16 TAC §401.305
The Texas Lottery Commission proposes an amendment to 16
TAC §401.305, concerning "Lotto Texas" on-line game rule.
The amendment changes the way Lotto Texas is played by adding four additional
balls, changing the direct prize category percentages for each of the prize
categories, increasing the guaranteed fourth prize amount from $3.00 to $5.00,
increasing the prize pool from 50% to 55%, and increasing the odds of winning.
See Figure: 16 TAC §401.305(e)(1). The amendment also clarifies that
a retailer may enter the number selections via the terminal keyboard if a
player is unable to complete a playslip and that the prize reserve fund may
be used only for the Lotto Texas game. Other amendments are "clean up" changes
to eliminate obsolete language or typographical errors.
Bart Sanchez, Financial Administration Director, Texas Lottery Commission
has determined for each year of the first five years the section as proposed
will be in effect there will not be fiscal implications to local government
and there will be fiscal implications to state government as a result of enforcing
or administering the section. The fiscal implications to state government
for each year of the first five years the section as proposed will be in effect
are increased revenue to the state as follows: FY 00, $6,004,865; FY 01, $26,341,750;
FY 02, $26,341,750; FY 03, $26,341,750; and, FY 04, $26,341,750.
Toni Smith, Marketing Director, Texas Lottery Commission has determined
that the public benefit to be anticipated for each year of the first five
years the section as proposed will be in effect will be larger jackpot amounts,
more prize money, and higher prizes at lower prize levels. There are no anticipated
economic cost to persons who are required to comply with the section as proposed.
There will be no adverse effect on small businesses.
In accordance with Government Code, §2001.022, this agency has determined
that the section as proposed will not impact local economies and, therefore,
did not file a request for a local employment impact statement with the Texas
Workforce Commission.
Comments may be submitted to Kimberly L. Kiplin, General Counsel, Texas
Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630 or by e-mail
at kimberly.kiplin@mail.capnet.state.tx.us. A public hearing to receive public
comments concerning the proposed amendments will be held at 10:00 a.m. on
April 19, 2000 at the Texas Lottery Commission headquarters building, first
floor auditorium, 611 E. 6th Street Austin, Texas 78701. Persons requiring
any accommodation for a disability should notify Michelle Guerrero, Executive
Assistant to the General Counsel, Texas Lottery Commission at (512) 344-5113
at least 72 hours prior to the public hearing.
The amendment is proposed under Texas Government Code §466.015,
which gives the Texas Lottery Commission the authority to adopt all rules
necessary to administer the State Lottery Act and rules governing the establishment
and operation of the lottery; and, under Texas Government Code §467.102
which gives the Commission the authority to adopt rules for the enforcement
and administration of the laws under the Commission's jurisdiction.
Texas Government Code, Chapter 466 is affected by this proposed amendment.
§401.305. "Lotto Texas" On-Line Game Rule.
(a)
(No change.)
(b)
Definitions. In addition to the definitions provided in §401.304
of this title (relating to On-Line Game Rules (General)), and unless the context
in this section otherwise requires, the following definitions apply.
(1)
(No change.)
(2)
Number -- Any play integer from one through
54
[
50
] inclusive.
(3)
(No change.)
(4)
Play board -- A field of the
54
[
50
] numbers found on the playslip.
(5)
(No change.)
(c)
(No change.)
(d)
Play for Lotto Texas.
(1)
(No change.)
(2)
Method of play. The player will use playslips to
make number selections. The on-line terminal will read the playslip and issue
ticket(s) with corresponding plays. If a playslip is not available
or
if a player is unable to complete a playslip
, the on-line retailer may
enter the selected numbers via the keyboard. However, the retailer shall not
accept telephone or mail-in requests to manually enter selected numbers. If
offered by the lottery, a player may leave all play selections to a random
number generator operated by the computer, commonly referred to as "quick
pick."
(3)
(No change.)
(e)
Prizes for
Lotto Texas
[
lotto
].
(1)
Prize amounts. The prize amounts, for each drawing, paid
to each
Lotto Texas
[
lotto
] player who selects a matching
combination of numbers will vary due to a pari-mutuel calculation, with the
exception of the fourth prize, which is a guaranteed
$5.00
[
$3.00
]. The calculation of a prize shall be rounded down so that prizes
can be paid in multiples of whole dollars. Each prize category breakage, with
the exception of the fourth prize breakage, will carry forward to the next
drawing for each respective prize category. The fourth prize category breakage
will be placed in the reserve fund. No prize amount shall be less than
$5.00
[
$3.00
]. The prize amounts are based on the total amount
in the prize category for that Lotto Texas drawing distributed equally over
the number of matching combinations in each prize category.
Figure: 16 TAC §401.305(e)(1)
(2)
Prize pool. The prize pool for Lotto Texas prizes
shall be a minimum of
55%
[
50%
] of
Lotto Texas
[
lotto
] sales.
