Current through August 26, 2024
The retailer's contract shall include all of the following
terms and conditions:
(1) CONTRACT
PERIOD AND SALES AUTHORIZATION. The retailer's contract shall remain in effect
for at least one year and shall expire on the date shown on the certificate of
authority. The administrator may renew the contract. However, the retailer does
not have a substantial interest in, or a vested legal or equitable right to, a
contract renewal.
(2) CONTRACT NOT
ASSIGNABLE OR TRANSFERABLE. The retailer's contract may not be assigned or
transferred from one person or location to another.
(3) RETAILER IS NOT AN EMPLOYEE OR AGENT OF
THE STATE. The retailer is not an employee or agent of the state of Wisconsin
and is not entitled to any right, privilege or benefit that would accrue to an
employee or agent of the state of Wisconsin.
(4) INDEMNIFICATION. The retailer shall
indemnify and hold harmless the state of Wisconsin, the Wisconsin lottery, and
the Wisconsin lottery's employees and agents from and against all claims,
suits, or actions arising from any willful or negligent act or omission of the
retailer or its agents while performing under the terms of the retailer
contract.
(5) COMPLIANCE WITH STATE
LAW AND RULES. During the term of the retailer contract, the retailer shall
comply with ch. 565, Stats., the Wisconsin lottery's administrative rules and
any other applicable state law and administrative rules.
(6) COMPLIANCE WITH RETAILER'S HANDBOOK.
During the term of the retailer contract, the retailer shall comply with
instructions and procedures for each game as set forth in the retailer
handbook.
(7) CERTIFICATE OF
AUTHORITY. The certificate of authority is not assignable or transferable and
shall be conspicuously displayed at the point of sale.
(8) NOTIFICATION OF CHANGES IN THE RETAILER'S
APPLICATION.
(a) The retailer shall notify
the administrator, in writing, within 15 calendar days of every change of its
organizational structure, including but not limited to changes from a sole
proprietorship to a partnership or to a corporation.
(b) The retailer shall notify the
administrator, in writing, at least 30 calendar days in advance of any change
of the retailer's business address.
(c) The retailer shall notify the
administrator, in writing, within 15 calendar days if the retailer, or any of
the retailer's partners, officers, directors or owners, as described under s.
565.10(3),
Stats., have been convicted of or pleaded guilty or no contest to a felony, a
gambling related offense, or fraud or misrepresentation in any
connection.
(9) RECORDS
AND RECORDKEEPING.
(a) During the term of the
retailer's contract and until the retailer gives a final accounting at the end
of the contract term, the retailer shall maintain current, complete and
accurate lottery accounting records and correspondence including but not
limited to, the receipt, sale, handling, and returns for credit of all lottery
tickets received by the retailer.
(10) INSURANCE REQUIREMENT.
(a) During the term of the retailer's
contract the retailer shall do all of the following:
1. Maintain worker's compensation insurance,
if required to do so under ch. 102, Stats.
2. Maintain public liability and property
damage insurance against any claim that may occur in carrying out the
retailer's contract. Minimum coverages are $300,000 single limit liability or
$100,000 bodily injury per person and $300,000 per occurrence and $100,000
property damage.
(b) The
insurance requirements under par. (a) 1. and 2. do not apply to a state agency
or a local unit of government.
(c)
The retailer, by signing and executing the contract, warrants and represents to
the Wisconsin lottery that the retailer has in place and will maintain during
the contract period the insurance set forth under par. (a) 1. and 2. and at the
minimum levels set forth under par. (a) 2.
(d) During the term of the retailer's
contract, the administrator reserves the right to request from the retailer
verification that the retailer has complied with the insurance requirements
under par. (a) 1. and 2.
(11) SALE OF TICKETS.
(a) The retailer shall accept only cash for
lottery tickets.
(b) The retailer
may not intentionally sell a lottery ticket to a person under 18 years of
age.
(c) The retailer shall sell a
minimum monthly average of $400 worth of instant scratch tickets or instant
break-open tickets or the sum of both each fiscal quarter, under s.
Tax 61.04(1)
(d).
(d) The retailer may not exchange lottery
tickets with any other person including other retailers.
(e) The retailer may not sell any lottery
tickets at a price different from the price authorized by the Wisconsin
lottery, condition the sale of a lottery ticket upon purchase of any other item
or service or impose any restriction upon the sale of a lottery ticket unless
specifically authorized by the administrator.
(f) The retailer may not play the lottery
games by using any method other than random, fair chance, or by any method
contrary to the principle that every lottery ticket has an equal and random
chance of winning.
(g) The retailer
shall make player brochures available to potential lottery ticket customers and
explain the game rules when requested.
(h) The retailer may not add any service fee,
handling fee, or other expense to the purchase of a ticket or share.
