Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 29 - Office of the Arkansas Lottery
Rule 006.29.22-001 - Amendments to OAL Operational Rules and Retailer Rules

1.1. "Act" means the Arkansas Scholarship Lottery Act (Act 606 of 2009).

1.2. "Administrative order" means the final disposition of the Department of Finance & Administration - Office of the Arkansas Lottery in any matter other than a claim in contract or tort, including without limitation bid protests and retailer licensing in which the Department of Finance & Administration - Office of the Arkansas Lottery is required by law to make its determination after notice and a hearing.

1.3. "OAL" or "Office" means the Department of Finance & Administration - Office of the Arkansas Lottery.

1.4. "Applicant" means a natural person, corporation, partnership, unincorporated association, or other legal entity.

1.5. "Banks" means and includes all commercial banks, mutual savings banks, savings and loan associations, credit unions, trust companies, and any other type or form of banking institution who are authorized to do business in the state of Arkansas and that are designated to perform banking institution functions, activities, or service in connection with the operations of OAL for the deposit and handling of lottery funds, the accounting of the funds and the safekeeping of records.

1.6. "Bar code validation" means a system which allows any winning lottery ticket, printed with computer readable bar codes for a prize amount as determined by the OAL, to be read electronically at any claim center or lottery retailer location and paid by the retailer regardless of where the player purchased the ticket.

1.7. "Certified Drawing" means a number selection event about which the OAL and an independent certified public accountant attest that the drawing equipment functioned properly and that a random selection of a winning combination occurred.

1.8. "Claims Center" means the OAL claims center located at the OAL Main Office in Little Rock, Arkansas, or any other location authorized by the OAL to validate and pay a winning ticket.

1.9. "Compensation" means any money or anything of value received or to be received as a claim for services, whether in the form of a retainer, fee, salary, expense, allowance, forbearance, forgiveness, interest, dividend, royalty, rent, or any other form of recompense or any combination thereof.

1.10. "Courier" or "Courier Service" means the delivery, conveyance, or assignment of any written, printed or published devices for consideration with the purpose of facilitating participation in the lottery.

1.11. "Debt" means a liquidated sum due and owing any claimant agency when the sum has accrued through contract, subrogation, tort, or operation of law regardless of whether there is an outstanding judgment for the sum; or sum that is due and owing any person and is enforceable by the State of Arkansas.

1.12. "Depository" means any entity, including a bank or state agency, performing activities or services in connection with the operation of the OAL for the deposit and handling of lottery funds, the accounting for lottery funds, and the safekeeping of tickets.

1.13. "Draw Coordinator" means the party designated by the Director of Security for purposes of designing, developing, implementing, and maintaining draw procedures and drawing activities.

1.14. "Drawing" means the procedure used to select the winning numbers or combination of numbers in accordance with the game rules of the particular lottery game.

1.15. "Employee" means a person who is an employee of the OAL unless the context clearly indicates otherwise.

1.16. "Executive Director" means the individual appointed by the Governor to initiate, operate, supervise, and administer the OAL lottery games; the Executive Director serves in a dual role as a Director of the Department of Finance and Administration. Executive Director also includes any delegation of authority from the Executive Director to another OAL employee.

1.17. "Game" means any individual or lottery game authorized by the OAL pursuant to the Act including but not limited to instant games and online games.

1.18. "Immediate family" means the father, mother, sister, brother, husband, wife, child, grandmother, grandfather, grandchild, father-in-law, mother-in-law, sister-in-law, brother-in-law, son-in-law, daughter-in-law, stepchild, grandmother -in-law, grandfather -in-law, step grandchild, or any individual acting as parent or guardian.

1.19. "Instant Game" means a game in which a ticket is purchased and upon removal of a latex covering or other covering on the front or back of the ticket or the opening of the sealed ticket, the ticket bearer determines his or her winnings, if any, which are payable upon presentation to a lottery retailer, claims center or another entity approved by the OAL.

1.20. "instant Ticket" (aka, "Scratch Card") means a printed card or slip purchased for participation in an instant game.

1.21. "Investigation" shall mean any investigation by any law enforcement agency or OAL Security Investigators regarding the theft, loss, destruction, alteration, or fraudulent activity surrounding the sale, presentation for payment, or validation of any lottery ticket sold by Retailer.

1.22. "Legal Owner" means the individual(s) whose name(s) appear on the ticket or share in the space designated for "Name" or in the absence of such entry the bearer of the ticket or share.

1.23. "Lottery" or "Lottery Game" means the public gaming system or games established and operated by OAL.

1.24. "Lottery Retailer" or "Retailer" means any person licensed by the OAL to sell and dispense instant tickets and materials or lottery games.

1.25. "Lottery Ticket" or "Ticket" means tickets or other tangible evidence of participation used in lottery games pursuant to the Act.

1.26. "Office of the Arkansas Lottery" ("OAL") ("the OAL") means the division of the Department of Finance and Administration that is charged with operations, oversight, compliance, and financial review of the offering and sales of lottery games within the State of Arkansas.

1.27. "Online Game" means a state or multi -state lottery game in which a player pays a fee to a lottery retailer and selects or uses a computer terminal to select a combination of digits, numbers, or symbols, the type and amount of play, and the drawing date, and receives a computer -generated ticket with those selections printed on it.

1.28. "Online Terminal" (see also, "Terminal") means the electronic interface computer terminal through which a retailer enters by scan, play slip, or manually the combination of numbers or symbols selected by a player or random number generator (aka, "Quick Pick") and by which online tickets are generated and claims are validated.

1.29. "Online Ticket" means a computer -generated ticket issued by a lottery retailer to a player as a receipt for the combination of digits, numbers, or symbols selected.

1.30. "Operational Rules" mean those rules adopted and published by the OAL setting forth the rules regarding the OAL's operations of the Arkansas Scholarship Lottery.

1.31. "Person" means an individual, association, corporation, club, trust, estate, society, governmental entity, company, joint stock company, receiver, trustee, assignee, referee, and anyone acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of human beings,

1.32. "Player" means any individual who purchases or is given a lottery game from a retailer or the OAL.

1.33. "Prize" means any award, financial or otherwise, awarded by the OAL.

1.34. "Random number generator" means a computer driven electronic device capable of producing numbers at random.

