It is easy to stop. Buy all they want, but you can't collect the prize. ID require and a check on a database would bring up a hit and prize confiscated to repay the welfare you recieved or prize collection denied. End of story.

Who they going to trust to go collect their prize/winnings?

Although I do know of a friend.who just collected on a lottery win for his sister and she gave him $700. She couldn't collect because she would lose her foodstamps and her portion of rent for section 8 would increase.

He told me he was issued a 1099 and it would be reported to the IRS, so he will pay the taxes on it. Thus the $700 payment he received for a $2500 prize. She gets $1800 in her pocket.