Current through Reg. 50, No. 13; March 28, 2025
(a)
Mega Millions®. The Multi-State Lottery Association (MUSL) has entered into
an Agreement (Cross-Sell Agreement) with those U.S. lotteries operating under
an agreement to sell a draw game known as Mega Millions (Mega Millions
Lotteries) to permit the MUSL Party Lotteries who are members of the MUSL Mega
Millions (M2G2) Product Group ("Product Group"), including the Texas Lottery
Commission (commission), to sell the Mega Millions lottery game. The purpose of
the Mega Millions game is the generation of revenue for Mega Millions Lotteries
and Product Group members participating under the Cross-Sell Agreement, through
the operation of a specially designed multi-jurisdiction lottery game that will
award prizes to Ticket holders matching specified combinations of numbers
randomly selected in regularly scheduled drawings. The Mega Millions game is
authorized to be conducted by the commission executive director (executive
director) under the conditions of the Cross-Sell Agreement, MUSL rules, the
laws of the State of Texas, this section, and under such further instructions,
directives, and procedures as the executive director may issue in furtherance
thereof. In this regard, the executive director is authorized to issue such
further instructions and directives as may be necessary to conform the conduct
and play of the Mega Millions game to the requirements of the MUSL rules and
the Cross-Sell Agreement, if, in the opinion of the executive director, such
instructions, directives, and procedures are in conformance with state law. To
be clear, the authority to participate in the Mega Millions game is provided to
the commission by MUSL through the Cross-Sell Agreement. The conduct and play
of the Mega Millions game in Texas must conform to the MUSL Mega Millions
(M2G2) Product Group Rules ("MUSL MM Rules"). Further, if a conflict arises
between this section and §
401.304 of this subchapter
(relating to Draw Game Rules (General)), this section shall have precedence. In
addition to other applicable rules contained in Chapter 401, this section and
definitions herein apply unless the context requires a different meaning or is
otherwise inconsistent with the intent of the MUSL MM Rules adopted by the
Product Group.
(b) Definitions. In
addition to the definitions provided in §
401.301 of this subchapter
(relating to General Definitions), and unless the context in this section
otherwise requires, the following definitions apply.
(1) "Agent", "Sales Agent" or "Retailer"
means a person licensed under the State Lottery Act to sell Texas Lottery
Tickets, which include Mega Millions game Plays.
(2) "Drawing" refers collectively to the
formal draw event for randomly selecting the winning numbers that determine the
number of winning Plays for each prize level of the Mega Millions game.
Drawings will be held at the times and places established by the Mega Millions
Lotteries.
(3) "Game Ticket" or
"Ticket" means an acceptable evidence of Play, as defined in §401.301
(relating to General Definitions) "Draw game ticket", produced in a manner that
meets the specifications defined in the MUSL MM Rules, and is a physical
representation of the Play or Plays sold to the player as described in
subsection (h) of this section (Ticket Validation).
(4) "Mega Millions Lotteries" refers to those
lotteries that have reached a Cross-Sell Agreement with MUSL for the selling of
the Mega Millions game. The Mega Millions Lotteries will determine the Mega
Millions Advertised Jackpot Prize amount (cash value option and annuity).
(5) "Mega Millions Plays" (MM
Plays) shall refer to Plays purchased for the Mega Millions game.
(6) "Multiplier" means a unique number that
is automatically selected by the Lottery Gaming System according to the
frequency set forth in subsection (f) of this section, for each Mega Millions
Play.
(7) "MUSL" means the
Multi-State Lottery Association, a government-benefit association wholly owned
and operated by the MUSL Party Lotteries.
(8) "MUSL Board" means the governing body of
the MUSL, which is comprised of the chief executive officer of each Party
Lottery.
(9) "Party Lottery" means
a state lottery or lottery of a political subdivision or entity that has joined
MUSL and, in the context of the Product Group rules, has joined in selling the
games offered by the Product Group. "Selling Lottery" or "Participating
Lottery" shall mean a state lottery or lottery of a political subdivision or
entity that is participating in selling the Mega Millions game and that may be
a member of either the Product Group or the Mega Million Lotteries.
