Current through Register Vol. 47, No. 5, March 10,
2024
BASIS AND PURPOSE OF RULE 14.A
The purpose of Rule 14.A is to provide details and
requirements for the Colorado Lottery Multi-State Jackpot Game "Powerball®"
such as sale of Tickets, payment of Prizes, and method for selecting and
validating winning Tickets. The statutory bases for Rule 14.A are C.R.S.
44-40-101,
44-40-109(1)(a) and
(2),
44-40-113, and
44-40-114.
14.A.1
General Provisions
The Multi-State Jackpot Game known as "Powerball®" shall
be conducted pursuant to the following Rules and Regulations and such further
instructions and directives as the Colorado Lottery Director and Colorado
Lottery Commission may issue. If a conflict arises between Rule 14 Multi-State
Jackpot Lottery Games and this Rule 14.A, Rule 14.A shall apply. If a conflict
arises between this Rule 14.A and the "Powerball®" Official Game Rule
provided by the Multi-State Lottery Association, the "Powerball®" Official
Game Rule shall apply.
14.A.2
Definitions
In addition to the definitions provided in section 1.2 of
Rule 1 General Rules, Regulations, and Definitions and section 14.2 of Rule 14
Multi-State Jackpot Lottery Games:
A.
"Game Board" means that area of the Play Slip that contains a set of two (2)
grids. The first grid contains sixty-nine (69) squares, numbered one (1)
through sixty-nine (69), and the second grid contains twenty-six (26) squares,
numbered one (1) through twenty-six (26).
B. "Grand Prize" means a pari-mutuel Prize
that is advertised to be paid with per-winner annuities or as a lump sum cash
payment, unless otherwise specified by the Lottery.
C. "MUSL Board" means the governing body of
MUSL, which is comprised of the chief executive officer of each Party
Lottery.
D. "Number" means any Play
integer from one (1) through sixty-nine (69) inclusive.
E. "Play" means the six (6) numbers selected
on each Game Board and printed on the Ticket.
F. "Prize Pool" means a defined percentage of
sales as specified in this rule.
G.
"Set Prize Pool" means an account held by MUSL that holds the temporary
balances, transferred to MUSL from Party Lotteries, which results from having
fewer-than-expected Prize Winners in the Set Prize Categories. This money is
paid out to Party Lotteries in subsequent Drawings that have more Prize Winners
than are statistically expected in the Set Prize Categories.
14.A.3
Price of
"Powerball®" Ticket
The price of each "Powerball®" Play shall be Two Dollars
($2.00).
14.A.4
Play
for "Powerball®"
A. A
"Powerball®" player must select six (6) numbers per Play; five (5) numbers
out of sixty-nine (69) plus one (1) out of twenty-six (26). A winning Play is
achieved only when the following combinations of numbers selected match, in any
order, the five (5) plus one (1) Winning Numbers drawn. Those combinations are
5+1, 5+0, 4+1, 4+0, 3+1, 3+0, 2+1, 1+1, and 0+1.
B. The player can use Play Slips, as
described in section 14.A.8, to make number selections. The Jackpot Gaming
Terminal reads the Play Slip and issues a Ticket with corresponding Play(s). If
a Play Slip is not available, the Licensee may enter the selected numbers via
the keyboard. If offered by the Lottery, a player may leave all or a portion of
his/her Play selections to a random number generator operated by the Jackpot
Gaming Terminal, commonly referred to as a Quick Pick or partial Quick
Pick.
14.A.5
Prizes for "Powerball®"
A.
Odds of winning a Prize are displayed in the table below:
WINNING COMBINATIONS
|
PRIZE CATEGORY
|
ODDS OF WINNING (ONE PLAY)
|
All five (5) of first set plus one (1) of second
set
|
Grand Prize
|
1:292,201,338.0000
|
All five (5) of first set plus none of second
set
|
Second Prize
|
1:11,668,053.5200
|
Any four (4) of first set, but not five, plus one
(1) of second set
|
Third Prize
|
1:913,129.1813
|
Any four (4) of first set, but not five, plus none
of second set
|
Fourth Prize
|
1:36,525.1673
|
Any three (3) of first set, but not four or five,
plus one (1) of second set
|
Fifth Prize
|
1:14,494.1140
|
Any three (3) of first set, but not four or five,
plus none of second set
|
Sixth Prize
|
1:579.7646
|
Any two (2) of first set, but not three, four, or
five, plus one (1) of second set
|
Seventh Prize
|
1:701.3281
|
Any one (1) of first set, but not two, three, four,
or five, plus one (1) of second set
|
Eighth Prize
|
1:91.9775
|
None of first set plus one (1) of second set
|
Ninth Prize
|
1:38.3239
|
Overall odds of winning any prize
|
1:24.8671
|
B.
