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State succeeds in collecting gambling winnings for child support

Colorado's 2008 statute that requires the Department of Revenue to nab money for outstanding child support payments from people's gambling winnings in excess of $1,200 was apparently a success. So much so, in fact, that a new law updating that statute will require racetracks and casinos to intercept money from winnings as restitution for crime victims.

According to reports, Colorado was the first state that required casinos to divert cash winnings for child support payments. To date, the Department of Revenue reportedly has recovered over $1 million in child support payments. That's impressive, even though it is a small chunk of what's owed in outstanding payments.

Under the law, casinos need to check the child support status of anyone who wins at least $1,200, according to reports. Racetracks would need to check on anyone who wins over $600. Several other states have followed suit with similar laws.

The single biggest garnishment was reportedly over $35,000. Like other states, there is already a law that requires similar deductions from lottery winnings.

The state will now see how it goes when it comes to collecting restitution for crime victims. Restitution typically occurs when a court orders a person who caused a loss to someone else in a criminal case to pay compensation.

The new law took effect July 1 and will serve as a new way for crime victims to get restitution. If it works like the original law, it should help to collect a chunk of payments that otherwise would have stayed in the gamblers' pockets.

Source: Enhanced Online News, "Colorado Department of Revenue takes its gambling intercept payment system one step further with court ordered restitution," 8 July 2011

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