WSR 98-12-093

PROPOSED RULES

LOTTERY COMMISSION

[Filed June 3, 1998, 8:15 a.m.]



Supplemental Notice to WSR 98-08-064.

Preproposal statement of inquiry was filed as WSR 97-24-077.

Title of Rule: Chapter 315-36 WAC, Lucky for Life.

Purpose: To establish gameplay rules and criteria for determining winners for a new on-line game, "Lucky for Life." These rules replace the prior rules for this game (prior game name "Lucky 21").

Statutory Authority for Adoption: RCW 67.70.040.

Statute Being Implemented: RCW 67.70.040.

Summary: See Purpose above.

Reasons Supporting Proposal: See Explanation of Rules below.

Name of Agency Personnel Responsible for Drafting: Mary Jane Ferguson, Rules Coordinator, Olympia, (360) 753-1947; Implementation and Enforcement: Merritt D. Long, Director, Olympia, (360) 753-3330.

Name of Proponent: Washington State Lottery Commission, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: Chapter 315-36 WAC describes the game rules and criteria for determining winners for a new on-line game, "Lucky for Life.".

Proposal does not change existing rules.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The lottery has considered whether these rules are subject to the Regulatory Fairness Act, chapter 19.85 RCW, and has determined that they are not for the following reasons: (1) The rules have no economic impact on business' cost of equipment, supplies, labor or administrative costs. The rules are designed to establish rules and procedures for the playing of instant lottery games; and (2) the rules will have negligible impact, if any, on business because they are interpretive. They have been promulgated for the purpose of stating policy, procedure and practice and do not include requirements for forms, fees, appearances or other actions by business.

RCW 34.05.328 does not apply to this rule adoption. Said section does not apply to these proposed rules because they are not proposed by one of the listed agencies. As the rules are merely interpretive, the lottery does not voluntarily apply this section.

Hearing Location: Sea-Tac International Airport, Large Auditorium, SeaTac, WA, on July 17, 1998, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Mary Jane Ferguson by July 16, 1998, (360) 753-1947.

Submit Written Comments to: Mary Jane Ferguson, Lottery, FAX (360) 586-6586, by July 16, 1998.

Date of Intended Adoption: July 17, 1998.

June 2, 1998

Mary Jane Ferguson

Rules Coordinator

OTS-2001.2

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WAC 315-36-010  What is Lucky for Life and how do I play? (1) Lucky for Life is an on-line lottery game in which you purchase a computer-generated ticket and try to match your set of four numbers to the winning set of four numbers, chosen by the lottery. The game is conducted in accordance with the rules for on-line games found in chapter 315-30 WAC and the general rules found in chapter 315-06 WAC.

(2) To play Lucky for Life, you first pick one set of four numbers from "00" to "99" for a chance to win the grand prize of $1,000 per week for the rest of your life, as specified in WAC 315-36-110. Or you can let the computer pick this set of numbers for you. If you have the computer pick for you, this is called a "quick pick" or "quick play."

(3) Next, the computer will generate twenty additional sets of four numbers each from "00" to "99" for you. These sets will all be quick picks, that is, the computer selects them for you. You cannot pick any of these additional sets of numbers yourself. You will receive a computer printed ticket containing all twenty-one sets of numbers.

(4) If any one of the twenty-one sets on the ticket match two, three, or four of the numbers in the winning set of four numbers, in any order, you win a prize as specified in WAC 315-36-030.

(5) A Lucky for Life ticket may look similar to this:

Lucky for Life
lifetime cash
A. 05 20 60 73
$50,000 PRIZE
B. 12 18 25 99 C. 22 25 36 38
$25,000 PRIZE
D. 05 10 12 20 E. 32 35 46 48
F. 25 67 76 80 G. 33 34 46 69
$10,000 PRIZE
H. 00 39 44 77 I. 01 23 69 98
J. 04 13 30 34 K. 36 39 80 81
L. 29 41 52 61 M. 02 03 21 99
$5,000 PRIZE
N. 10 20 21 31 O. 24 53 60 81
P. 20 22 43 63 Q. 71 82 92 93
R. 53 63 70 90 S. 70 82 98 99
T. 40 51 83 90 U. 63 64 68 88




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WAC 315-36-020  How much does a ticket cost? One Lucky for Life ticket with twenty-one sets of four numbers each costs $2.



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WAC 315-36-030  What are the prizes for Lucky for Life? (1) The grand prize is $1,000 per week for life, as specified in WAC 315-36-110. This is the prize for matching all four of the numbers in the first set designated on the ticket to the winning set of four numbers.