The Prize Pool contribution for all Prize Categories shall consist of fifty
percent (50%) of each Drawing period sales, unless as described in section
14.A.10.D of this Rule 14.A, the Prize reserve and pool accounts are not funded
at the balances set by the "Powerball®" Product Group. All prize payouts
are made with the following expected Prize payout percentages, although the
Prize payout percentage per drawing may vary.
PRIZE POOL
PRIZE CATEGORY
|
PRIZE AMOUNTS
|
ALLOCATION OF PRIZE POOL
|
PRIZE POOL PERCENTAGE OF SALES
|
Grand Prize
|
Announced Jackpot
|
68.0131%
|
34.0066%
|
Second Prize
|
$1,000,000
|
8.5558%
|
4.2279%
|
Third Prize
|
$50,000
|
5.4757%
|
2.7378%
|
Fourth Prize
|
$100
|
0.2738%
|
0.1369%
|
Fifth Prize
|
$100
|
0.6899%
|
0.3450%
|
Sixth Prize
|
$7
|
1.2074%
|
0.6037%
|
Seventh Prize
|
$7
|
0.9982%
|
0.4990%
|
Eighth Prize
|
$4
|
4.3489%
|
2.1744%
|
Ninth Prize
|
$4
|
10.4373%
|
5.2187%
|
TOTAL PAYOUT
|
100.00%
|
50.00%
|
C.
Prize Categories- The Grand Prize shall be determined on a pari-mutuel basis.
The Grand Prize shall be divided equally by the number of Game Plays matching
all five (5) of the first set plus one (1) of the second set. Except as
provided in 14.A.9.E.4., below, all other Prizes Amounts awarded shall be paid
as Set Prizes with the foregoing expected Prize payout percentages.
14.A.6
Payment of
Prizes
A. Grand Prizes shall be paid
at the election of the Ticket Holder either by a single cash payment or in a
series of annuity payments. The Ticket Holder becomes entitled to the Prize at
the time the Prize is validated as a Prize Winner. However, the Grand Prize is
paid by the Lottery upon receipt of funds from MUSL no earlier than fifteen
(15) calendar days of Validation of the Grand Prize Ticket and when the player
makes their final selection of cash or annuity, no later than sixty (60) days
after Validation of the Grand Prize Ticket. An election made after the Ticket
Holder becomes entitled to the Prize is final and cannot be revoked, withdrawn
or otherwise changed. The Validation record will be kept secured and on file at
the Lottery until the Ticket Holder makes a payment election. If the Ticket
Holder does not make a payment election within sixty (60) days after
Validation, then the Prize shall be paid as an annuity Prize.
1. Shares of the Grand Prize shall be
determined by dividing the cash available in the Grand Prize Pool equally among
all plays matching all five (5) of the first set plus one (1) of the second set
of drawn Numbers. Winner(s) who elect a cash payment shall be paid their
Share(s) in a single cash payment. The annuitized option Prize shall be
determined by multiplying a Prize Winner's Share of the Grand Prize Pool by the
MUSL annuity factor. Neither MUSL nor the Party Lotteries shall be responsible
or liable for changes in the advertised or estimated annuity Prize Amount and
the actual amount purchased after the Prize payment method is actually known to
MUSL. In certain instances announced by the "Powerball®" Product Group, the
Grand Prize shall be a guaranteed amount and shall be determined pursuant to
section 14.A.6.E. of this Rule 14.A. If individual Shares of the cash held to
fund an annuity are less than Two Hundred and Fifty Thousand Dollars
($250,000), the "Powerball®" Product Group, in its sole discretion, may
elect to pay the Prize Winners Share of the cash held in the Grand Prize Pool.
