AN ACT Relating to truth in gambling; amending RCW 67.70.040; adding a new section to chapter 9.46 RCW; adding a new section to chapter 67.16 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that it is in the interests of the consumers of the state of Washington to ensure that authorized gambling activities provide full disclosure as to the probability of winning prizes and the manner in which gross receipts from those activities are disbursed.

NEW SECTION. Sec. 2. A new section is added to chapter 9.46 RCW to read as follows:

All gambling activities permitted in chapter 9.46 RCW shall have conspicuously displayed at the point of sale and on all advertising including publications and radio and television broadcasts, an average estimate of the probability of winning each prize and the percentage breakdown as to the allocation of gross receipts from the gambling activity. The gambling commission shall adopt rules implementing this section to ensure the displays are uniform and readily understood by consumers and to enforce this section.

Sec. 3. Section 4, chapter 7, Laws of 1982 2nd ex. sess. as amended by section 1, chapter 375, Laws of 1985 and RCW 67.70.040 are each amended to read as follows:

The commission shall have the power, and it shall be its duty:

(1) To promulgate such rules governing the establishment and operation of a state lottery as it deems necessary and desirable in order that such a lottery be initiated at the earliest feasible and practicable time, and in order that such lottery produce the maximum amount of net revenues for the state consonant with the dignity of the state and the general welfare of the people. Such rules shall include, but shall not be limited to, the following:

(a) The type of lottery to be conducted which may include the selling of tickets or shares, or the use of electronic or mechanical devices or video terminals which do not require a printed ticket;

(b) The price, or prices, of tickets or shares in the lottery;

(d) The manner of selecting the winning tickets or shares;

(e) The manner and time of payment of prizes to the holder of winning tickets or shares which, at the director's option, may be paid in lump sum amounts or installments over a period of years;

(f) The frequency of the drawings or selections of winning tickets or shares, without limitation;

(g) Without limit as to number, the type or types of locations at which tickets or shares may be sold;

(h) The method to be used in selling tickets or shares, which may include the use of electronic or mechanical devices and video terminals;

(i) The licensing of agents to sell or distribute tickets or shares, except that a person under the age of eighteen shall not be licensed as an agent;

(j) The manner and amount of compensation, if any, to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public;

(k) The apportionment of the total revenues accruing from the sale of lottery tickets or shares and from all other sources among: (i) The payment of prizes to the holders of winning tickets or shares, which shall not be less than forty-five percent of the gross annual revenue from such lottery, (ii) transfers to the lottery administrative account created by RCW 67.70.260, and (iii) transfer to the state's general fund. Transfers to the state general fund shall be made in compliance with RCW 43.01.050;

(l) Such other matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.

(2) ((To ensure that in each place authorized to sell lottery tickets or shares, on the back of the ticket or share, and in any advertising or promotion there shall be conspicuously displayed an estimate of the probability of purchasing a winning ticket)) All lotteries authorized under chapter 67.70 RCW shall have conspicuously displayed at the point of sale, on the back of each ticket or share, and in all advertising including publications and radio and television broadcasts, an average estimate of the probability of purchasing a winning ticket for each allotted prize and a percentage breakdown as to the allocation of gross receipts from the lotteries. The lottery commission shall adopt rules implementing this subsection to ensure that disclosures are uniform and readily understood by consumers and to enforce this subsection.

(3) To amend, repeal, or supplement any such rules from time to time as it deems necessary or desirable.

(4) To advise and make recommendations to the director for the operation and administration of the lottery.

NEW SECTION. Sec. 4. A new section is added to chapter 67.16 RCW to read as follows:

All wagering or betting permitted under this chapter shall have conspicuously displayed at the point of sale on the back of each receipt and on all advertising including publications and radio and television broadcasts, an average estimate of the probability of placing a winning bet or wager for each allotted prize and a percentage breakdown as to the allocation of gross receipts. The Washington horse racing commission shall adopt rules implementing this section to ensure the displays are uniform and readily understood by consumers and to enforce this section.