Department of Social Services
Family Support Division
PO Box 2320
Jefferson City, Missouri
TO: ALL FAMILY SUPPORT OFFICES
FROM: KIM EVANS, DIRECTOR
SUBJECT: SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) MANUAL REVISIONS FOR SUBSTANTIAL LOTTERY OR GAMBLING WINNINGS
1140.000.00 SIMPLIFIED REPORTING
1140.005.46 LOTTERY AND GAMBLING WINNINGS
1130.035.15 CATEGORICALLY ELIGIBLE AFTER LOTTERY AND GAMBLING WINNINGS
The purpose of this memorandum is to introduce new SNAP policy regarding Simplified Reporting rules and reporting requirements. This update is due to the 2014 Farm Bill final rule that implements a new household reporting requirement for substantial gambling and lottery winnings. Effective May 3, 2021, SNAP households are required to report gambling and lottery winnings:
- By the tenth day of the month following the winnings, and
- When winnings are $3,500 or more in a single game.
Any SNAP household will lose eligibility immediately upon receipt, by any individual in the household, of substantial lottery or gambling winnings. Prompt action must be taken to close the case. An Adverse Action (FA-510) notice is provided. The household has the option to reapply at any time.
There is an interface between FAMIS and Missouri Lottery to report winnings for SNAP participants. The winnings are displayed on the INTRFACE (FMK0) screen. The system will automatically take action to close these cases.
NOTE: If there are multiple winnings within that month for an individual all winnings received will show on the INTRFACE screen. Press F8 to scroll forward through the winnings to see the winnings that went over the $3,500 threshold.
When the participant calls in to report winnings, enter the winnings as Unearned Income (UI) type and Lottery/Gambling (LO) source on the SELINC (FMX2) screen. Since the winnings are one time, enter the winning amount as an ADD Calculation Method.
NOTE: End date the LO income source the same date that it is reported since it is a one-time payment.
The interface match will report winnings in most cases.
Do not cancel an action to close the case when the case is closing for substantial winnings. The case must close and a new certification period must begin.
Verification that the household resources are under the allowable maximum is required. The household cannot be considered Categorically Eligible (CE) during the next certification period, regardless of their qualification to meet CE criteria. The household must be certified without CE criteria which will be done systematically when the household reapplies.
Example: A SNAP participant is receiving SSI and wins $4,300 on a single lottery scratcher game. The SNAP case must be closed for the reason code Substantial Lottery or Gambling Winnings (SLG), even if the household has spent the winnings below the resource limit. If the household re-applies, eligibility must be determined without using CE criteria for the next certification period, even though they are still receiving SSI and would be CE under normal circumstances.
- Review this memorandum with appropriate staff.