2. All annuitized Prizes shall be
paid annually in thirty (30) graduated payments with the initial payment being
made in cash, to be followed by twenty-nine (29) payments funded by the
annuity.
3. Funds for the initial
payment of an annuitized Prize or the lump sum cash Prize shall be made
available by MUSL for payment by the Lottery no earlier than the fifteenth
calendar day (or the next banking day if the fifteenth day is a holiday)
following the Drawing. If necessary, when the due date for the payment of a
Prize occurs before the receipt of funds in the Prize Pool trust sufficient to
pay the Prize, the transfer of funds for the payment of the full lump sum cash
amount may be delayed pending receipt of funds from the Party Lotteries. The
Lottery may elect to make the initial payment from its own funds after
Validation, with notice to MUSL.
4.
The Grand Prize Amount held by MUSL for subsequent payment to an annuity Prize
Winner shall be transferred to the Lottery and the Lottery shall have payment
to the annuity Prize Winner on the anniversary date, or if such date falls on a
non-business day the first day following the anniversary date, of the
Drawing.
5. In the event of the
death of a Lottery Prize Winner during the annuity payment period, the
"Powerball®" Product Group, in its sole discretion, upon the petition of
the estate of the Lottery Prize Winner (the "Estate") to the Lottery, and
subject to federal, state, or district applicable laws, may accelerate the
payment of all of the remaining Lottery proceeds to the Estate. If the
"Powerball®" Product Group makes such a determination, then securities
and/or cash held to fund the deceased Lottery Prize Winner's annuitized Prize
may be distributed to the Estate. The identification of the securities to fund
the annuitized Prize shall be at the sole discretion of the "Powerball®"
Product Group.
B. The
Director's decision with respect to the Validation and payment of Set Prizes,
whether during a "Powerball®" game or any Drawing related thereto, shall be
final and binding upon all participants in the Lottery.
C. All Set Prizes (excluding the Grand Prize)
shall be paid by the Lottery. The Lottery may begin paying Set Prizes after
receiving authorization to pay from the MUSL Central Office.
D. Annuitized payments of the Grand Prize or
a share of the Grand Prize may be rounded to facilitate the purchase of an
appropriate funding mechanism. Breakage on an annuitized Grand Prize win shall
be added to the first cash payment to the Prize Winner(s).
E. Set Prizes, which, under these rules, may
become pari-mutuel Prizes, may be rounded down so that Prizes can be paid in
multiples of whole dollars. Breakage resulting from rounding these Prizes shall
be carried forward to the Prize Pool for the next Drawing.
F. If the Grand Prize is not won in a
Drawing, the Prize money allocated for the Grand Prize shall Roll-Over and be
added to the Grand Prize Pool for the following Drawing.
G. The "Powerball®" Product Group may
offer guaranteed minimum Grand Prize Amounts or minimum increases in the Grand
Prize Amount between Drawings or make other changes in the allocation of Prize
money where the "Powerball®" Product Group finds that it would be in the
best interest of the game. If a minimum Grand Prize Amount or a minimum
increase in the Grand Prize Amount between Drawings is offered by the
"Powerball®" Product Group, then the Grand Prize Shares shall be determined
as follows:
1. If there are multiple Grand
Prize winners during a single Drawing, each selecting the annuitized option
Prize, then a Prize Winner's Share of the guaranteed annuitized Grand Prize
shall be determined by dividing the guaranteed annuitized Grand Prize by the
number of Prize Winners.
2. If
there are multiple Grand Prize winners during a single Drawing and at least one
of the Grand Prize Winners has elected the annuitized option Prize, then the
best bid submitted by MUSL's pre-approved qualified brokers shall determine the
cash pool needed to fund the guaranteed annuitized Grand Prize.
3. If no Prize Winner of the Grand Prize
during a single Drawing has elected the annuitized option Prize, then the
amount of cash in the Grand Prize Pool shall be an amount equal to the
guaranteed annuitized amount divided by the average annuity factor of the most
recent three best quotes provided by MUSL's pre-approved qualified brokers
submitting quotes.
4. In no case
shall quotes be used which are more than two (2) weeks old and if less than
three (3) quotes are submitted, then MUSL shall use the average of all quotes
submitted. Changes in the allocation of Prize money shall be designed to retain
approximately the same Prize allocation percentages, over a year's time, set
out in these rules.
