16 TAC §§401.301 - 401.305, 401.307 - 401.310, 401.312 - 401.314
The amendments and new rules are proposed under Government
Code, Section 466.015 which authorizes the Commission to adopt all rules necessary
to administer the State Lottery Act and to adopt rules governing the establishment
and operation of the lottery, and under Government Code, Section 467.102 which
authorizes the Commission to adopt rules for the enforcement and administration
of the laws under the Commission's jurisdiction.
The amendments and new rules affect Government Code, Chapter 466.
§401.301.General Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise.
(1)
Caption--The letters appearing below the play symbols in
the play area that verify the correctness of the play symbols.
(2)
Certified drawing--A drawing in which the lottery drawing
supervisor, security representative, and an independent certified public accountant
attest that the drawing equipment functioned properly and that a random selection
of a winning combination occurred.
(3)
Claim center--A claims office of the commission at which
a claimant may claim a prize.
(4)
Claim form--The printed form authorized and provided by
the commission that a claimant shall complete and submit to the commission
when claiming a prize.
(5)
Claimant--A player who has submitted a valid claim for
payment within the required time frame.
(6)
Current draw period--The period of time in which the player
selections and Quick Pick selections are accumulated into a pool of plays
eligible for winning in a drawing held at the end of the designated period.
(7)
Director--A director of the Texas Lottery Commission.
(8)
Direct prize category contribution--A specified percentage
of net sales allocated to the prize categories as described in the rules of
the specific game being played.
(9)
Division--A division of the Texas Lottery Commission.
(10)
Draw break--The period of time on a draw day when tickets
cannot be sold, produced, or validated on an on-line terminal for the specific
game(s) being drawn.
(11)
Drawing--The procedure by which the commission randomly
selects winning combinations of digits, numbers, or symbols in accordance
with the rules of the game as set forth in the rules of the specific game
being played and the drawing procedures for the specific game.
(12)
Drawing pool--The amount of money available for all prize
categories for a specific drawing.
(13)
Draw procedures-The written document approved by the executive
director that specifies the draw procedures for a particular game, if a drawing
is designed as part of the game.
(14)
Duplicate ticket--A ticket produced by photograph, xerography,
or any other method other than a ticket generated by an on-line terminal.
(15)
Executive director--The executive director of the Texas
Lottery Commission.
(16)
Game number--The number on the back of the instant ticket
which refers to the number associated with the particular instant game.
(17)
Game procedures--The written document approved by the
director of the marketing division of the commission that includes, among
other things, the game name, how a prize is won, game prize structure, playstyle,
and eligibility for a drawing, if any.
(18)
High-tier prize--A prize of $600 or more.
(19)
Indirect prize category contribution--Amounts allocated
from the prize reserve fund , roll-over and prize breakage for a specific
online game drawing.
(20)
Instant game--An instant ticket lottery game, developed
and offered for sale to the public in accordance with commission rules, that
is played by removing the latex covered play area on an instant ticket to
reveal the ticket play symbols.
(21)
Instant retailer - A commission retailer authorized by
the commission to sell instant tickets only.
(22)
Invalid ticket--Any ticket that fails to meet all validation
requirements of the commission.
(23)
Lottery retailer or retailer--A sales agent, as contemplated
by Chapter 466, Government Code.
(24)
Low-tier prize--A prize of less than $25.
(25)
Mid-tier prize--A prize of $25 or more but less than $600.
(26)
Minor--An individual younger than 18 years of age.
(27)
On-line game--A lottery game which utilizes a computer
system to administer plays, the type of game, and amount of play for a specified
drawing date, and in which a player either selects a combination of numbers
or allows number selection by a random number generator operated by the computer,
referred to as Quick Pick. The commission will conduct a drawing to determine
the winning combination(s) in accordance with the rules of the specific game
being played and the drawing procedures for the specific game.
(28)
On-line retailer--A lottery retailer authorized by the
commission to sell on-line tickets. On-line retailers shall sell all on-line
lottery games and at least two instant ticket games offered by the commission.
(29)
On-line system--The commission or commission's vendor's
on-line computer system consisting of on-line terminals, central processing
equipment, and a communication network.
(30)
On-line terminal--The commission or commission's vendor's
computer hardware through which an on-line retailer enters player selections
or Quick Pick selections and by which on-line tickets are generated and claims
are validated.
(31)
On-line ticket--A computer-generated ticket issued to
a player, by an on-line retailer, as a receipt for the combination of numbers
a player has selected, and generated on an on-line terminal provided by the
commission or commission's vendor on official Texas Lottery paper stock, by
either selecting his or her own numbers or selecting Quick Pick, which is
a random number generator operated by the computer. That ticket shall be the
only acceptable evidence of the combination of digits, numbers, or symbols
selected. On-line tickets may be purchased only from on-line retailers.
(32)
Pack number--The unique number on the back of the instant
ticket that designates the number of the pack within a specific instant game.
(33)
Play area--The latex-covered area of an instant ticket
that when removed, reveals the ticket play symbols.
(34)
Playstyle--The method of play to determine a winner for
an individual game.
(35)
Play symbol--The printed data under the latex on the front
of an instant ticket that is used to determine eligibility for a prize. The
symbols for individual games will be specified in individual instant game
procedures.
(36)
Preliminary drawing--An event in which entries received
by a specific deadline are utilized for the selection of contestants for a
promotional drawing.
(37)
Present at the terminal--A player remains physically present
at the on-line terminal from the time the player's order for the purchase
of on-line lottery tickets is paid for and accepted by the lottery on-line
retailer until the processing of the order is completed and the tickets are
delivered to the player at the licensed on-line retailer terminal location.
(38)
Prize amounts--The amount of money payable to each share
in a prize category, the annuitized future value of each share in a prize
category, or the net present cash value of each share in a prize category
for each on-line game drawing. Prize amounts are calculated by dividing the
prize category contribution, the annuitized future value of the prize category
contribution, or the net present cash value of the prize category contribution
by the number of shares determined for the prize category.
(39)
Prize breakage--The money which is left over from the
rounding down of the pari-mutuel prize levels to the next lowest whole dollar
amount or money which is in excess of the amount needed to pay a prize.
(40)
Prize category--The matching combinations of numbers and
their corresponding prize levels as described in rules for the specific game
being played.
(41)
Prize category contributions--Refers to contributions
for each drawing to each prize category including direct and indirect prize
category contributions.
(42)
Prize fund - The monies allocated to be returned to players
in winning tickets within a specific instant game.
(43)
Prize pool--The total amount of money available for prizes
as a percentage of the total sales for the current draw period.
(44)
Prize structure--The number, value, prize pay out percentage,
and odds of winning prizes for an individual game as approved by the executive
director.
(45)
Promotion-An event coordinated or conducted by the Texas
Lottery Commission at retail sites, fairs, festivals and appropriate venues
to educate players about Lottery products and/or sell Lottery games through
a licensed Lottery retailer in specific markets to maximize Lottery sales
and statewide awareness.
(46)
Promotional drawing --A drawing in which qualified contestants
are awarded prizes in a random manner in accordance with the procedures set
forth for a specific promotional event.
(47)
Quick Pick--A play option that generates random numbers
by the computer.
(48)
Roll-over--The amount not won (no matching combinations)
or prize breakage from the previous drawing in a prize category.
(49)
Sales agent--A person licensed under the State Lottery
Act to sell tickets.
(50)
Shares--The total number of matching combinations within
each prize category as determined for each drawing.
(51)
Sign-on slip--The receipt produced by the on-line terminal
when the retailer signs on to the system.
(52)
Texas Lottery Commission--The agency created by House
Bill 54, 72nd Legislature, First Called Session, as amended by House Bill
1587 and House Bill 1013, 73rd Legislature, Regular Session.
(53)
Ticket--Any tangible evidence issued by the commission
to allow participation in a game or activity authorized by the State Lottery
Act.
(54)
Ticket number--The number on the back of the instant ticket
that refers to the ticket sequence within a specific pack of an instant game.
(55)
Ticket bearer--The person who has signed the Lottery game
ticket or who has possession of an unsigned Lottery game ticket.
(56)
Validation number--The unique number sequence printed
on a ticket that provides for the verification of the ticket as a valid winner.
(57)
Valid ticket-A ticket which meets all specifications and
validation requirements and entitles the holder to a specific prize amount.
(58)
Void ticket--Any ticket that is stolen, unissued, illegible,
mutilated, altered, counterfeit in whole or part, misregistered, defective,
incomplete, printed or produced in error, multiply printed, fails any of the
commission's confidential validation tests, or is a ticket produced by or
for the commission for education and training purposes.
(59)
Winning combination--One or more digits, numbers, or symbols
randomly selected by the commission in a drawing which has been certified.
§401.302.Instant Game Rules.
(a)
Sale of instant game tickets.
(1)
Only retailers who have been licensed by the
commission
[
Texas Lottery
] are authorized to sell instant game tickets,
and tickets may be sold only at a licensed location.
(2)
Each instant game ticket shall sell for the retail sales
price authorized by the executive director and stated in the individual game
procedures.
(3)
Each instant game ticket shall state the overall estimated
odds of winning a prize of any kind
, including a break even prize
.
(b)
Game procedures.
(1)
The [
executive
] director
of the marketing
division
may approve and publish individual game procedures prior to
each instant game being introduced for sale to the public. Game procedures
shall be published in the Texas Register and shall be made available upon
request to the public.
(2)
At a minimum, the game procedures for each game shall contain
the following information:
(A)
confirming captions;
(B)
game name;
(C)
game number;
(D)
prize structure;
(E)
playstyle;
(F)
play symbols;
(G)
ticket order quantity;
(H)
retail sales price;
(I)
dollar amount of prizes that may be paid by retailers;
and
(J)
eligibility requirements for a prize drawing, if any.
(3)
The play style for an individual game shall be fully described
in the game procedures and may take the form of one of the following methods
of play:
(A)
match up;
(B)
add up;
(C)
three in a line;
(D)
key number/symbol match;
(E)
yours beats theirs;
(F)
prize legend;
(G)
cards;
(H)
bingo;
(I)
directional arrows through maze;
(J)
bonus game features; or
(K)
any other approved play style or bonus game feature developed
by the
commission
[
Texas Lottery
].
(c)
Determination of prize winner.
