advice or knowingly waived such advice in writing; (iii) understands that he is relinquishing or limiting his rights to receive the lottery<\/span> proceeds; and (iv) has received from the Virginia Lottery<\/span>, in response to a written request therefor, confirmation of the assignee’s or lender’s registration with the Virginia Lottery<\/span> in accordance with subsection E of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Include a disclosure statement<\/span> setting forth (i) the amounts assigned or loaned; (ii) the dates such amounts are payable; (iii) the purchase price paid for the assignment or loan; (iv) the rate of discount to present value, assuming daily compounding and funding on the contract<\/span> date; (v) the amount of any fees associated with the assignment or loan and by whom such fees are payable; and (vi) the tax identification number of the assignee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Expressly state that the assignor or borrower has three business days after signing the contract<\/span> to cancel the assignment or loan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Expressly state that the assignee or lender is eligible to purchase, share or receive prizes of the Virginia Lottery<\/span> pursuant to §§ 58.1-4015<\/a>, 58.1-4016<\/a> and subsection A of § 58.1-4019<\/a>, and that the Virginia Lottery<\/span> has complied with subsection B of § 58.1-4019<\/a> in that the original prizewinner is (or if deceased, was) a natural person if and to the extent that the prize was awarded on or after the effective date pursuant to subsection B of § 58.1-4019<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Expressly state that no amounts assigned or loaned are subject to setoff pursuant to Article 21 (§ 58.1-520<\/a> et seq.) of Chapter 3 of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commonwealth, the Virginia Lottery<\/span> and any employee or representative of either shall be indemnified and held harmless upon payment of amounts due as set forth in the court order<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Lottery<\/span> may establish a reasonable fee to process the assignments provided for in this section and to receive, review and file the registration required by subsection E and confirm compliance with the registration requirements. The fee shall be reflective of the direct and indirect costs of processing the assignments or registrations. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Notwithstanding the provisions of this section, the Commonwealth and the Virginia Lottery<\/span> shall not accept any assignment if either of the following has occurred: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Federal law<\/span> provides that the right to assign lottery<\/span> proceeds is deemed receipt of income in the year the lottery<\/span> prize is won for all installment lottery<\/span> prize winners. “Federal law<\/span>” includes statutory law, rulings of courts<\/span> of competent jurisdiction<\/span>, and published rulings by the Internal Revenue Service. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> State law<\/span> provides that the right to assign lottery<\/span> proceeds is deemed receipt of income in the year the lottery<\/span> prize is won for all installment lottery<\/span> prize winners. “State law<\/span>” includes statutory law, rulings of courts<\/span> of competent jurisdiction<\/span>, and published rulings by the Department<\/span> of Taxation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> An assignee, prospective assignee, lender or prospective lender shall not make any representation in any written or oral communications with a lottery<\/span> winner that implies that the assignee, prospective assignee, lender or prospective lender is associated with or an agent of the Virginia Lottery<\/span>. Every prospective assignee or prospective lender shall register with the Virginia Lottery<\/span>, prior to contracting for any assignment or loan pursuant to this section. The registration shall include (i) the assignee’s or lender’s standard information packet or materials<\/span> given or sent to prospective assignees or borrowers, (ii) the assignee’s or lender’s standard form of agreement, (iii) the assignee’s or lender’s federal tax identification number, and (iv) where applicable, the assignee’s or lender’s most recent public financial statement. The Director<\/span> may deny, suspend or revoke a registration for a violation of this chapter or for such other reason as the Board<\/span>, by regulation, may establish. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVOLUNTARY ASSIGNMENT OF LOTTERY PRIZES OR PLEDGE AS COLLATERAL FOR A LOAN;\nREQUIREMENTS FOR THE ASSIGNEES AND LENDERS (\u00a7 58.1-4020.1)\n\nA. Lottery prizes, payable in installments over a period of time, excluding\nprizes payable for the winner’s life, may be voluntarily assigned or\npledged as collateral for a loan, in whole or in part, by the person entitled to\nsuch installments, by written contract affirming that the requirements of this\nsection have been met and endorsed by written order of a court of competent\njurisdiction after a hearing. The order shall specify the name, address and\nsocial security number or tax identification number of the assignee or lender\nand shall specifically describe the payments be assigned or pledged as\ncollateral by date and gross pre-tax amount. The Department shall be given\nnotice of any hearing held pursuant to this section and shall have the right to\nappear and participate in such hearing. Venue for hearings held pursuant to this\nsection shall be in the Circuit Court of the City of Richmond.