We believe that a lottery check presented for deposit should be treated as a state government check for purposes of Regulation CC’s next-day availability requirement.

Regulation CC requires that a check drawn by “a state or a unit of general local government” that is deposited in person to a bank employee and into an account held by the payee of the check must be made available on the first business day following the banking day of deposit (“next-day availability”). 12 CFR 229.10(c)(iv). Though the Illinois Lottery is operated by a private manager, the Illinois Lottery Law states that, even while under private management, the Illinois Lottery remains “a Lottery conducted by the state.” 20 ILCS 1605/9.1(j). All lottery checks are drawn on separate accounts held by the state. 20 ILCS 1605/2021.521.621.721.8.  Consequently, a strong argument could be made that a check drawn by the Illinois Department of Lottery is a state government check subject to the next-day availability requirements.

Of course, you may be able to extend the next-day availability requirement, as several exceptions are available, including the large deposit exception for deposits in excess of $5,000 on any one banking day. 12 CFR 229.13(b). Also, Regulation CC permits a financial institution to require a special deposit slip distinguishing a check as a state or local government check. Official Interpretations, 12 CFR 229, Paragraph 10(c), Comment 6(b).