(1)
The play symbols shall be used by a player to determine
eligibility for instant prizes. Qualifying play symbols are stated in the
game procedures.
(2)
A player's eligibility to win a prize is subject to the
ticket validation requirements provided in subsection (d) of this section.
(3)
For each individual game, the player shall rub off the
latex covering on the front of the ticket to reveal the play symbols. Eligibility
to win a prize is based on the approved play style as follows.
(A)
Match up. If the designated number of identical play symbols
is revealed on the ticket, the player shall win the prize indicated.
(B)
Add up. If the player adds up all of the play symbols printed
on the ticket and the amount is greater than or equal to the required total
amount printed on the ticket, the player shall win the prize indicated.
(C)
Three in a line. If the player reveals three identical
play symbols, either diagonally, vertically, or horizontally, on the same
ticket, the player shall win the prize indicated.
(D)
Key number/symbol match. If the player reveals a play symbol
that matches the designated key play symbol, the player shall win the prize
indicated.
(E)
Yours beats theirs. If the player reveals a play symbol
designated as yours that is greater than the play symbol(s) designated as
theirs, the player shall win the prize indicated.
(F)
Prize legend. If the player reveals the designated number
of play symbols, the player wins the prize amount that corresponds to the
legend.
(G)
Cards. If the player reveals the play symbol needed for
that particular card game in a winning combination, the player shall win the
prize indicated.
(H)
Bingo. If the player matches their Bingo card numbers with
all of the Caller's Card numbers and reveals certain patterns as specified
on the ticket, the player shall win the prize indicated for that Bingo card
and pattern.
(I)
Directional arrows through maze. If the player follows
the directional arrows to make a path or paths through a maze and the path(s)
leads to a prize amount, the player shall win that prize.
(J)
Bonus game features. These features are added to the game
for extra play value and entertainment. The specific variants, as described
below, are used for a particular game and are described in the individual
game procedures:
(i)
Doubler. If the player reveals the designated play symbol
as part of the winning combination of the game, the player doubles their prize.
The player may also reveal the "doubler" play symbol in a prize box, in which
case the prize amount that the player won is doubled.
(ii)
Wild card. The player may use this designated play symbol
as part of the winning combination of the game.
(iii)
Double and Double Doubler. If the player reveals one
of these designated play symbols as part of the winning combination of the
game, the player either doubles or quadruples their prize respectfully, as
stated in the game card itself. The player may also reveal the "double" or
"double doubler" play symbols in a prize box, in which case the prize amount
that the player won is either doubled or quadrupled respectfully, as stated
in the game card itself.
(iv)
Tripler. If the player reveals the designated play symbol
as part of the winning combination of the game, the player triples their prize.
The player may also reveal the "tripler" play symbol in a prize box, in which
case the prize amount that the player won is tripled.
(v)
Auto win. If the player reveals the designated play symbol,
the player wins the corresponding prize automatically.
(vi)
Entry ticket. If the player reveals the designated play
symbol, the player may use the ticket as a means of entering a drawing, subject
to the game procedures for each game.
(K)
Any other approved play style or bonus game feature developed
by the Texas Lottery. If the player reveals the designated play symbols or
bonus play features, the player shall win the prize(s) as indicated.
(d)
Ticket validation requirements.
(1)
Each instant game ticket shall be validated according to
validation procedures prior to payment of a prize.
(2)
An instant game ticket shall comply with all of the following.
(A)
The ticket shall not be stolen or appear on any list of
omitted tickets on file with the
commission
[
Texas Lottery
].
(B)
The ticket shall not be counterfeit or forged, in whole
or in part.
(C)
The ticket shall not be mutilated, altered, unreadable,
reconstituted, or tampered with in any manner.
(D)
The ticket shall have been issued by the
commission
[
Texas Lottery
] in an authorized manner.
(E)
The ticket shall have been received or recorded by the
commission
[
Texas Lottery
] by applicable deadlines.
(F)
The ticket shall pass
all
the confidential validation
and security tests appropriate to the applicable playstyle.
(G)
The validation number of an apparent winning ticket shall
appear on the
commission's
[
Texas Lottery's
] official
list of validation numbers of winning tickets
for the particular game
and pack
. A ticket with that validation number shall not have been paid
previously.
(3)
The commission may pay the
prize for a ticket that is partially mutilated or not intact if the ticket
can still be verified as a valid ticket and validated by the other validation
requirements and procedures.
(4)
[
(3)
] Any ticket not passing all
of the validation tests and requirements is void and ineligible for any prize
and shall not be paid. The
executive
director may, at his/her exclusive
determination, reimburse the player for the cost of the void ticket.
(5)
[
(4)
] If a defective ticket is purchased
and is void
, the sole remedy available against the
commission
[
Texas Lottery
]and the
commission's
[
Texas Lottery's
] sole liability shall be, at the executive director's sole discretion,
reimbursement for the cost of the void ticket, or replacement of the defective
ticket with another unplayed ticket in that Instant Game (or a ticket of equivalent
sales price from any other current Instant Game).
(e)
Payment of low-tier and mid-tier prizes.
(1)
Low-tier
and mid-tier
prizes shall be paid by
any retailer or claim center. [
Mid-tier prizes may be paid by any retailer
and shall be paid by any claim center.
]
(2)
Retailers may pay cash prizes in cash or by certified check,
cashier's check, or money order. Retailers may also pay prizes by business
check if acceptable to the claimant. If a retailer decides to pay a prize
with a business check, the retailer
shall
[
should
] inform
the claimant prior to ticket validation.
(3)
Retailers
may
[
shall
] pay claims
for prizes during their normal business hours, if the
commission's
[
Texas Lottery's
] validation system is operational.
(4)
Before paying a prize, retailers shall validate the winning
ticket according to established validation requirements and procedures.
(5)
Payment of a prize
by a retailer
will be made
to the bearer of the validated winning ticket for that prize upon presentation
of proper identification, if appropriate.
(6)
If a low or mid-tier claim
is presented to the commission, the claimant shall follow all procedures of
the commission related to claiming a prize, including but not limited to filling
out a claim form, presenting appropriate identification if required, completing
the back of the ticket, and submitting these items including the apparent
winning ticket to the commission by mail or in person. Upon validation of
a winning ticket, the commission shall present or mail a check to the claimant
in payment of the amount due. If the ticket is determined to be a non-winning
ticket, the claim shall be denied and the claimant shall be promptly notified.
Tickets will not be returned to the claimant.
(f)
Payment of high-tier prizes.
(1)
High-tier prizes must be presented for payment to
the commission.
[
High-tier prizes shall be paid by check or warrant
by any claim center.
]
(2)
If a high tier claim is presented to the commission,
the claimant shall follow all procedures of the commission related to claiming
a prize, including but not limited to filling out a claim form, presenting
appropriate identification if required, completing the back of the ticket,
and submitting these items including the apparent winning ticket to the commission
by mail or in person. Upon validation of the ticket as a winning ticket, the
commission shall pay the claimant the amount due in accordance with commission
procedures. If the ticket is determined to be a non-winning ticket, the claim
shall be denied and the claimant shall be promptly notified. Tickets will
not be returned to the claimant.
[
A claim form must be thoroughly
completed, except for those items where a response is optional, to claim any
prize through a claim center.
]
(3)
Before paying any prize, claim center
personnel
[
technicians
] shall validate the winning ticket according to established
validation requirements and procedures.
(4)
All prizes shall be subject to tax withholding, offsets,
and other withholdings as provided by law.
(5)
If a person is indebted or owes delinquent taxes to the
state, other than those specified in paragraph (4) of this subsection, the
winnings of a person shall be withheld until the debt or taxes are paid.
(6)
When paying a prize of $600 or more, the
commission
[
Texas Lottery
] shall file the appropriate income reporting
form with the Internal Revenue Service. [
In addition, before paying a
prize of more than $5,000, the Texas Lottery shall withhold federal income
tax at a rate set by the Internal Revenue Service.
]
(7)
Payment of a prize will be made to the bearer of the validated
winning ticket for that prize upon presentation of proper identification.
(8)
The director shall recognize only one person as claimant
of a particular prize. A claim may be made in the name of a person other than
an individual only if the person possesses a federal employer identification
number (FEIN) issued by the Internal Revenue Service and such number is shown
on the claim form. Groups, family units, clubs, organizations, or other persons
without an FEIN shall designate one individual in whose name the claim is
to be filed. If a claim is erroneously entered with multiple claimants, the
claimants shall designate one of them as the individual recipient of the prize,
or, if they fail to designate an individual recipient, the director may designate
any one of the claimants as the sole recipient. In either case, the claim
shall then be considered as if it were originally entered in the name of the
designated individual and payment of any prizes won shall be made to that
single individual. Once a ticket is validated, it will not be returned to
the winner, but will be forwarded to the lottery, along with the completed
claim form.
(9)
The
executive
director has discretion to set
a maximum total cash amount or maximum payment time period for each prize
level.
(g)
Payment of prize awarded to minor.
(1)
A person 18 years of age or older may purchase a ticket
to give as a gift to another person, including a minor.
(2)
If a minor is entitled to a cash prize of less than $600,
the
commission
[
Texas Lottery
] shall deliver to an adult
member of the minor's family or to the minor's guardian a check or warrant
in the amount of the prize payable to the order of the minor.
(3)
If a minor is entitled to a cash prize of more than $600,
the
commission
[
Texas Lottery
] shall deposit the amount
of the prize in a custodial bank account, with an adult member of the minor's
family or the minor's guardian serving as custodian for the minor.
(4)
If a minor is entitled to a prize other than money, the
commission
[
Texas Lottery
] shall pay the cash equivalent
of such prize in the manner provided by paragraphs (2) and (3) of this subsection.
(5)
A retailer is not authorized
to pay a prize claimed by a minor.
(h)
Ticket responsibility.
(1)
A ticket is a bearer instrument until signed on the back
by the ticket holder.
(2)
The
commission
[
Texas Lottery
] shall
not be responsible for lost, stolen, or destroyed tickets.
(3)
The
commission
[
Texas Lottery
] shall
not be responsible for erroneous or mutilated tickets.
(4)
The
commission
[
Texas Lottery
] shall
not be responsible for tickets claimed by a player in error for a lower prize
at a retailer.
(5)
The
commission
[
Texas Lottery
] shall
not be responsible for tickets delivered to any address other than that designated
by the
commission
[
Texas Lottery
] for such purpose.
