Current through Register Vol. 47, No. 12, March 26, 2025
(a)
Conditions. A courier
service shall, as a condition of licensure:
(1) display prominently on its platform a
warning of the risk of being defrauded by lottery scams and information on
playing responsibly, which information shall be substantially similar to the
information displayed on the New York Lottery website or such other information
approved by the commission;
(2)
maintain a courier customer self-exclusion list and provide a mechanism for
courier customers to register through the network to exclude themselves from
using the network. Such list shall include any person who appears on a
statewide exclusion list maintained by the commission. A courier service shall
ensure to the satisfaction of the commission that any courier customer placed
on the self-exclusion list is prevented from requesting tickets through the
network;
(3) ensure the network
includes the following features:
(i) a daily
courier customer request limit of an amount approved by the commission, which
may provide that prize amounts of less than $600 awarded to a courier customer
and credited to the courier customer's account may be excluded from the daily
request limit;
(ii) the ability for
a courier customer to set a lower personal daily request limit; and
(iii) a waiting period, as determined by the
commission, before a courier customer can raise a previously set personal daily
request limit;
(4)
maintain a courier customer and ticket management system that includes a secure
database of all tickets requested through the network;
(5) maintain at a separate physical location
a secure backup database;
(6) not
use trademarks or other marks owned or controlled by the commission or any
multi-state lottery consortium except with the express approval of the
commission;
(7) offer for delivery
only games approved by the commission for delivery by such licensee;
and
(8) provide courier customer
support, for purposes of responding to courier customer inquiries and disputes,
in a manner approved by the commission.
(b)
Approval of lottery games
offered. No courier service may offer for sale or delivery any lottery
game unless the commission has approved in writing the offering of such game by
such licensee. The commission may consider, without limitation, technical
requirements and multistate game requirements in determining whether to grant
such approval. Any commission approval may establish a date before which the
licensee may not offer the delivery of such lottery game tickets.
(c)
Compliance audits. At
the sole expense of the courier service, the network shall be audited and
certified to be compliant with this Part at least annually by an independent
party approved by the commission.
(d)
Indemnification, release and hold
harmless. As a condition to the issuance and acceptance of a courier
service license, such licensee agrees to:
(1)
indemnify and hold harmless the State, the commission and any of the employees
of the State or the commission from any and all claims, damages, claims for
damages, causes of action or suits that may arise or occur directly or
indirectly as a result of
(i) any act or
omission of such licensee that affects the State, the commission and any of the
employees of the State or the commission; and
(ii) any purchase of courier services through
the courier service's network or any operation carried on, under and pursuant
to a courier service;
(2)
release the State, the commission and any of the employees of the State or the
commission from any and all claims, damages, claims for damages, causes of
action or suits that shall accrue to the licensee, such licensee's employees,
representative or agents that may arise or occur directly or indirectly as a
result of any operation carried on, under or pursuant to such license;
and
(3) defend, at such licensee's
own expense, any and all causes of action or suits against the State that may
be brought by any party, including any courier customer, that may arise or
occur directly or indirectly out of any act or omission of such licensee or
operation carried on pursuant to or in accordance with such license, the
placement of requests for courier services through such licensee's network or
the generation of, or failure to generate, lottery tickets to complete ticket
purchases related to such requests for courier services.
(e)
Insurance. Each courier
service shall obtain insurance, which may include cyber liability insurance,
errors and omissions insurance and such other insurance coverage as the
commission may require, with limits and coverage requirements and minimum
carrier ratings satisfactory to the commission.
(f)
Independent third-party
testing. As a condition to the issuance and acceptance of a courier
license, a licensee shall implement, prior to offering a network, independent
third-party testing required by the commission as provided in section
5014.9 of this Part.
