What Do Lottery Winners Do with Their Money | theLotter
 
 
 

What Do Lottery Winners Do with Their Money?

What would you do if you won the lottery? Would you buy a new house, a new car, travel around the world, give money to charity? If you won a huge jackpot prize you would be able to afford all of those things and still have money left over.

When we hear stories of ordinary people who turn their lives around after coming into a big lottery fortune, we are encouraged to keep playing. We wonder “What do lottery winners do with their money” because we hope that one day, we will be in a similar situation and need to make such momentous decisions ourselves.

Let’s take a look at what some newly created millionaires have done with their lottery winnings and see if we can plan ahead for the day when our dreams will come true.

How Do Lottery Winners Spend Their Money?

Camelot, operators of the National Lottery in the UK, conducted a study in 2012 of the more than 3,000 millionaires it had created (a number that is now over 4,000) and found that the most popular use of lottery money was property investments. The second most popular use of the money was making investments to provide future income, while the third most popular use was to ensure financial security for children. Further down on the list, lottery winners spent their winnings on luxury cars, gifts to family and friends, , holidays, and paying off debts and mortgages.

lottery winners do with their money

This study also highlights just how much winners spend on their friends and family. It was found that the winners handed over roughly $1.8 billion and paid off 3,700 mortgages for their loved ones. It’s a known fact that everyone, including parents, siblings, friends, neighbors, coworkers, charities, and strangers, will feel entitled to a piece of the prize, which can easily, cause conflict, end up in estrangement, divorce, bankruptcy, and even murder.

Statistics aside, some of the most fascinating stories are those that tell us what lottery winners did with their money following their big jackpot wins. Below are two examples of winners who spent their money on the typical luxuries that people who come into a windfall of cash are known to purchase.

John and Lisa Robinson of Tennessee, who shared the record $1.6 billion Powerball jackpot with two other winning ticket holders in January 2016, originally stated that they planned to remain in their one-story house, pay off their mortgage, and cover their daughter's student loans. Yet six months later it was revealed that they had purchased a 10-bedroom home with stunning rural views overlooking a private lake. The house apparently has a private home theatre and eight bathrooms.

Colin and Chris Weir, winners of Britain's biggest ever lottery prize after they claimed a £161m EuroMillions jackpot in July 2011, purchased an £850,000 mansion in the town of Largs in North Ayrshire, Scotland. They made lavish improvements to the property including installing a luxury indoor swimming pool, spa pool, Jacuzzi, Roman-style ornamental statues, and a greenhouse.

what colin and chris weir did with their lottery money

Some four years later, the Weirs sold their Largs mansion and upgraded to an estate called Frognal House in Troon for more than £3 million. Over the years, the Weirs have made generous contributions to the National Theatre of Scotland and the Scottish National Party.

Jackpot Winners Who Shared Their Wealth

While we mainly hear about the unlucky winners who spiraled out of control and went bankrupt, there are in fact many lottery winners who invest their money wisely and choose to spend it on good causes and charities Here’s a list of a few honourable mentions who won big and gave back!

lottery winners who gave back

Bob Erb from Canada won a $25 million Lotto Max jackpot in 2012 and donated a good proportion of his winnings, an estimated $8 million, to charitable causes. One of the causes he supported calls for the legalization of marijuana.

Rick Cockrum won an amazing $259 million Powerball prize in 2014! As a former actor and stage manager, he decided to start a foundation to support performing arts projects in not-for-profit professional theatres all across the US. He also made a donation to Doctors Without Borders during the Ebola Crisis and to the University of Tennessee Medical Center.

Tom Crist, who won a Lotto Max draw in 2013, decided to donate the ENTIRE jackpot prize of $40 million to charity. The generous Canadian went on to start a foundation and made his first donation to the Calgary Cancer Center, who treated his late wife for cancer. He then went on to continuously donate to charities close to his and his family’s heart including Big Brothers and Big Sisters, the Ronald McDonald House Charities, the Calgary Zoo and many more.

László Andraschek, a formerly homeless alcoholic from Hungary, changed his life and many others when he won a huge jackpot prize of FT630 million from a lottery ticket he purchased on his way to a workshop for recovering alcoholics. In order to bring awareness to Hungary’s fast-growing homeless population, László has since pledged a majority of his winnings to a foundation he has set up for addicts and abused women, along with a generous donation to a hostel for the homeless.

Weird Things Lottery Winners Bought with Their Winnings

While all these lottery winners went the traditional route and bought homes, cars and went on luxury vacations, they also made purchases may have some of you scratching your heads!