(i)
Disputed ticket. If a dispute arises between the
commission
[
Texas Lottery
] and a ticket claimant concerning
whether the ticket is a winning ticket and if the ticket prize has not been
paid, the
executive
director may, exclusively at his/her determination,
reimburse the claimant for the cost of the disputed ticket. This shall be
the claimant's exclusive remedy.
(j)
Game termination and prize claim period.
(1)
The executive director or his/her designee, at any time,
may announce the termination date for an individual game. If this occurs,
no tickets shall be sold past the termination date.
(2)
Instant game prizes shall be claimed no later than 180
days after the
"end-of-game" date as determined by the commission
[
termination date
] of the individual game.
(3)
Any prize directly payable by the
commission
[
Texas Lottery
] and not claimed within the period and manner provided
in this section shall be used
as provided by the State Lottery Act
[
to provide additional money to the state lottery account for the payment
of prizes
].
[
(k)
Game report. Following the
last day on which prizes may be claimed after termination of a game, the executive
director or his/her designee shall prepare a report that shows, at a minimum,
the total number of tickets sold and the number of prizes awarded in the game.
The report shall be made available for public inspection.]
(k)
[
(l)
] Governing law. In purchasing
an instant game ticket, the lottery player agrees to comply with and abide
by Texas law, all rules
, procedures,
and final decisions of the
commission
[
Texas Lottery
], and all procedures and instructions
established by the executive director for the conduct of the instant game.
§401.303.Grand Prize Drawing Rule.
(a)
This section shall not apply to individual games that do
not provide for a grand prize drawing.
(b)
Eligibility for a grand prize drawing shall be determined
by, but not limited to, a direct entry to a grand prize drawing or an entry
into a preliminary draw as provided in the
applicable
draw procedures.
The
executive
director shall determine any prizes to be awarded
and the method, manner, and timing of payment which shall be stated in the
applicable
draw procedures.
(c)
Preliminary draws and grand prize drawings shall be conducted
at times and places and pursuant to the methods stated in the
applicable
draw procedures.
(d)
An entry to a preliminary or grand prize drawing submitted
by a player in accordance with the applicable draw procedures is eligible
to be included in a drawing as provided in the
applicable
draw
procedures.
(e)
Entries to a preliminary or grand prize drawing shall be
delivered to the address designated on the applicable game ticket no later
than the last day of the time frame specified in the
applicable
draw procedures.
(f)
The number of preliminary
draw(s)
[
draw
] and grand prize drawing
winner(s)
[
winners
]
selected to advance or to win a prize shall be specified in the
applicable
draw procedures. The odds of winning an entry into these drawings for
a prize of a specific amount need not be uniform throughout the game and are
subject to change by the executive director.
(g)
Each grand prize drawing finalist shall submit a completed
claim form and the winning ticket to the
commission
[
Texas
Lottery
] prior to the grand prize drawing. Failure to timely submit
these items and failure to have a valid ticket will be cause for ineligibility
to the grand prize drawing.
(h)
Each grand prize drawing finalist will be notified by the
commission
[
Texas Lottery
] of the date of his/her appearance
at
[
on
] the grand prize drawing. If a finalist is unable
to attend, the finalist may appoint a proxy with the approval of the executive
director.
(i)
If a dispute arises between the
commission
[
Texas Lottery
] and a ticket claimant concerning whether the ticket is
a winning ticket and if the ticket prize has not been paid, the
executive
director may, exclusively at his/her determination, reimburse the claimant
for the cost of the disputed ticket. This shall be the claimant's exclusive
remedy.
§401.304.On-Line Game Rules (General).
[
(a)
Definitions. The following
words and terms, when used in this section, shall have the following meanings,
unless the context clearly indicates otherwise.]
[
(1)
Certified drawing--A drawing in which the lottery
drawing supervisor, security representative, and an independent certified
public accountant attest that the drawing equipment functioned properly and
that a random selection of a winning combination occurred.]
[
(2)
Claim center--A claims office of the Texas
Lottery at which winners may redeem prizes.]
[
(3)
Claim form--The form provided by the Texas
Lottery to be completed by prize winners when claiming a prize.]
[
(4)
Current draw period--The period of time in
which the player selections are accumulated into a pool of plays eligible
for winning in a drawing held at the end of the designated period.]
[
(5)
Direct prize category contribution--A specified
percentage of net sales allocated to the prize categories as described in
the rules of the specific game being played.]
[
(6)
Draw break--The period of time on a draw day
when tickets cannot be produced on an on-line terminal.]
[
(7)
Drawing--The procedure by which the lottery
randomly selects winning combinations of digits, numbers, or symbols in accordance
with the rules of the game as set forth in the rules of the specific game
being played and the drawing procedures for the specific game.]
[
(8)
Drawing pool--The amount of money available
for all prize categories for a specific drawing.]
[
(9)
Duplicate ticket--A ticket produced by photograph,
xerography, or any other method other than a ticket generated by an on-line
terminal.]
[
(10)
Indirect prize category contribution--Amounts
allocated from the prize reserve fund and roll-over for a specific drawing.]
[
(11)
Invalid ticket--Any ticket that fails to meet
all validation requirements of the Texas Lottery.]
[
(12)
On-line game--A lottery game which utilizes
a computer system to administer plays, the type of game, and amount of play
for a specified drawing date, and in which a player either selects a combination
of numbers or allows number selection by a random number generator operated
by the computer, referred to as Quick Pick. The lottery will conduct a drawing
to determine the winning combination(s) in accordance with the rules of the
specific game being played and the drawing procedures for the specific game.]
[
(13)
On-line retailer--A lottery retailer authorized
by the lottery to sell on-line tickets. On-line retailers shall sell all on-line
lottery games and at least two instant ticket games offered by the Texas Lottery.]
[
(14)
On-line system--The lottery's on-line computer
system consisting of on-line terminals, central processing equipment, and
a communication network.]
[
(15)
On-line terminal--The computer hardware through
which an on-line retailer enters the combination selected by a player and
by which on-line tickets are generated and claims are validated.]
[
(16)
On-line ticket--A computer-generated ticket
issued to a player, by an on-line retailer, as a receipt for the combination
of numbers a player has selected, and generated on an on-line terminal on
official Texas Lottery paper stock, by either selecting his or her own numbers
or selecting Quick Pick, which is a random number generator operated by the
computer. That ticket shall be the only acceptable evidence of the combination
of digits, numbers, or symbols selected. On-line tickets may be purchased
only from on-line retailers.]
[
(17)
Present at the terminal--A player remains
physically present at the on-line terminal from the time the player's order
for the purchase of on-line lottery tickets is paid for and accepted by the
lottery on-line retailer until the processing of the order is completed and
the tickets are delivered to the player at the licensed on-line retailer terminal
location.]
[
(18)
Prize amounts--The amount of money payable
to each share or the annuitized future value of each share in a prize category
for each drawing. Prize amounts are calculated by dividing the prize category
contribution or annuitized future value of the prize category contribution
by the number of shares determined for the prize category.]
[
(19)
Prize breakage--The money which is left over
from the rounding down of the pari-mutuel prize levels to the next lowest
whole dollar amount or money which is in excess of the amount needed to pay
a prize.]
[
(20)
Prize category--The matching combinations
of numbers and their corresponding prize levels as described in rules for
the specific game being played.]
[
(21)
Prize category contributions--Refers to contributions
for each drawing to each prize category including direct and indirect prize
category contributions.]
[
(22)
Prize pool--The total amount of money available
for prizes as a percentage of the total sales for the current draw period.]
[
(23)
Quick Pick--A play option that generates random
numbers by the computer.]
[
(24)
Roll-over--The amount not won (no matching
combinations) or prize breakage from the previous drawing in a prize category.
The amount not won will be carried forward for the next drawing for that specific
prize category.]
[
(25)
Shares--The total number of matching combinations
within each prize category as determined for each drawing.]
[
(26)
Sign-on slip--The receipt produced by the
on-line terminal when the retailer signs on to the system.]
[
(27)
Ticket bearer--The person who has signed the
on-line ticket or who has possession of an unsigned ticket.]
[
(28)
Valid ticket--Any ticket that meets all of
the validation requirements of the Texas Lottery.]
[
(29)
Validation--The process of determining whether
an on-line ticket presented for payment is a winning ticket.]
[
(30)
Validation number--The 16-digit number printed
on the front of each on-line ticket which is used for validation.]
[
(31)
Void ticket--Any ticket that is stolen, unissued,
illegible, mutilated, altered, counterfeit in whole or part, misregistered,
defective, incomplete, printed or produced in error, multiply printed, or
fails any of the Texas Lottery's confidential validation tests.]
[
(32)
Winning combination--One or more digits, numbers,
or symbols randomly selected by the lottery in a drawing which has been certified.]
(a)
[
(b)
] Price of tickets and prizes.
(1)
The purchase price of each on-line ticket shall be as set
forth in the rules of the specific game being played.
(2)
The total amount of prize money allocated to the prize
pool for on-line games from total of on-line sales shall be a minimum of 50%.
(3)
The prize pool for on-line games shall have contributions
to prize categories as set forth in the rules of the specific game being played.
(b)
[
(c)
] Sale of tickets.
(1)
On-line tickets
may
[
shall
] be sold
during all normal business hours of the lottery on-line retailer during on-line
game operating hours [
unless the lottery director approves otherwise
]. On-line retailers must give prompt service to lottery customers present
and waiting at the on-line terminal to purchase tickets for on-line games.
Prompt service includes interrupting processing of on-line ticket orders for
which the customer is not present at the terminal.
(2)
On-line tickets shall be sold only at the location listed
on each retailer's license from the
commission
[
lottery
].
For purposes of this section, the sale of an on-line lottery ticket at the
licensed location means a lottery transaction in which all elements of the
sale between the licensee and the purchaser must take place at the retailer
location using their on-line terminal including the exchange of consideration,
the exchange of the playslip if one is used, and the exchange of the on-line
ticket. No part of the sale may take place away from the on-line terminal.
(c)
[
(d)
] Drawings and end of sales
prior to drawings.
(1)
The manner and frequency of drawings shall be as set forth
in the rules of the specific game being played and the drawing procedures
for the specific game.
(2)
The drawings shall be conducted at times and locations
to be announced by the
executive
[
lottery
] director.
