Current through Register Vol. 47, No. 5, March
10, 2024
BASIS AND PURPOSE OF RULE 14
The purpose for Rule 14 is to provide details and
requirements for all Colorado Lottery Multi-State Jackpot Games conducted as a
member of a Multi-State Group, such as the sale of tickets, payment of Prizes,
and the method for selecting and validating winning tickets. The statutory
basis for Rule 14 is found in C.R.S.
44-40-101(5) and
(6),
44-40-104(4)(a),
44-40-109(1)(a) and (h), and
(2),
44-40-113 and
44-40-114.
14.1
General Provisions
Multi-State Jackpot Games will be conducted pursuant to the
following Rules and Regulations and such further instructions and directives as
the Colorado Lottery Director may issue.
For the purposes of this Rule 14 "Jackpot Game" shall mean
Multi-State Jackpot Game and "Jackpot Ticket" shall mean Multi-State Jackpot
Ticket.
A. All Multi-State Guidelines
and Multi-State Board decisions must be approved by the Lottery and the
Commission prior to implementation in Colorado.
B. The Director will be a voting member of
the Multi-State Board during the timeframe in which the Lottery is a member of
the Multi-State Group.
C. If at any
time the Director determines that any provisions of the Multi-State Governing
Rules or of the Multi-State specific Game Rules do not sufficiently provide for
the security and integrity necessary to protect the Lottery, the Director shall
recommend to the Commission that the Lottery end its membership with the
specified Multi-State Group or Game. Upon concurrence by the Commission,
membership can end at any time.
14.2
Definitions
In addition to the definitions provided in section 1.2 of
Rule 1, and unless the context in these Rules and Regulations otherwise
requires:
A. "Breakage" means the
results of rounding Prize amounts down to the nearest whole dollar.
B. "Multi-State Agreement" means the document
made and entered into by the Party Lotteries, containing the mutual covenants
agreed to by the Party Lotteries.
C. "Multi-State Drawing Procedures" means the
document that outlines the procedure and eligibility requirements for a
Multi-State Jackpot Game Drawing.
D. "Multi-State Jackpot Game" means an
individual Lottery Game as described in specific Game Rules which utilizes a
Jackpot Gaming System to administer plays in which a player or random number
generator selects a combination of numbers. The Lottery, in conjunction with
all other participating Multi-State Game Members, will either conduct or
oversee a Drawing to determine the Winning Combination, used by all Multi-State
Game Members, in accordance with the specific Game Rules for each Jackpot
Game.
E. "Multi-State Jackpot
Ticket" means a computer-generated ticket issued by a Lottery Licensee
(Licensee) to a player as a receipt for the combination of numbers selected in
a Jackpot Game. That ticket shall be the only acceptable evidence of the
combination of numbers selected. Jackpot Tickets may be purchased only from
Lottery authorized Licensees.
F.
"Multi-State Board" means the governing body of a specific Jackpot Game, which
is comprised of the chief executive officer of each Party Lottery.
G. "Multi-State Guidelines" means the
statements of policy having authority over an activity in an individual
Game.
H. "MUSL" means the
Multi-State Lottery Association.
I.
"Party Lottery" means a State Lottery or Lottery of a political subdivision or
entity which has joined a Multi-State Game and, in the context of the Product
Group Rules, has joined in selling the specified Jackpot Game.
J. "Product Group" means a group of Lotteries
which have joined together to offer a product pursuant to the terms of the
Multi-State Agreement and the group's own rules.
K. Roll-over" means the amount from the
direct prize category contribution from previous Drawing(s) in the Grand Prize
category, that is not won, that is carried forward to the Grand Prize category
for the next Drawing.
L. "Set
Prize" means all other Prizes except the Grand Prize and, except in instances
outlined in these rules, will be equal to the Prize amount established within
the specific Game Rules.
14.3
Price of Tickets &
Prizes
A. The purchase price of each
Jackpot Ticket shall be set forth in specific Game Rules.
B. The Prize amounts or total amount of Prize
money allocated to the Prize categories for Jackpot Games shall be set forth in
specific Game Rules.