(10) "Play" means a set of six (6) numbers,
the first five (5) from a field of seventy (70) numbers and the last one (1)
from a field of twenty-four (24) numbers, that appear on a Ticket and are to be
played by a player in the game. As used in this section, unless otherwise
indicated, "Play" means a Mega Millions Play ("MM Play").
(11) "Prize" means an amount paid to a person
or entity holding a winning Ticket. The term "Jackpot Prize shall refer to the
top prize in the Mega Millions game. "Advertised Jackpot Prize" shall mean the
estimated annuitized Jackpot Prize amount as determined by the Mega Millions
Lotteries. The Advertised Jackpot Prize is not a guaranteed prize amount and
the actual Mega Millions Jackpot amount may vary from the advertised amount,
except in circumstances where there is a guaranteed Mega Millions Jackpot Prize
amount as described in subsection (g)(1) of this section.
(12) "Product Group" means the MUSL Party
Lotteries who are members of the MUSL Mega Millions Product Group and who offer
the Mega Millions game product pursuant to the terms of the Cross-Sell
Agreement between MUSL and the Mega Millions Lotteries, and in accordance with
the Multi-State Lottery Agreement and the MUSL MM Rules.
(13) "Set Prize" or "low-tier prize" means
all other prizes, except the Jackpot Prize and, except in instances outlined in
this section, or the MUSL MM Rules, will be equal to the prize amount
established by the Mega Millions Lotteries.
(14) "Terminal" means a device authorized by
the commission for the purpose of issuing Mega Millions game Tickets and as
defined in §
401.301 of this subchapter
(relating to General Definitions).
(15) "Winning Numbers" means the indicia or
numbers randomly selected during a Drawing event which shall be used to
determine the winning Plays for the Mega Millions game contained on a Game
Ticket.
(c) Game
Description. Mega Millions is a five (5) out of seventy (70) plus one (1) out
of twenty-four (24) lottery game drawn on the day(s), time(s) and location(s)
as determined by the Mega Millions Lotteries. Each Mega Millions Play will
include a Multiplier, which is a unique number that is automatically selected
by the Lottery Gaming System according to the frequency set for in subsection
(f) of this section and printed directly on the Mega Millions Ticket. The
Multiplier increases non-Jackpot Prizes by two times, three times, four times,
five times or ten times the prize won. The Jackpot Prize will be paid at the
election of the player made in accordance with this section, or by a default
election made in accordance with this section, either on a graduated annuitized
annual pari-mutuel basis or as a cash value option using a rate determined by
the Mega Millions Lotteries on a pari-mutuel basis. Except as provided in this
section, all other prizes are paid on a single payment basis. During the
Drawing event, five (5) numbers shall be drawn from the first set of seventy
(70) numbers, and one (1) number shall be drawn from the second set of
twenty-four (24) numbers, which shall constitute the Winning Numbers. The
Multiplier for each Play will be automatically selected by the Lottery Gaming
System and printed on the Ticket at time of purchase.
(1) Mega Millions Play. To play Mega
Millions, a player shall select (or request a Quick Pick) five (5) different
numbers, from a field of one (1) through seventy (70), and one (1) additional
number from a second field of one (1) through twenty-four (24). The player
selected (or the requested Quick Pick) number from the second field may be the
same as one of the five numbers from the first field. The Lottery Gaming System
will randomly generate the Multiplier, which will be included on each Mega
Millions Play purchased and will multiply low-tier prizes only. The Multiplier
is included in the price of a Play and is not an add-on. The Multiplier is
further defined in subsection (b)(6) of this section. MM Plays can be purchased
for five dollars (U.S. $5.00), including any specific statutorily-mandated tax
of a Party Lottery to be included in the price of a lottery Play. Plays may be
purchased from a commission approved Sales Agent in a manner as approved by the
commission and in accordance MUSL MM rules.