(3)
The executive director shall determine for each type of
on-line game the time for the end of sales prior to the drawings. On-line
terminals will not process on-line tickets for that drawing after the time
established by the
executive
director.
(4)
The executive director or his/her designee shall designate
the type of drawing equipment to be used and shall establish drawing procedures
to randomly select the winning combination for each type of on-line game.
Drawing procedures shall include provisions for the substitution of backup
drawing equipment in the event the primary drawing equipment malfunctions
or fails for any reason.
(5)
The executive director shall designate a drawing supervisor
who shall oversee each drawing and may also serve as the
commission
[
lottery
] security representative. The drawing supervisor, along
with a
commission
[
lottery
] security representative
and an independent certified public accountant shall be responsible for conducting
the drawing in compliance with the lottery's drawing procedures. The drawing
supervisor, along with a
commission
[
lottery
] security
representative and an independent certified public accountant, shall attest
whether the drawing was conducted in accordance with proper drawing procedures
at the end of each drawing.
(d)
[
(e)
] Procedures for claiming on-line
prizes.
(1)
All apparent winning tickets presented for payment to the
lottery or an on-line retailer must meet the
commission's
[
lottery's
] validation requirements as set forth in subsection (f) of
this section.
(2)
To claim an on-line game prize of [
$599 or
]less
than $600
[
the
] claimant shall present the winning on-line
ticket to an on-line retailer or to
the commission
[
a lottery
claim center
]. All tickets validated by a retailer must be paid by that
retailer.
(3)
If a claim of [
$599 or
]less
than $600
is presented to an on-line retailer, the on-line retailer must validate the
claim, and, if determined to be a winning ticket, make payment of the amount
due the claimant. [
If the on-line retailer attempts to validate and cannot
validate the claim, the claimant shall submit a completed claim form, if required
for submission, with the ticket to the lottery by mail or in person. Upon
determination that the ticket is a winning ticket, the lottery shall present
or mail a check to the claimant in payment of the amount due. If the ticket
is determined to be a non-winning ticket, the claim shall be denied and the
claimant shall be promptly notified. Winning or non-winning tickets will not
be returned to the claimant.
]
(4)
To claim an on-line game prize of $600 or more the
claimant shall present the winning on-line ticket to the commission. For any
[
If the
] claim [
is
] presented to the
commission
[
lottery
], the claimant shall
follow all procedures
of the commission related to claiming a prize, including but not limited to
filling
[
fill
] out a claim form [
, if required,
]
presenting appropriate identification if required, completing the back of
the ticket,
and
submitting these items including
[
submit
it with
] the apparent winning ticket to the
commission
[
lottery
] by mail or in person. Upon
validation of
[
determination that
] the ticket
as
[
is
] a winning
ticket, the
commission
[
lottery
] shall
pay
[
present or mail a check to
] the claimant [
in payment of
]
the amount due
in accordance with commission procedures
. If the
ticket is determined to be a non-winning ticket, the claim shall be denied
and the claimant shall be promptly notified.
Tickets
[
Winning
or non-winning tickets
]will not be returned to the claimant.
(5)
Before paying any prize, claim
center personnel shall validate the winning ticket according to established
validation requirements and procedures.
(6)
All prizes shall be subject
to tax withholding, offsets, and other withholdings as provided by law.
(7)
If a person is indebted or
owes delinquent taxes to the state, other than those specified in paragraph
(6) of this subsection, the winnings of a person shall be withheld until the
debt or taxes are paid.
(8)
When paying a prize of $600
or more, the commission shall file the appropriate income reporting form with
the Internal Revenue Service.
(9)
Payment of a prize will be
made to the bearer of the validated winning ticket for that prize upon presentation
of proper identification.
(10)
The director shall recognize
only one person as claimant of a particular prize. A claim may be made in
the name of a person other than an individual only if the person possesses
a federal employer identification number (FEIN) issued by the Internal Revenue
Service and such number is shown on the claim form. Groups, family units,
clubs, organizations, or other persons without an FEIN shall designate one
individual in whose name the claim is to be filed. If a claim is erroneously
entered with multiple claimants, the claimants shall designate one of them
as the individual recipient of the prize, or, if they fail to designate an
individual recipient, the director may designate any one of the claimants
as the sole recipient. In either case, the claim shall then be considered
as if it were originally entered in the name of the designated individual
and payment of any prizes won shall be made to that single individual. Once
a ticket is validated, it will not be returned to the winner, but will be
forwarded to the commission, along with the completed claim form.
(11)
The executive director has
discretion to set a maximum total cash amount or maximum payment time period
for each prize level.
[
(5)
To claim an on-line prize
of $600 or more, the claimant shall obtain and complete a claim form, sign
the back of the ticket, and submit the form with the apparent winning ticket
to the lottery by mail or in person. Upon determination that the ticket is
a winning ticket, the lottery shall present or mail a check to the claimant
in payment of the amount due, less the withholding required by the Internal
Revenue Code and any offsets or other withholdings required by law. If the
ticket is determined to be a non-winning ticket, the claim shall be denied
and the claimant shall be promptly notified. Winning or non-winning tickets
will not be returned to the claimant.]
[
(6)
The director shall recognize
only one person as claimant of a particular prize. A claim may be made in
the name of a person other than an individual only if the person possesses
a federal employer identification number (FEIN) issued by the Internal Revenue
Service and such number is shown on the claim form. Groups, family units,
clubs, organizations, or other persons without an FEIN shall designate one
individual in whose name the claim is to be filed. If a claim is erroneously
entered with multiple claimants, the claimants shall designate one of them
as the individual recipient of the prize. The claim shall then be considered
as if it were originally entered in the name of the designated individual
and payment of any prizes won shall be made to that single individual.]
(e)
[
(f)
] Validation requirements.
(1)
To be a valid winning on-line ticket, all of the following
conditions must be met.
(A)
All printing on the ticket shall be present in its entirety,
be legible, and correspond, using the computer validation file, to the combination
and data printed on the ticket. The ticket must have been produced prior to
the drawing.
[
(B)
The ticket shall be intact.]
(B)
[
(C)
] The ticket shall not be mutilated,
altered,
unreadable,
reconstituted, misregistered, defective, incomplete,
or tampered with in any manner.
(C)
[
(D)
] The ticket shall not be counterfeit
or forged, in whole or in part,
or an exact duplicate of another winning
ticket.
(D)
[
(E)
] The ticket must have been issued
by an authorized on-line retailer in an authorized manner on official Texas
lottery paper stock.
(E)
[
(F)
] The ticket
shall
[
must
] not
be
[
have been
] stolen.
(F)
[
(G)
] The ticket
shall
[
must
] not have been previously paid.
(G)
[
(H)
] The ticket data shall have
been recorded on the central computer system prior to the drawing, and the
ticket data must match the computer record data in every respect.
(H)
[
(I)
] The ticket shall pass all other
confidential security checks of the
commission
[
lottery
].
(2)
The
commission
[
lottery
] may pay
the prize for a ticket that is partially mutilated or not intact if the on-line
ticket can still be validated by the other validation requirements.
(3)
Liability for void tickets, if any, limited to replacement
of ticket or refund of sales price.
(4)
A ticket shall be the only valid receipt for claiming a
prize. A copy of a ticket or a playslip has no pecuniary or prize value and
shall not constitute evidence of ticket purchase or of numbers selected.
(5)
In submitting an official on-line ticket for validation,
the player agrees to abide by applicable laws, all
commission
[
Texas lottery
] rules, regulations, policies, directives, instructions,
conditions, procedures, and final decisions of the
executive
[
lottery
] director.
(6)
All prizes shall be subject to tax withholdings, offsets,
and other withholdings as provided by law.
(f)
[
(g)
] Payment of prizes by on-line
retailers.
(1)
An on-line retailer
may
[
shall
] pay
to the ticket bearer on-line game prizes of $599 or less for any valid claims
presented to that on-line retailer. All tickets validated by a retailer must
be paid by that retailer. These prizes
may
[
shall
] be
paid during
normal business hours of a retailer
[
hours as
specified in writing by the lottery director
], provided the on-line
system is operational and claims can be validated. The on-line retailer shall
not charge the claimant any fee for payment of the prize or for cashing a
business check drawn on the licensed retailer's account.
(2)
An on-line retailer may pay prizes in cash or by certified
check, money order, or by business check if acceptable by the claimant. An
on-line retailer that pays a prize with a check which is dishonored may be
subject to suspension or revocation of its license.
(3)
Retailers may pay prizes in
cash or by certified check, cashier's check, or money order. Retailers may
also pay prizes by business check if acceptable to the claimant. If a retailer
decides to pay a prize with a business check, the retailer shall inform the
claimant prior to ticket validation.
(g)
Payment of prize awarded to
minor.
(1)
A person 18 years of age or older may purchase
a ticket to give as a gift to another person, including a minor.
(2)
If a minor is entitled to a cash prize of less
than $600, the commission shall deliver to an adult member of the minor's
family or to the minor's guardian a check or warrant in the amount of the
prize payable to the order of the minor.
(3)
If a minor is entitled to a cash prize of more
than $600, the commission shall deposit the amount of the prize in a custodial
bank account, with an adult member of the minor's family or the minor's guardian
serving as custodian for the minor.
(4)
If a minor is entitled to a prize other than
money, the commission shall pay the cash equivalent of such prize in the manner
provided by paragraphs (2) and (3) of this subsection.
(5)
A retailer is not authorized to pay a prize
claimed by a minor.
[
(h)
Retailer settlement obligations,
and compensation. ]
[
(1)
Each on-line retailer shall provide authorization
for an account with EFT (electronic funds transfer) capability to be used
for weekly billing of all lottery products. This EFT account must be the same
account as that currently being electronically swept for instant ticket sales.]
[
(2)
Each on-line retailer shall maintain an account
balance sufficient to cover monies due the lottery for the established invoice
period. The lottery shall withdraw by EFT the amount due the lottery on the
day specified by the lottery director. In the event the day specified for
withdrawal occurs on a legal holiday, withdrawal shall occur on the following
business day.]
[
(3)
Retailers shall receive credit on their lottery
account for redeeming winning on-line tickets.]
[
(4)
On-line retailers shall receive 5.0% compensation
on all sales from on-line games. On-line retailers may not accept any compensation
for the sale of lottery tickets other than compensation approved under this
section, regardless of the source.]