(2) The prizes for matching all four numbers in any of the remaining twenty sets to the winning numbers are specified under headings on the ticket, and are as follows:



Number of Sets Prize Bracket
Two $50,000
Four $25,000
Six $10,000
Eight $5,000


(3) For matching three numbers in one of your sets to three numbers in the winning set, you win fifty dollars. For matching two numbers in one of your sets to two numbers in the winning set of numbers, you win a prize of four dollars. You may win no more than one prize for each set of numbers.

(4) All prize payments are subject to federal income tax withholding requirements and debt checks, pursuant to RCW 67.70.255.



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WAC 315-36-040  Can I win more than once on one ticket? Yes. If your ticket has more than one set with two, three, or four numbers which match the winning numbers, you will receive the total of the prizes for each matching set.



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WAC 315-36-050  How is the winning set of numbers selected? Lottery officials conduct the drawing for the winning set of numbers, as specified in the general rules for on-line game drawings, WAC 315-30-040. The director has the discretion to specify the means for randomly drawing the winning numbers. Each drawing shall determine, at random, four numbers from "00" through "99," which will be the winning set of numbers. No two of the four numbers in the winning set will be identical. Any drawn numbers will not be declared winning numbers until the drawing is validated by the lottery. The winning numbers shall be used to determine all Lucky for Life winners for that drawing. If a drawing is not validated, another drawing will be conducted to determine the four numbers, which will be the winning set of numbers. The drawing shall not be invalidated based on the liability of the lottery.



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WAC 315-36-060  How often is the winning set of numbers chosen? The Lucky for Life drawing for the winning set of numbers is held at least once a week and may be held up to once a day, seven days a week, at the discretion of the director of the lottery. The director in addition has the discretion to change the drawing schedule or cancel the drawing if it falls on a holiday.



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WAC 315-36-070  Where can I buy or redeem Lucky for Life tickets? You can buy or redeem Lucky for Life tickets only from a lottery retailer licensed by the director of the lottery to sell on-line, computer generated tickets. You can buy or redeem the tickets during no less than seventeen hours each day, according to a schedule determined by the director of the lottery, but each on-line retailer will sell and redeem tickets only during their normal business hours. In redeeming tickets, a retailer may only pay out prizes up to $600. For prizes over $600, you must obtain a lottery claim form as described in WAC 315-06-120, and submit your ticket to the lottery by mail or in person. Tickets will be validated and redeemed in accordance with the general rules for on-line games found in chapter 315-30 WAC. Federal income tax must be withheld from prize payments as required by law.



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WAC 315-36-080  What information is included on a Lucky for Life ticket and playslip? The front of the ticket includes the selection of numbers, amount wagered, drawing date, and validation and reference numbers. The playslip includes an estimate of the probability of purchasing a winning ticket, player instructions, and player information.



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WAC 315-36-090  What are the odds of winning Lucky for Life? The odds of winning any prize are 1 in 7. The odds of winning specific prizes are as follows:



"Lifetime Cash" type Grand Prize: 1:3, 921, 225
"$50,000 Prize": 1:1, 960, 613
"$25,000 Prize": 1: 980, 306
"$10,000 Prize": 1: 653, 538
"$5,000 Prize": 1: 490, 153
Match three numbers $50 Prize: 1:486
Match two numbers $4 Prize: 1:7



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WAC 315-36-100  If more than one person per drawing wins the grand prize, does each person receive the entire prize of $1,000 for life or is the prize split among the winners? Each person up to three winners wins the grand prize of $1,000 per week for life. If more than three persons win the grand prize in any one drawing, then three grand prizes (for a total of $3,000 per week for life) will be split equally among the total number of grand prize winners for that drawing.



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WAC 315-36-110  How is the "Lifetime Cash" type grand prize paid? (1) You must be a natural person (e.g., not a legal entity such as a corporation) to claim the prize of $1,000 per week for life.

(2) At the discretion of the director, winners may be permitted to choose grand prize payments either made once a year for $52,000 or made once per week for $1,000 per week for a total of 52 payments in one calendar year. The first payment will be made after validation of the winning ticket.

(3) Your prize becomes payable on the first business day following the drawing in which the winning numbers were drawn. If both payment methods are allowed and you select the annual payment, your first payment after ticket validation will be based on the number of weeks remaining in the calendar year in which you claim the prize. The number of weeks will be based on the first business day after the drawing in which the winning numbers were drawn. For example, if the drawing is on a Wednesday, and there are 17 Thursdays left in the calendar year (including the first business day after the drawing), you will be entitled to $17,000 for the payment in the calendar year in which you claim your prize. Annual payments of $52,000 will be paid in January of each qualifying year.

