TITLE 16.ECONOMIC REGULATION

Part 9. TEXAS LOTTERY COMMISSION

Chapter 401. ADMINISTRATION OF STATE LOTTERY ACT

Subchapter D. LOTTERY GAME RULES

16 TAC §401.311

The Texas Lottery Commission adopts the repeal of 16 TAC §401.311, relating to "Texas Million" On-line game, without changes to the proposed text as published in the January 5, 2001, issue of the Texas Register , (26 TexReg 52).

The repeal will allow the Commission to eliminate this on-line game from its product mix. The "Texas Million" on-line game is being replaced with a new on-line game, "Texas Two Step". The Commission is eliminating "Texas Million" because it has not produced the anticipated sales and associated revenue that was expected. The less than anticipated sales has caused a lack of top tier prizes which has resulted in player disinterest with the game. Additionally, Texas Lottery player research indicates that players believe the game is confusing to play.

The Texas Lottery Commission received no comments on this proposed repeal.

The repeal is adopted pursuant to Texas Government Code, §466.015 which authorizes the Texas Lottery Commission to adopt rules necessary to administer the State Lottery Act and rules governing the operation of the lottery and pursuant to Texas Government Code, §467.102 which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 20, 2001.

TRD-200101024

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Effective date: November 8, 2001

Proposal publication date: January 5, 2001

For further information, please call: (512) 344-5113


16 TAC §401.312

The Texas Lottery Commission adopts new 16 TAC §401.312, relating to "Texas Two Step" On-line game, without changes to the proposed text as published in the January 5, 2001, issue of the Texas Register , (26 TexReg 52).

The introduction of a new on-line game, Texas Two Step, will generate excitement and interest for Texas Lottery players. Based on player research, the type of play style of Texas Two Step is considered unique and will generate interest with current players, as well as, attract new lottery players. As a result, The Texas Lottery Commission expects Texas Two Step to generate additional sales and, in turn, additional revenue for the State of Texas.

In order to generate additional revenue for the State of Texas, the Commission continually looks for new and innovative games that will keep the players enthusiastic about Texas Lottery products. Player research indicates that players like the playstyle of Texas Two Step. The matrix from which the Texas Two Step game was derived was tested with two other on-line game matrices in player focus groups in November 2000. The players that were shown the different game matrices liked the bonus ball style of the Texas Two Step game and the particular feature of the game that allows the jackpot to increase or roll if no jackpot prize is won in connection with a drawing. Player research also indicates that players like a feature of the game which allows a player to win a prize by matching only one number, the bonus ball. The Texas Two Step is the only game in the Commission's product mix that pays a prize for such a match. Also, the other matrices tested in player focus groups were not as well received as the Texas Two Step bonus ball style matrix.

The Texas Lottery Commission received no comments on this rule.

The new rule is adopted pursuant to Texas Government Code, §466.015 which authorizes the Texas Lottery Commission to adopt rules necessary to administer the State Lottery Act and rules governing the operation of the lottery and pursuant to Texas Government Code, §467.102 which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 20, 2001.

TRD-200101023

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Effective date: March 12, 2001

Proposal publication date: January 5, 2001

For further information, please call: (512) 344-5113