Lottery payment rights

Buy secondary market lottery payments

Fixed income streams originating from state lottery prize payments, assigned by court order and backed by the state lottery's obligation, funded through instruments such as U.S. Treasury securities or insurance annuities. Among the most secure payment streams on the secondary market.

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Government-backed obligations Fixed estimated yieldsCourt-approved & assigned

A payment stream, not a lottery ticket

When a jackpot winner takes the annuity option on a prize like Powerball or Mega Millions, the state lottery pays out a fixed schedule of annual payments, commonly increasing each year and running for two to three decades. In states that allow it, a winner may assign those future payments through a court-approved transfer in exchange for a lump sum today.

As an investor, you are not buying a chance at anything. You are purchasing a defined, already-determined schedule of payments at a discount to its total value. That discount is what produces an effective yield typically above a newly issued fixed annuity of the same length, while you collect the full scheduled amounts.

Why lottery streams are exceptionally secure

State-backed obligations

Payments are obligations of the issuing state lottery, a government entity, rather than a single private counterparty.

High-grade funding

Many jackpot annuities are funded through U.S. Treasury securities, other government-backed instruments, or insurance annuities held in trust to support the schedule.

Court-ordered assignment

Every transfer is completed by court order confirming the assignment is valid and the payments redirect to the investor.

This backing is what sets lottery payment streams apart from insurer-backed annuities. It does not eliminate risk (these remain long-term holdings with limited liquidity that are not FDIC-insured and are not securities), but the source of the payments is about as strong as fixed income gets.

Current lottery payment inventory

A sample of available lottery payment streams. Registered investors see full terms and investor pricing.

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Lottery Life-ContingentNo. GK005440

WA Lottery

8.50%estimated yield

Purchase price: $232,902.57
Total scheduled: $359,000.00
Payment window: Feb 2029 – Feb 2035

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Lottery payment FAQ

What are secondary market lottery payments?

When someone wins a state lottery jackpot such as Powerball or Mega Millions and elects the annuity option, they receive a fixed schedule of annual payments, often over 20 to 30 years. In states that permit it, a winner can assign some or all of those future payments through a court-approved process in exchange for a lump sum. Those assigned payment rights are what investors purchase on the secondary market, a defined stream of scheduled, government-backed payments bought at a discount for an attractive effective yield.

How safe are lottery payment streams?

Lottery payments are obligations of the issuing state lottery, and jackpot streams are typically funded through U.S. Treasury securities, other government-backed instruments, or insurance annuities held in trust. That backing places these among the most secure payment streams available on the secondary market. As with any investment, they are not FDIC-insured and are not securities, and every assignment is completed by court order to confirm the transfer is valid.

Why do these offer higher yields than a new annuity?

Because the payments are purchased at a discount to their total face value, the effective yield to the investor is typically higher than a newly issued fixed annuity of comparable term. You are stepping into an existing, court-ordered payment schedule rather than buying a new contract, and you keep the full scheduled payments.

Can I reserve a lottery payment stream?

Yes. Inventory is offered first-come, first-served. Create a free investor account to view full deal terms and our investor pricing, then reserve online or by calling (800) 449-6311. Once reserved, the assignment is completed through the applicable court process before funding.

What these assets are, and what they are not

Guaranteed and life-contingent structured settlement payment rights, and lottery payment rights, represent the right to receive factored payments that Pacific Structured Assets purchases and assigns to investors through a court-approved process. They are purchased at a discount to their total scheduled payments.

These payment rights are NOT annuities, NOT insurance products, and NOT securities registered with the U.S. Securities and Exchange Commission. They are not bank deposits, are not FDIC-insured, and are not protected by any state insurance guaranty association. The industry term “secondary market annuity” refers to these payment rights and does not mean you are purchasing an insurance annuity contract.

You acquire the right to receive the payments, not the underlying annuity. The annuity itself does not change hands. Unlike the original structured settlement annuity, which may be shielded from creditors under applicable law, the assigned payment rights you purchase generally do not carry that creditor or bankruptcy protection.

Assigned annuities, offered as a separate product line, are existing insurance annuity contracts reassigned to a new owner through a change of ownership or an irrevocable change of payee.

These are long-term holdings with limited liquidity, and may not be suitable for every investor. There is no public trading market and no daily price. Resale or reassignment of a payment stream to another buyer may be possible, and Pacific Structured Assets can assist, but a resale is not guaranteed and the price it would bring is not guaranteed. Because the payments are fixed, that resale value moves with prevailing interest rates: an investor could realize a gain if rates have fallen since purchase, or a loss if rates have risen. These holdings are best suited to capital an investor can commit for the long term. Nothing on this website is tax, legal, financial, or investment advice. Consult your own advisors before investing.

Pacific Structured Assets, Inc. does not provide tax, legal, financial or accounting advice. The material on this website has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. You should consult your own tax, legal, financial or accounting advisors before engaging in any transaction, including the acquisition of factored structured settlement payments. Pacific Structured Assets is not registered with the Securities and Exchange Commission and is not licensed to sell insurance in any state.

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