(4) If both payment methods are allowed and you select the annual payment, you are entitled to the $52,000 payment if you live until January 1, even if you do not live until the end of the calendar year. If you select the weekly payment and live until January 1, but you do not live the entire calendar year, your estate will be entitled to receive your weekly payments until the end of the calendar year.

(5) If both payment methods are allowed and you select the weekly payment, you must furnish the lottery with a bank account number for electronic funds transfer (EFT) of your weekly payments, within 30 days of claiming your prize. Failure to provide a bank account number may result in paying your prize in one annual payment. You may choose to change your payment method to an annual payment by so notifying the lottery, which will calculate within 45 days the remainder due for the calendar year. Persons selecting an annual payment may not change their selection to weekly payments.

(6) If both payment methods are allowed and you select the weekly payment, your first payment will be based on the number of weekly payments which have accrued since the first business day after the drawing in which your winning numbers were selected. Thereafter, your payments will be $1,000 per week.

(7) If only one payment method is allowed by the director, then the grand prize will be paid as one annual payment as set forth above.

(8) The director has the discretion to revise the payment method or methods or select one payment method if it is in the best interests of the lottery, so long as each winner of the "Lifetime Cash" type prize receives a total of $52,000 for each calendar year after the year in which he/she claims the prize.

(9) If you are under eighteen at the time of claiming the grand prize, weekly or annual payments will begin on your eighteenth birthday. For purposes of calculating your initial payment, the day before your eighteenth birthday will be treated as the date of the drawing of the winning numbers. You must notify the lottery where your payments should be sent and whether you choose weekly or annual payments, at least 30 days preceding your eighteenth birthday.

(10) "Lifetime Cash" winners are responsible to inform the lottery of any address or bank account changes affecting receipt of payments, at least 30 days preceding the address or account change.

(11) If a winner dies before payment of $250,000 under this section, the winner's successor-in-interest will be entitled to receive a lump sum payment in the amount necessary to bring the amount paid as a prize under this section up to a total of $250,000. Any successor-in-interest must provide the lottery with the necessary documentation and a court order directing payment of the final amount to the successor or successors entitled to payment. The determination of the sufficiency of the documentation shall lie within the discretion of the director of the lottery. Payment to the successor or successors shall be governed by all applicable laws, including WAC 315-06-120, 315-06-123, and 315-06-130.

(12) The winner's successor-in-interest must notify the lottery of the death of the winner. If the lottery makes a payment after the winner's death, the lottery shall require return of the payment, except, at the director's discretion, the payment may be deducted from any lump sum payment due to the winner's estate.



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WAC 315-36-120   How are prizes, other than the "Lifetime Cash" type grand prize, paid? Every Lucky for Life prize other than the "Lifetime Cash" type grand prize will be paid in a single payment.



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WAC 315-36-130   What happens to unclaimed Lucky for Life prizes? When a player who holds a winning ticket does not claim his or her prize within one hundred eighty days of the drawing in which the prize was won, that prize is retained in the state lottery fund for further use as prizes, as provided for in RCW 67.70.190.



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WAC 315-26-140   Definitions for Lucky for Life. (1) Number: Any play number from "00" through "99" inclusive.

(2) Set: One selection of four numbers, which are printed horizontally on the ticket. Each set is preceded by a letter of the alphabet.

(3) Lifetime cash: The grand prize of $1,000 per week for life, for a maximum of $52,000 per year.

(4) Play slip: A mark-sense game card used by players to select one set of four numbers for the "Lifetime Cash" grand prize.

(5) Lucky for Life ticket: A computer-generated receipt showing payment for one play in a Lucky for Life game. Tickets shall be issued by an on-line terminal at locations licensed by the lottery and shall list the twenty-one sets of four numbers each that belong to the ticket holder.

(6) Quick pick or quick play: A method for choosing a set of numbers by use of the random number generator within the on-line computer terminal.

(7) Play: Twenty-one sets of four numbers.



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Reviser's note: The above new section was filed by the agency as WAC 315-26-140. This section is placed among sections forming new chapter 315-36 WAC, and therefore should be numbered WAC 315-36-140. Pursuant to the requirements of RCW 34.08.040, the section is published in the same form as filed by the agency.



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WAC 315-36-150   Suspension or termination of Lucky for Life. At the discretion of the director, Lucky for Life may be suspended or terminated at any time, to be effective prior to the beginning of sales for any future drawing. The director may suspend or terminate sales only where no sales have been made for the drawing.



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