Oregon is coming for lottery discounters – So what are they?

Lottery resellers might be on the chopping block in Oregon, after a loophole in state law has been targeted in a new bill. House Bill 3115 passed on March 17 with a 52-1 vote. Not only will this bill allow for the crackdown of “lottery discounters”, but also allow winners to claim anonymously.

Lottery discounting is a practice that’s rife in Oregon. Those with winning tickets will sometimes resell them to these “discounters” for a lower price. This money isn’t taxed or subtracted from after the win. The discounters with the funds to pay off any major debts to the state will then claim the ticket in full.

A big reason for this is the inability to calculate lost tax revenue. Speaking with The Oregonian, the Lottery Senior Manager of Communications and Policy, Matt Shelby, said, “We don’t love it…  We don’t even like it. But how do you curb it?”

It’s been one of the focuses of lawmakers in the state for some time now. However, outside a website that ReadWrite couldn’t find, this is mostly done via pawn shops or in-person meetings. One man, Max McNamar, travels by car to buy tickets from different individuals.

Oregon Live’s report from 2024 details a few individuals who participate in lottery discounting, with one couple, Regina Cantere and ex Steven Bogart, managing to claim 2612 tickets at the time the piece of published. That’s nearly $7 million collected.

One man, Jimmy Pearson, managed to net $2.1 million before being shot to death by a sex worker in his home in 2021. His daughter, Tawnya, has since taken over, claiming a further $1.5 million.

Lottery reselling isn’t just happening in Oregon either. Massachusetts is one of the only states in the US to prevent lottery discounting, with a warning sent from the commissioner saying in 2019 that the practice would be “rapidly coming to an end.”

The Oregon Lottery did plan something similar, where it would monitor the lottery for high-frequency winners. However, it didn’t go through it due to the potential costs of policing the lottery itself.

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