1.35. "Retailer License Application" means the document executed by the Lottery Retailer upon application for a license to sell lottery games and tickets; this document includes the type of retailer, including but not limited to special terms and conditions such as alternative forms of delivery as set forth herein in Section 1.10.

1.36. "Retailer Contract" means the document executed between the OAL and Lottery Retailer which sets forth the terms, conditions, and requirements between the parties.

1.37. "Retailer Rules" means the terms, conditions, requirements, and rules regarding Lottery Retailer activities and limitations, affirmative duties, and obligations.

1.38. "Share" means any intangible evidence in participation in a lottery.

1.39. "Terminal" (see also, "Online Terminal") means the electronic interface computer terminal through which a retailer enters by scan, play slip, or manually the combination of numbers or symbols selected by a player or random number generator (aka, "Quick Pick") and by which online tickets are generated and claims are validated.

1.40. "Ticket Bearer" means the person who has signed the ticket or has possession of the unsigned ticket.

1.41. "Ticket Number" means the preprinted number found on the back of each ticket which identifies that ticket as one (1) of a series of tickets.

1.42. "Ticket Pack Number" means the printed number or numbers appearing on the back of each ticket.

1.43. "Ticket Vending Machine" ("TVM") means a player self-service machine that can:

1.44. "Unclaimed Prize" means the prize on a winning ticket for which no claim is made within the required time period after the drawing or winner selection event which made the ticket a winning ticket.

1.45. "Unclaimed Prize Account" means the OAL account to which unclaimed prizes are transferred.

1.46. "Validation" means the process of determining whether an instant or online ticket presented for payment is a winning ticket.

1.47. "Validation Number" means the multi -digit number found on the face of the ticket. There must be a validation number on each ticket.

1.48. "Vendor" means a person who provides or proposes to provide goods or services to the OAL under a procurement contract. "Vendor" does not include:

1.49. "Working papers" means the programming parameters and specific details for each game, including the identification of the game, ticket price and prize structure.

1.50. "Website" means the OAL's lottery address at http://myarkansasiottery.com/or any other website that may be specified by the OAL.

1.51. "Winner" means the holder of a lottery ticket determined to have the required match or the specific alignment of the play numbers, digits or symbols, the required sum of the play numbers or digits in accordance with the game rules for the specific game, or a redeemable prize amount indicated on its face.

1.52. "Winner confidentiality" means confidentiality from public disclosure of an individual within the context and provisions set forth in A.C.A. § 23-115-404 et seq. (2021).

1.53. "Winner selection" means the drawing process used by the OAL to select the winning numbers in online games.

1.54. "Winning Combination" means numbers or symbols chosen during the drawing process used by the OAL to select the winning numbers in online games.

2.1. Cancel or postpone any promotion at any time;

2.2. Contract with and license retailers for the sale of lottery games and shares;

2.3. Direct the distribution of on-line terminals, ticket stock, and supplies shipped directly from the manufacturer or supplier to an authorized retailer;

2.4. Determine the price paid for ail lottery games and shares;

2.5. Determine the types of online and instant games to be offered for sale at retailers, including any necessary game rules for the proper administration of the games;

2.6. Establish a procedure for the disposition of unsold lottery games;

2.7. Develop and determine the working papers of each lottery game;

2.8. Announce the time for the end of sales prior to the drawings for each type of online game;

2.9. Designate the type of equipment to be used for each online game;

2.10. Establish procedures to randomly select the winning combinations for each type of online game, and require the presence of an independent accountant or other third party to witness all pre- and post -drawing tests, and the drawing or winner selection;

2.11. Determine the location, times, and days of prize drawings and promotions;

2.12. Determine the manner and frequency of online game drawings;

2.13. Establish game rules and procedures governing the conduct of drawings for each

2.14. instant and online game;

2.15. Investigate and conduct hearings pursuant to a consumer complaint;

2.16. Make the final decision on whether any prize is paid, or any annual prize payment is made;

2.17. Enter into any contracts for annuities;

2.18. Hold copyrights, trademarks, and service marks and enforce OAL's rights with respect to them;

2.19. Enter into written agreements with one or more states or sovereigns for the operation, participation in marketing, and promotion of a joint lottery or joint lottery games;

2.20. Perform other duties and powers necessary or convenient to carry out and effectuate the purposes and provisions of the OAL and those generally associated with a director of an entrepreneurial business enterprise; and

2.21. Take any other action necessary for the efficient and effective operation of the lottery.

3.1. Lottery retailers may use, and display the lottery logo, trademark, and other advertising materials without charge to the user or compensation to OAL for its use.

3.2. Any use of the lottery logo or other trademarked or copyright materials, other intellectual property, or copy in advertising or production of consumer articles requires a prior written request and execution of the retailer contract.

3.3. The Executive Director may exercise supervision over the quality of the materials produced under trademark licensing agreement and may require as a condition to continuation of the license, changes in quality of the goods or material produced.

3.4. The Executive Director may at any time terminate an agreement to license in the event that the licensee fails to meet the requirement of the agreement, or in the event that the continuation of the license is not considered to be in the best interest of OAL or of the State of Arkansas.

3.5. The logo shall not be modified in any way, including a change in color without the express written approval from the Executive Director prior to its use.

4.1. Subject to the approval of the Executive Director, the OAL's Director of Security shall designate an OAL "Draw Coordinator" to develop and maintain responsibility for the Drawing activities. Lottery drawings shall be conducted pursuant to the procedures developed by the Draw Coordinator in consultation with the Director of Security and as approved by the Executive Director. Drawing procedures shall include provisions for the substitution of back up drawing equipment or methods in the event primary drawing equipment malfunctions or fails for any reason and procedures for completing a drawing that is interrupted due to equipment malfunction or operator error.

4.2. The OAL may use any type of equipment or method, including electronic or manual equipment and any variety of existing or future methods or equipment, for determining the winner or winning combination in any lottery game that involves a drawing,

4.3. The OAL shall ensure the security and integrity of any electronic drawing equipment used to determine a winner or winning combinations. Any electronic connections to this equipment must be made by a secure method. The OAL shall test the equipment as needed to ensure proper operation and lack of tampering or fraud. The OAL shall have its random number generators, or any other computer -driven or computer -assisted device used for a drawing, statistically analyzed, tested, and certified by an independent, qualified statistician for integrity.