\n\t\t\tThe rate charged for any such assignment or loan shall not exceed 15 percent.\n\t\t\tThe contract shall:\n\n 1. Be signed by the assignor and the assignee or the lender and the borrower,\n and the assignor or borrower shall affirm the assignment or loan has been\n voluntarily executed.\n\n 2. Include or be accompanied by a sworn statement attesting that the assignor\n or borrower (i) is of sound mind and not acting under duress; (ii) has been\n advised in writing by the assignee or lender to seek independent legal counsel\n and independent financial counsel concerning the implications of the\n assignment or loan, including the tax consequences, and has either received\n such advice or knowingly waived such advice in writing; (iii) understands that\n he is relinquishing or limiting his rights to receive the lottery proceeds;\n and (iv) has received from the Virginia Lottery, in response to a written\n request therefor, confirmation of the assignee’s or lender’s\n registration with the Virginia Lottery in accordance with subsection E of this\n section.\n\n 3. Include a disclosure statement setting forth (i) the amounts assigned or\n loaned; (ii) the dates such amounts are payable; (iii) the purchase price paid\n for the assignment or loan; (iv) the rate of discount to present value,\n assuming daily compounding and funding on the contract date; (v) the amount of\n any fees associated with the assignment or loan and by whom such fees are\n payable; and (vi) the tax identification number of the assignee.\n\n 4. Expressly state that the assignor or borrower has three business days after\n signing the contract to cancel the assignment or loan.\n\n 5. Expressly state that the assignee or lender is eligible to purchase, share\n or receive prizes of the Virginia Lottery pursuant to §§ 58.1-4015,\n 58.1-4016 and subsection A of § 58.1-4019, and that the Virginia Lottery\n has complied with subsection B of § 58.1-4019 in that the original\n prizewinner is (or if deceased, was) a natural person if and to the extent\n that the prize was awarded on or after the effective date pursuant to\n subsection B of § 58.1-4019.\n\n 6. Expressly state that no amounts assigned or loaned are subject to setoff\n pursuant to Article 21 (§ 58.1-520 et seq.) of Chapter 3 of this title.\n\nB. The Commonwealth, the Virginia Lottery and any employee or representative of\neither shall be indemnified and held harmless upon payment of amounts due as set\nforth in the court order.\n\nC. The Lottery may establish a reasonable fee to process the assignments\nprovided for in this section and to receive, review and file the registration\nrequired by subsection E and confirm compliance with the registration\nrequirements. The fee shall be reflective of the direct and indirect costs of\nprocessing the assignments or registrations.\n\nD. Notwithstanding the provisions of this section, the Commonwealth and the\nVirginia Lottery shall not accept any assignment if either of the following has\noccurred:\n\n 1. Federal law provides that the right to assign lottery proceeds is deemed\n receipt of income in the year the lottery prize is won for all installment\n lottery prize winners. “Federal law” includes statutory law,\n rulings of courts of competent jurisdiction, and published rulings by the\n Internal Revenue Service.\n\n 2. State law provides that the right to assign lottery proceeds is deemed\n receipt of income in the year the lottery prize is won for all installment\n lottery prize winners. “State law” includes statutory law, rulings\n of courts of competent jurisdiction, and published rulings by the Department\n of Taxation.\n\nE. An assignee, prospective assignee, lender or prospective lender shall not\nmake any representation in any written or oral communications with a lottery\nwinner that implies that the assignee, prospective assignee, lender or\nprospective lender is associated with or an agent of the Virginia Lottery. Every\nprospective assignee or prospective lender shall register with the Virginia\nLottery, prior to contracting for any assignment or loan pursuant to this\nsection. The registration shall include (i) the assignee’s or\nlender’s standard information packet or materials given or sent to\nprospective assignees or borrowers, (ii) the assignee’s or lender’s\nstandard form of agreement, (iii) the assignee’s or lender’s federal\ntax identification number, and (iv) where applicable, the assignee’s or\nlender’s most recent public financial statement. The Director may deny,\nsuspend or revoke a registration for a violation of this chapter or for such\nother reason as the Board, by regulation, may establish.\n\nHISTORY: 2003, c. 924; 2004, c. 630.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}