© Illinois LotteryMillions of dollars in backdated claims are now owed to winners.
Gamblers who win more than $600 (£388) will not be given their money until the state's financial situation has improved. In July the city said that payments of more than $25,000 would be temporarily suspended, but Thursday's announcement of the lower threshold has left winners furious.
"You know what's funny? If we owed the state money, they'd come take it and they don't care whether we have a roof over our head," said Susan Rick, 48, who won $250,000 in July. "Our budget wouldn't be a factor. You can't say to the state, 'Can you wait until I get my budget under control?'"
Two lottery winners last month filed a lawsuit against the lottery, demanding their money with interest.
"If I was the one selling raffle tickets and I didn't pay, I would be sued or in jail or both," said Rhonda Rasche, one of the winners who filed the suit, in an interview with The Chicago Tribune.
The Illinois Lottery has withheld more than $288 million in prizes since the state budget expired in June, according to the lawsuit.
The problem has arisen because the state of Illinois has, for five months, been unable to agree on its budget. Bruce Rauner, the Republican governor of Illinois, has failed to secure approval for his "Turnaround Agenda" from the Democrat-ruled General Assembly.
It has meant that state-funded services have been reduced. Programmes for subsidised child care, victims of domestic violence, people with disabilities, and elderly people who receive home care have been cut.
No deadline has been set for the budget agreement, to the frustration of Mr Rauner - and lottery winners.
"For the first time, we were finally going get a break," Ms Rick told The Chicago Tribune. "And now the Illinois Lottery has kind of messed everything up."
Jack Franks, a Democrat representative in Illinois, has been a stern critic of the state's lottery system. "I sort of like the business model, because if we take the money in and never have to pay, how do we lose?" he said sarcastically.
"Our government is committing a fraud on the taxpayers, because we're holding ourselves out as selling a good, and we're not — we're not selling anything.
"The lottery is a contract: I pay my money, and if I win, you're obligated to pay me and you have to pay me timely. It doesn't say if you have money or when you have money."
But the state of Illinois said it had little choice in the matter.
"The lottery is a state agency like many others, and we're obviously affected by the budget situation," said Steve Rossi, Illinois Lottery spokesman. "Since the legal authority is not there for the comptroller to disburse payments, those payments are delayed."
Lucky winners were unimpressed. "Who do you think buys lottery tickets most of the time?" said Ms Rick. "Not millionaires. People who don't have a lot of money. You're messing with all those dreams."
what was left out is that the management of the lottery is losing money after going into private hands... the profit stream has turned from up to down... along with everything else.... Isn't it lovely? Crazy insane, but like a slow motion football highlight clip, just watching the Land of Lincoln repeating the same BS is a sight to see... though best from a distance, but fear not, up close and personal has it's benefits... right?... if one has prepared beforehand, same with the federal govt... which is even deeper in debt, but as long as the world lets the emperor run around naked, and no one calls him out for the absurdity of his nudity, then best to enjoy while it lasts, this kind of crap doesn't last as long as we are told it can... though it always seems to last way to long anyway... and the expiration day is approaching here in Illinois, same as the USofA... funny, the new governor thinks he can outplay Mike Madagan... that's exactly what the last few thought... Yes, the current governor has his billions offshore in the Caribbean paying no taxes like the rest of them, and that gives him the security of insanity to think that others will just follow his lead and do as he wants... isn't that pathetic or just psychopathic? Hard to tell the difference in these exciting end-times. Enjoy the show while it lasts! Cheers from the grave of Lincoln!