4.4. The OAL shall ensure the security and integrity of any manual equipment used to determine a winner or winning combinations. Any manual equipment used by the lottery to determine a winner or winning combinations must be inspected by an independent certified public accountant or the professional representative of an independent certified public accountancy organization and an employee or agent of the OAL before and after the drawing. The drawing and such inspections must be recorded on video and audio tape. Any drawing using manual equipment must be witnessed by an independent certified public accountant, a professional representative of an independent certified public accountancy organization or the applicable state entity.

4.5. The OAL may use random number generators to determine winning numbers for lottery games.

4.6. Subject to the approval of the Executive Director, the OAL's Director of Security shall establish procedures to ensure the physical security of the OAL's drawing equipment and shall specify the individuals who shall have physical access to that equipment. Any random number generator, or any other computer -driven or computer -assisted device used by the OAL to determine winners or winning combinations, shall be kept in a sealed enclosure within a secure area. Any person who enters the sealed enclosure must have permission from OAL Security and be escorted by an OAL Security Section officer or employee.

4-7. If, during a game drawing, an equipment failure or operator error causes an interruption in the selection of numbers or symbols, the Draw Coordinator will declare a technical difficulty. Any number drawn prior to the declaration of a technical difficulty will stand and be deemed official when verified by the Draw Coordinator. The drawing will be completed as set forth in the Draw Coordinator's procedures.

4.8. The Executive Director will delay payment of all prizes if any evidence exists or there are grounds for suspicion of equipment malfunction, tampering, or fraud. In such event, the OAL will not pay any prize until the OAL completes an investigation and the Executive Director approves the drawing and authorizes payment. If the Executive Director does not approve the drawing, it will be void and the OAL will conduct another drawing to determine the winner or the winning combinations.

5.1. Generally. Any person who buys or accepts a lottery game or otherwise participates in the lottery agrees to be bound by all laws, rules, regulations, and policies of that particular lottery game and OAL including the Act. All players or persons purchasing or possessing any lottery ticket or share must comply with and are bound by all applicable laws, rules, and procedures and any additional terms and conditions found on the ticket or share itself. In the event of a conflict between the OAL's rules and additional terms and conditions found on the back of a ticket or share, the rules control.

5.2. Eligibility

5.3. Sales Locations. Lottery games or shares may only be sold by a lottery retailer at the location listed in the retailer contract. The Executive Director may also designate its agents or employees to sell lottery tickets or shares directly to the public, either in person or through electronic means at any location authorized by the lottery.

5.4. Courier Services, In the sole discretion of the Executive Director, a duly licensed OAL lottery Retailer may be allowed to contract with a third -party (non -lottery licensed) entity for the purpose of delivering lottery draw tickets purchased directly from the OAL Retailer by a Courier Service for delivery to individuals located within the borders of the State of Arkansas at the time of ticket order; and, to deliver winning tickets to those individuals as a "for profit" service. The amount of the fee associated with the courier service shall be clearly presented to the consumer prior to confirming the order, thereby allowing the consumer to forego the service (and the fee) if the fee is not acceptable to the consumer. The Retailer shall not sell (a) instant tickets and (b) Fast Play tickets via courier. The courier services shall only be performed via website and/or mobile application and shall not constitute physical delivery of lottery tickets other than by mail or parcel delivery. An OAL Retailer offering courier services per this section must (a.) notify OAL 10-days In advance of the offering or use of any courier service, and (b.) the OAL Retailer remains liable for any loss, fraud, destruction, or claim of any kind associated with the use of courier services in providing delivery to consumers. The Department of Finance and Administration, the Office of the Arkansas Lottery, its employees, and agents shall be held harmless for any dispute arising out of the use of a courier service for the delivery of lottery tickets and/or any fees assessed to the consumer associated with the use of the courier service. The Executive Director retains sole discretion regarding the use of a courier service by a Retailer.

5.5. Courier Registration. Any entity acting as a courier service for purposes of purchasing lottery tickets on behalf of a third party, shall be required to register with the Department of Finance and Administration - Office of the Arkansas Lottery, 30-days in advance of offering courier services. Couriers are specifically prohibited from applying for or maintaining an OAL licensed retailer license. These rules require a courier service to contractually partner with an OAL licensed retailer(s) with whom they will purchase tickets. Registration will serve as notice of operation of a courier service provider within the State of Arkansas, and does not constitute Licensure or regulation of courier services by the Department of Finance and Administration - Office of the Arkansas Lottery.

5.6. Authority to Suspend or Terminate Retailer License Utilizing Courier Services. The Executive Director shall have sole discretion to suspend or terminate any OAL licensed retailer whose use of a courier service constitutes an operational threat, threat of loss, consumer fraud, deception or any other factor deemed to negatively impact the appearance of game integrity, fairness, or reputational harm to OAL and the ASL game portfolio. A retailer may appeal the Executive Director's decision to suspend or terminate a retail license premised upon this section in the same manner as provided for herein regarding other forms of dispute resolution.

5.7. Price. Unless authorized to do so in writing by the Executive Director, a person shall not sell a ticket or share at a price other than established by the Executive Director. The Executive Director may designate its agents or employees to sell or give lottery games or shares directly to the public.

5.8. Sales Are Final. The sale of all lottery tickets and shares is final and no ticket returns are to be accepted by the retailer. A player may not return a lottery ticket or share for a refund of the purchase price or exchange unless the specific game rule provides otherwise. Where a specific rule provides that the purchaser of a lottery ticket or share may cancel the purchase, the following is the procedure for cancellation:

5.9. Tickets or Shares. Notwithstanding any other rule, tickets or shares cannot be cancelled under any circumstances.

5.10. Future Drawings. A player may purchase a ticket or tickets for future consecutive drawings to the extent permitted by the OAL for each lottery game. The player must specify at the time of purchase that the ticket or tickets include future consecutive drawings. However, no tottery games or shares may be sold after the commencement of a drawing. The date of the drawing shall be printed on all tickets except instant tickets.

5.11. Player Error. The OAL is not liable for lottery tickets or shares that are purchased in error. It is the responsibility of the player to verify at the time of purchase that he/she in fact received what was requested and to rectify any discrepancy immediately. If a defective ticket is purchased, the only responsibility or liability of the OAL is the replacement of the defective ticket with another un-played ticket or tickets of equivalent sale price from any other current game.

