16 Del. Admin. Code § 9000-9072

Current through Register Vol. 28, No. 7, January 1, 2025

Section 9000-9072 - Terminating Food Benefits due to Substantial Lottery or Gambling Winnings

7 CFR 272.17; 7 CFR 273.11 (r); 7 CFR 273.12 (a)

Food benefit households that receive substantial lottery or gambling winnings will not be eligible for the Food

Supplement Program upon receipt of the winnings.

1. Substantial lottery or gambling winnings are a cash prize won in a single game with a gross value equal to or greater than the maximum limit for lottery and gambling winnings for the Food Supplement Program.

A. Substantial lottery or gambling winnings include, but are not limited to, cash prizes from:

* Scratch off tickets

* Video lottery

* Lottery drawings, such as Powerball

* Table games, such as blackjack or roulette

* Slot machines

* Sports betting

* Horse racing

* Keno

* Bingo

* Internet gambling

B. DSS and DMMA will assess the value of lottery and gambling winnings before taxes or other withholdings are deducted.

C. If multiple individuals shared in the purchase of a ticket, hand, or similar bet, then DSS or DMMA will use only the portion of the winnings given to a member of the food benefit household to determine if the household's winnings are equal to or greater than the maximum limit for lottery and gambling winnings.

D. The maximum limit for lottery and gambling winnings applies to all food benefit households, including elderly or disabled households and categorically eligible households.

E. The Food and Nutrition Service (FNS) determines the maximum limit for lottery and gambling winnings each year. DSS publishes the maximum limit in the annual October Cost of Living Adjustments Administrative Notice.

Note: The maximum limit for lottery and gambling winnings is set to the same amount as the maximum financial resource limit for elderly or disabled food benefit households.

2. Food benefit households are required to report to DSS or DMMA when a household member receives substantial lottery or gambling winnings.

A. Households that have received substantial lottery or gambling winnings must report the total winnings to DSS or DMMA within 10 days of the date the household received the winnings.

i. This reporting requirement also applies to households that spent or gave away the winnings prior to reporting to DSS or DMMA.

ii. Households must report in-state and out-of-state winnings.

3. DSS and DMMA case workers must verify food benefit households' lottery and gambling winnings.

A. DSS and DMMA will accept verification of households' lottery or gambling winnings, including, but not limited to:

i. A receipt or notice from the Delaware Department of Finance;

ii. A receipt or form from the payer of the winnings;

iii. A copy of the household member's bank statement; or

iv. Information from a data match for lottery and gambling winnings.

B. DSS and DMMA case workers will follow the procedures for questionable or unclear information per DSSM 9033 and DSSM 9085.5 when:

i. Information or verification of a household member's lottery or gambling winnings is unclear, questionable, or missing; or

ii. A third party reports a household member's lottery or gambling winnings without providing acceptable verification.

Note: If DSS or DMMA receives information about the household's winnings from the lottery and gambling data match in the eligibility system, the household's food benefit case can be closed without contacting the household if the match meets the following conditions:

* The household's reported winnings are equal to or greater than the maximum limit for lottery and gambling winnings; and

* The data match information is clear and complete.

If the information received from the lottery and gambling data match is questionable, DSS and DMMA case workers will follow the procedures for unclear information per DSSM 9085.5. For example, the spelling of the household member's name on the data match is different from the spelling of the name in the case file.

4. Any food benefit household with a member who receives substantial lottery or gambling winnings will no longer be eligible for food benefits immediately upon receipt and verification of the winnings.

A. The DSS or DMMA case worker must immediately close or deny the food benefit case for the entire household once a household member's winnings are verified.

B. If the DSS or DMMA case worker issued a request for contact to the household and the household fails to respond or refuses to provide sufficient information or verification about the winnings, the case worker will follow the procedure to close the food benefit case per DSSM 9085.5.

C. DSS or DMMA will send a notice of adverse action to the household prior to terminating food benefits for substantial lottery or gambling winnings.

D. DSS or DMMA will send a notice of denial to the household if DSS or DMMA discovers during the recertification process that the household received substantial lottery or gambling winnings.

E. The DSS or DMMA case worker will process an overpayment for the food benefit case if benefits were issued to the household following the household's receipt of winnings that exceeded the maximum limit for lottery and gambling winnings.

5. Households that were determined ineligible for food benefits because of substantial lottery or gambling winnings will remain ineligible until the household meets the resource and income eligibility requirements for the Food Supplement Program.

A. A household can re-apply for food benefits at any time after the household's case is closed.

B. DSS and DMMA will determine eligibility using the regular resource and income limits for the Food Supplement Program for households that re-apply for benefits after their case closed due to substantial lottery or gambling winnings.

i. DSS or DMMA will count any winnings kept by the household as a resource at re- application.

ii. The household cannot be determined categorically eligible at re-application, even if the household was previously categorically eligible per DSSM 9042. This requirement applies only the first time the household re-applies for food benefits.

C. If at re-application the food benefit household's composition has changed since the case closed, DSS or DMMA will consider the household to be a new food benefit household and not a household that was closed due to substantial lottery or gambling winnings, regardless of who left or entered the household.

i. A household that has changed after case closure may be determined categorically eligible at re-application and does not have to meet the conditions in section (5)(B) of this policy.

16 Del. Admin. Code § 9000-9072

16 DE Reg. 874 (02/01/13)
24 DE Reg. 597( 12/1/2020) (Final)