It also reminds me of a similar article I've read here in Italy about a man who in 1989 won the equivalent of $190,000 on primetime Jeopardy! (when $50,000 single-night wins were the norm) and what became of his winnings.
Simply put, he spent more than he actually pocketed:
declared winnings: $190,000
charity: -$38,000 (the champions had to donate 20% to charity)
20% flat tax: -$30,400
actual winnings: $121,600
Also consider that cash winnings here are paid in gold coins, and they don't sell well on the market.
In the end he got about $100,000 but he had already spent $150,000 before he knew better.
And a $50,000 debt was not pretty because the average income at the time was lower than $10,000.
At least he didn't get in trouble with the taxman because taxes are responsability of the network.
Once the host of WWTBAM joked on this, saying "Question #1 is for €500, but after taxes, fees, costs, expenses... you'll owe us €20!"