[
(5)
If an on-line retailer fails to maintain a
sufficient account balance to cover monies due the lottery for the established
billing period, the retailer's license shall be summarily suspended. If an
on-line retailer is summarily suspended three times in a 12-month period for
insufficient funds, the retailer's license shall be revoked. If a retailer's
license is revoked, it shall not be reissued for at least 12 months from the
date all monies due the lottery are paid.]
[
(6)
A retailer must retain all sign-on slips for
a minimum of seven weeks from the date the sign-on slip is produced. Sign-on
slips must be surrendered to lottery security personnel upon request.]
(h)
[
(i)
] Game termination and prize
claim period.
(1)
The executive director or his/her designee, at any time,
may announce the termination date for an on-line game. If this occurs, no
on-line tickets for that game shall be sold past the termination date.
(2)
On-line game prizes shall be claimed no later than 180
days after the
draw
[
termination
] date of the on-line
game.
§401.305."Lotto Texas" On-Line Game Rule.
(a)
Lotto Texas. A Texas Lottery on-line game to be known as
"Lotto Texas" is authorized to be conducted by the executive director under
the following rules and under such further instructions and directives as
the executive director may issue in furtherance thereof. If a conflict arises
between this section and §401.304 of this title (relating to On-Line
Game Rules (General)), this section shall have precedence.
(b)
Definitions. In addition to the definitions provided in
§401.301
[
§401.304
] of this title (relating to
General Definitions
[
On-Line Game Rules (General)
]), and
unless the context in this section otherwise requires, the following definitions
apply.
(1)
Net Present
Cash value option--An election a
player makes at the time the player purchases a ticket to be paid the net
present
cash
value of the player's share of the jackpot, in the
event the player has a valid winning jackpot ticket.
(2)
Number--Any play integer from one through 54 inclusive.
(3)
Play--The six numbers selected on each play board and printed
on the ticket.
(4)
Play board--A field of the 54 numbers found on the playslip.
(5)
Playslip--An optically readable card issued by the
commission
[
Texas Lottery
] used by players of Lotto Texas
to select plays. There shall be five play boards on each playslip identified
at A, B, C, D, and E. A playslip has no pecuniary value and shall not constitute
evidence of ticket purchase or of numbers selected.
(c)
Price of ticket. The price of each Lotto Texas play shall
be $1.00. A player may purchase up to five plays on one ticket. Multiple draws
are available for up to 10 consecutive draws beginning with the current draw.
(d)
Play for Lotto Texas.
(1)
Type of play. A Lotto Texas player must select six numbers
in each play or allow number selection by a random number generator operated
by the computer, referred to as Quick Pick. A winning play is achieved only
when three, four, five, or six of the numbers selected by the player match,
in any order, the six winning numbers drawn by the lottery.
(2)
Method of play. The player
may
[
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
commission
[
lottery
], a player may
leave all play selections to a random number generator operated by the computer,
commonly referred to as
Quick Pick
[
"quick pick."
].
(3)
One prize per play. The holder of a winning ticket may
win only one prize per play in connection with the winning
numbers
[
number
] drawn and shall be entitled only to the highest prize
category won by those numbers.
(e)
Prizes for Lotto Texas.
(1)
Prize amounts. The prize amounts, for each drawing, paid
to each Lotto Texas 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. 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.
] The
pari-mutuel
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% of Lotto Texas sales.
(3)
Prize categories.
(A)
First prize (jackpot).
(i)
In the event of a prize winner who does not select the
net present
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
commission
[
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
net present
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
net present
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
net present
cash value of each share in one payment.
(ii)
In the event of a prize winner who selects the net present
cash value option, the prize winner's share will be paid in a single, lump
sum payment based on the discounted, net 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
net present
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.
(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% of
the prize pool for the drawing.
(II)
The indirect prize category contribution, which may be
increased by the executive director, will include the roll-over from the previous
drawing, if any.
(III)
The commission will pay the
advertised jackpot amount or the net present cash value of the advertised
jackpot amount, depending on the payment option. If the direct and indirect
prize category contributions are greater than the advertised jackpot amount,
the difference will be added to the Lotto Texas prize reserve fund and will
be used for future Lotto Texas jackpot prizes. If the direct and indirect
prize category contributions are less than the advertised jackpot amount,
the difference will be taken from the Lotto Texas prize reserve fund to fund
the advertised jackpot amount.
(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
commission
[
Texas Lottery
] (in any order).
The total prize category contribution will include the following.
(i)
The direct prize category contribution shall be 5.07% of
the prize pool for the drawing.
(ii)
The indirect prize category contribution, which may be
increased by the executive director, will include the
breakage and/or
roll-over from the previous drawing, if any.
(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
commission
[
Texas Lottery
] (in any order).
The total prize category contribution will include the following.
(i)
The direct prize category contribution shall be 12.51%
of the prize pool for the drawing.
(ii)
The indirect prize category contribution, which may be
increased by the executive director, will include the
breakage and/or
roll-over from the previous drawing, if any.
(D)
Fourth prize. The prize amount is a guaranteed minimum
$5.00.
The difference between the prizes won and the direct prize category
contribution will increase or decrease the prize reserve fund. The total prize
category contribution will include the direct prize category contribution
of 12.18% of the prize pool for the drawing.
[
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% of the prize pool for the drawing. ]
[
(ii)
The indirect prize category
contribution as determined by the executive director.]
(4)
Prize reserve fund.
(A)
The Lotto Texas prize reserve is 2.0% of the prize pool.
(B)
The Lotto Texas prize reserve fund may be increased or
decreased by
the difference between the first and fourth prizes won and
that prize category's share of the prize pool
[
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 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
numbers
[
number
] or Quick Pick (QP) numbers, boards played,
drawing date, jackpot payment option, and validation and reference numbers.
(3)
It shall be the exclusive responsibility of the player
to verify the accuracy of the player's selection(s) and other data printed
on the ticket. A ticket is a bearer instrument until signed.
(4)
Except as provided in subsection (d)(2) of this section,
Lotto Texas tickets must be purchased using official Lotto Texas playslips.
Playslips which have been mechanically completed are not valid. Lotto Texas
tickets must be printed on official Texas lottery paper stock and purchased
at a licensed location through an authorized Texas lottery retailer's on-line
terminal.
(g)
Drawings.
(1)
The Lotto Texas drawings shall be held each week on Wednesday
and Saturday evenings at 9:59 p.m. Central Time except that the drawing schedule
may be changed by the executive director, if necessary.
(2)
Lotto Texas tickets will not be sold
during the draw
break for the Lotto Texas game
[
from 9:45 p.m. Central Time until
10 p.m. Central Time
] on Wednesday and Saturday nights.
(3)
The drawings will be conducted by lottery officials.
(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
commission
[
Texas Lottery
] in accordance with the drawing procedures.
The winning numbers shall be used in determining all Lotto Texas winners for
that drawing.
(5)
Each drawing shall be witnessed by an independent certified
public accountant. All drawing equipment used shall be examined by at least
one
commission
[
lottery
] security representative, the
drawing supervisor, and the independent certified public accountant immediately
prior to a drawing and immediately after the drawing.
(6)
A drawing will not be invalidated based on the financial
liability of the
commission
[
Texas Lottery
].
(h)
Announcement of incentive or bonus program. The executive
director shall announce each incentive or bonus program prior to its commencement.
The announcement shall specify the beginning and ending time, if applicable,
of the incentive or bonus program and the value for the award(s).
§401.307."Pick 3" On-Line Game Rule.
(a)
Pick 3. A Texas Lottery on-line game to be known as "Pick
3" is authorized to be conducted by the executive director under the following
rules and under such further instructions and directives as the executive
director may issue in furtherance thereof. If a conflict arises between this
section and §401.304 of this title (relating to On-Line Game Rules (General)),
this section shall have precedence.
(b)
Definitions. In addition to the definitions provided in
§401.301
[
§401.304
] of this title (relating to
General Definitions
[
On-Line Game Rules (General)
]), and
unless the context in this section otherwise requires, the following definitions
apply.
(1)
Advance play--A player may purchase a Pick 3 ticket for
any of the five Pick 3 drawings immediately following the current drawing.
Example: On Monday, before the drawing, a Pick 3 ticket can be purchased for
the Tuesday, Wednesday, Thursday, Friday, or Saturday drawings.
(2)
Multidraw--A player may purchase a Pick 3 ticket for 12
consecutive draws beginning with the current draw.
(3)
Number--Any play integer from 0 through nine inclusive.
(4)
Play--The three numbers selected on each play board and
printed on the ticket.
(5)
Play board--An area of a playslip which is marked by the
player to select the type of play, the numbers to play, and the amount of
the play.
(6)
Playslip--An optically readable card issued by the Texas
Lottery used by players of Pick 3 to select plays. There shall be five play
boards on each playslip identified as A, B, C, D, and E. A playslip has no
pecuniary value and shall not constitute evidence of ticket purchase or of
numbers selected.
(c)
Price of ticket. The price of each Pick 3 play shall be
a minimum of $.50. A player may play $.50, $1.00, $2.00, $3.00, $4.00, or
$5.00 on each play. A player may purchase up to five plays on one ticket.
(d)
Play for Pick 3.
(1)
Type of play. A Pick 3 player must select three numbers,
each from 0 through nine, for each play. The Texas Lottery reserves the right,
at the discretion of the director, to allow or discontinue any of the following
play types.
(A)
Exact Order. A three-digit number selected by the player
which shall match the three-digit number drawn by the Texas Lottery in the
exact order.
(B)
Any Order 3-way. A three-digit number selected by the player
with two numbers the same, such as 122, which shall match the three-digit
number drawn by the Texas Lottery in any order.
(C)
Any Order 6-way. A three-digit number selected by the player
with all three numbers different, such as 789, which shall match the three-digit
number drawn by the Texas Lottery in any order.
(D)
Exact/Any Order 3-way. A three-digit number selected by
the player with two numbers the same, such as 377, which shall match the three-digit
number drawn by the Texas Lottery in the exact order or in any order.
(E)
Exact/Any Order 6-way. A three-digit number selected by
the player with all three numbers different, such as 159, which shall match
the three-digit number drawn by the Texas Lottery in the exact order or in
any order.
