Current through September 2, 2024
01.
Retailer's Application. Any
person interested in obtaining a contract for a certificate to sell Lottery
tickets must first file an application on forms provided by the Director. The
forms will require disclosure of, but are not limited to, an applicant's
personal, financial, and criminal history, and an authorization to investigate
the applicant's criminal and credit history.
02.
Fees, Procedure, and Criteria
Precluding Issuing Contract.
a. All
certificate applications must be accompanied by a minimum, nonrefundable, fee
of twenty-five dollars ($25). If a certificate is awarded, an additional,
nonrefundable, certificate fee of one hundred dollars ($100) must be
paid.
b. A current retailer may be
required to complete an additional application or application supplements. If a
current retailer requests that the existing certificate be modified to allow
the sale of additional Lottery products, no additional application fee will be
charged.
c. The Lottery may waive
the payment of any certificate fee to facilitate an experimental program or a
research project.
03.
Provisional Certifications.
a.
The Lottery may issue a provisional certificate to an applicant for a Lottery
certificate after receipt of a fully completed certificate application, the
authorization of a complete personal background check, completion of a credit
check, and completion of a preliminary background check. The provisional
certificate will expire at the time of issuance of the requested certificate or
ninety (90) days from the date the provisional certificate was issued,
whichever occurs first, unless the provisional certificate is extended by the
Lottery.
b. No contract shall be
made with an applicant:
i. Who is under
eighteen (18) years of age;
ii. Who
will be engaged exclusively in the business of selling tickets;
iii. Who is an employee of the
Lottery;
iv. Who is, or is owned or
controlled or affiliated with, a supplier of instant tickets or a manufacturer
of computer equipment used to operate instant or on-line games, or
both;
v. Who is not a resident of
Idaho, or a corporation that is not incorporated in Idaho or not authorized to
do business in Idaho;
vi. Who has
been found to have violated any rule, regulation, or order of the Commission or
the Director;
vii. When any person,
firm, association, or corporation other than the applicant will participate in
the management of the affairs of the applicant.
04.
Criteria That May Be Grounds For
Refusal. Before contracting with an applicant, the Director will
consider the factors set out below. In considering these factors, the Director
will seek to determine which applicants will best serve the economical and
efficient operation of a statewide Lottery through their ticket sales. If any
of these factors lead the Director to determine that contracting with the
applicant would not promote the economical and efficient operation of a
statewide Lottery consonant with the public interest, or would not serve the
public interest, convenience, or trust, the Director may deny the application.
a. The Director will consider the financial
responsibility and security of the person and the person's business or activity
and consider the person's credit worthiness and integrity in past financial
transactions. The Lottery may investigate the credit worthiness of the
applicant by using the services of a commercial credit reporting agency. The
Director may also consider the physical security of the applicant's place of
business to determine whether tickets that will be sold to the applicant and
the proceeds from ticket sales will be kept safe.
b. The Director will consider the
accessibility to the public of an applicant's place of business or activity.
The Director will contract only with applicants who have regular contact with
significant numbers of persons at the applicant's place of business. Before
contracting with any organization that has restricted membership policies, the
Director must determine whether the restrictions are generally acceptable to
the public and whether contracting with that group or organization or similar
groups or organizations would best serve the interests of the
Lottery.
c. The Director will
consider the sufficiency of existing retailers to serve the public interest.
The Director may seek to maximize total ticket sales by encouraging retailers
with the highest potential volume in a particular area or
neighborhood.
d. The Director will
consider the volume of expected sales by the applicant. In determining the
anticipated actual sales volume of the applicant, the Director may rely upon
the experience and knowledge of the Lottery's staff as well as any other
available professional expertise. The Director will determine whether the
volume of an applicant's sales is likely to be sufficient that contracting with
the applicant will be economically feasible.
e. The Director will consider the types of
products, services, or entertainment offered at the applicant's place of
business. The Director will determine whether the applicant's products,
services, or entertainment are generally acceptable to the public and whether
they would bear adversely upon the general credibility, integrity, and
reputation of the Lottery.
f. The
Director will consider the experience, character, or general fitness of the
applicant. Entering into a contract with the applicant must be consistent with
the public interest, convenience, and trust.
g. The Director will consider the veracity
and completeness of the information submitted with the retailer's application.
The Director will consider the criminal history of the applicant and any person
whose name is required to be disclosed under Section
67-7412, Idaho Code, of the Act
and may refuse to enter into a contract with any applicant when the applicant
or such person has been convicted of violating any of the gambling laws of this
state, general or local, or has been convicted at any time of any crime other
than traffic infraction.
05.
Reporting Changes in Circumstances
of The Retailer. Every change of business structure of a certificated
business, such as from a sole proprietorship to a corporation, and every change
in the name of a business, must be reported to the Lottery before the change.
Substantial changes in the ownership of a certificated business must also be
reported to the Lottery before the change. A substantial change of ownership is
defined as the transfer of ten percent (10%) or more equity in the certificated
business from or to another single individual or legal entity. If a change
involves the addition or deletion of one (1) or more existing owners or
officers, the certificate holder must submit a certificate application
reflecting the change and any other documentation that the Lottery may require.
All changes will be reviewed by the Lottery to determine if the existing
certificate should be continued.
06.