C. In the
event the Prize expense is less than the Commission approved Aggregate Prize
Fund for a specific game, the Director may authorize the difference to be used
to increase Prize amounts or pay additional Lottery Prizes for that
game.
14.4
Drawings and End of Sales Prior To Drawings
A. The manner and frequency of Drawings shall
be as set forth in specific Game Rules. In the event of a Force Majeure, the
Drawing shall be rescheduled at the Director or designee's
discretion.
B. Drawings shall be
conducted at a location, on days, and at times to be announced. Drawing results
are not official until verified.
C.
The Director shall determine when each Jackpot Game goes into Draw Break before
the Drawing. Once a Jackpot Game is in Draw Break, Jackpot Game Terminals will
not allow any further purchases for that Drawing.
D. An independent auditor, as required in
C.R.S 44-40-109(2)(d),
will observe each Jackpot Drawing.
1. All
Drawing equipment used shall be examined by the auditor located at the
Multi-State Drawing Site within thirty (30) minutes before a Drawing and within
thirty (30) minutes after the Drawing.
14.5
Promotional Opportunities
14.5.1
Use of Bar Codes on Jackpot
Tickets
A. An additional bar code
printed on Jackpot Tickets allows for entry into Promotional Drawings through
the Lottery Mobile Application.
1. Details
for Promotional Drawings, including but not limited to Prizes, Prize Winners,
assignment of Prizes, and Prize payment are defined in specific Promotional
Drawing Guidelines.
14.5.2
Use of Coupons and Free
TicketsA. Coupons and free Tickets
(hereafter referred to as "coupons") are marketing tools used by the Lottery
for promotions.
B. All coupons,
when used for promotions, must be given to the consumer or public. In the event
the Lottery uses a promotional partner to distribute coupons, the promotional
partner must ensure all coupons are issued to the consumer or public and any
unused coupons are returned to the Lottery.
C. At no time may coupons be sold, used to
purchase goods or services, pay off Lottery Debts, or reimburse a Licensee for
any loss.
D. At no time may a
co-promoter, who has received a cash payment from the Lottery or a Lottery
Contractor as part of a promotional agreement, use the cash payment to purchase
Lottery Tickets for the promotion that the payment funded.
14.5.3
Redemption of Bar-Coded
Coupons
The Director may from time to time deem it proper to
authorize the use of bar-coded coupons to promote Lottery Products. In the
event such use is authorized by the Director, Licensees shall comply with all
requirements and restrictions specified on the coupon and shall redeem and
exchange bar-coded coupons for Lottery Tickets only and not for cash.
14.6
Sale of
Tickets
A. Licensees shall make Jackpot
Tickets available for sale to the public between the hours of 4:30 a.m. and
11:59 p.m. MST Monday through Saturday and 8:00 a.m. and 11:59 p.m. MST on
Sunday if those hours are included in the Licensee's normal business hours and
when the Jackpot Gaming System is available.
B. A Licensee shall sell Jackpot Tickets only
at the premises specified in the license.
C. All Jackpot Ticket Sales are final and the
return of a Jackpot Ticket after sale shall not be accepted by the Licensee,
unless otherwise directed by the Director, or as set forth in section 14.7 or
in specific Game Rules.
D. The
Lottery itself may sell Jackpot Tickets.
E. A Licensee may be permitted, upon prior
approval of the Director or designee, to use Jackpot Tickets as a means of
promoting the sale of goods and services to the public.
14.7
Cancellation of Tickets
A Jackpot Ticket may not be cancelled.
14.7.1
Mutilated or Erroneous
Tickets
Unless the Director is satisfied that a mutilated Jackpot
Ticket is genuine, no credit will be issued to the Ticket Holder.
A. If the Jackpot Ticket is mutilated at the
time of purchase, the ticket must be submitted to the Lottery for investigation
to determine if credit should be issued.
B. A ticket submitted to the Lottery for
credit becomes the property of the Lottery and the ticket becomes invalid and
ineligible for a Prize.
C. All
credits for Jackpot Tickets must be approved by the Director or
designee.