(2) Claims. A Ticket shall be the only proof
of a game Play or Plays and is subject to the validation requirements set forth
in subsection (h) of this section. The submission of a winning Ticket to the
commission or its authorized Sales Agent shall be the sole method of claiming a
prize or prizes. A playslip has no pecuniary or prize value and shall not
constitute evidence of Play purchase or of numbers selected. A
terminal-produced paper receipt has no pecuniary or prize value and shall not
constitute evidence of Play purchase or of numbers selected.
(3) Cancellations Prohibited. In all
instances, a Play recorded on the Lottery Gaming System may not be voided or
cancelled by returning the Ticket to the Sales Agent or to the commission,
including Tickets that are misprinted, illegible, printed in error, or for any
reason not successfully transferred to an authorized selling entity or player.
A Selling Lottery may develop an approved method of compensating retailers for
Plays that are not transferred to a player for a reason acceptable to the
Selling Lottery and not prohibited by the Mega Millions Product Group. No Play
that is eligible for a prize can be returned to the commission for credit.
Plays accepted by retailers as returned Plays and which cannot be re-sold shall
be deemed owned by the bearer thereof.
(4) Maximum Purchase. The maximum number of
consecutive drawings on a single Play purchase is ten (10).
(5) Subscription sales. A subscription sales
program may be offered, at the discretion of the executive director.
(d) Mega Millions Prize Pool. The
prize pool for all prize categories offered by the Party Lotteries shall
consist of up to fifty-five percent (55%) of each Drawing period's sales,
inclusive of any specific statutorily-mandated tax of a Party Lottery to be
included in the price of a MM Play, and inclusive of contributions to the prize
pool accounts and prize reserve accounts, but may be higher or lower based upon
the number of winning Plays at each prize level, as well as the funding
required to meet a guaranteed Annuity Jackpot Prize as may be required by
subsection (g)(1) of this section.
(1) Mega
Millions Prize Pool Accounts and Prize Reserve Accounts. The Product Group
shall set the contribution rates to the Prize Pool and Prize Reserve Accounts
established by this section.
(A) The
following Prize Reserve Account for the Mega Millions game is hereby
established: the Prize Reserve Account (PRA) which is used to guarantee the
payment of valid, but unanticipated, Jackpot Prize claims that may result from
a system error or other reason, to fund deficiencies in the Set-Aside Pool, and
to fund pari-mutuel prize deficiencies as defined and limited in subsection
(d)(3)(A) of this section.
(B) The
following Prize Pool Accounts for the Mega Millions game are hereby
established:
(i) The Jackpot Prize Pool
(JPP), which is used to fund the current Jackpot Prize;
(ii) The Set Prize Pool (SPP), which is used
the fund the Set Prizes. The SPP shall hold the 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
contributions less actual Set Prize liability; and
(iii) The Set-Aside Pool (SAP), which is used
to fund the payment of the awarded minimum starting Annuity Jackpot Prizes and
the minimum Annuity Jackpot Prize increase, if necessary (subject to the
limitations in this section or the MUSL MM Rules), as may be set by the Product
Group. The source of the SAP funding shall accumulate from the difference
between the amount in the Jackpot Prize Pool at the time of a Jackpot Prize win
and the amount needed to fund Jackpot Prize payments as determined by the Mega
Millions Lotteries.
(C)
The maximum balance amounts and balance limit triggers are subject to review by
the MUSL Board Finance Committee. The Finance 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 Committee and no objection is stated or sooner if the Committee
affirmatively approves the maximum balance amounts or balance limiter triggers.
The Product 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
Jackpot Prize win.
(D) The
contribution rate to the JPP from MM Plays shall be 37.6509% of sales. An
amount up to five percent (5%) of a Party Lottery's sales, including any
specific statutorily mandated tax of a Party Lottery to be included in the
price of a lottery play, shall be added to a Party Lottery's Mega Millions
Prize Pool contribution and placed in trust in one or more prize pool and prize
reserve accounts held by the Product Group at any time that the Party Lottery's
share of the PRA is below the amounts designated by the Product
Group.