(F)
Combo 3-way. A three-digit number selected by the player
with two numbers the same, such as 466, which shall match the three-digit
number drawn by the Texas Lottery in any of the three possible exact order
combinations.
(G)
Combo 6-way. A three-digit number selected by the player
with all three numbers different, such as 872, which shall match the three-digit
number drawn by the Texas Lottery in any of the six possible exact order combinations.
(2)
Method of play. The player
may
[
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, the on-line retailer may enter the selected numbers, play type,
and play amount via the keyboard. However, the retailer shall not accept telephone
or mail-in requests to manually enter selected numbers through the keyboard.
A player may leave all number selections to a random number generator operated
by the computer, referred to as
Quick Pick
[
"Quick Pick."
].
(3)
One prize per play. The holder of a winning ticket may
win only one prize per play in connection with the winning numbers drawn.
(e)
Prizes for Pick 3.
(1)
Prize amounts. The prize amounts, for each drawing, paid
to each Pick 3 player who selects a matching combination of numbers will be
guaranteed amounts. Prize amounts are set forth in subsection (f) of this
section.
(2)
At the discretion of the director, a prize amount may be
altered temporarily for marketing or promotional purposes.
(3)
Prize pool. The prize pool for Pick 3 prizes shall be 50%
of Pick 3 sales. The prize pool percentage may vary since all prize amounts
are guaranteed.
(4)
Prize reserve fund.
(A)
The prize reserve fund may be increased or decreased by
amounts paid to winners or prizes not claimed within the 180-day claim period.
(B)
In the event any player who has a valid winning ticket
does not claim the prize within 180 days after the drawing in which the prize
was won, the prize amount shall be added to the prize reserve fund and all
rights to the prize shall terminate.
(C)
The prize reserve fund may be decreased by any amounts
paid to winners, due to the guaranteed prize amounts. For example, money may
be allocated from the prize reserve fund to the Pick 3 prize pool if the prize
liability is greater than the 50% prize pool.
(f)
Odds of winning. The following table sets forth the odds
of winning in each prize category, based upon the total number of possible
combinations of three numbers played in a field of 1,000 combinations. The
prize amount for a $.50 play in any of the listed prize categories is half
as much as the prize amount for a $1.00 play.
Figure: 16 TAC §401.307 (4)(f)
(g)
Ticket purchases.
(1)
Pick 3 tickets may be purchased only at a licensed location
from a lottery retailer authorized by the lottery director to sell on-line
tickets.
(2)
Pick 3 tickets shall show the player's selection of numbers,
play type, play amount, play boards played, drawing date(s), and validation
and reference numbers.
(3)
It shall be the exclusive responsibility of the player
to verify the accuracy of the player's selection(s), amount, draw date(s)
and other data printed on the ticket. A ticket is a bearer instrument until
signed.
(4)
Except as provided in subsection (d)(2) of this section,
Pick 3 tickets must be purchased using official Pick 3 playslips. Playslips
which have been mechanically completed are not valid. Pick 3 tickets must
be printed on official Texas Lottery paper stock and purchased at a licensed
location through an authorized Texas Lottery retailer's on-line terminal.
(h)
Cancellations.
(1)
A Pick 3 ticket may be canceled by the selling retailer
only if the following occur:
(A)
the retailer has the actual Pick 3 ticket in their possession;
(B)
the Pick 3 ticket is canceled at the selling retailer;
(C)
the ticket is canceled no later than 60 minutes since the
ticket was issued/purchased;
(D)
the ticket is canceled before the draw break on the day
the ticket was issued/purchased;
(E)
no drawing applicable to the ticket has previously been
held.
(2)
The canceled receipt that is produced by the terminal when
a ticket is canceled shall be kept with the original Pick 3 ticket that was
canceled and retained by the retailer for at least 30 days.
(i)
Drawings.
(1)
The Pick 3 drawings shall be held each week on Monday,
Tuesday, Wednesday, Thursday, Friday, and Saturday evenings at 9:59 p.m. Central
Time except that the drawing schedule may be changed by the director, if necessary.
(2)
Pick 3 tickets will not be sold
during the draw break
for the Pick 3 game
[
from 9:45 p.m. Central Time until 10:01 p.m.
Central Time
] on
Monday, Tuesday, Wednesday, Thursday, Friday,
and Saturday nights
[
drawing days
].
(3)
The drawings will be conducted by lottery officials.
(4)
Each drawing shall determine, at random, three winning
numbers in accordance with Pick 3 drawing procedures. Any numbers drawn are
not declared winning numbers until the drawing is certified by the lottery
in accordance with the drawing procedures. The winning numbers shall be used
in determining all Pick 3 winners for that drawing.
(5)
Each drawing shall be witnessed by an independent certified
public accountant. All drawing equipment used shall be examined by at least
one lottery security representative, the drawing supervisor, and the independent
certified public accountant immediately prior to a drawing and immediately
after the drawing.
(6)
A drawing will not be invalidated based on the financial
liability of the lottery.
(j)
Announcement of incentive or bonus program. The executive
director shall announce each incentive or bonus program prior to its commencement.
The announcement shall specify the beginning and ending time, if applicable,
of the incentive or bonus program and the value for the award(s).
§401.308."Cash 5" On-Line Game Rule.
(a)
Cash 5. A Texas Lottery on-line game to be known as "Cash
5" is authorized to be conducted by the executive director under the following
rules and under such further instructions and directives as the executive
director may issue in furtherance thereof. If a conflict arises between this
rule and §401.304 of this title (relating to On-Line Game Rules (General)),
this section shall have precedence.
(b)
Definitions. In addition to the definitions provided in
§401.301
[
§401.304
] of this title (relating to
General Definitions
[
On-Line Games Rules (General)
]), and
unless the context in this rule otherwise requires, the following definitions
apply.
(1)
Advance Play--A player may purchase a Cash 5 ticket for
any of the three Cash 5 drawings immediately following the current drawing.
Example: On Monday, before the drawing, a Cash 5 ticket can be purchased for
Tuesday, Thursday, or Friday drawings.
(2)
Multi draw--A player may purchase a Cash 5 ticket for up
to 20 consecutive drawings beginning with the current draw.
(3)
Number--Any play integer from one through 39 inclusive.
(4)
Play--The five numbers selected on each play board and
printed on the ticket.
(5)
Play board--A field of the 39 numbers found on the playslip.
(6)
Playslip--An optically readable card issued by the Texas
Lottery used by players of Cash 5 to select plays. There shall be five play
boards on each playslip identified at A, B, C, D, and E. A playslip has no
pecuniary value and shall not constitute evidence of ticket purchase or of
numbers selected.
(c)
Price of ticket. The price of each Cash 5 play shall be
$1.00. A player may purchase up to five plays on one ticket. Multiple draws
are available for up to 20 consecutive draws beginning with the current draw.
A player may purchase a Cash 5 ticket for advance play.
(d)
Play for Cash 5.
(1)
Type of play. A Cash 5 player must select five numbers
in each play or allow number selection by a random number generator operated
by the computer, referred to as Quick Pick. A winning play is achieved only
when three, four, or five of the numbers selected by the player match, in
any order, the five winning numbers drawn by the lottery.
(2)
Method of play. The player
may
[
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, 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
[
"quick pick."
]
.
(3)
One prize per play. The holder of a winning ticket may
win only one prize per play in connection with the winning number drawn and
shall be entitled only to the highest prize category won by those numbers.
(e)
Prizes for Cash 5.
(1)
Prize amounts. The prize amounts, for each drawing, paid
to each Cash 5 player who selects a matching combination of numbers will vary
due to a pari-mutuel calculation. The calculation of a prize shall be rounded
down so that prizes can be paid in multiples of whole dollars. Each prize
category breakage will carry forward to the next drawing for each respective
prize category. The prize amounts are based on the total amount in the prize
category for that Cash 5 drawing distributed equally over the number of matching
combinations in each prize category.
Figure: 16 TAC §401.308(e)(1)
(2)
Prize pool. The prize pool for Cash 5 prizes shall be a
minimum of 50% of Cash 5 sales.
(3)
Prize categories.
(A)
Top 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 all five numbers of the
five numbers drawn (in any order). The total prize category contribution will
include the following. Each top prize will be paid in one lump sum payment.
The five of five top prize of $600 to
$999,999
[
$300,000
]
must be claimed at a Lottery claim center. Five of five prizes of
$1,000,000
[
$300,001
] or larger must be claimed at the Lottery Commission
headquarters in Austin. The total prize category contribution for a drawing
will include the following.
(i)
The direct prize category contribution shall be 20% of
the prize pool for the drawing.
(ii)
If the top prize is not won by a Cash 5 player from a
drawing, the prize will roll into the second prize category.
(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 four of the five
numbers drawn (in any order). The total prize category contribution will include
the following.
(i)
The direct prize category
contribution shall be 30% of the prize pool for the drawing.
(ii)
If the second prize is not
won by a Cash 5 player from a drawing, the prize will roll into the third
prize category.
(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 three of the five
numbers drawn (in any order). The total prize category contribution will include
the following. The direct prize category contribution shall be 50% of the
prize pool for the drawing.
(4)
Unclaimed Prize Fund. In the event any player who has a
valid winning ticket does not claim the prize within 180 days after the drawing
in which the prize was won, the prize amount shall be added to the prize reserve
and all rights to the prize shall terminate.
(f)
Ticket purchases.
(1)
Cash 5 tickets may be purchased only at a licensed location
from a lottery retailer authorized by the lottery director to sell on-line
tickets.
(2)
Cash 5 tickets shall show the player's selection of numbers,
or Quick Pick (QP) numbers, boards played, drawing date, and validation and
reference numbers.
(3)
It shall be the exclusive responsibility of the player
to verify the accuracy of the player's selection(s) and other data printed
on the ticket. A ticket is a bearer instrument until signed.
(4)
Except as provided in subsection (d)(2) of this section,
Cash 5 tickets must be purchased using official Cash 5 playslips. Playslips
which have been mechanically completed are not valid. Cash 5 tickets must
be printed on official Texas lottery paper stock and purchased at a licensed
location through an authorized Texas lottery retailer's on-line terminal.
(g)
Drawings.
(1)
The Cash 5 drawings shall be held each week on Monday,
Tuesday, Thursday, and Friday evenings at
9:59
[
10:00
]
p.m. Central Time except that the drawing schedule may be changed by the executive
director, if necessary.