14.A.7
Drawings
A. The "Powerball®" Drawings shall be
held each week on Monday, Wednesday and Saturday evenings, unless the Drawing
schedule is changed by the MUSL Board. In the event of an act of Force Majeure,
the Drawing shall be rescheduled at the discretion of the MUSL Board.
B. Each Drawing shall determine, at random,
six (6) winning Numbers in accordance with Drawing Procedures. Any Numbers
drawn are not declared the Winning Combination until the Drawing is certified
by MUSL in accordance with the "Powerball®" Drawing Procedure. The Winning
Combination shall be used in determining all "Powerball®" Prize Winners for
that Drawing. If a Drawing is not certified, another Drawing will be conducted
to determine certified Prize Winners.
C. Each Drawing shall be witnessed by an
independent auditor as required in C.R.S.
44-40-109(2)(d).
All Drawing equipment used shall be examined prior to and immediately after a
Drawing. All Drawings, inspections, and tests shall be recorded on
videotape.
D. The Drawing shall not
be invalidated because the Numbers drawn creating an excessive Prize liability
for the Lottery.
E. The Drawing
procedures shall provide that a minimum of fifty-nine (59) minutes elapse
between the close of the game Ticket sales and the time of the Drawing for
those Tickets sold.
F. All Drawings
shall be open to the public.
14.A.8
Sale of Tickets
A. "Powerball®" Tickets may be purchased
from a Licensee authorized to sell Multi-State Jackpot Tickets.
B. "Powerball®" Tickets shall show, at a
minimum, the player's selection of Numbers, the number of Plays, the Drawing
date, and Validation Numbers.
C.
Plays may be entered manually using the Jackpot Gaming Terminal keypad or by
means of a Play Slip provided by the Lottery. Facsimiles of Play Slips, copies
of Play Slips, or other materials which are inserted into the Jackpot Gaming
Terminal's Play Slip reader and which are not printed or approved by the
Lottery shall not be used to enter a Play. No device shall be connected to a
Jackpot Gaming Terminal to enter Plays, except as may be approved by the
Lottery. Unapproved Play Slips or other devices may be seized by the Lottery.
1. All Plays shall be marked on the Play Slip
by hand. No machine-printed Play Slips shall be used to enter Plays.
Machine-printed Play Slips may be seized by the Lottery.
D. "Powerball®" Tickets may not be
cancelled.
1. If the "Powerball®" Game is
cancelled by the "Powerball®" Product Group prior to the occurrence of all
Drawings for which Plays have been sold, the Lottery may provide a refund
mechanism for such Plays to the Players, and the Lottery shall not be required
to remit its Prize Pool contributions for any such refunded Plays.
14.A.9
Advance
Play
Advance Play provides the opportunity to purchase
"Powerball®" Tickets for more than one (1) consecutive Drawing. Advance
Play Tickets shall be available for purchase in variable increments. The
Advance Play feature shall be available at the discretion of the
Director.
14.A.10
Prize Reserve and Prize Pool Accounts
A. The MUSL Board manages two (2) Prize
reserve accounts associated with the "Powerball®" Product Group. The MUSL
Board holds the reserves in trust on behalf of the Party Lottery, and interest
is earned by the Party Lottery. When a Party Lottery becomes a member of the
"Powerball®" Product Group, the MUSL Board determines an initial
contribution to be made by the Party Lottery to the reserves. In accordance
with the payment plan established between the Party Lottery and MUSL, the Party
Lottery must deposit with the MUSL Board the specified amounts. All deposits
are reported on Party Lottery records as "Cash Held by MUSL" or "Pre-Paid Prize
Expense with MUSL".
1. Prize Reserve Account
(PRA) is used to guarantee payment of valid, but unanticipated, Grand Prize
claims that may result from a system error or for any other reason the normal
contributions from sales are not adequate.
2. Set Prize Reserve Account (SPRA) is used
to fund deficiencies in the payment of the Set Prizes.
B. The MUSL Board manages multiple Prize Pool
accounts associated with the "Powerball®" Product Group. The
"Powerball®" Product Group sets the contribution rates for the following
Prize Pool accounts.
1. Grand Prize Pool is
used to fund the current Grand Prize.
