IRONMAN will forfeit nearly $2.8 million to the U.S. government for running an illegal lottery that gave competitors a chance to compete in the historic world championship triathlon on the Big Island.
IRONMAN will forfeit nearly $2.8 million to the U.S. government for running an illegal lottery that gave competitors a chance to compete in the historic world championship triathlon on the Big Island.
The U.S. Attorney’s office in Tampa, Fla., announced Wednesday that the World Triathlon Corporation — which runs IRONMAN — will turn over the $2,761,910 it has earned through the lottery since Oct. 24, 2012.
Thousands of athletes purchased multiple entries into the lottery at $50 apiece for the chance to enter the 2.4-mile swim, 112-mile bike and 26.2-mile run. Many others paid an additional fee to join the “Passport Club,” which would increase their chances of getting into the event.
“IRONMAN would have been permitted to give away the opportunity to compete in the race, but violated the law when it charged athletes money for the chance to win,” said U.S. Attorney Lee Bentley for the Middle District of Florida.
Lottery winners still had to pay full price of $850 for the slot, if selected.
While IRONMAN represented to its athletes on its website it was “unable to release exact numbers” with regards to the number of people registered in the lottery, the complaint filed in U.S. District Court in Tampa reveals, “World Triathlon Corporation received 14,254 entries for the 2015 IRONMAN Lottery, through which the World Triathlon Corporation awarded 100 slots to the 2015 lronman World Championship. Each entry fee was $50. In addition, 6,889 individuals purchased a $50 “membership” in the Passport Club which gave them a second chance of being selected though the lronman Lottery that year. Thus, WTC received a total of $1,057,150 in Lottery/Passport Club entry fees paid to enter the lronman Lottery for the 2015 lronman World Championship.”
In 2015, WTC made more than $10,000 per slot it awarded through the lronman Lottery, on top of the $850 registration fee.
IRONMAN also grossed $654,510 from the 2013 lottery, $911,600 from the 2014 lottery, as well as $67,600 from the “Valentine’s Day Lottery”, and $71,150 from the “Gift of Kona” drawing.
The complaint said the World Triathlon Corporation delivered the lottery proceeds on May 11.
IRONMAN officials were unavailable for comment, but issued a statement regarding the decision.
“While we do not agree with U.S. Department of Justice’s interpretation of the relevant statutes or that there has been anything untoward or inappropriate in our operation of the IRONMAN Kona Lottery, IRONMAN chose to settle so that we can focus on our priorities — our athletes and our events,” the statement read. “We continue to believe in the (IRONMAN co-founders John and Judy Collins) vision for making the IRONMAN World Championship accessible to athletes of all abilities and plan to announce new plans later this year.”
The U.S. Attorney’s Office said that, “IRONMAN cooperated fully in the investigation and voluntarily provided all information necessary to allow the parties to promptly resolve the matter.”
The majority of 2,000-plus slots in the race go to athletes who qualify by racing in IRONMAN-branded events around the globe. Others are selected through the “IRONMAN Legacy Program,” which rewards those who have completed at least 12 IRONMAN races but have never competed at Kona.
IRONMAN said its lottery has operated in a substantially similar manner since 1983. The race moved to the Big Island from Oahu in 1981.
While the agreement states that IRONMAN will no longer operate the Kona Lottery in its current form, officials said the 2015 lottery winners are unaffected by the decision and their slots will be honored for this year’s race.
It should be noted that the Kona Lottery is not the same as the lottery for local competitors, which ensures that there is still a Hawaii contingent in the world championship race. Triathletes who meet residency requirements and finish Ironman 70.3-Hawaii — also known as Honu — can be entered into the lottery. There is no additional fee. The Big Island gets 24 slots, while the rest of the state gets 20. The lottery is scheduled for June 6 in Kailua-Kona.
IRONMAN also auctions off slots in the Kona race through eBay, with 100 percent of the profits benefiting the the IRONMAN Foundation. Those entries sold for as high as $60,200 this year.
The most recent study by USA Triathlon, the sport’s governing body in the U.S., said there were about 530,000 registered triathletes, more than four times the 122,000 when the sport made its Olympic debut in 2000.
Ironman triathlons cost about $750 to enter and often sell out in fewer than 15 minutes. USA Triathlon said the average income for a triathlete is $126,000.