4.1
Powerball
Prize Pool. The prize pool for all prize categories shall consist of
fifty percent (50%) of each Drawing period's Powerball sales, inclusive of any
specific statutorily mandated tax of a Selling Lottery to be included in the
price of a Powerball Play, and including contributions to the prize pool
accounts and prize reserve accounts; prize pool contribution requirements shall
be based on the sales price for Plays as established by the Group, not on the
amount collected by the Selling Lottery after deducting for statutorily
mandated taxes.
4.2
Powerball
Prize Pool Accounts and Prize Reserve Accounts. The Product Group shall
set the contribution rates to the prize pool and to one or more prize reserve
or pool accounts established by this rule.
4.2.1 The following prize reserve accounts
for the Powerball game are hereby established:
4.2.1.1 the Prize Reserve Account (PRA),
which is used to guarantee the payment of valid, but unanticipated, Grand Prize
claims that may result from a system error or other reason; and
4.2.1.2 the Set Prize Reserve Account (SPRA),
which is used to fund deficiencies in low-tier Powerball prize payments
(subject to the limitations of these rules).
4.2.2 The following prize pool accounts for
the Powerball game are hereby established:
4.2.2.1 the Grand Prize Pool (GPP), which is
used to fund the current Grand Prize;
4.2.2.2 the Set Prize Pool (SPP), which is
used to fund the Set Prizes. The SPP shall hold temporary balances that may
result from having fewer than expected winners in the Set Prize (aka low-tier
prize) categories. The source of the SPP is the Party Lottery's weekly prize
contribution less actual Set Prize liability;
4.2.2.3 the Set-Aside Pool (SAP), which is
used to fund the payment of the awarded minimum starting annuity Grand Prizes
and minimum annuity Grand Prize increase, if necessary (subject to the
limitations in these rules), as may be set by the Product Group; and
4.2.2.4 the Grand Prize Carry Forward Pool
(GPCFP), which is used to fund the starting minimum annuity Grand Prize, as may
be set by the Product Group, if such funds are available, and if sales do not
fund the Grand Prize.
4.2.3 The above prize reserve accounts, the
GPCFP and the SAP shall have maximum balance amounts or balance limiter
triggers that are set by the Product Group. The maximum balance amounts and
balance limit triggers are subject to review by the MUSL Board Finance and
Audit Committee. The Finance and Audit Committee shall have two weeks to state
objections, if any, to the approved maximum balance amounts or balance limiter
triggers. Approved maximum balance amounts or balance limiter triggers shall
become effective no sooner than two weeks after notice is given to the Finance
and Audit Committee and no objection is stated or sooner if the Committee
affirmatively approves the maximum balance amounts or balance limiter triggers.
The Group may appeal the Committee's objections to the full Board. Group
approved changes in the maximum balance amounts or balance limiter triggers set
by the Product Group shall be effective only after the next Grand Prize
win.
4.2.4 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 shall be
deducted from a Party Lottery's GPP contribution and placed in trust in one or
more prize pool accounts and prize reserve accounts held by the Product Group
(hereinafter the "prize pool and reserve deduction") 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 Product Group. An additional amount up to
twenty percent (20%) of a Party Lottery's sales shall be deducted from a Party
Lottery's GPP contribution and placed in trust in the GPCFP to be held by the
Product Group at a time as determined by the Product Group.
4.2.5 The Product Group may determine to
expend all or a portion of the funds in the Powerball prize pool accounts
(except the GPP account and the GPCFP) 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
or that Committee's failure to object after given two weeks' notice of the
planned action, which actions may be appealed to the full Board by the Product
Group.
The GPCFP may only be expended to fund the starting
minimum annuity Grand Prize.
4.2.6 The prize reserve shares of a Party
Lottery may be adjusted with refunds to the Party Lottery from the prize
reserve account(s) as may be needed to maintain the approved maximum balance
and sales percentage shares of the Party Lotteries.