(E) The Product Group may
determine to expend all or a portion of the funds in the prize pools (except
the JPP) and the prize reserve accounts:
(i)
for the purpose of indemnifying the Party Lotteries in the payment of prizes to
be made by the Selling Lotteries; and
(ii) 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 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.
(F) 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.
(G) 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 reserve account, a Party Lottery is responsible for payment
of its full sales percentage share of the prize reserve account.
(H) Any amount remaining in the Mega Millions
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
prize pool and prize reserve 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.
(2) Expected Prize Payout. The Jackpot Prize
payout shall be determined on a pari-mutuel basis. Except as otherwise provided
in this section, all other prizes awarded shall be paid as single payment
prizes. All prize payouts are made with the prize payout percentages set out in
Figure 16 TAC 401.315(e), which does not include an additional amount held in
prize reserves, although the prize payout percentages per draw may vary.
(A) The Jackpot Prize amount shall be divided
equally by the number of MM Plays winning the Jackpot Prize.
(B) The SPP (for payment of 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 set
prizes awarded in the current draw.
(3) Pari-mutuel Prize Determinations. Except
as otherwise provided for in subparagraph (C) of this paragraph below:
(A) If the total of the Mega Millions Set
Prizes (as multiplied by the respective Multiplier) awarded in a drawing
exceeds the percentage of the prize pool allocated to the Mega Millions Set
Prizes, then the amount needed to fund the Mega Millions Set Prizes awarded
shall be drawn from the following sources, in the following order:
(i) the amount available in the SPP, if any;
(ii) an amount from the PRA, if
available, not to exceed forty million dollars ($40,000,000.00) per
drawing.
(B) If, after
these sources are depleted, there are not sufficient funds to pay the Set
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 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 section shall be divided among the winning MM Plays in proportion to
their respective prize percentages. Mega Millions prizes will be reduced by the
same percentage.
(C) By agreement
with the Mega Millions Lotteries, the Mega Millions Lotteries shall
independently calculate their set pari-mutuel prize amounts. The Party
Lotteries and the Mega Millions Lotteries shall than agree to set the
pari-mutuel prize amount for all lotteries selling the game at the lesser of
the independently-calculated prize amounts.
(4) Except as may be required by subsection
(g)(1) of this section, the official advertised Jackpot Prize annuity amount is
subject to change based on sales forecasts and/or actual sales.
(5) Subject to the laws and rules governing
each Party Lottery, the number of prize categories and the allocation of the
prize fund among the prize categories may be changed at the discretion of the
Mega Millions Lotteries, for promotional purposes. Such change shall be
announced by Mega Millions Lotteries.
(e) Prize Structure. The matrix of 5/70 and
1/24 with an anticipated prize payout is shown below and applies to all Product
Group members with respect to the Jackpot Prize, and will apply for all Product
Group members for the second through ninth level prizes. The following table
sets forth the odds of winning and the probable distribution of winning Plays
in and among each prize category for MM Plays, based upon the total number of
possible combinations in Mega Millions. All prize payouts are made with the
following expected prize payout percentages, which does not include any
additional amount contributed to or held in prize reserves, although the prize
payout percentages per draw may vary:
Attached Graphic
(f) Multiplier Frequency and Odds.
The Multiplier shall apply to all prize levels except the Jackpot Prize. The
Multiplier increases non-Jackpot Prizes by two times, three times, four times,
five times, or ten times the prize won. The Multiplier shall print directly on
the Ticket for each Play. Multipliers may repeat on a printed Ticket due to the
frequency and limited Multiplier levels as shown below. The Multiplier
frequency and odds are as follows:
Attached Graphic
(g) Mega Millions Prize Payment.