6.1. Bearer Instrument. Except for a lottery ticket or share claimed jointly in accordance with the provisions of this rule, until such time as a name of an individual or individuals is imprinted or placed upon a lottery ticket or share in the area designated for "Name," the ticket or share is a bearer instrument and is owned by the bearer of the ticket or share. When a name or names is placed on the ticket or share in the designated place, the ticket or share ceases to be a bearer instrument and only the individual whose name appears in that area is the legal owner of the ticket or share. Only an individual or individuals may own a ticket or share and claim a prize.

6.2. Ticket Validation Requirements. Any lottery games or shares not passing all the validation requirements in this section and the specific validation requirements contained in the rules for its specific game are invalid and ineligible for any prize. Once validated, a lottery retailer must deface the lottery game in the manner prescribed by the Executive Director.

6.3. Instant Tickets. An instant ticket must meet all of the following requirements in order to be considered valid and payable:

6.3. 6, The instant ticket has the correct number of play symbols in the correct position.

6.4. Online Games

7.1. Ticket Vending Machines (TVM). The OAL may sell lottery tickets or shares by use of Ticket Vending Machines with the following specifications:

7.2. Procedures and Requirements. All OAL retailers shall follow the following procedures and requirements to prevent the use of electronic or mechanical devises by an individual under eighteen (18) years of age:

8.1. Procedures

8.2. Restrictions on Eligibility of Prizes. The following are not eligible to redeem any lottery prize:

8.3. Time Period for Redemption. The Executive Director may at any time alter the time periods for redemption of a lottery prize. If a valid claim is not made for a cash lottery prize within the applicable period, the cash lottery prize constitutes an unclaimed lottery prize. A holder of a winning ticket must claim the prize within the following time periods:

8.4. Tax Liability. Proceeds of a lottery prize are subject to federal and Arkansas state income tax. Each United States resident who is to receive a payment of winnings greater than $600 shall furnish to the OAL the information required on the Internal Revenue Service Form W-2G (or any other form required by the IRS) including but not limited to the winner's name, address, and social security number. This disclosure is mandatory and the authority for such disclosure is 42 USC 405(c) (2) (C), 26 CFR 31.3402(q)-1(e), and Arkansas Code Ann, § 23-115-403. A winner's social security number will only be used for the purpose of transmitting the prize amount to the appropriate taxing authorities and identifying individuals subject to Debt Set Off procedures set forth in Section 8.13.

8.5. Prizes Non-Assignable. A lottery prize, any portion of a lottery prize, or any right of any individual to a lottery prize is not assignable, except that the payment of any prize drawn may be paid to the estate of a deceased prize winner pursuant to an appropriate judicial order.

8.6. Prizes Payable after Death, A lottery prize or any portion of a lottery prize remaining unpaid at the death of a lottery prize winner shall be paid to the estate of the deceased lottery prize winner or to the trustee of a trust established by the deceased lottery prize winner as settlor if:

8.7. Issuance of Prizes to Multiple Owners

8.8. Relinquishment of Interest. When a person who has signed a lottery ticket or share wishes to relinquish the person's ownership interest in the lottery ticket or share, that person must sign the OAL's release of ownership form relinquishing the person's ownership interest. In no event will a person be permitted to relinquish ownership interest once it is determined that the person owes any indebtedness pursuant to Section 8.13 of this Section or other legal attachment has taken place. Once the OAL receives the release of ownership form, it is irrevocable.

8.9. Conflicting Information or Discrepancies. If there is conflicting information or discrepancies between the names on a winning lottery ticket or share and the names on a claim form, the OAL may withhold prize payment until the conflicting information is resolved to the OAL's satisfaction. Discrepancies include but are not limited to names or addresses scratched out or erased, or unreadable or altered names or addresses. If there is a determination that more than one (1) claimant is entitled to a particular lottery prize, the sole remedy of the claimants is the award to each of them of an equal share in the lottery prize.

8.10. Non-Payable. The following will not be honored or paid by the OAL or any retailers:

8.11. Investigations. At the discretion of the Executive Director, the OAL may conduct an investigation to aid in the determination of the rightful owner(s) prior to payment of any prize.

8.12. Determinations. The Executive Director's decisions regarding the determination of a winning lottery ticket or share, or the determination of the rightful owner or owners of a prize, or of any other dispute or matter arising from payment or awarding of prizes are final and binding on all parties. The Executive Director shall make the final decision on whether any prize is paid, or any annual prize payment is made. All prizes shall be paid within a reasonable time after they are validated unless the Executive Director delays a prize payment. The Executive Director may, at any time, delay any prize payment in order to review the validity of a prize claim, or review a change of circumstances relative to the prize awarded, the payee, or the claim, or review any other relevant matter that may come to the Executive Director's attention. For any prize requiring annual payments, all payments after the first payment shall be made on the anniversary date of the first payment in accordance with the type of prize awarded. Any delayed annual payment will be brought up to date immediately when payment is authorized by the Executive Director.

8.13. Set off for Debts Owed to the State. The following provisions shall apply to the payment of any prizes in excess of Five Hundred Dollars ($500.00):

8.14. Prize Claim Option Final. If a prize winner is given an option regarding the method of prize payment any payment method selected becomes final and may not be revoked or changed.

8.15. Prize allocation. Prize money allocated to the first prize category shall be divided equally by the number of purchased game plays winning a first prize.

8.16. Discharge from Liability. The State of Arkansas, its agents, officers, employees and representatives, the OAL, its Executive Director, agents, officers, employees, and representatives are discharged of all liability upon payment of a prize or any one installment thereof to the holder of any winning lottery ticket or share or in accordance with the information set forth on any winning lottery ticket or share, any claim form, including but not limited to a winner claim form, request to divide prize form, beneficiary designation form, and relinquishment of ownership interest form.

8.17. Disclosure of Winners

9.1. The OAL may engage in shared expense and other co-promotional activities with private or public enterprise including utilizing donated prizes, goods, services, direct payments, or reduced fees which are intended to increase ticket sales, increase public goodwill or reduce the costs or expenses of the OAL.

10.1. If a ticket purchaser or ticket holder files a written complaint with the Executive Director relating to the sale of a ticket, payment of a prize, conducting of a promotion or other activity relating to the OAL or an OAL product, the Executive Director shah forward the complaint to appropriate staff for further review. Any such complaint shall be filed in a reasonable amount of time after complainant becomes aware of the facts upon which the complaint is based.