14.8
Validation Requirements
A. To be a valid winning Jackpot Ticket, all
of the following conditions must be met:
1.
All printing on the ticket shall be present in its entirety, be legible, and
correspond to the Jackpot Gaming System Record;
2. The ticket must be intact;
3. The ticket must not be mutilated, altered,
or tampered with in any manner;
4.
The ticket must not be counterfeit or an exact duplicate of another winning
ticket;
5. The ticket must have
been issued by an authorized Jackpot Game Licensee in an authorized
manner;
6. The ticket must not have
been acquired illegally;
7. The
ticket must not have been previously paid; and
8. The ticket must pass all other
confidential security checks of the Lottery.
B. Any Ticket failing one of the Validation
requirements listed in subsection A. above is invalid and the Claimant is
ineligible for a Prize.
C. The
Director may authorize award of a Prize for a winning Jackpot Ticket that is
partially mutilated or is not intact if the Jackpot Ticket can still be
validated by the other Validation methods and requirements.
D. In the event a defective Jackpot Ticket is
purchased, the only responsibility or liability of the Lottery or the Licensee
shall be the replacement of the defective Jackpot Ticket with another Lottery
Product or refund of the purchase price.
14.9
Payment of Prizes
A. The holder of a winning Jackpot Ticket in
the amount of $150.00 or less may take the ticket to any Licensee location
during the Licensee's normal business hours and game operation hours for
Validation and payment. The holder of a winning Jackpot Ticket in the amount of
$151.00 to $599.00 may take the ticket to any Licensee location during the
Licensee's normal business hours and game operation hours. Licensees have the
option of validating winning Jackpot Tickets in the amount of $151.00 to
$599.00. All Prizes shall be paid by the Licensee upon presentation and
Validation of the ticket pursuant to instructions on the back of the Jackpot
Ticket and instructions specified in the specific Game Rule.
B. Any winning Jackpot Ticket in any amount
may be mailed or presented to a Lottery Claims Center for payment. The Prizes
shall be paid by the Lottery upon presentation and Validation of the ticket
pursuant to instructions on the back of the Jackpot Ticket and instructions
specified in the specific Game Rule.
C. The holder of a Prize-Winning Jackpot
Ticket of $600.00 or more, or their authorized representative shall complete a
claim form and submit the completed form and Ticket to the Colorado Lottery.
The Lottery shall pay the Prize upon presentation and Validation of the ticket
pursuant to instructions on the back of the Jackpot Ticket and instructions
specified in the specific Game Rule. In the event that the intercept program
reveals an outstanding obligation for a winner of a Prize, the Prize will not
be awarded until the intercept obligation is paid as set forth in C.R.S.
44-40-113(6) and
44-40-114.
1. A Prize Winner, or a Prize Winner's
legally authorized representative, shall sign the winning Jackpot Ticket and
complete a claim form that is available from any Licensee, Lottery Claims
Center, or the Colorado Lottery Website. The claim form shall incorporate the
following information:
a. Verification that
the Prize Winner is not a Person disqualified by law or by these Rules and
Regulations to claim or otherwise accept a Prize from the Lottery;
b. Notification that the Prize Winner's name,
city of residence, and Prize amount are public information. This same
notification is given to one signing on behalf of a Prize Winner under a
disability that prevents the Prize Winner from signing on his/her own behalf;
and
c. The Lottery is not liable for
any loss caused by a misrepresentation by the Prize Winner or the Person
claiming the Prize on the Prize Winner's behalf.
2. The claim form may contain any other
provision that the Director may deem necessary and proper to promote the public
interest and trust, and the security and efficient operation of the
Lottery.
3. Payment for a winning
Ticket will not occur unless all of the requirements on the claim form and
winning Ticket have been met or an acknowledgement that the information is
unknown or unavailable. There is no obligation or duty of the Lottery, its
employees or Licensees, to make any inquiry of the truthfulness of information
that appears on the claim form before payment to the Prize Winner.
D. Payment of Prizes shall be made
to the Prize Winner.