(j) The retailer may not charge any service
fee, handling fee or other cost when validating a ticket regardless of whether
the ticket or share is a winning or non-winning ticket or share, without the
written permission of the administrator.
(k) The retailer may not conduct sales of
lottery tickets or shares to off-premises customers by telephone, email,
instant messaging or similar electronic means, or by mail, parcel, delivery
service, or similar service.
(13) RETAILER RESPONSIBILITY FOR TICKETS.
(a) The retailer shall be responsible for the
condition and security of lottery tickets received. If the retailer's lottery
tickets are lost, stolen, mutilated, damaged, unaccountable, or otherwise
unsalable, the retailer shall be solely responsible for those tickets. Except
as provided in pars. (c) and (cm), the administrator may not reimburse the
retailer for those losses.
(b) The
retailer shall report by telephone within 24 hours any stolen tickets to the
Wisconsin lottery, consistent with the instructions for reporting stolen
tickets as indicated in the retailer contract.
(c) The administrator may credit the
retailer's account for the value that the retailer paid for instant scratch
tickets that are unsalable after all the following conditions are met:
1. The tickets became unsalable due to any
malfunction of lottery equipment used in the sale of the tickets or if the
tickets are deemed to be misprinted or void, consistent with the features and
procedures document of the game to which the ticket or share belongs.
2. The unsalable tickets are returned to the
lottery before the settlement date of the game to which the pack belongs.
Tickets returned after the settlement date may not be credited for value by the
administrator.
3. There is no
validation of any ticket that is returned for credit, and the latex or other
protective measures on each returned ticket show no signs of
tampering.
4. At the discretion of
the administrator, the lottery may assess a service charge against the retailer
account to recover the cost of returning the tickets.
5. Credit shall be the retailer's purchase
price, and any credit or service charge shall be made to the retailer's
electronic fund transfer account.
(cm)
1. The
administrator may credit the retailer's account for the value the retailer paid
for instant scratch tickets that are stolen. In determining whether to provide
credit, the administrator may consider the following factors:
a. Compliance with the reporting requirement
under par. (b).
b. Whether the
theft has been reported to law enforcement.
c. Final return date of the game to which the
stolen tickets belong.
d.
Validation of any ticket that is reported stolen.
e. The retailer's prior record of reporting
stolen tickets to the department.
f. Security of the retailer's business and
the place where tickets are stored.
g. Any other facts and circumstances the
administrator believes pertinent.
2. Credit under this paragraph shall be the
retailer's purchase price, and any credit shall be made to the retailer's
electronic fund transfer account.
(d) In the event that the lottery
administrator announces a settlement date for a game, a retailer may return
tickets for credit on or before that announced settlement provided that
conditions under par. (c) 2. to 5. are met.
(e) The administrator may charge a retailer
for shipments delivered on a date different than the retailer's scheduled order
delivery date or shipped on a date other than the retailer's shipment date. If
a retailer is charged, the expense shall be limited to the cost of the
delivery.
(14)
RETAILER'S PAYMENT FOR TICKETS.
(a) All
lottery tickets received by the retailer shall be deemed to have been purchased
by the retailer.
(b) The retailer's
accounting records and correspondence under par. (a) shall be available to the
administrator for examination and copying during the retailer's regular
business hours. All of those records and correspondence are subject to seizure
and audit without prior notice.
(bm) The retailer's electronic fund transfer
account shall be debited no less often than every 60 days for tickets received
within the last 60 days.
(c) A
retailer shall remit to the lottery, no less frequently than every sixty (60)
days, the proceeds from the sale of lottery tickets received since the last
remission of proceeds. The terms of billing processes shall be set by the
administrator.
(d) If the retailer
failed to place sufficient funds in the electronic fund transfer account for
the tickets received, the retailer may not receive more tickets until the
retailer pays the amount due the lottery consistent with pars. (bm) and (c), or
until the retailer has signed an agreement with the administrator which
indicates an alternative schedule of payment for outstanding debts consistent
with s.
Tax 61.02(1m). The administrator shall
determine whether to offer an alternative payment agreement to a retailer on a
case by case basis, taking into consideration the retailer's previous payment
history.
(e) The administrator may
assess the retailer a surcharge, an interest penalty, or both, for each
dishonored retailer's check or electronic fund transfer. The surcharge shall be
equal to the costs incurred, incident to each dishonor. Interest may be charged
only in the event that a retailer account is referred for overdue collection,
and may be assessed at a rate not to exceed 8.5% of the overdue
amount.
(15) BULK
RESELLING WITHOUT PERMISSION IS PROHIBITED.
(a) A retailer may not intentionally resell,
or aid in the act of reselling, bulk tickets without the written permission of
the administrator.
