Las Vegas Sun

April 19, 2024

State may garnish jackpots won by deadbeat parents

ATLANTIC CITY -- Deadbeat parents who hit it big in New Jersey casinos may not be so lucky next time they win.

A bill passed by the Legislature would give the state permission to garnish some slot machine jackpots won by gamblers who owe child support payments.

The measure, which is awaiting acting Gov. Richard Codey's signature, would require the operators of slot machine systems to give the names, addresses and Social Security numbers of winners to the state, which in turn would check them against child support enforcement rolls.

If the jackpot winner owes court-ordered child support, the money would be deducted from the jackpot before it's paid out.

Welcomed by child support enforcement advocates as a valuable tool, the measure was criticized Tuesday as onerous and unfair by a casino lobbyist.

"We think anyone who owes child support should pay it, but having private businesses doing the state's job is just wrong," said Frank Fahrenkopf Jr., president of the American Gaming Association.

"If we're going to do it with casinos, why not do it with all businesses? Why don't we say that before anyone can withdraw $1,000 or more, the bank has to check and see if they owe child support? Or if a person has a trading account on Wall Street, before the broker can pay them proceeds from a stock sale, they have to check and see if the person owes child support?"

Neither the bill's sponsor nor other state officials could estimate how many jackpot winners would be affected, but the number is likely to be small.

The law would not apply to non-New Jersey residents, for example. Nor would it apply to people who win at table games or to those who win low-level slot jackpots.

The bill contains no specific dollar threshold. The withholding would apply to those who win big jackpots and choose to collect them in an annuity form -- annual installments instead of in one lump sum.

Typically, that occurs with six-figure or multimillion-dollar slot payouts, and officials said only about 2 percent of people who win major jackpots choose that option.

Nevertheless, child advocates say the withholding concept is a good one.

"If there's any way we can help the children of New Jersey get the support they need, financially and emotionally, we support it," said Suzanne Esterman, a spokeswoman for the state Department of Human Services.

About 500,000 New Jersey children depend on child support payments by noncustodial spouses, but about 35 percent don't get it, she said.

Seizing money won in a casino -- and paying it to the custodial parent -- is a good way to close that gap, according to Assemblyman Jeff Van Drew, a co-sponsor of the bill.

"It makes good sense. And it's good for the taxpayer. When people aren't responsible, it costs the taxpayers more, through social services and other programs," said Van Drew, D-Cape May.

Asked about the casinos' criticism, Van Drew said: "We didn't really hear any complaints, particularly. There was no broad movement among the casinos complaining about this legislation."

Resorts Atlantic City casino President Audrey Oswell, who heads the Casino Association of New Jersey, declined comment on the bill Tuesday. Codey spokesman Sean Darcy wouldn't say whether the acting governor intends to sign it.

"The governor will review this legislation when it comes across his desk," he said.

Gamblers, meanwhile, have mixed emotions about the idea of seizing casino winnings.

"That sounds fair," said slot player Judy Grubb, 53, of West Chester, Pa. "If they get lucky, they should share it with the people who should be getting it anyway."

A slot player interviewed outside Resorts Atlantic City disagreed.

"It's none of their business," said the woman, who would not give her name. "What you win is between you and the casino. I don't think the casino should get involved."

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