10.2. All matters contained in this policy that call for action of the Executive Director may be executed by a designee appointed by the Executive Director.

10.3. The complaint will be reviewed to determine its validity and to determine if the information provided is sufficient. Although the burden may shift on a particular matter, the complainant has the burden of going forward and of proof. If the review of the complaint indicates that additional information is necessary for an appropriate response, the complainant may be required to provide additional information, including but not limited to:

10.4. The complainant will be notified in writing if more information is needed and will be afforded a reasonable time to respond. If any information requested is not provided within the prescribed time period, or if the information submitted fails to present a claim for which relief may be granted, the complaint may be dismissed by the Executive Director. In his discretion, upon receipt of sufficient information, the Executive Director may schedule a hearing rather than issuing a decision on the written material submitted. If a hearing is denied, the complainant may request reconsideration.

10.5. The request for reconsideration for a hearing must be in writing and must be submitted to OAL within thirty (30) days of the date of the determination or dismissal.

10.6. The Executive Director may require, or the complainant may request a conference in an attempt to expedite the orderly conduct of the hearing or the settlement of the complaint prior to the scheduled hearing. A complainant may represent his or her own interest or may be represented by an attorney at law licensed to practice law in the State of Arkansas. Other than the complainant or the attorney representing complainant, no person or organization may represent the interests of a complainant.

10.7. If a complainant fails to appear at a hearing after due notice, the Executive Director may dismiss, continue, or decide the matter. Upon timely application and proper notice, the Executive Director may grant a motion for a continuance or other change in the date, time and place of the hearing.

10.8. The hearing need not be conducted or controlled by either the Arkansas Rules of Evidence or the Arkansas Rules of Civil Procedure. The hearing will be conducted to the extent and fashion deemed appropriate by the Executive Director. Unless objection or exception is made, sustained and duly noted on the record, all evidence appearing in the record shall be deemed to have been properly admitted for consideration. All hearings will be recorded by a certified court reporter. If a complainant desires the testimony be transcribed into a transcript or files an appeal, the complainant shall order directly from the reporter an original and one copy, both of which are the financial responsibility of the complainant ordering the transcript. The original transcript shall be filed by the reporter directly with the OAL.

10.9. Any decision of the Executive Director regarding a ticket purchaser or holder's written complaint, including decisions regarding denial or dismissal of a complaint without a hearing or decisions made after hearing all of the testimony, facts and evidence presented, must;

10.10. A complainant aggrieved by a decision of the Office of the Arkansas Lottery may appeal that decision to the Pulaski County (AR) Circuit Court. (A.C.A. § 23-115-209(a) (2015)

10.11. The circuit court shall hear appeals from administrative orders of the office, and based upon the record of the proceedings before the office, may reverse the administrative order of the office only if the person appealing the administrative order proves the administrative order to be:

10.12. The circuit court may remand an appeal to the office to conduct further hearings (A.C.A. § 23-115-209(c) (2015)

10.13. A person who appeals the award of a contract, including without limitation a major procurement contract, is liable for all costs of appeal and defense if the appeal is denied or the contract aware upheld. (A.C.A. § 23-115-209(d)(l) (2015)

10.14. If upon the motion of the office the circuit court finds the appeal to have been frivolous, the cost of appeal and defense shall include without limitation the following expenses of the office resulting from institution of the appeal:

10.15. A person appealing the award of a contract may be entitled to the reasonable costs incurred in connection with the contract solicitation, including without limitation bid preparation costs. A.C.A. § 23-115-209(d)(3)

10.16. This Section on Consumer Complaints is not applicable to:

11.1. All powers not specifically defined in these rules are reserved to the OAL under the Act

12.1. The following notices must be posted in a conspicuous manner at any site where lottery games or shares are sold;

12.2. The website for the Arkansas Scholarship Lottery shall be the central location for all information concerning the Arkansas Scholarship Lottery and the OAL, The following notices or information must be posted:

12.3. The following notices will be provided on the backs of ail lottery games, if practicable:

13.1. By Act 636 of 2021, the Arkansas Legislature amended the Arkansas Scholarship Lottery Act and established procedures and funding requirements for the creation or amendment of scholarships funded with net revenue available. The Office of the Arkansas Lottery (OAL) was charged with promulgating rules to determine the manner in which the net proceeds from the lottery are deposited and disbursed based on what is most financially prudent. The provisions in this Section of the Operational Rules of the Arkansas Scholarship Lottery are adopted pursuant thereto.

13.2. The OAL shall establish the Lottery Scholarship Trust Account to fund the Arkansas Academic Challenge Scholarship Program, the Arkansas Workforce Challenge Scholarship Program, the Arkansas Concurrent Challenge Scholarship Program, and any other scholarship funded with net proceeds from the lottery at a financial institution into which the OAL shall transfer:

13.3. On or before the fifteenth day of each month, the OAL shall deposit the net proceeds from the OAL into the Lottery Scholarship Trust Account at one or more financial institutions.

13.4. The OAL shall follow the investment policy guidelines of the State Board of Finance in selecting a financial institution and managing the net proceeds from the OAL deposited into the Lottery Scholarship Trust Account.

13.5. The funds transferred by the OAL into the Lottery Scholarship Trust Account for the Arkansas Academic Challenge Scholarship Program, the Arkansas Workforce Challenge Scholarship Program, the Arkansas Concurrent Challenge Scholarship Program and any other scholarship program shall be used for:

13.6. The Director of the Division of Higher Education shall certify to the OAL the amount of net proceeds from the OAL needed to fund scholarships awarded to recipients for each semester of the academic year based on the contents of the Lottery Scholarship Trust Account at the end of the immediately preceding fiscal year.

13.7. The OAL shall transfer the funds requested by the Director of Division of Higher Education into one or more trust accounts at one or more financial institutions maintained by Division of Higher Education.

13.8. Annually, the Division of Higher Education shall transfer to the OAL the unused funds from the previous academic year, if any, that were transferred by the OAL to fund the Arkansas Academic Challenge Scholarship Program, Ark. Code Ann. § 6-85-201 et seq., the Arkansas Workforce Challenge Scholarship Program, Ark. Code Ann. § 6-85-301 et seq., the Arkansas Concurrent Challenge Scholarship Program, Ark. Code Ann, §6-85- 401 et seq., and any other scholarship program.