(2)
Cash 5 tickets will not be sold
during the draw break
for the Cash 5 game
[
from 9:45 p.m. Central Time until 10:00 p.m.
Central Time
] on Monday, Tuesday, Thursday, and Friday nights.
(3)
The drawings will be conducted by lottery officials.
(4)
Each drawing shall determine, at random, five winning numbers
in accordance with Cash 5 drawing procedures. Any numbers drawn are not declared
winning numbers until the drawing is certified by the lottery in accordance
with the drawing procedures. The winning numbers shall be used in determining
all Cash 5 winners for that drawing.
(5)
Each drawing shall be witnessed by an independent certified
public accountant. All drawing equipment used shall be examined by at least
one lottery security representative, the drawing supervisor, and the independent
certified public accountant immediately prior to a drawing and immediately
after the drawing.
(6)
A drawing will not be invalidated based on the financial
liability of the lottery.
(h)
Announcement of incentive or bonus program. The executive
director shall announce each incentive or bonus program prior to its commencement.
The announcement shall specify the beginning and ending time, if applicable,
of the incentive or bonus program and the value for the award(s).
§401.309.Assignability of Prizes.
(a)
Definitions.
[
(1)
]
"Prize Winner"--The name of the person who
presented a valid ticket, claimed a lottery prize and was and is recognized
by the Texas Lottery as the person entitled to receive the lottery prize payments
and who is not an assignee of the lottery prize. In the event of any conflict
between a person who presented a ticket and a person who is recognized by
the Texas Lottery as the person entitled to receive the lottery prize payments,
a "prize winner" is the person recognized by the Texas Lottery as the person
entitled to receive lottery prize payments.
[
(2)
"Request to Assign Specific
Installment Payments"--The form provided by the Texas Lottery to be completed
by the prize winner or the assignee of a prize winner when requesting the
Texas Lottery to accept an assignment of installment payments pursuant to
Texas Government Code, §466.410.]
(b)
Prizes in the lottery are not assignable except:
(1)
if the prize winner dies before the prize is paid, the
director shall pay the prize as required by law;
(2)
pursuant to an appropriate judicial order under Texas Government
Code, §466.406(c) that resolves a bona fide underlying controversy involving
the prize winner, which order shall not include an order issued to enforce
or approve an agreement between a prize winner and any third party where the
prize winner has agreed to transfer future prize payments to a third party
in exchange for consideration; or
(3)
pursuant to an order under Texas Government Code, §466.410
obtained by a prize winner or an assignee of a prize winner.
(c)
An order entered pursuant to Texas Government Code, §466.406(c).
An order entered pursuant to Texas Government Code, §466.406(c) must
contain, in addition to any provisions required by law, the following:
(1)
Recitation that the judicial order comports with the requirements
of Texas Government Code, §466.406(c), as follows: It is ordered and
decreed that this (Order/Judgment) affecting the payment of the lottery winnings
comports with the requirements of Texas Government Code, §466.406(c)
and constitutes an "appropriate judicial order" authorizing the Texas Lottery
Commission to make the (identified) payments of lottery installment proceeds,
less any taxes and/or other offsets or mandatory withholdings required by
law, to (give name and amount).
(2)
Discharge of Liability provision, as follows: It is further
ordered and decreed that upon payment of each installment of lottery proceeds
to (Name and amount), pursuant to (Order/Judgment), less any taxes and/or
other offsets or mandatory withholdings required by law, the Texas Lottery
Commission will be discharged of all further liability with respect to that
installment of lottery proceeds in accordance with Texas Government Code, §466.402(d).
(3)
Release of the Texas Lottery Commission and Indemnification
provision, as follows: Upon entry of this (Order/Judgment), pursuant to Texas
Government Code, §466.406, (Name of prize winner or assignee of prize
winner), on behalf of themselves, their agents, heirs, and representatives
hereby waive and release any and all claims, whatsoever, known or unknown,
they may have against the Texas Lottery Commission, its members, employees,
agents, representatives, or successors, as of the date of this (Order/Judgment)
relating to the installment payments assigned by this (Order/Judgment). In
addition, (Name of prize winner or assignee of prize winner) on behalf of
themselves, their agents, heirs, and representatives shall indemnify and hold
harmless the Texas Lottery Commission, its members, employees, agents, representatives,
or successors, from any claim whatsoever, known or unknown, made as a result
of the Texas Lottery Commission's compliance with this (Order/Judgment).
(d)
An order entered pursuant to Texas Government Code, §466.410.
An order entered pursuant to Texas Government Code, §466.410 must contain,
in addition to any provisions required by law, the following:
(1)
Recitation that the judicial order comports with the requirements
of Texas Government Code, §466.410, as follows: It is ordered and decreed
that this (Order/Judgment) affecting the payment of the lottery winnings comports
with the requirements of Texas Government Code, §466.410 directing the
Texas Lottery Commission to make the (identified) payments of lottery installment
proceeds, less any taxes and/or other offsets or mandatory withholdings required
by law, to (give name and amount).
(2)
Discharge of Liability provision, as follows: It is further
ordered and decreed that upon payment of each installment of lottery proceeds
to (Name and amount), pursuant to (Order/Judgment), less any taxes and/or
other offsets or mandatory withholdings required by law, the Texas Lottery
Commission will be discharged of all further liability with respect to that
installment of lottery proceeds in accordance with Texas Government Code, §466.402(d).
(3)
Release of the Texas Lottery Commission and Indemnification
provision, as follows: Upon entry of this (Order/Judgment) and the Commission's
acknowledgement of this (Order/Judgment), pursuant to Texas Government Code, §466.410,
(Name of assignor), on behalf of themselves, their agents, heirs, and representatives
hereby waive and release any and all claims, whatsoever, known or unknown,
they may have against the Texas Lottery Commission, its members, employees,
agents, representatives, or successors, as of the date of this (Order/Judgment)
relating to the installment payments assigned by this (Order/Judgment). In
addition, (Name of assignor) on behalf of themselves, their agents, heirs,
and representatives shall indemnify and hold harmless the Texas Lottery Commission,
its members, employees, agents, representatives, or successors, from any claim
whatsoever, known or unknown, made as a result of the Texas Lottery Commission's
compliance with this (Order/Judgment).
(e)
Procedures for a prize winner or an assignee of a prize
winner regarding assignments. All of the following requirements must be met
before the Texas Lottery will complete the assignment process for specific
installment payments.
(1)
The prize winner or assignee of a prize winner must
submit to the commission an original notarized affidavit executed by the prize
winner or assignee of the prize winner providing an original Release and Indemnification
Agreement
[
file the "Request to Assign Specific Installment Payments"
with the Texas Lottery
].
[
(2)
The "Request to Assign Specific
Installment Payments" must contain a notarized signature of the person with
legal authority to bind the prize winner or the assignee of the prize winner,
and state that person's official capacity.]
(2)
[
(3)
] The prize winner or the assignee
of a prize winner must pay the
commission
[
Texas Lottery
]
an administrative fee of $500.00 for each assignment [
request and the
fee must be attached to the "Request to Assign Specific Installment Payments"
at the time of filing
].
Payment of
[
Acceleration
of
] Prize Payments
Upon Death of Prize Winner.
(a)
In the event of the death of a prize winner (an individual
claimant who has a valid ticket) who is entitled to a prize which is paid
in installments, the executive director, upon petition of the estate of the
deceased prize winner to the
commission
[
Texas Lottery
],
will
pay
[
accelerate
] the payment of all the remaining
installments to the estate. If the executive director
pays
[
accelerates
] the payment of all the remaining installments, then securities
and/or cash held for the deceased prize winner, which represents the lesser
of the
commission's
[
Texas Lottery's
] book value (the
daily recalculated amortized cost of investments under the interest method)
or fair market value (the value of investments at any point in time as determined
by the market place) of that portion of the future installment payments that
are to be
paid
[
accelerated
], less any applicable taxes
and administrative costs incurred by the
commission
[
Texas
Lottery
] associated with
paying
[
accelerating
]
the remaining installment payments, shall be distributed to the estate. The
valuation of the securities at the lower of the
commission's
[
Texas Lottery's
] book value or fair market value and determination of
the net present value of the
remaining installment
[
accelerated
] payments shall be at the sole determination and discretion of the
executive director.
(b)
The
commission
[
Texas Lottery
] shall
require an appropriate judicial order from the proper Probate Court, in order
to facilitate the
payment
[
acceleration
] of the remaining
prize installment payments. The
commission
[
Texas Lottery
] shall require, as part of the appropriate judicial order, the following:
(1)
Language approving the form and substance of the order
by all representatives of the estate of the deceased prize winner, whether
such representatives are executors or administrators and by all beneficiaries
and/or heirs known and existing at the time the order is signed by the Probate
Judge;
(2)
Language indicating that an attorney ad litem was appointed
by the court to represent the interests of any unknown heirs, beneficiaries
or claimants to the estate, and a finding by the court, after considering
the attorney ad litem's report, that the
payment
[
acceleration
] of the remaining prize installment payments is appropriate;
(3)
Language providing for indemnification and holding the
commission
[
Texas Lottery
] harmless by all representatives
of the estate of the deceased prize winner from any and all liability of the
estate of the deceased prize winner for federal and state estate taxes, or
other tax liability, and from any claim known or unknown, existing now or
arising in the future, that may be made by a third party as a result of the
lump sum payment of the lesser of the
commission's
[
Texas
Lottery's
] book value or fair market value of the remaining installment
payments;
(4)
Language providing that, upon lump sum payment of the lesser
of the
commission's
[
Texas Lottery's
] book value or
fair market value of the remaining installment payments, the
commission
[
Texas Lottery
] has satisfied in full its obligations to
the estate of the deceased prize winner and beneficiaries or heirs and shall
be released from any further liability to either the estate of the deceased
prize winner or to the beneficiaries or heirs;
(5)
Language requiring the
commission
[
Texas
Lottery
] to pay the lump sum payment into the registry of the court
within 30 days after the securities are liquidated, such liquidation being
required by signed order of the Probate Court. In the event there is a delay
of time between the sale of the securities and the payment into the registry
of the court, any interest earned during this period of time shall be kept
by the State of Texas; and
(6)
Language indicating that the
payment
[
acceleration
] of the remaining prize installment payments is necessary
to pay the estate tax burden imposed on the estate by federal and/or state
taxing authorities.