Certificate Not a Vested or Legal
Right. The possession of a certificate issued by the Lottery to any
person to act as a retailer in any capacity is a privilege personal to that
person and is not a vested or legal right. The possession of a certificate
issued by the Lottery to any person to act as a retailer in any capacity does
not automatically entitle that person to sell tickets or obtain materials for
any particular game.
07.
Suspension or Revocation of a Certificate. The Lottery may suspend
or revoke any certificate issued pursuant to these rules for one (1) or more of
the following reasons:
a. Failing to meet or
maintain the eligibility criteria for certificate application and issuance
established by Title 67, Chapter 74, Idaho Code, or these rules;
b. Violation of any of the provisions of
Title 67, Chapter 74, Idaho Code, these rules, or the certificate terms and
conditions;
c. Failing to file any
return or report or to keep records required by the State Lottery
d. Failing to maintain an acceptable level of
financial responsibility as evidenced by the financial condition of the
business, incidents of failure to pay taxes or other debts, or by the giving of
financial instruments which are dishonored;
e. Fraud, deceit, misrepresentation, or other
conduct prejudicial to the public confidence in the Lottery;
f. If the public convenience is adequately
served by other certificate holders, failure to sell a minimum number of
tickets as established by the Lottery;
g. A history of thefts or other forms of
losses of tickets or revenue from the business;
h. Violating federal, state, or local law or
allowing the violation of any of these laws on premises occupied by or
controlled by any person over whom the retailer has substantial
control;
i. Obtaining a certificate
by fraud, misrepresentation, concealment or through inadvertence or
mistake;
j. Making a
misrepresentation of fact to the Commission or the Lottery on any report,
record, application form, or questionnaire required to be submitted to the
Commission or the Lottery;
k.
Denying the Lottery or its authorized representative, including authorized
local law enforcement agencies, access to any place where a certificate
activity is conducted;
l. Failing
to promptly produce for inspection or audit any book, record, document, or
other item required to be produced by law, these rules, or the terms of the
certificate;
m. Systemically
pursuing economic gain in a manner or context that is in violation of the
criminal or civil public policy of this state if there is cause to believe that
the participation of such person in these activities is inimical to the proper
operation of the authorized Lottery;
n. Failing to follow the instructions of the
Lottery for the conduct of any particular game or special event;
o. Failing to follow security procedures of
the Lottery for the management of personnel, handling of tickets, or for the
conduct of any particular game or special event;
p. Misrepresenting a fact to a purchaser, or
prospective purchaser, of a ticket, or to the general public with respect to
the conduct of a particular game or special event;
q. Allowing activities on the licensed
premises that could compromise the dignity of the state.
08.
Surrender of Certificate Upon
Revocation. Upon revocation or suspension of a retailer's certificate,
the retailer must surrender to the Lottery, by a date designated by the
Lottery, the certificate and all other Lottery property.
09.
Certified Retailers. All
Lottery retailers must be certified in the manner provided in these rules.
Retailers are required to abide by all applicable laws and administrative
rules, the terms and conditions of the contract and certificate, and all other
directives and instructions issued by the Lottery.
10.
Requirements For The Sale of
Tickets.
a. Retailers must be
knowledgeable about the Lottery and Lottery products and may be required to
take training in the operation of Lottery games. Retailers must make the
purchase of tickets convenient to the public.
b. Tickets must be sold at the price
designated by the Lottery. Retailers cannot sell tickets for a greater amount
than the amount specified by the Lottery. Retailers may sell tickets for a
lesser amount for promotional purposes if authorized by the Lottery.
c. No retailer or any employee or member of a
retailer shall attempt to identify a winning ticket before sale of the
ticket.
d. When a retailer is
required by its contract with the Lottery to pay a prize to a winner, the
retailer must pay the prize whenever the winner tenders a winning ticket during
the retailer's normal business hours at the location designated on the
retailer's certificate.
e.
Retailers are prohibited from purchasing tickets previously sold by the
retailer.
11.
Display of Certificate and Other Materials. Retailers must display
the Lottery certificate in an area visible to the general public wherever
tickets are being sold and also display point-of-sale material provided by the
Lottery in a manner that is readily seen by and available to the public.
Retailers may advertise and use or display other appropriate promotional and
point-of-sale material. The Lottery may require the removal of objectionable
material or the discontinuance of objectionable advertising that may have an
adverse impact on the Lottery.
12.
Dishonored Checks and Electronic Fund Transfers. Any payment made
to the Lottery by an applicant for a certificate or by a certificated retailer
either by a check that is dishonored or by an electronic funds transfer (EFT)
that is not paid by the depository, is grounds for immediate denial of the
application for a certificate or for suspension or revocation of an existing
certificate. The Lottery may assess a surcharge for each dishonored check or
EFT. The Lottery may also alter the payment terms of a retailer's certificate
and require a retailer to reimburse the Lottery for costs that occur as a
result of a dishonored check or EFT.
13.
Inspection of Lottery Materials and
Retailer Premises. Retailers must allow the Lottery to enter upon the
retailer's certificated premises in order to inspect Lottery materials,
tickets, and the premises. All books and records pertaining to the retailer's
Lottery activities must be available to the Lottery for inspection and copying
during the normal business hours of the retailer and between 8 a.m. and 5 p.m.,
Monday through Friday. All books and records pertaining to the retailer's
Lottery activities are subject to seizure by the Lottery without prior
notice.
Effective
March 25,
2022