13.9. Ark. Code Ann. § 23-115-802(b) and (c), concerning the amount deposited into the Scholarship Shortfall Reserve Trust Account and loans made to the Division of Higher Education for the Arkansas Academic Challenge Scholarship Program, shall be administered as follows pursuant to the OAL's operational rules:

1.1. "Act" means the Arkansas Scholarship Lottery Act (Act 606 of 2009).

1.2. "Applicant" means a natural person, corporation, partnership, unincorporated association, or other legal entity applying for a contract with the OAL for the purpose of selling lottery games.

1.3. "Application" means the forms, documents, or other information that the OAL requires an applicant to submit to the OAL to apply for or maintain a retailer contract.

1.4. "Banks" means and includes all commercial banks, mutual savings banks, savings and loan associations, credit unions, trust companies, and any other type or form of banking institution who are authorized to do business in the State of Arkansas and that are designated to perform banking institution functions, activities, or service in connection with the operations of OAL for the deposit and handling of lottery funds, the accounting of the funds and the safekeeping of records.

1.5. "Bar code validation" means a system which allows any winning lottery ticket, printed with computer readable bar codes for a prize amount as determined by the OAL, to be read electronically at any claim center or lottery retailer location and paid by the retailer regardless of where the player purchased the ticket.

1.6. "Claim Center" means the OAL Claim Center located at the OAL Main Office in Little Rock, Arkansas, or any other location authorized by the OAL to validate and pay a winning ticket.

1.7. "Compensation" means any money or anything of value received or to be received as a claim for services, whether in the form of a retainer, fee, salary, expense, allowance, forbearance, forgiveness, interest, dividend, royalty, rent, or any other form of recompense or any combination thereof.

1.8. "Courier" or "Courier Service" (see also, "Lottery Courier" and "Lottery Courier Service") means the delivery, conveyance, or assignment of any written, printed, or published devices for consideration with the purpose of facilitating participation in the lottery.

1.9. "Debt" means a liquidated sum due and owing any claimant agency when the sum has accrued through contract, subrogation, tort, or operation of law regardless of whether there is an outstanding judgment for the sum; or sum that is due and owing any person and is enforceable by the State of Arkansas.

1.10. "Depository" means any entity, including a bank or state agency, performing activities or services in connection with the operation of the OAL for the deposit and handling of lottery funds, the accounting for lottery funds, and the safekeeping of tickets.

1.11. "Executive Director" means the individual appointed by the Governor to initiate, operate, supervise, and administer the OAL lottery games; the Executive Director serves in a dual capacity as a Director of the Department of Finance and Administration.

1.12. "Game" means any individual or type of lottery authorized by the OAL pursuant to the Act including without limitation instant tickets and online game tickets.

1.13. "Immediate Family" means the father, mother, sister, brother, husband, wife, child, grandmother, grandfather, grandchild, father-in-law, mother-in-law, sister-in-law, brother-in-law, daughter-in-law, son-in-law, stepchild, grandmother-in-law, grandfather-in-law, step grandchild, or any individual acting as parent or guardian.

1.14. "Instant Game" means a game in which a ticket is purchased and upon removal of a latex covering or other covering on the front of the ticket or the opening of the sealed ticket, the ticket bearer determines his or her winnings, if any, which are payable upon presentation to a retailer or to the OAL for payment.

1.15. "Instant Ticket" means a printed card or slip purchased for participation in an instant game.

1.16. "Legal Owner" means the individual(s) whose name(s) appear on the ticket or share in the space designated for "Name" or in the absence of such entry the bearer of the ticket or share.

1.17. "License" means an authorization granted by the OAL to a person to sell lottery games, including without limitation the execution of a contract between the OAL and the person relating to obligations and terms for operating as a retailer.

1.18. "Lottery" or "Lottery Game" means the public gaming system or games established and operated by OAL.

1.19. "Lottery Courier" or "Lottery Courier Service" (see also, "Courier" and "Courier Service") means the delivery, conveyance, or assignment of any written, printed, or published devices for consideration with the purpose of facilitating participation in the lottery.

1.20. "Lottery Proceeds" includes without limitation:

1.21. "Lottery Retailer" or "Retailer" means any person licensed by the OAL to sell and dispense instant tickets and materials or lottery games.

1.22. "Lottery Ticket" or "Ticket" means tickets or other tangible evidence of participation used in lottery games pursuant to the Act.

1.23. "Office of the Arkansas Lottery" or "OAL" or "Office" means the Department of Finance and Administration - Office of the Arkansas Lottery.

1.24. "Online Game" means a lottery game in which a player pays a fee to a retailer and selects or requests a randomly generated (Quick Pick) combination of digits, numbers, or symbols, the type and amount of play, and the drawing date, and receives a computer-generated ticket with those selections printed on it.

1.25. "Online Terminal" (see also, "Terminal") means the electronic interface computer terminal through which a retailer enters by scan, play slip, or manually the combination of digits, numbers, or symbols selected by a player or by random number generator (Quick Pick) and by which online tickets are generated and claims validated.

1.26. "Online Ticket" means a computer-generated ticket issued by a retailer to a player as a receipt for the combination of digits, numbers, or symbols a player has selected by him or herself or through a Quick Pick.

1.27. "Operational Rules" mean those rules adopted and published by the OAL setting forth the rules regarding the OAL's operations of the Arkansas Scholarship Lottery.

1.28. "Person" means any individual, combination of individuals, corporation, partnership, unincorporated association, or other legal entity.

1.29. "Preliminary background check" means a completed Arkansas State Police check,

1.30. "Prize" means any award, financial or otherwise, awarded by the OAL.

1.31. "Responsible Person" means an individual who has the authority to enter into a contract with the OAL on behalf of themselves or any applicant.

1.32. "Retailer" means a person who is licensed by the OAL to sell lottery games.

1.33. "Retailer License Application" means the document executed by the Lottery Retailer upon application for a license to sell lottery games and tickets; this document includes the type of retailer, including but not limited to special terms and conditions such as alternative forms of delivery as set forth herein in subsection subsections 1.8.1.33.

1.34. "Retailer Contract" means the document executed between the OAL and Lottery Retailer which sets forth the terms, conditions, and requirements between the parties.

1.35. "Retailer Rules" means those rules adopted and published by OAL setting forth the rules regarding OAL's licensing and administration of the statewide network of lottery retailers.

1.36. "Share" means any intangible evidence of participation in a lottery.