E. All Prizes
shall be paid within a reasonable time after they are awarded and after the
claims are validated by the Lottery. Any Prize requiring annuitized or
installment payments shall be paid as specified in the specific Game
Rules.
F. In the event of the death
of a Prize Winner during the payment period, the Multi-State Board's Finance
and Audit Committee, in its sole discretion, upon the petition of the estate of
the Lottery 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 Finance & Audit Committee makes such
a determination, then securities and/or cash held to fund the deceased 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 Finance and Audit Committee.
G. The Prize Winner of an annuitized or
installment payment Prize in any Jackpot Game who desires to assign the right
to unpaid future annuitized or installment payments must comply with C.R.S.
44-40-113(1)(b) and
(2). Pursuant to C.R.S.
44-40-113(2)(f),
reasonable fees to defray administrative expenses shall be reviewed and
approved by the Director on an annual basis.
H. The Director may delay any payment in
order to review a change of circumstances relative to the Prize awarded, the
payee, the claim, or any other matter that may have come to their attention.
All delayed payments will be paid to date immediately upon the Director's
confirmation that the payee is entitled to such payment; any remaining payments
shall be paid per the specific Game Rule.
I. The Director's decision shall be final and
binding with respect to the payment of all Prizes.
J. The Director reserves the right to require
a Prize Winner to disclose the location or Person from where the Ticket was
purchased.
K. A Prize must be
claimed no later than one hundred and eighty (180) days after the Drawing for
which the Jackpot Ticket was purchased. Any Person who fails to claim a Prize
during the one hundred and eighty (180) day claim period shall forfeit all
rights to the Prize and the amount of the Prize shall remain in the Lottery
Fund. Prizes claimed by mail must be documented as received by the Lottery by
the one hundred and eightieth (180th) day after the announced end-of- game
date.
L. Payment of any Prize shall
be made to the Prize Winner of the Jackpot Ticket. All liability of the State,
its officers and employees, and the Commission shall terminate upon payment.
M. In the event that the intercept
program reveals an outstanding obligation for a Prize Winner, the Prize will
not be awarded until the intercept obligation is paid as set forth in C.R.S.
44-40-113(6) and
44-40-114.
14.10
Annuity Payments
The Multi-State Board shall act as an agent for the Party
Lotteries jointly operating games requiring annuitized payments and shall
purchase investments for the benefit of the Party Lotteries who receive valid
claims for each Prize paid as an annuity. The investment purchase process shall
be handled according to the Multi-State Game Rules Processes (solicitation of
bids, selection of investment, premium payment, etc.). The investment so
purchased shall be held in the trust account for the benefit of each Party
Lottery for eventual distribution to a Prize Winner.
14.11
Lost or Stolen Tickets
The Director reserves the right to hold any Prize, pending
the findings of an investigation, when the Jackpot Ticket presented for
Validation has been reported stolen or lost. At the Director's discretion,
Jackpot Tickets that are determined to be stolen will not be paid.
14.12
Audit of Lottery
Contributions to the Multi-State Group
The Lottery is responsible for verifying all Multi-State
Group Prize Fund and reserve allocations, interest earnings and expenditures
received or paid on behalf of the Lottery. The Lottery's Fiscal Department will
perform analytical procedures on the Multi-State Group's audited financial
statements annually as set forth in Recommendation #2 of the June 30, 2003
financial audit. If anything of concern surfaces by applying these procedures,
the Director and the Lottery Controller will be notified.
14.13
Interest Earnings
A. The Director shall request the Multi-State
Group to distribute all interest earned on the unreserved account on a
quarterly basis. If the interest earned on the unreserved account is
immaterial, the Director may postpone the distribution request until the end of
the fiscal year.
B. At the end of
each fiscal year, the Multi-State group shall prepare a schedule of revenues
and expenses resulting in the Multi-State Group's net income for the fiscal
year. The revenues will include all investment earnings, except the interest
earned on the unreserved account. The net income will be available to be
distributed to each Party Lottery in accordance with procedures as set forth by
the Multi-State Group. The chief executive officer of each Party Lottery shall
request the remittance of their proportionate share of net income following the
close of the fiscal year.