(1) Mega Millions Jackpot Prize. The prize
money allocated from the current Mega Millions prize pool for the Jackpot
Prize, will be divided equally among all Jackpot Prize winning MM Plays in all
Participating Lotteries. The Annuity Jackpot Prize amount will be paid in
thirty (30) graduated annual installments. Jackpot Prizes won shall be funded
by the Selling Lotteries in accordance with the formula set by the Mega
Millions Lotteries. The Mega Millions Lotteries may set a minimum guaranteed
annuitized Jackpot Prize amount that shall be advertised by the Selling
Lotteries as the starting guaranteed annuitized Jackpot Prize amount. At the
time of Ticket purchase, a player must select a payment option of either a
single cash value payment or annuitized payments of a share of the Jackpot
Prize if the Play is a winning Play. A player's selection of the payment option
at the time of purchase from the commission is final and cannot be revoked,
withdrawn, or otherwise changed. If no selection is made, payment option will
be as described in the chart below:
Attached Graphic
(2) Mega Millions Prize Rollover.
If in any Mega Millions Drawing there are no MM Plays that qualify for the
Jackpot Prize category, the portion of the prize fund allocated to such Jackpot
Prize category shall remain in the Jackpot Prize category and be added to the
amount allocated for the Jackpot Prize category in the next consecutive Mega
Millions Drawing.
(3) A player(s)
who elects a cash value option payment shall be paid his/her share(s) in a
single cash payment upon completion of validation procedures determined by the
commission. The cash value option amount shall be determined by the Mega
Millions Lotteries.
(4) All
annuitized prizes shall be paid annually in thirty (30) consecutive graduated
annual installments by the commission upon completion of validation procedures
determined by the commission, with graduated annual installments as defined by
the Mega Millions Lotteries in the Mega Millions Finance and Operations
Procedures. The initial payment shall be paid upon completion of the validation
procedures. The subsequent twenty-nine (29) payments shall be paid annually to
coincide with the month of the federal auction date at which the bonds were
purchased to fund the annuity. All such payments shall be made within seven (7)
days of the anniversary of the annual auction date. The annuitized option prize
shall be determined by multiplying the winning Play's share of the Jackpot
Prize Pool by the annuity factor established in accordance with Texas law and
the rules of the Texas Comptroller of Public Accounts.
(5) If individual shares of the Jackpot Prize
Pool funds held to fund an annuity is less than $250,000.00, the Product Group,
in its sole discretion, may elect to pay the winners their share of the cash
held in the Jackpot Prize Pool.
(6)
Funds for the initial payment of an annuitized prize or the lump sum cash value
option payment shall be made available by MUSL for payment by the Party Lottery
on a schedule approved by the Product Group. 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 cash value option payment amount may be delayed pending receipt of funds
from the Party Lotteries or other lotteries participating in the Mega Millions
game. A Party Lottery may elect to make the initial payment from its own funds
after validation, with notice to MUSL.
(7) Payment of Prize Payments upon the Death
of a Prize Winner. In the event of the death of a prize winner, payments may be
made in accordance with §
401.310 of this subchapter
(relating to Payment of Prize Payments Upon Death of Prize Winner), otherwise,
payment of prize payments will be made to the estate of a deceased prize winner
in accordance with Texas Government Code §
466.406.
(8) Prize Payments. All prizes shall be paid
through the Selling Lottery that sold the winning Play(s). All low-tier cash
prizes (all prizes except the Jackpot Prize) shall be paid in cash or warrants
in accordance with Texas statutes and these rules. A Selling Lottery may begin
paying low-tier cash prizes after receiving authorization to pay from the MUSL
central office.
(9) Prizes Rounded.
Annuitized payments of the Jackpot Prize or a share of the Jackpot Prize may be
rounded to facilitate the purchase of an appropriate funding mechanism.
Breakage on an annuitized Jackpot Prize win shall be added to the first payment
to the winner or winners. Prizes other than the Jackpot Prize, which, under
this section, 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.
