6.1
Grand
Prizes.
6.1.1 Grand Prizes shall be
paid, at the election of the player made no later than sixty (60) days after
the player becomes entitled to the prize, with either a per-winner annuity or
single lump sum payment (which may be referred to as the "cash option"). If the
payment election is not made at the time of purchase and is not made by the
player within sixty (60) days after the player becomes entitled to the prize,
then the prize shall be paid as an annuity prize. An election for an annuity
payment made by a player before ticket purchase or by system default or design
may be changed to a cash option payment at the election of the player until the
expiration of sixty (60) days after the player becomes entitled to the prize.
The election to take the cash option payment may be made at the time of the
prize claim or within sixty (60) days after the player becomes entitled to the
prize. An election made after the winner becomes entitled to the prize is final
and cannot be revoked, withdrawn, or otherwise changed.
6.1.2 Shares of the Grand Prize shall be
determined by dividing the funds available in the GPP equally among all winning
Plays of the Grand Prize. Winner(s) who elect a cash option payment shall be
paid their share(s) in a single lump sum payment. The annuitized option prize
shall be determined by multiplying a winner's share of the Grand Prize pool by
a process as approved by the MUSL Board. Neither MUSL nor the Selling 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.
6.1.3 In certain instances announced by the
Product Group, the Grand Prize shall be a guaranteed amount and shall be
determined pursuant to Section 6.5 of these rules.
6.1.4 If individual shares of the GPP funds
held to fund an annuity is less than two-hundred fifty thousand dollars
($250,000.00), the Product Group, in its sole discretion, may elect to pay the
winners their share of the funds held in the GPP.
6.1.5 All annuitized prizes shall be paid
annually in thirty (30) payments with the initial payment being made in a
single payment, to be followed by twenty-nine (29) payments funded by the
annuity. Except as may be controlled by a Selling Lottery's governing statute,
all annuitized prizes shall be paid annually in thirty (30) graduated payments
(increasing each year) by a rate as determined by the Product Group. Prize
payments may be rounded down to the nearest one thousand dollars ($1,000.00).
Annual payments after the initial payment shall be made by the lottery on the
anniversary date or if such date falls on a non-business day, then the first
business day following the anniversary date of the selection of the Grand Prize
Winning Numbers.
6.1.6 Funds for
the initial payment of an annuitized prize or the lump sum cash option prize
payment shall be made available by MUSL for payment by the Selling 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 option amount may be delayed pending receipt of funds
from the Selling Lotteries. A paying lottery may elect to make the initial
payment from its own funds after validation, with notice to MUSL.
6.1.7 If a Party Lottery purchases or holds
the prize payment annuity for a prize won in that jurisdiction, that Party
Lottery's game rules, and any prize payment agreement with the prize winner,
shall indicate that the prize winner has no recourse on the MUSL or any other
Party Lottery for payment of that prize.
6.1.8 In the event of the death of a lottery
winner during the annuity payment period, unless prohibited by jurisdictional
law, the MUSL Finance & Audit Committee, in its sole discretion excepting a
discretionary review by the Product Group, upon the petition of the estate of
the lottery winner (the "Estate") to the lottery of the jurisdiction in which
the deceased lottery winner purchased the winning Play, and subject to federal,
state, district, or territorial applicable laws, may accelerate the payment of
all of the remaining lottery proceeds to the Estate. If such a determination is
made, then securities and/or cash held to fund the deceased lottery 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 & Audit Committee or the Product Group.
6.1.9 If a Party Lottery purchases or holds
the prize payment annuity for a prize won in that jurisdiction, that Party
Lottery's game rules, and any prize payment agreement with the prize winner,
shall indicate that the prize winner has no recourse on the MUSL or any other
Party Lottery for payment of that prize.
6.2
Lotto America Prize
Payments. All prizes (whether described as "cash" payment prizes or
otherwise) shall be paid through the Selling Lottery that sold the winning
Play(s) and at the discretion of the Selling Lottery that sold the winning
Play(s) may be paid by cash, check or warrant or electronic transfer.
A Selling Lottery may begin paying low-tier prizes after
receiving authorization to pay from the MUSL central office.
6.3
Lotto America Prizes Rounded.
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 payment
to the winner or winners.
Prizes other than the Grand Prize, which, under these
rules, may become single-payment, 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.
6.4
Lotto
America Prize Rollover. 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
GPP for the following drawing.
6.5
Funding of Guaranteed Lotto America Prizes.
6.5.1 The 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 Product Group finds that it would be in the best interest of the
game.
6.5.2 If a minimum Grand
Prize amount or a minimum increase in the Grand Prize amount between drawings
is offered by the Product Group, then the Grand Prize shares shall be
determined as follows:
6.5.2.1 If there are
multiple Grand Prize winners during a single drawing, each selecting the
annuitized option prize, then a winner's share of the guaranteed annuitized
Grand Prize shall be determined by dividing the guaranteed annuitized Grand
Prize by the number of winning Plays;
6.5.2.2 If there are multiple Grand Prize
winners during a single drawing and at least one (1) of the Grand Prize winners
has elected the annuitized option prize, then the MUSL Annuity Factor shall be
utilized to determine the cash pool. The cost of the annuitized prize(s) will
be determined at the time the annuity is purchased through a process approved
by the MUSL Board;
6.5.2.3 If no
winner of the Grand Prize during a single drawing has elected the annuitized
option prize, then the amount of cash in the GPP shall be an amount equal to
the guaranteed annuitized amount divided by the MSUL Annuity Factor.
6.5.3 Minimum guaranteed prizes or
increases may be waived by the Product Group if the alternate funding mechanism
set out in Section 4.4.3 of these rules becomes necessary. Approval of the
Group is required to change the guaranteed minimum Grand Prize amounts or
minimum increases in the Grand Prize amount. Any reduction in the guaranteed
minimum Grand Prize amount or reduction in the minimum increases to the Grand
Prize amount shall not become effective until after a Grand Prize win following
the action taken by the Group.
6.6
Limited to Highest Lotto America
Prize Won. The holder of a winning Lotto America Play may win only one
(1) prize per Lotto America Play in connection with the Winning Numbers drawn
and shall be entitled only to the prize won by those numbers in the highest
matching prize category. All liabilities for a Lotto America and All Star Bonus
prize are discharged upon payment of a prize claim.
6.7
Lotto America Prize Claim Period.
Prize claims shall be submitted within the period set by the Selling
Lottery selling the Play. For Maine, all prize claims, including the Grand
Prize shall be made within one (1) year after the drawing date.
6.8
Expired Unclaimed Prizes.
Prizes which are unclaimed for a period of one (1) year after the drawing date
on the ticket revert to the expired unclaimed prize pool to be distributed to
players in the form of special promotions or drawings.