2. Set Prize Pool is used to fund the Set
Prizes and holds the temporary balances that may result from having fewer than
expected Prize Winners in the Set Prize Categories.
3. Set-aside pool is used to fund the payment
of the awarded minimum starting annuity Grand Prizes and minimum annuity Grand
Prize increase, if necessary as may be set by the "Powerball®" Product
Group.
4. Grand Prize Carry Forward
Pool is used to fully fund the starting minimum annuity Grand Prize, as may be
set by the "Powerball®" Product Group, if such funds are available.
C. The above Prize
reserve accounts and the set-aside pool shall have maximum balance amounts that
are set by the "Powerball®" Product Group, which are subject to review by
the MUSL Board Finance and Audit Committee.
D. The maximum contribution rate to the Grand
Prize Pool shall be 68.0131% of the Prize Pool (34.0066% of sales). An amount
up to five percent (5%) of a Party Lottery's sales may be deducted from a Party
Lottery's Grand Prize Pool contribution and placed in trust in one or more
Prize Pool accounts and prize reserve accounts held by the "Powerball®"
Product Group at any time that the Prize Pool accounts and Party Lottery's
share of the Prize reserve accounts(s) is below the amounts designated by the
"Powerball®" Product Group. An additional amount up to twenty percent (20%)
of a Party Lottery's sales may be deducted from a Party Lottery's Grand Prize
Pool contribution and placed in trust in the Grand Prize Carry Forward Pool
(CFP) to be held by the "Powerball®" Product Group at a time as determined
by the "Powerball®" Product Group.
E. The set Prize Pool shall be carried
forward to subsequent draws if all or a portion of it is not needed to pay the
Set Prizes awarded in the current draw. If the total of all Party Lotteries'
Set Prizes (as multiplied by the respective Power Play multiplier if
applicable) awarded in a Drawing exceeds the percentage of the Prize Pool
allocated to the Set Prizes, then the amount needed to fund the Set Prizes
awarded shall be drawn from the following sources, in the following order:
1. The amount allocated to the
"Powerball®" Set Prizes and carried forward from previous draws, if
any;
2. If the Set Prize Pool is
not sufficient to pay the Set Prizes awarded, an amount from the Set Prize
reserve account is used, if available, not to exceed an amount established by
MUSL;
3. Other amounts as agreed to
by the "Powerball®" Product Group in their sole discretion; and
4. If after these sources are depleted,
sufficient funds do not exist to pay the Set Prizes awarded, then the highest
Set Prize shall become a pari-mutuel Prize. If the amount of the highest Set
Prize, when paid on a pari-mutuel basis, drops to or below the next highest Set
Prize and there are still not sufficient funds to pay the remaining Set Prizes
awarded, then the next highest Set Prize shall become a pari-mutuel Prize. This
procedure shall continue down through all Set Prize levels, if necessary, until
all Set Prize levels become pari-mutuel Prize levels.
F. The "Powerball®" Product Group may
determine to expend all or a portion of the funds in the "Powerball®" Prize
Pool accounts (except the Grand Prize pool account and the Grand Prize Carry
Forward Pool) and the Prize reserve accounts, (1) for the purpose of
indemnifying the Party Lotteries and licensee lotteries in the payment of
Prizes to be made by the selling Lotteries; and (2) for the payment of Prizes
or special Prizes in the game, limited to Prize Pool and Prize reserve
contributions from Lotteries participating in the special Prize promotion,
subject to the approval of the Board's Finance & Audit Committee. The Grand
Prize carry forward pool may only be expended to pay "Powerball®"
Prizes.
G. Any amount remaining in
the Prize Pool accounts or Prize reserve accounts at the end of this
"Powerball®" Game shall be returned to the Party Lotteries participating in
the accounts after the end of all claim periods of all selling Party Lotteries,
carried forward to a replacement game, or otherwise expended in a manner at the
election of the individual members of the "Powerball®" Product Group in
accordance with jurisdiction statute.
H. All liabilities for a "Powerball®"
Prize are discharged upon payment of a Prize. A Prize claimant agrees, as its
sole and exclusive remedy that claims arising out of a "Powerball®" Play
can only be pursued against the selling Party Lottery which issued the Play.