§401.312."Texas Two Step" On-line Game.
(a)
Texas Two Step. A commission on-line game to be known as
"Texas Two Step" is authorized to be conducted by the executive director under
the following rules and under such further instructions and directives as
the executive director may issue in furtherance thereof. If a conflict arises
between this section and §401.304 of this title (relating to On-Line
Game Rules (General)), this section shall have precedence.
(b)
Definitions. In addition to the definitions provided in
§401.301
[
§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)
Number--Any play integer from 1 through 35 inclusive.
(2)
Play--The five numbers selected on each play board and
printed on the ticket. Four numbers are selected from the first field of 35
numbers and one number is selected from the second field of 35 numbers.
(3)
Play board--Two fields of 35 numbers each found on the
playslip.
(4)
Playslip--An optically readable card issued by the commission
used by players of Texas Two Step to select plays. There shall be five play
boards on each playslip identified at A, B, C, D, and E. A playslip has no
pecuniary value and shall not constitute evidence of ticket purchase or of
numbers selected.
(c)
Price of ticket. The price of each Texas Two Step play
shall be $1.00. A player may purchase up to five plays on one ticket. Multiple
draws are available for up to 10 consecutive draws beginning with the current
draw.
(d)
Play for Texas Two Step.
(1)
Type of play. A Texas Two Step player must select four
numbers from the first field of numbers from 1 through 35 and an additional
one number from the second field of numbers from 1 through 35 in each play
or allow number selection by a random number generator operated by the computer,
referred to as Quick Pick. A winning play is achieved only when zero, one,
two, three or four numbers selected from the first field of 35 numbers match,
in any order, the four numbers drawn from the first field of 35 numbers in
addition to matching either zero or one number drawn from the second field
of 35 numbers.
(2)
Method of play. The player may 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. A player may leave
all play selections to a random number generator operated by the computer,
commonly referred to as Quick Pick.
(3)
One prize per play. The holder of a winning ticket may
win only one prize per play in connection with the winning number drawn and
shall be entitled only to the highest prize category won by those numbers.
(e)
Prizes for Texas Two Step.
(1)
Prize amounts. The prize amounts, for each drawing, paid
to each Texas Two Step player who selects a matching combination of numbers
will vary due to a pari-mutuel calculation, with the exception of the sixth
and seventh prize, which are guaranteed prizes of $7.00 and $5.00, respectively.
The calculation of pari-mutuel prize categories 2 through 5 shall be rounded
down so those prizes can be paid in multiples of whole dollars. Each prize
category breakage will carry forward to the next drawing for each respective
prize category. [
No prize amount shall be less than $5.00.
] The
prize amounts are based on the total amount in the prize category for that
Texas Two Step drawing distributed equally over the number of matching combinations
in each prize category.
Figure: 16 TAC 401.312 (e)(1)
(2)
Prize pool. The prize pool for Texas Two Step prizes shall
be a minimum of 50% of Texas Two Step sales.
(3)
Prize categories.
(A)
First prize (jackpot) - The prize winner's share of the
first prize or jackpot is won by matching all four numbers drawn (in any order)
from the first field of 35 numbers in addition to matching the number drawn
from the second field of 35 numbers. The jackpot share (prize amount) shall
be calculated by dividing the prize category contributions by the number of
shares for the prize category. Each first prize or jackpot share will be paid
in one lump sum payment. The first prize or jackpot share of $600 to
$999,999
[
$300,000
] must be claimed at a commission claim
center. First prize or jackpot share of
$1,000,000
[
$300,001
] or larger must be claimed at the commission headquarters in Austin.
The total prize category contribution for a drawing will include the following.
(i)
The direct prize category contribution shall be 45.56%
of the prize pool for the drawing.
(ii)
The indirect prize category contribution, which may be
increased by the executive director, will include the roll-over from the previous
drawing, if any.
(iii)
The commission will pay the advertised jackpot amount
for Texas Two Step. If the direct and indirect prize category contributions
are greater than the advertised jackpot amount, the difference will
be added to the Texas Two Step prize reserve fund
[
carry forward
to the next drawing for the first prize or jackpot prize category
] and
will be used for future Texas Two Step jackpot prizes. If
the direct
and indirect
prize
category
contributions are less than the
advertised jackpot amount, the difference will be taken from the Texas Two
Step prize reserve fund
to fund the advertised jackpot amount
.
(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 all four numbers drawn
(in any order) from the first field of 35 numbers in addition to matching
zero numbers from the second field of 35 numbers drawn by the commission.
The total prize category contribution will include the following.
(i)
The direct prize category contribution shall be 5.57% of
the prize pool for the drawing.
(ii)
The indirect prize category contribution, which may be
increased by the executive director, will include the breakage from the previous
drawing, if any.
(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 three of four numbers
drawn (in any order) from the first field of 35 numbers in addition to matching
the number from the second field of 35 numbers drawn by the commission. The
total prize category contribution will include the following.
(i)
The direct prize category contribution shall be 0.68% of
the prize pool for the drawing.
(ii)
The indirect prize category contribution, which may be
increased by the executive director, will include the breakage from the previous
drawing, if any.
(D)
Fourth 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 three of four numbers
drawn (in any order) from the first field of 35 numbers in addition to matching
zero numbers from the second field of 35 numbers drawn by the commission.
The total prize category contribution will include the following.
(i)
The direct prize category contribution shall be 9.20% of
the prize pool for the drawing.
(ii)
The indirect prize category contribution, which may be
increased by the executive director, will include the breakage from the previous
drawing, if any.
(E)
Fifth 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 two of four numbers drawn
(in any order) from the first field of 35 numbers in addition to matching
the number from the second field of 35 numbers drawn by the commission. The
total prize category contribution will include the following.
(i)
The direct prize category contribution shall be 6.09% of
the prize pool for the drawing.
(ii)
The indirect prize category contribution, which may be
increased by the executive director, will include the breakage from the previous
drawing, if any.
(F)
Sixth prize. The prize amount is a guaranteed minimum $7.00.
The difference between the prizes won and the direct prize contribution will
increase or decrease the prize reserve fund. The total prize category contribution
will include the direct prize category contribution of 13.73% of the prize
pool for the drawing.
(G)
Seventh prize. The prize amount is a guaranteed minimum
$5.00. The difference between the prizes won and the direct prize contribution
will increase or decrease the prize reserve fund. The total prize category
contribution will include the direct prize category contribution of 17.17%
of the prize pool for the drawing.
(4)
Prize reserve fund.
(A)
The Texas Two Step prize reserve fund is 2.0% of the prize
pool.
(B)
The Texas Two Step prize reserve fund may be increased
or decreased by the difference between the first, sixth, and seventh actual
prizes won and that prize category's share of the prize pool. The Texas Two
Step prize reserve fund may be used only for the Texas Two Step game.
(f)
Ticket purchases.
(1)
Texas Two Step tickets may be purchased only at a licensed
location from a commission retailer authorized by the lottery director to
sell on-line tickets.
(2)
Texas Two Step tickets shall show the player's selection
of numbers or Quick Pick (QP) numbers, boards played, drawing date(s) and
validation and reference numbers.
(3)
It shall be the exclusive responsibility of the player
to verify the accuracy of the player's selection(s) and other data printed
on the ticket. A ticket is a bearer instrument until signed.
(4)
Except as provided in subsection (d)(2) of this section,
Texas Two Step tickets must be purchased using official Texas Two Step playslips.
Playslips which have been mechanically completed are not valid. Texas Two
Step tickets must be printed on official Texas Lottery paper stock and purchased
at a licensed location through an authorized commission retailer's on-line
terminal.
(g)
Drawings.
(1)
The Texas Two Step drawings shall be held each week on
Tuesday and Friday evenings at 9:59 p.m. Central Time except that the drawing
schedule may be changed by the executive director, if necessary.
(2)
Texas Two Step tickets will not be sold during the draw
break for the Texas Two Step game on Tuesday and Friday evenings.
(3)
The drawings will be conducted by commission officials.
(4)
Each drawing shall determine, at random, five winning numbers
in accordance with Texas Two Step drawing procedures. Any numbers drawn are
not declared winning numbers until the drawing is certified by the commission
in accordance with the drawing procedures. The winning numbers shall be used
in determining all Texas Two Step winners for that drawing.
(5)
Each drawing shall be witnessed by an independent certified
public accountant. All drawing equipment used shall be examined by at least
one commission security representative, the drawing supervisor, and the independent
certified public accountant immediately prior to a drawing and immediately
after the drawing.
(6)
A drawing will not be invalidated based on the financial
liability of the commission.
(h)
Announcement of incentive or bonus program. The executive
director shall announce each incentive or bonus program prior to its commencement.
The announcement shall specify the beginning and ending time, if applicable,
of the incentive or bonus program and the value for the award(s).
§401.313.Promotional Drawings.
(a)
Eligibility for a promotional drawing shall be determined
by, but not limited to, a direct entry to a promotional drawing as provided
in the applicable draw procedures. The executive director shall determine
any prizes to be awarded, and the method, manner, and timing of payment that
shall be stated in the applicable draw procedures.
(b)
Promotional drawings shall be conducted at times and places
pursuant to the methods stated in the applicable draw procedures.
(c)
The number of promotional drawing winners selected to win
a prize shall be specified in the applicable draw procedures.
(d)
Each promotional drawing winner will be notified by the
commission that the person is a winner, as specified in the applicable draw
procedures.
(e)
In entering a promotional drawing, the player agrees to
abide by applicable laws, all commission rules, regulations, policies, directives,
instructions, conditions, procedures, and final decisions of the executive
director.
§401.314.Retailer Bonus Programs.
(a)
Only a licensed commission retailer shall be eligible to
obtain a retailer bonus.
(b)
A retailer is not eligible for a retailer bonus unless
the retailer is in compliance with the State Lottery Act, Government Code,
Chapter 466, commission rules, and procedures.
(c)
The retailer must abide by all commission rules, regulations,
policies, directives, instructions, conditions, procedures and final decisions
of the executive director in connection with the retailer bonus.
(d)
The retailer bonus for each lottery game in which a retailer
bonus may be awarded is set out in the commission procedures for that particular
lottery game.
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 April 30, 2001.
TRD-200102439
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: June 10, 2001
For further information, please call: (512) 344-5113