(3)
Prize categories.
(A)
First prize (jackpot).
(i)
In the event of a prize winner who does not select the
cash value option, the prize winner's share of the jackpot shall be paid in
25 installments. To determine the annuitized future value of each share (prize
amount), the annuitized future value of the prize category is divided by the
shares. A share is the matching combination, in one play, of all six numbers
drawn
by the Texas Lottery
(in any order). Each share will be paid
in 25 installments. The initial payment shall be paid only upon completion
of all internal validation procedures. The subsequent 24 payments shall be
paid annually by monies generated by the purchase of securities which shall
be purchased through the Comptroller of Public Accounts-Treasury Operations,
State of Texas, after each drawing for which lottery records reflect the sale
of one or more winning Lotto Texas six of six plays, and the value of the
24 installments shall be determined by the face or market value of said securities
at purchase. Annual installment payments shall be based on the annual maturity
value of the securities purchased. The payment of annual annuities will be
made on the 15th day of the anniversary of the month in which the ticket won.
If the cash value of each share is equal to or greater than the amount required
to pay an initial first-year cash installment and 24 subsequent annuitized
annual installments yielding total payments of $2 million or greater, each
share shall be paid in 25 installments in the same manner as described in
this paragraph. If the cash value of each share is less than the amount required
to pay an initial first-year cash installment and 24 subsequent installments
yielding total payments of $2 million, each share shall be paid the cash value
of each share in one payment.
(ii)
In the event of a prize winner who selects the cash value
option, the prize winner's share will be paid in a single, lump sum payment
based on the discounted, present cash value of the prize winner's share of
the jackpot on the next business day after the drawing. The player must make
the election of the cash value option at the time of purchasing a Lotto
Texas
ticket. If the player does not make any election at the time of
purchasing a Lotto
Texas
ticket, the share will be paid in accordance
with clause (i) of this subparagraph. [
The executive director shall,
in his/her sole discretion, establish the implementation date of the cash
value option.
]
(iii)
The six of six jackpot prize must be claimed at the
Austin claim center. The total prize category contribution for a drawing will
include the following.
(I)
The direct prize category contribution may be
68.24%
[
64%
] of the prize pool for the drawing.
(II)
(No change.)
(B)
Second Prize. The prize amount shall be calculated by
dividing the prize category contributions by the number of shares for the
prize category. A share is the matching combination, in one play, of any five
of the six numbers drawn
by the Texas Lottery
(in any order). The
total prize category contribution will include the following.
(i)
The direct prize category contribution shall be
5.07%
[
5.0%
] of the prize pool for the drawing.
(ii)
(No change.)
(C)
Third prize. The prize amount shall be calculated by dividing
the prize category contributions by the number of shares for the prize category.
A share is the matching combination, in one play, of any four of the six numbers
drawn
by the Texas Lottery
(in any order). The total prize category
contribution will include the following.
(i)
The direct prize category contribution shall be
12.51%
[
18%
] of the prize pool for the drawing.
(ii)
(No change.)
(D)
Fourth prize. The prize amount is a guaranteed minimum
$5.00
[
$3.00
]. Any roll-over amounts shall be added to the
prize reserve fund. The total prize category contribution will include the
following:
(i)
The direct prize category contribution shall be
12.18%
[
11%
] of the prize pool for the drawing.
(ii)
(No change.)
(4)
Prize reserve fund.
(A)
(No change.)
(B)
The Lotto Texas prize reserve fund may be increased or
decreased by any amounts allocated to the prize pool and not paid to the winners.
The Lotto Texas prize reserve fund may be increased or decreased, for
[
For
] example,
by
rounding down, paying Lotto Texas
prizes, and roll-over amounts from the fourth prize.
The Lotto Texas
prize reserve fund may be used only for the Lotto Texas game.
(f)
Ticket purchases.
(1)
Lotto
Texas
tickets may be purchased only at
a licensed location from a lottery retailer authorized by the lottery director
to sell on-line tickets.
(2)
Lotto
Texas
tickets shall show the player's
selection of number or Quick Pick (QP) numbers, boards played, drawing date,
jackpot payment option, and validation and reference numbers.
(3) - (4)
(No change.)
(g)
Drawings.
(1) - (3)
(No change.)
(4)
Each drawing shall determine, at random, six winning
numbers in accordance with Lotto Texas drawing procedures. Any numbers drawn
are not declared winning numbers until the drawing is certified by the
Texas Lottery
[
lottery
] in accordance with the drawing procedures.
The winning numbers shall be used in determining all
Lotto Texas
[
lotto
] winners for that drawing.
(5)
(No change.)
(6)
A drawing will not be invalidated based on the financial
liability of the
Texas Lottery
[
lottery
].
(h)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on March 15, 2000.
TRD-200001968
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: April 30, 2000
For further information, please call: (512) 344-5113