1.37. "Terminal" (see also, "Online Terminal") means the electronic interface computer terminal through which a retailer enters by scan, play slip, or manually the combination of numbers or symbols selected by a player or random number generator (aka, "Quick Pick") and by which online tickets are generated and claims are validated.

1.38. "Ticket" means any tangible evidence issued by a lottery to prove participation in a lottery.

1.39. "Ticket Bearer" means the person who has signed the ticket or has possession of the unsigned ticket.

1.40. "Ticket Number" means the preprinted number found on the back of each ticket which identifies that ticket as one (1) of a series of tickets.

1.41. "Ticket Pack Number" means the printed number or numbers appearing on the back of each ticket.

1.42. "Ticket Vending Machine" ("TVM") means a player self-service machine that can:

1.43. "Validation" means the process of determining whether an instant or online ticket presented for payment is a winning ticket.

1.44. "Validation Number" means the multi-digit number found on the face of the ticket. There must be a validation number on each ticket.

1.45. "Website" means the OAL's lottery address at http://myarkansaslottery.com/or any other website that may be specified by the OAL.

1.46. "Winner" means the holder of a lottery ticket determined to have the required match or the specific alignment of the play numbers, digits or symbols, the required sum of the play numbers or digits in accordance with the game rules for the specific game, or a redeemable prize amount indicated on its face.

1.47. "Winner confidentiality" means confidentiality from public disclosure of an individual within the context and provisions set forth in A.C.A. § 23-115-404 et seq. (2021).

2.1. Application. These rules shall apply to the administration of the statewide network of lottery retailers as licensed and regulated by the OAL. In any decision made under these rules, the OAL shall take into account the particularly sensitive nature of the state lottery and shall act to promote and ensure security, honesty, fairness, and integrity in the operation and administration of the lottery and the objective of raising net lottery proceeds for the benefit of educational programs and purposes.

2.2. Administrative Hearings. All administrative hearings held under these rules shall be held in accordance with the Arkansas Administrative Procedure Act, Arkansas Code § 25-15-201 et seq.

2.3. Authority of Executive Director. The Executive Director may:

3.1. General. Retailers must meet the statutory and regulatory requirements for licensing, the security and integrity standards of the OAL and promote the best interest of the Arkansas Scholarship Lottery.

3.2. Application. A person interested in obtaining a license must submit an application to the OAL on a form supplied for that purpose by the OAL. The retail sales application shall be designed to solicit sufficient relevant information from an applicant to permit the OAL to evaluate the applicant and the sales location as required by the Act and regulations for issuance of a license by the OAL.

3.3. Application Fee. An applicant for a retailer license shall be charged the following fees;

3.4. Disclosure. The Executive Director may require any degree or type of disclosure necessary of the applicant or any other person in order to assure the security and integrity of the lottery including the source of funds, financing, and business income used for the purchase and operation of the applicant's business, the name and address of the owner or owners of the sales location, a copy of all agreements whereby the applicant Is entitled to possession of the sales location and the names and addresses of owners, officers, directors or trustees who oversee or direct the operation of the business. If the parent company, general partner, limited partner, joint venturer, stockholder, member or manager of a limited liability company is itself a corporation, trust, association, subsidiary, partnership, joint venture or limited liability company, then the Executive Director may require that the applicant provide disclosure for such entity as if such entity were a responsible person itself. An applicant must disclose to the OAL all information required by the Executive Director.

3.5. Prohibitions. An applicant shall not provide a gift or compensation to the Executive Director, an OAL member or OAL employee, or the immediate family member of the Executive Director, OAL member or OAL employee.

3.6. Background Check. An applicant for a retailer license is subject to a background check including a credit check and a criminal history check conducted by the Arkansas State Police and the Federal Bureau of Investigation. Issuance of a retailer license is dependent on passing the required background checks. The applicant shall sign a consent to the release of information for all checks.

3.7. Waiver. In submitting an application, the applicant expressly waives any claim against the State of Arkansas, its agents, officers, employees, and representatives, and the OAL, its Executive Director, agents, officers, employees, and representatives for damages that may result. Each applicant also accepts any risk of adverse public notice, embarrassment, criticism, damages, or claims which may result from any disclosure or publication by a third party of any public information on file with the OAL.

4.1. Non-transferability of license. A retailer license is not transferable and shall not be sold, given or assigned to any person. In the event of the proven incapacity, death, receivership, bankruptcy or assignment for benefit of creditors of any retailer, upon approval of the Executive Director, the license may be transferred to a court appointed or court confirmed guardian, executor or administrator, receiver, trustee, or assignee for the benefit of creditors, who may continue to operate the activity under the license, subject to the provisions of these rules.

4.2. License Term and Renewal. A retailer's license remains in full force and effect until the termination date indicated upon the license, but in no case more than two (2) years from the date of the issuance of the license. The Executive Director may implement a program to issue licenses biennially, if in his or her discretion, it provides more efficient customer service to retailers and cost savings in the administration of the program. To request renewal of a retailer license, every licensed retailer shall file a renewal application and shall pay a renewal fee as set forth in Section 3.3 of these rules. A license shall not be issued or renewed until the retailer contract is signed.

4.3. Inspection. A license grants the OAL the irrevocable authority to inspect the location where games may be sold or any other location under the control of the retailer where the Executive Director may have good cause to believe OAL materials and/or games are stored or kept.

4.4. Retailer Loss Coverage. A retailer shall be assessed an annual fee of up to one hundred dollars ($100) per sales location to be deposited into the OAL's fidelity fund. A retailer is required to post an appropriate bond as determined by the OAL.

All retailers shall be bonded through OAL's Self-Bond Program, and shall pay a $100.00 bond fee for each Retailer location. The bond shall be renewed annually for each retailer location. The OAL Executive Director may increase or decrease the annual bond fee as warranted by the annual amount of defaulted obligations. In any event, the bond fee shall not be less than $75.00 or more than $200.00.

A retailer's failure to abide by its financial obligations to the OAL per the Retailer Contract shall constitute a default. OAL will pay a retailer's defaulted obligation from the pool of self-bond fees. Upon said payment, retailer shall be obligated to reimburse OAL for the full amount of the defaulted obligation immediately. OAL may institute any and all legal actions authorized by law to collect a defaulted obligation from a retailer.

