Study: Lottery money isn't everything

NASHVILLE, July 11 (UPI) -- Lottery winners do not dig their way out of debt and some eventually file for bankruptcy, researchers in Nashville found.

Mid-level lottery winners, defined as those who won between $50,000 and $150,000, do not pay off their debt or raise equity in new or existing assets, a Vanderbilt Law School researcher found.

"Winning the lottery seemed to do little to help lottery winners ease their debt," said Paige Marta Skiba, an assistant professor of law.

She said her research found some winners use their prize money to take more risks or buy luxury goods.

"Others seemed to simply lack the knowledge to handle large amounts of money wisely," she said.

Skiba and co-authors Scott Hankins of the University of Kentucky and Mark Hoekstra of the University of Pittsburgh said they believe their findings should be looked at by lawmakers who are considering giving people money to ease their financial burdens.

The researchers acknowledged they can't be sure beneficiaries of government aid will behave like lottery winners.