Jay Vargas from South Carolina become one of the youngest lottery winners ever in the United States when he scooped up a $35.3 million Powerball prize in May, 2008. He used his money to create a female wrestling television show called Wrestlicious TakeDown. That show shows that there is a link between the lottery and television. Still, the show went off the air after one season.

lottery winners spend their money

David Copeland won £1 million from the UK Lottery in 2000 and decided to think ahead and invest in the future by purchasing an acre of land on the moon, in addition to deeds for land on Venus and Mars. With technology constantly advancing, we're not sure that Copeland's otherworldly real estate purchase is as crazy as it may sound!

John and Linda Kutey won a $28.7 million share of a Mega Millions jackpot in 2011 and used some of their money to build a water spray park in honour of their parents.

Irish Winner Peter Laverywisely decided to invest a majority of his €10 million in over 30 properties throughout Northern Ireland, most of which he rents out. One of his more interesting real estate purchases was an abandoned prison in Belfast. Lavery made a tribute to his heritage by investing €5 million of his winnings into turning a decrepit jail into a boutique whiskey distillery, which will include a visitors centre, tasting room, bar, restaurant, and shop.

Tony and Greta Dodd were ecstatic when they won their €2 million lottery prize and knew exactly how they were going to spend it. The senior couple decided to treat themselves to joint knee replacements!

Do Lottery Winners Spend Their Winnings Wisely?

lottery winners do with their money

According to the Certified Financial Planner Board of Standards, nearly a third of lottery winners declare bankruptcy after their win. The National Endowment for Financial Education says that about 70 percent of those who come into a sudden windfall of cash, including lottery winners, go broke within a few years. A study on Florida winners contributed to this fact when it showed that winners who won large sums filed for bankruptcy at a faster rate than winners who were awarded much smaller sums.

On the other hand, two Swedish studies conducted in 2016 and 2017 revealed that winners awarded large prizes were able to gradually spend and sustain their wealth for well over a decade. They managed to do this by investing their winnings in low-risk, low-return bonds, which results in a steady income that can last a lifetime, and sometimes even be passed onto future generations.

The polar opposite results of the Swedish studies compared to studies from other countries, such as the US or UK, may indicate that the spending habits in different cultures is what makes or breaks the bank for big winners.

Lottery Winners Who Lost it All

Tales of lottery winners who lost everything because of their wild spending habits and bad investments will always fascinate and intrigue the public. Here are some winners who won the jackpot and ended up losing it all due to some very bad financial decisions.

Michael Carroll won £9,736,131 on the National Lottery in November 2002 when he was only 19 years old. The lottery win gave him celebrity status but after many run-ins with the law and spending his fortune on new homes, drugs, parties, and cars, he was reportedly almost broke five years after his big win. Michael's tale is quite the lottery winner horror story!

when you win the lottery

Ronnie Music Jr. from Georgia invested part of the $3 million he won in the lottery in 2015 to deal drugs. In 2017, Music was convicted of financing methamphetamine trafficking, owning illegal firearms and thousands of round of ammunition, and now faces 21 years in federal prison.

Jack Whittacker Jr. was already rich when he won a $314.9 million Powerball jackpot in 2002. In the years following his win, thieves stole huge amounts of cash from his car; his house was robbed; a teenager was found dead of an overdose in his home; his granddaughter was found dead; he was sued by an Atlantic City casino for bounced checks; and his house burned down.

John Mcguiness lost his £10 million lottery fortune when he decided to join the board of Scotland’s Livingston Football Club. Unbeknownst to him, the decision to pour almost a third of his prize winnings into the club would be his downfall, as he would have to use all his winnings, and more, to pay off all of the club’s numerous loans without getting back anything in return. Mounting legal fees forced Mcguiness to sell his mansion, luxury cars, and his family’s personal possessions to help pay back the £2.1 million debt he owed the Royal Bank of Scotland.

What Will You Do When You Win the Lottery?

Most people never expect to win, so figuring out how to navigate the complexities of winning the lottery can be daunting. Many lottery winners wisely consult with attorneys, accountants, and financial planners before spending one cent of their winnings. These winners typically make sound investments, donate generously to good charitable causes, and use their prize money to ensure the financial security of their families. In the UK, Camelot regularly sends financial advisors to lottery winners to help them deal with the risks and rewards involved in their winnings.

when you win the lottery

When the day comes and you become a big lottery winner, you will need to seriously consider your financial future. Hopefully learning what lottery winners do with their money, some of it good and some of it bad, will help you make wise decisions. Good luck playing the lottery and good luck spending your lottery winnings!