Oregon Administrative Rules
Chapter 177 - OREGON STATE LOTTERY
Division 85 - POWERBALL®
Section 177-085-0025 - Powerball®Prize Pool

Universal Citation: OR Admin Rules 177-085-0025

Current through Register Vol. 63, No. 9, September 1, 2024

(1) Powerball® Prize Pool: The prize pool for all prize categories shall consist of 50 percent of each drawing period's sales, including contributions to the prize pool accounts and prize reserve accounts.

(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 it has established.

(a) Powerball® Prize Reserve Accounts: The Product Group has established the following prize reserve accounts for the Powerball® game:
(A) The Powerball® Prize Reserve Account, which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason, or to fund Guaranteed Grand Prizes as provided in OAR 177-085-0035(11)(d); and

(B) The Powerball® Set Prize Reserve Account, which is used to fund deficiencies in low-tier Powerball® prize payments (subject to the limitations of these rules).

(b) Powerball® Prize Pool Accounts: The Product Group has established the following prize pool accounts for the Powerball® game:
(A) The Grand Prize Pool Account, which is used to fund the current Grand Prize;

(B) The Powerball® Set Prize Pool Account, which is used to fund the Powerball® set prize payments. The Set Prize Pool holds the temporary balances that may result from having fewer than expected winners in the Set Prize categories. The source of the Set Prize Pool Account is the Party Lotteries' weekly prize contributions less actual Set Prize liability;

(C) The Powerball® Set-Aside Pool Account, 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;

(D) The Grand Prize Carry Forward Pool Account, 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; and

(E) The Power Play® Prize Pool Account and the Power Play Pool Account, which are described in OAR 177-085-0065.

(c) Balance Amounts: The above prize reserve accounts, the Grand Prize Carry Forward Pool Account, and the Set-Aside Pool Account shall have maximum balance amounts or balance limit triggers that are set by the Product Group.
(A) 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.

(B) The maximum contribution rate to the Grand Prize Pool Account is 68.0131 percent of the prize pool (34.0066 percent of sales) except as provided in OAR 177-085-0035(11)(d).
(i) An amount up to 5 percent of a Party Lottery's sales shall be deducted from a Party Lottery's Grand Prize Pool Account 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 account(s) is below the amounts designated by the Product Group.

(ii) An additional amount up to 20 percent of a Party Lottery's sales shall be deducted from a Party Lottery's Grand Prize Pool Account contribution and placed in trust in the Grand Prize Carry Forward Pool Account to be held by the Product Group at a time as determined by the Product Group.

(3) Balances: The Product Group may determine to expend all or a portion of the funds in the Powerball® prize pool accounts (except the Grand Prize Pool Account and the Grand Prize Carry Forward Pool Account) and the prize reserve accounts as follows:

(a) For the purpose of indemnifying the Party Lotteries and Licensee Lotteries in the payment of prizes to be made by the selling lotteries; and

(b) 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 MUSL Board's Finance and 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 Grand Prize Carry Forward Prize Pool Account may only be expended to fund the starting minimum annuity Grand Prize. The prize reserve shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve accounts as may be needed to maintain the approved maximum balance and sales percentage shares of the Party Lotteries. 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 a prize reserve account, a Party Lottery is responsible for its full percentage share of the prize reserve account, whether or not it has been paid in full. Any amount remaining in the Powerball® prize pool accounts or prize reserve accounts when the Product Group declares the end of the Powerball® game shall be returned to all lotteries participating in the accounts after the end of all claims 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 state law.

(4) Expected Powerball® Prize Payout Percentages: The Grand Prize payout shall be determined on a pari-mutuel basis. Except as otherwise required by law or provided in these rules, all other prizes awarded shall be paid as set lump sum prizes with the following expected prize payout percentages, although the prize payout percentage per draw may vary: [Table not included here. See ED. NOTE.]

(a) Division of Grand Prize among Winners: The prize money allocated to the Grand Prize category shall be divided equally by the number of tickets with winning game plays winning the Grand Prize.

(b) Powerball® Set Prize Pool Account Carried Forward: The Powerball® Set Prize Pool Account (for the single lump sum prizes of $1,000,000 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.

(c) Pari-Mutuel Powerball® Prize Determination: Except as provided in paragraph (C) of this subsection, for Party Lotteries:
(A) 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 Powerball® set prizes, then the amount needed to fund the Powerball® set prizes, including Power Play® prizes, awarded shall be drawn from the following sources, in the following order:
(i) The amount available in the Set Prize Pool Account and the Power Play® Prize Pool Account, if any;

(ii) An amount from the Set Prize Reserve Account, if available, not to exceed $40,000,000 per drawing; and

(iii) Other amounts as agreed to by the Product Group in its sole discretion.

(B) Lack of Sufficient Prize Funds: 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 instance, the money available from the funding sources listed in this rule shall be divided among the tickets with winning game plays in proportion to their respective prize percentages. Powerball® set prizes and Power Play® prizes will be reduced by the same percentage.

(C) 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.

To view attachments referenced in rule text, click here to view rule.

Statutory/Other Authority: OR Const, Art XV, § 4(4)(a), ORS 461.120, 461.210, 461.220, 461.230 & 461.250

Statutes/Other Implemented: OR Const, Art XV, § 4(4), ORS 461.020, 461.200, ORS 461.120, 461.210, 461.220, 461.230 & 461.250

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