The worst thing that the lottery does other than withholding tax, is to give someone the option of receiving the entire amount they won but only if they receive it as fractional payments over a number of years, or they can receive a greatly reduced lump sum. This very much seems like they don't actually have the amount of money that they claim is the grand prize and want to either pay out what they have now or ponzi scheme their way out of the owed amount. Either that or they are stealing money from the winners.