(10) Limited
to Highest Prize Won. The holder of a winning MM Play may win only one (1)
prize per 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 Mega Millions prize are discharged upon payment
of a prize claim.
(11) Claim
Period. Prizes must be claimed no later than 180 days after the draw date, or
in accordance with Texas Government Code §
466.408(e).
(h) Ticket Validation.
(1) To be a valid Play and eligible to
receive a prize, a Play's Ticket shall satisfy all the requirements established
by the commission for validation of winning Plays sold through the Lottery
Gaming System, as well as any other validation requirements adopted by the
Product Group, the MUSL Board and published as the Confidential MUSL Minimum
Game Security Standards. The MUSL and the Party Lotteries shall not be
responsible for Plays or Tickets that are altered in any manner.
(2) Under no circumstances will a claim for
any prize be paid without an official Mega Millions Ticket issued as authorized
by the commission and matching all game Play, serial number and other
validation data residing in the commission's Lottery Gaming System and such
Ticket shall be the only valid proof of the wager placed and the only valid
receipt for claiming or redeeming such prize.
(3) In addition to the above, in order to be
deemed a valid, winning Mega Millions Play, all of the following conditions
must be met:
(A) The validation data must be
present in its entirety and must correspond, using the computer validation
file, to the number selections printed on the Ticket for the applicable drawing
date(s);
(B) The Ticket must be
intact;
(C) The Ticket must not be
mutilated, altered, reconstituted, or tampered with in any manner;
(D) The Ticket must not be counterfeit or an
exact duplicate of another winning Ticket;
(E) The Ticket must have been issued by an
authorized Sales Agent on official Texas Lottery paper stock or, for
third-party point-of-sale systems approved by the commission, printed on paper
stock or otherwise issued in a manner approved by the commission to provide
tangible evidence of participation in a lottery game;
(F) The Ticket must not have been stolen, to
the knowledge of the commission;
(G) The Ticket must be submitted for payment
in accordance with the prize claim procedures of the commission as set out in
§
401.304 of this subchapter and any
internal procedures used by the commission;
(H) The Play data on the Ticket must have
been recorded on the Lottery Gaming System prior to the Drawing and the Play
data must match this computer record in every respect. In the event of a
contradiction between information as printed on the Ticket and as accepted by
the commission's Lottery Gaming System, the wager accepted by the commission's
Lottery Gaming System shall be the valid wager;
(I) The player or Quick Pick number
selections, validation data and the drawing date(s) of an apparent winning Play
must appear in the official file of winning Plays, and a Play with that exact
data must not have been previously paid;
(J) The Play must not be misregistered, and
the Play's Ticket must not be defectively printed or printed or produced in
error to an extent that it cannot be processed by the commission;
(K) The Ticket must pass confidential
validation tests in accordance with the MUSL MM Rules. In addition, the Ticket
must pass all other confidential security checks of the commission;
(L) In submitting a Ticket for validation,
the claimant agrees to abide by applicable laws, all rules and regulations,
instructions, conditions and final decisions of the executive director of the
commission;
(M) There must not be
any other breach of the MUSL MM Rules, or this subchapter, in relation to the
Play, which, in the sole and final opinion of the executive director of the
commission, justifies invalidation; and
(N) The Ticket must be submitted to the
commission, or the Selling Lottery that issued it.
(4) A Play submitted for validation that
fails any of the preceding validation conditions shall be considered void,
subject to the following determinations:
(A)
In all cases of doubt, the determination of the commission shall be final and
binding; however, the commission may, at its option, replace an invalid Play
with a Mega Millions Play of equivalent sales price;
(B) In the event a defective Ticket is
purchased or in the event the commission determines to adjust an error, the
claimant's sole and exclusive remedy shall be the replacement of such defective
or erroneous Ticket(s) with a Mega Millions Play of equivalent sales price; and
(C) In the event a Mega Millions
Play is not paid by the commission and a dispute occurs as to whether the Play
is a winning Play, the commission may, at its option, replace the Play as
provided in subparagraph (A) of this paragraph. This shall be the sole and
exclusive remedy of the claimant.