(b) For purposes
of this section, "reselling" means selling or aiding in the selling of multiple
tickets to anyone engaged in the business of selling lottery tickets for
profit. Persons who participate in ticket buying pools among friends, family or
co-workers are not involved in reselling, provided that all tickets are
purchased by all participants at the price set by the lottery
administrator.
(16)
INSTANT SCRATCH TICKET REDEMPTION.
(a) The
retailer shall redeem low tier prizes for tickets sold at the retailer's outlet
and presented to the retailer by the customer. If the customer elects to redeem
the low tier prize at another retail location or at any Wisconsin lottery
office, the Wisconsin lottery shall debit the retailer's account in that
amount.
(b) The retailer may not
redeem winning lottery tickets for prizes in amounts different from the amounts
authorized by the administrator or condition redemption of a lottery prize upon
the purchase of any other item or service, or impose any restriction upon the
redemption of a lottery prize unless specifically authorized in writing by the
administrator.
(17)
BREAK-OPEN TICKETS.
(a) The administrator may
accept returned break-open tickets for credit only under any of the following
circumstances:
1. If the tickets are
defective, the retailer shall return as many of the suspected defective tickets
as is possible, using the original packaging materials if possible.
2. If the order was filled incorrectly by the
Wisconsin lottery, the retailer shall return any incorrectly shipped break-open
tickets, using the original packaging materials if possible.
3. If the shipment of tickets is unopened by
the retailer. To be considered unopened, the package shall contain all the
tickets that it contained when delivered to the retailer and have the original
packaging and shipping seals intact and unopened.
4. If the lottery administrator announces a
settlement date for a game, a retailer may return tickets for credit on or
before the date provided that the retailer returns the tickets using the
original packaging materials, or in a manner acceptable to the lottery
administrator.
(b) The
retailer shall redeem all prizes from tickets purchased at the retailer's
outlet unless the features and procedures document for the game state
otherwise.
(18)
POINT-OF-SALE MATERIAL. The retailer shall maintain and display prominently
lottery point-of-sale material, including the door decal, current game poster,
current game player brochures and the ticket dispenser. The retailer shall
maintain and display a sign provided by the lottery that indicates which games
no longer have a top prize.
(19)
RIGHT TO APPEAL SUSPENSION OR TERMINATION. In the event the administrator
suspends or terminates the retailer's contract, the retailer is entitled to an
appeal in accordance with the provisions set forth under s.
Tax 61.10.
(20) SUSPENSION OR TERMINATION PROCEDURE. The
retailer, upon notice of the suspension or termination, shall immediately stop
selling lottery tickets. Within 2 weeks of the suspension or termination, the
retailer shall make payment on any money owed to the Wisconsin lottery and
surrender all unsold tickets and all state owned lottery property.
(21) GROUNDS FOR SUSPENSION. The retailer's
contract may be suspended without prior notice by the Wisconsin lottery for any
of the following reasons:
(a) The retailer
failed to meet one or more of the qualifications for being a retailer under s.
565.10, Stats.,
or under the Wisconsin lottery's administrative rules.
(b) The retailer violated a provision under
ch. 565, Stats., or of this chapter.
(c) The retailer failed to sell a minimum
monthly average of $400 worth of instant scratch tickets or instant break-open
tickets or the sum of both in any fiscal quarter, under s.
Tax 61.04(1)
(d).
(d) The retailer intentionally sold a lottery
ticket to a person under 18 years of age.
(e) The retailer endangered the security of
the Wisconsin lottery.
(f) The
retailer engaged in fraud, deceit, misrepresentation or other conduct
prejudicial to public confidence in the Wisconsin lottery.
(g) The retailer failed to remit money owed
to the Wisconsin lottery or failed to make payment on or before the settlement
date.
(h) The retailer engaged in
advertising of lottery products or services, or both, that in the
administrator's determination was false, deceptive, or misleading.
(i) The retailer failed to follow
instructions and procedures for the conduct of any particular lottery game or
lottery special event.
(22) GROUNDS FOR TERMINATION. The retailer's
contract may be terminated by the Wisconsin Lottery, regardless of whether the
retailer has been previously suspended. Any issue which is grounds for
termination may be considered instead for suspension, at the discretion of the
administrator. The administrator may consider whether a retailer acted to
promptly cure a cause within a reasonable time after notice, when reviewing the
grounds for termination. The retailer's contract may be terminated for the
following reasons:
(a) The retailer failed to
meet one or more of the qualifications for being a retailer under s.
565.10, Stats.,
or under this chapter.
(b) The
retailer endangered the security of the lottery, or engaged in fraud, deceit,
misrepresentation or other conduct in a manner that would cause perceptions
prejudicial to public confidence.
(c) The retailer engaged in any practice
identified under s. Tax 61.08(21) (a) to (i).
Section Tax 61.08 interpretss.
565.02(3) (j),
565.10(7) to (15), and
565.12,
Stats.
