Current through September 17, 2024
401.01 The Division may contract with persons
to act as Lottery Game Retailers. The Division will only contract with those
persons who will, in the judgement of the Division, meet the statutory
requirements for contracting, promote the sale of lottery tickets and
materials, promote the best interests of the Nebraska Lottery and of the State,
and achieve the goals of the Act.
401.01A Any
person interested in obtaining a contract as a Lottery Game Retailer must first
file an application with the Division on forms supplied for that purpose by the
Division. The application form shall be designed to solicit sufficient relevant
information from an applicant to permit the Division to make a determination
pursuant to the Act and these rules for issuance of a contract.
401.01B Contract of a Lottery Game Retailer
in any capacity is a privilege personal to that person and is not a legal
right. Such contract may be terminated by the Division or by a Lottery Game
Retailer by surrender of the contract to the Division.
401.02 Eligibility for a contract
An application submitted in the following situations cannot
be accepted for a contract as a Lottery Game Retailer:
401.02A Any person who will engage in
business solely as a Lottery Game Retailer;
401.02B Any person who is under the age of
nineteen (19);
401.02C Any person
who has been convicted of a felony or misdemeanor involving gambling, moral
turpitude, dishonesty, or theft;
401.02D Any person who has been convicted of
any felony in the last ten (10) years;
401.02E Any person who has been convicted of
a violation of the Nebraska Bingo Act, The Nebraska County and City Lottery
Act, the Nebraska Lottery and Raffle Act, the Nebraska Pickle Card Lottery Act,
the Nebraska Small Lottery and Raffle Act, the State Lottery Act, or Chapter
28, article 11;
401.02F Any person
who has had a license revoked or denied under any of the acts listed in
Reg-401.02E;
401.02G Any person who
has had a license or contract to sell tickets in a lottery in another
jurisdiction revoked by the authority regulating such lottery or by a court of
such jurisdiction;
401.02H Any
person who has not been in substantial compliance with Nebraska tax laws during
the last five (5) years;
401.02I
Any person who is the State Tax Commissioner or an employee of the Division, or
who is the spouse, child, brother, sister, or parent, by blood or marriage,
residing as a member of the same household or in the principal place of abode
of the State Tax Commissioner or an employee of the Division;
401.02J Any person who is a Lottery
Contractor of a major procurement contract, or, which is owned by, controlled
by, or affiliated with such Lottery Contractor;
401.02K Any foreign corporation which is not
currently registered to do business within Nebraska; and
401.02L Any person for a location which is
licensed for the sale of alcoholic beverages for consumption on the premises
unless such establishment holds a Class C liquor license with a sampling
designation.
401.03
Identification of persons with substantial interest
The Lottery Game Retailer must provide information regarding
those who own or have an interest in the Lottery Game Retailer. The information
depends upon the type of business organization used by the Lottery Game
Retailer. The Lottery Game Retailer must provide information for each person as
specified in this section. For natural persons, the Lottery Game Retailer must
provide the name, address, date of birth, and social security number. For all
other entities, the Lottery Game Retailer must provide the name, address and
Federal Employer Identification Number.
401.03A If the Lottery Game Retailer is a
corporation, the officers, and shareholders;
401.03A(1) If the Lottery Game Retailer is a
subsidiary, the officers, and shareholders of the parent corporation.
401.03A(2) For publicly-traded corporations,
shareholders owning less than 10% do not need to be disclosed.
401.03B If the Lottery Game
Retailer is a trust, the trustee, beneficiaries, and any other person entitled
to receive income or benefit from the trust;
401.03C If the Lottery Game Retailer is a
partnership or joint venture, the general partners, and limited partners, or
joint venturers;
401.03D If the
Lottery Game Retailer is an association, the members, officers, and
directors;
401.03E If the Lottery
Game Retailer is a limited liability company, the members and managers;
and
401.03F If the parent company,
general partner, limited partner, or joint venturer of the Lottery Game
Retailer is itself a corporation, trust, association, subsidiary, partnership,
limited liability company or joint venture, the same information is required
for such other entity as if it were itself the Lottery Game Retailer;
401.03F(1) In a chain of ownership, the same
disclosures will continue until the ultimate ownership is fully
disclosed.
401.04 Background and informational
statements
Lottery Game Retailers may be required to submit to checks or
investigations of criminal history, fingerprints, background, financial
responsibility, or integrity of any person with a substantial interest as
defined in Reg-101.27, or of any key personnel who will be involved with the
products or services in the operation of the lottery retail activities.
401.04A The Lottery Game Retailer will pay
all expenses incurred by the Division in completing the checks and
investigations.