(i) Ticket Responsibility.
(1) Prize Claims. Prize claim procedures
shall be governed by the rules of the commission. The MUSL and the Selling
Lotteries shall not be responsible for prizes that are not claimed following
the proper procedures as determined by the commission.
(2) Stolen Plays. The Product Group, the
MUSL, the Party Lotteries and the commission shall not be responsible for lost
or stolen Plays.
(3) The Party
Lotteries shall not be responsible to a prize claimant for Mega Millions Plays
redeemed in error by a Texas Lottery Sales Agent.
(4) Winning Plays are determined by the
numbers drawn and certified by the independent auditor responsible for auditing
the Mega Millions draw. MUSL, the Party Lotteries and the commission are not
responsible for Mega Millions winning numbers reported in error.
(j) Ineligible Players.
(1) A Play, or share of a Play, for a MUSL
game issued by the MUSL or any of its Party Lotteries shall not be purchased
by, and a prize won by any such Play, or share of a Play, shall not be paid to:
(A) a MUSL employee, officer, or director;
(B) a contractor or consultant
under agreement with the MUSL to review the MUSL audit and security procedures;
(C) an employee of an independent
accounting firm under contract with MUSL to observe drawings or site operations
and actually assigned to the MUSL account and all partners, shareholders, or
owners in the local office of the firm; or
(D) an immediate family member (parent,
stepparent, child, stepchild, spouse, or sibling) of an individual described in
subsections (a), (b), and (c) of this section and residing in the same
household.
(2) Those
persons designated by the State Lottery Act, Texas Government Code, Chapter
466, as ineligible to play its games shall also be ineligible to play any MUSL
lottery game sold in the state of Texas.
(3) A Play, or share of a Play, of the Mega
Millions game may not be purchased in any lottery jurisdiction by any Party
Lottery board member; commissioner; officer; employee; or spouse, child
brother, sister or parent residing as a member of the same household in the
principal place of residence of any such person. Prizes shall not be paid to
any persons prohibited from playing Mega Millions in a particular jurisdiction
by rules, governing law, or any contract executed by the Selling Lottery.
(k) Applicable Law.
(1) In purchasing a Play, or attempting to
claim a prize, purchasers and prize claimants agree to comply with and abide by
all applicable laws, rules, regulations, procedures, and decisions of the
commission and by directives and determinations of the commission's executive
director. Additionally, the player shall be bound to all applicable provisions
in the MUSL MM Rules and the Mega Millions Finance and Operations Procedures as
established by the Mega Millions Lotteries.
(2) A prize claimant agrees, as its sole and
exclusive remedy, that claims arising out of a Play can only be pursued against
the Party Lottery which issued the Play. Litigation, if any, shall only be
maintained within the jurisdiction in which the Play was purchased and only
against the Party Lottery that issued the Play. No claim shall be made against
any other Party Lottery or against the MUSL.
(3) Nothing in this section or the MUSL MM
Rules shall be construed as a waiver of any defense or claim the commission,
which issued the Play, any other Party Lottery, or MUSL may have in any
litigation, including in the event a player or prize claimant pursues
litigation against a Party Lottery or MUSL, or their respective officers,
directors or employees.
(4) All
decisions made by the commission, including the declaration of prizes and the
payment thereof and the interpretation of MUSL MM Rules, shall be final and
binding on all Play purchasers and on every person making a prize claim in
respect thereof, but only in the jurisdiction where the Play was issued.
(5) Unless the laws, rules,
regulations, procedures, and decisions of the commission, which issued the
Play, provide otherwise, no prize shall be paid upon a Play purchased, claimed
or sold in violation of this section, the MUSL MM Rules, or the laws, rules,
regulations, procedures, and decisions of the commission; any such prize
claimed but unpaid shall constitute an unclaimed prize under this section and
the laws, rules, regulations, procedures, and decisions of the
commission.