OAL may suspend a retailer's authority to sell Lottery Tickets for any period in which a retailer does not pay the bond required under this section or a defaulted obligation. A retailer's authority to sell Lottery Tickets may be reinstated upon payment of an outstanding bond or defaulted obligation. A retailer's failure to pay the bond or defaulted obligation may result in the termination of its license. OAL may suspend a retailer's authority to sell Lottery Tickets for any period in which a retailer does not pay the bond required under this section or a defaulted obligation. A retailer's authority to sell Lottery Tickets may be reinstated upon payment of an outstanding bond or defaulted obligation. A retailer's failure to pay the bond or defaulted obligation may result in the termination of its license.

At the end of each fiscal year, the Executive Director may authorize inclusion of all or a portion of the unused bond fees in the revenues of the OAL for the fiscal year.

The Executive Director may also allow a retailer to deposit and maintain with the OAL securities that are interest bearing or accruing. The securities shall be held in trust in the name of the OAL. Securities eligible are limited to:

4.5. Change in Application Information. A license is valid only for the information contained in the application. Any change to the information submitted in the application including change of business name, change of location, change of ownership, or change of status of background check may make the license invalid.

4.6. Provisional License. A provisional license temporarily authorizes a lottery retailer to conduct the sale of tickets pending processing of the general license or application renewal.

4.7. Promotional License.

4.8. Chain Retailers. The OAL may treat more than one (1) retail location with identical owners as one (1) chain retailer. Each retail location shall be issued a separate retailer number or numbers and a unique "Retailer License". The Executive Director may issue one (1) billing statement for all retail locations or separate billing statements for each retail location. If the chain retailer wishes to add a new retail location, the chain retailer will not be required to undergo a new background investigation.

5.1. A retailer shall receive commissions as compensation from the OAL as follows:

6.1. In the sole discretion of the Executive Director, OAL may authorize a duly licensed OAL Retailer to enter a contract with a third-party (non-lottery licensed) entity for the purpose of delivering OAL draw game tickets to consumers via website or mobile application. Authorization shall require the "Lottery Courier Addendum" as an integrated term of conditions to the Retailer License Agreement. Retailer shall acknowledge that they have been provided with a copy of the OAL Operational Rules which further set out the specific details, requirements, and limitations on the use of Lottery Couriers, as well as the additional terms and conditions set forth in the OAL Retailer License Agreement.

7.1. This section contains duties to be performed by the retailer in addition to any duties and responsibilities that may be described in the retailer contract. The duties herein are not meant to be exclusive. Other duties and requirements for retailers may be contained elsewhere in these rules or in the Act.

7.2. Notices. The retailer must notify the OAL if the following occurs:

7.3. Games. The retailer must perform the following duties as a condition of their license:

7.4. Financial - Lottery Proceeds

8.1. Sale of Tickets of Shares.

8.2. Prizes. A retailer may not charge a player to either play a lottery game, nor charge any fees or impose any requirements to redeem a valid winning ticket. A retailer must not pay to the winner a prize amount more than the prize established by the game.

8.3. Retailer Conduct, A retailer may not exchange books, lottery tickets or paper ticket stock with any other retailer. A retailer must sell tickets in book, page or numerical order and may not play instant lottery tickets using any other method other than fair chance or any method that is contrary to the principle that every ticket has an equal and random chance of winning.

8.4. Inducements to Play. A retailer shall not induce persons to play lottery games by extending credit or by providing financial assistance, alcohol, or any other compensation.

8.5. Trademark. A retailer may not use the logo, trademark, or other advertising materials of the OAL without prior written permission or authorization of the OAL unless the materials have been provided to the Retailer by the OAL.

8.6. False promises, A retailer must not conduct false or misleading advertising, in any form about the OAL or lottery games including, but not limited to, claiming the odds of winning a lottery game are different at the retailer's business than at any other retailer's business.

8.7. Contracting for Goods or Services. A retailer shall not contract with any person other than the OAL for Arkansas Scholarship Lottery products or services except with the written approval of the OAL.

8.8. Gifts. A retailer shall not provide a gift or compensation to the Executive Director, an OAL member or an OAL employee, or the immediate family member of the Executive Director, OAL member or OAL employee.

9.1. If upon approval of the OAL, the Executive Director or his or her designee determines that cancellation, denial, revocation, suspension, or rejection of renewal of a retailer license is in the best interest of the Arkansas Scholarship Lottery, the public welfare, or the State of Arkansas, the Executive Director or his or her designee may cancel, suspend, revoke, or terminate, after notice and a right to a hearing, a retailer license issued hereunder.

9.2. Temporary Suspension. The retailer license may be temporarily suspended by the Executive Director or his or her designee without prior notice pending a hearing.

9.3. Reasons. A retailer license may be suspended, revoked, or terminated by the Executive Director or his or her designee for any one (1) or more of the following reasons;

9.4. Removal of OAL Material. If a retailer fails to meet any of the objective criteria established by the OAL, the Executive Director or his or her designee may remove instant tickets, online ticket stock, and any and all property of the OAL from the retail location.

9.5. Administrative Hearing, Any retailer or applicant aggrieved ("Aggrieved Party") by an administrative decision by the Executive Director may appeal that decision.

10.1. Arkansas Code § 23-115-607 authorizes the Executive Director to close the business of a retailer if the retailer fails to comply with § 23-115-605(b) and subsection 7.4.3.2.1 of these Rules three (3) times within any consecutive twenty-four (24) month period.

10.2. The Executive Director shall give notice to the retailer that the third delinquency in complying with subsection 7.4.3.2.1 may result in the closure of the business. The notice shall be in writing and delivered to the retailer by either U.S. Postal Service or hand delivery.

10.3. If the Executive Director determines that the business will be closed, the Executive Director shall notify the retailer by certified mail or hand delivery that the business will be closed within five (5) business days from the date of receipt of the notice.

10.4. Avoiding Closure. A retailer may avoid closure of the business by:

10.5. Administrative Hearing,

10.6. Judicial Relief.

10.7. Procedure for Closure.

10.8. Revocation and Suspension of Business License.

11.1. All powers not specifically defined in these Rules are reserved to the Executive Director and the OAL under the Act.

1 A.C.A. § 23-115-209(a) (2015)

2 A.C.A. § 23-115-209(b) (1-4) (2015)

3 A.C.A. § 23-115-209(d)(1) (2015)