The Yale Law Journal

Matthew S. Levine


Lottery Winnings as Capital Gains

Matthew S. Levine

114 Yale L.J. 195 (2004)

Pity J. Michael Maginnis. In 1991, he had the misfortune to win $9 million in the lottery. Five years later, he sold his remaining winnings--fifteen annual payments of $450,000 each--to Woodbridge Financial Corporation for a $3.95 million lump sum. He reported this payment o…