Issue:
Under current law, gaming institutions are not required to establish a process to intercept gaming winnings prior to payout other than to deduct applicable tax withholding. This interception process can be expanded to the interception of past due child support by matching OCSE data of delinquent child support parents with gaming winnings that exceed $600.00.
Background:
Many states allow the interception of lottery winnings for past due child support and this process works as well as the withholding of applicable income taxes. The same limit of $600.00 would minimize the impact on the gaming industry. All winners would be matched against one list held by OCSE instead of multiple lists from multiple jurisdictions, which again would minimize the impact on the gaming industry. The intercepted funds would then be distributed by OCSE to the appropriate state. Based on the experience of states in intercepting lottery winnings, this would significantly add to collections for children.
A proposal would require gaming institutions to expand their interception of winnings process to include child support.
NCCSD Statement in Support:
NCCSD supports the expansion of the gaming interception process to include past due child support, so that children share in the winnings.