4.2.7 A Party Lottery may contribute to its
sales percentage share of prize reserve accounts over time, but in the event of
a draw down from the reserve account, a Party Lottery is responsible for its
full sales percentage share of the prize reserves account, whether or not it
has been paid in full.
4.2.8 Any
amount remaining in the Powerball prize pool accounts or prize reserve accounts
when the Product Group declares the end of the game shall be returned to the
lotteries participating in the accounts after the end of all claim periods of
all Selling Lotteries, carried forward to a replacement game, or otherwise
expended in a manner at the election of the individual Members of the Product
Group in accordance with jurisdiction statute.
4.3
Licensee Lotteries.
Licensee Lotteries shall adhere to Section 4.2 of these rules unless a
different process is approved by the Product Group.
4.4
Expected Prize Payout
Percentages. The Grand Prize payout shall be determined on a pari-mutuel
basis. Except as otherwise mandated by jurisdiction statute or judicial
requirements, or provided for in these rules, all other prizes awarded shall be
paid as set single payment prizes. All prize payouts are made with the
following expected prize payout percentages, although the prize payout
percentages per draw may vary:
|
Prize Pool Percentage
|
|
Number of Matches Per Play
|
Prize Payment
|
Allocated to Prize
|
|
All five (5) of first set plus one (1) of second
set
|
Grand Prize
|
68.0131%*
|
|
All five (5) of first set and none of second
set
|
$1,000,000
|
8.5558%
|
|
Any four (4) of first set plus one (1) of second
set
|
$50,000
|
5.4757%
|
|
Any four (4) of first set and none of second
set
|
$100
|
0.2738%
|
|
Any three (3) of first set plus one (1) of second
set
|
$100
|
0.6899%
|
|
Any three (3) of first set and none of second
set
|
$7
|
1.2074%
|
|
Any two (2) of first set plus one (1) of second
set
|
$7
|
0.9981%
|
|
Any one (1) of first set plus one (1) of second
set
|
$4
|
4.3489%
|
|
None of first set plus one (1) of second set
|
$4
|
10.4373%
|
|
* The maximum contribution rate may include
contributions to reserves and pools as described in these rules. |
4.4.1 The
prize money allocated to the Grand Prize category shall be divided on a
pari-mutuel basis by the number of Powerball Plays winning the Grand
Prize.
4.4.2
Set Prize Pool
Carried Forward. For Party Lotteries, the Powerball SPP (for single
payment prizes of one million dollars ($1,000,000.00) or less) shall be carried
forward to subsequent draws if all or a portion of it is not needed to pay the
Powerball Set Prizes awarded in the current draw.
4.4.3
Pari-Mutuel Prize
Determinations. Except as provided for in this section, for Party
Lotteries:
4.4.3.1 If the total of the
Powerball 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,
including Power Play prizes, awarded shall be drawn from the following sources,
in the following order:
4.4.3.1.1 the amount
available in the SPP and the Power Play Prize Pool, if any;
4.4.3.1.2 an amount from the SPRA, if
available, not to exceed forty million dollars ($40,000,000.00) per Drawing;
and
4.4.3.1.3 other amounts as
agreed to by the Product Group in their sole discretion.
4.4.3.2 If, after these sources are depleted,
there are not sufficient funds to pay the Set Prizes awarded, including Power
Play prizes, 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,
including Power Play prizes, 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. In that circumstance, the money
available from the funding sources listed in this rule shall be divided among
the winning Powerball Plays in proportion to their respective prize
percentages. Powerball Set Prizes and Power Play prizes will be reduced by the
same percentage.
4.4.3.3 By
agreement with the Licensee Lotteries, the Licensee Lotteries shall
independently calculate their Set Prize pari-mutuel prize amounts. The Party
Lotteries and the Licensee Lotteries shall then agree to set the pari-mutuel
prize amounts for all lotteries selling the game at the lesser of the
independently-calculated prize amounts.
4.4.4
Licensee Lotteries.
Licensee Lotteries shall adhere to Section 4.4.3 of these rules unless a
different process is approved by the Product Group.
