Lottery Prize Disputes: Your Legal Guide to Protecting Your Winnings

Published on November 29, 2025

Winning the lottery should be a dream come true, but sometimes it turns into a nightmare.

Disputes over lottery prizes are more common than you might think: whether it’s a disagreement over who bought the ticket, conflicts within a group pool, or family members claiming they’re entitled to a share, these matters turn into litigation.

How to Resolve a Dispute Over a Lottery Ticket

Lottery disputes typically arise in a few common situations:

Group or pool disputes – When coworkers, friends, or family members buy tickets together and disagree about who contributed or how winnings should be split.

Ownership disputes – When someone claims they bought or own a ticket that another person is trying to claim.

Family disputes – When family members argue over whether winnings should be shared, especially if the ticket was purchased with shared funds or as a gift.

Stolen or lost tickets – When someone alleges their winning ticket was taken or when the ticket’s legitimacy is questioned.

Steps to Resolve the Dispute

Document everything immediately. Gather all evidence related to the ticket purchase: receipts, bank statements, text messages, emails, or any written agreements about sharing winnings. The more documentation you have, the stronger your position.

Don’t claim the prize yet. If there’s a dispute, claiming the prize before it’s resolved can complicate matters legally. The Ontario Lottery and Gaming Corporation (OLG) may hold the prize if they’re notified of a dispute, but they don’t resolve ownership issues – that’s for the courts.

Try to negotiate. Many disputes can be resolved through direct negotiation or mediation without going to court. This is faster, less expensive, and less stressful than litigation.

Seek legal advice. A lawyer experienced in civil litigation and lottery disputes can assess your situation, explain your rights, and help you develop a strategy. Given the amounts involved in lottery winnings, legal fees are usually a worthwhile investment.

Be prepared to litigate. If negotiation fails, you may need to file a lawsuit to establish your rights. Courts will examine evidence of ownership, any agreements (written or verbal), and the circumstances surrounding the ticket purchase.

Consider obtaining an injunction. If someone is trying to claim the prize improperly, you may need to seek an urgent court order (injunction) to prevent them from collecting the winnings while the dispute is being resolved.

The key is acting quickly. Lottery disputes are time-sensitive, and delaying action can weaken your position.

What Are the Biggest Mistakes a Lottery Winner Makes?

Lottery winners often make costly mistakes that can lead to disputes, financial problems, or lost winnings. Here are the most common errors:

Telling Everyone Immediately

Broadcasting your win to friends, family, and social media can lead to:

People claiming they’re entitled to a share
Unwanted attention and requests for money
Increased security risks
Family conflicts and relationship strain

Keep your win private while you develop a plan. Only tell people you absolutely trust, and consider how public you want to be before claiming large prizes.

Not Signing the Ticket

An unsigned ticket can be claimed by anyone who possesses it. If you lose it or someone steals it, you may have no way to prove ownership.

Sign the back of your ticket immediately, even before checking if it’s a winner.

Making Verbal Agreements Without Documentation

If you bought tickets as part of a group or pool, verbal agreements about sharing winnings often lead to disputes. Without written proof of the agreement, it becomes a “he said, she said” situation in court.

Always document group lottery arrangements in writing, including who contributed, how much, and how winnings will be split.

Not Understanding Tax Implications

While lottery winnings themselves aren’t taxed in Canada, any investment income generated from those winnings is taxable. Winners also sometimes fail to consider:

How the win affects government benefits
Estate planning and taxes upon death
Gifts to family members and tax consequences

Work with an accountant to understand the full tax picture and plan accordingly.

Contact Pinto Shekib LLP, Your Toronto Lottery Litigation Lawyers

Whether you’re facing a dispute over lottery winnings or planning how to claim a prize, the stakes are too high to navigate alone. Lottery disputes can be complex, emotionally charged, and financially devastating if not handled properly.

Our civil litigation lawyers have experience handling lottery disputes and can help you protect your rights.