Litigation, if any, shall only be maintained within the jurisdiction in which
the "Powerball®" Play was purchased and only against the selling Party
Lottery that issued the Play. No claim shall be made against any other
Participating Lottery or against the MUSL.
Nothing in these Rules shall be construed as a waiver of any
defense or claim the selling Party Lottery which issued the Play, any other
participating Lottery or MUSL may have in any litigation, including in the
event a player or Prize claimant pursues litigation against the selling Party
Lottery, any other participating Lottery or MUSL, or their respective officers,
Directors, or employees.
All decisions made by a selling Party Lottery, including the
declaration of Prizes and the payment thereof and the interpretation of
"Powerball®" Rules, shall be final and binding on all Play purchasers and
on every person making a Prize claim in respect thereof, but only in the
jurisdiction where the "Powerball®" Play was issued.
Unless the laws, rules, regulations, procedures, and
decisions of the Party Lottery which issued the Play provide otherwise, no
Prize shall be paid upon a Play purchased, claimed, or sold in violation of
these Rules or the laws, rules, regulations, procedures, and decisions of that
selling Party Lottery; any such Prize claimed but unpaid shall constitute an
unclaimed Prize under these Rules and the laws, rules, regulations, procedures,
and decisions of that selling Party Lottery.
14.A.11
Prize Accounts
A. The Lottery shall transfer to the MUSL in
trust an amount as determined to be its total proportionate share of the Prize
account less actual Set Prize liability. If this results in a negative amount,
the MUSL Central Office shall transfer funds to the Lottery.
B. Grand Prize Amounts held by MUSL shall be
transferred to the Lottery immediately after the Lottery validates the Grand
Prize claim and after MUSL has collected the Prize Pool Shares from all Party
Lotteries.
C. All funds to pay a
Grand Prize that go unclaimed shall be returned to the Lottery by MUSL in
proportion to sales by the Lottery for the Grand Prize in question after the
claiming period set by the Lottery selling the winning Ticket
expires.
14.A.12
Funds Transfer
A. Funds shall be
collected by MUSL from each Party Lottery weekly by wire transfer or other
means acceptable to the "Powerball®" Product Group. The "Powerball®"
Product Group shall determine collection days. The amount to be transferred
shall be calculated in accordance with game rules. The draw reports determine
whether the member Lotteries owe funds to MUSL or MUSL needs to transfer money
to the member Lotteries. Each Party Lottery shall transfer to MUSL an amount as
determined by MUSL and the "Powerball®" Product Group to be its total
proportionate share of the Prize account less actual Set Prize liability. If
this results in a negative amount, the MUSL central office shall transfer funds
to the Party Lottery.
B. The Grand
Prize Amount held by MUSL shall be transferred to the Lottery after the Lottery
validates the Grand Prize claim and after MUSL has collected the Prize Pool
Shares from all member Lotteries.
C. The Grand Prize Amount held by MUSL for
subsequent payment to annuity Prize Winners shall be transferred to the Lottery
within seven (7) days preceding the anniversary date of the selection of the
Winning Combination. The Lottery will then make payment to the annuity Prize
Winner.
14.A.13
MUSL Accounting and Finance
A.
At the time a lottery joins the "Powerball®" Product Group, MUSL revises
the existing budget and assesses the lottery for the additional costs. Each
July, thereafter, MUSL sets the budget for the impending year and assesses each
Party Lottery their proportionate share. The Party Lottery receives a copy of
these costs and an election form.
B. Each September and March, MUSL
re-evaluates the amounts that each Party Lottery must contribute to any Prize
reserves. Any additional contributions to the Prize reserves are funded by
reducing the contribution from sales to the Grand Prize as referred to
in14.A.9.
C. The draw reports
determine whether the Lottery owes and needs to transfer funds to MUSL, or MUSL
owes and needs to transfer funds to the Lottery. (The procedures and
corresponding time lines documenting the timely and effective transfer of funds
between the Lottery and MUSL can be found in the Lottery's financial
procedures.) Three different transfers are made on a continual basis:
1. Draw receivables transferred from the
Lottery to MUSL;
2. Set Prize
payments and initial Grand Prize payments transferred from MUSL to the Lottery;
and
3. Subsequent Grand Prize
annuity payments from MUSL to the Lottery.