WSR 06-23-116

PROPOSED RULES

WASHINGTON STATE LOTTERY


[ Filed November 20, 2006, 12:51 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 06-20-042.

Title of Rule and Other Identifying Information: Hit 5 Draw game rules, to create a new draw game where a Hit 5 ticket will be computer generated as a receipt evidencing payment. One or more plays will be evidenced in the Hit 5 ticket. Tickets will be issued by a licensed lottery retailer and will list the set of five-number plays that belong to the ticket holder. The game's top prize will be the cashpot. The lottery drawing official will be lottery personnel designated by the director to conduct the drawings. The game play will be a number of any play integers from 1 through 39 inclusive. The game grid will be a field of 39 numbers found on the play slip. Play will consist of one selection of five numbers. The play slip will be a mark-sensitive game card used by players of Hit 5 to select play. A player may choose number selections made by the lottery terminal, a random number generator operated by the computer, commonly referred to as "quick pick."

Hearing Location(s): Washington Lottery, 814 East 4th Avenue, Olympia, WA 98506, on January 2, 2007, at 10:00 a.m.

Date of Intended Adoption: January 3, 2007.

Submit Written Comments to: Jana Jones, P.O. Box 43000, Olympia, WA 98506, e-mail jjones@walottery.com, fax (360) 586-1039, by December 29, 2006.

Assistance for Persons with Disabilities: Contact Joan Reuell by December 29, 2006, TTY (360) 586-0933 or (360) 664-4818.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This proposed rule creates a new lottery draw game to replace the current lottery draw game of quinto. It is proposed in order to produce the maximum amount of net revenues for the state, consonant with the dignity of the state and the general welfare of the people.

Reasons Supporting Proposal: The maximum net revenues produced by the draw game of quinto have progressively declined in recent years.

Statutory Authority for Adoption: RCW 67.70.040 (1)(3).

Statute Being Implemented: RCW 67.70.040.

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

Name of Proponent: Lottery commission, governmental.

Name of Agency Personnel Responsible for Drafting: Jana Jones, Washington's Lottery, (360) 664-4833; Implementation: Michael Cousins, Washington's Lottery, (360) 664-4728; and Enforcement: Len Brudvik, Washington's Lottery, (360) 664-4742.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The only business allowed by law to sell lottery products are existing licensed lottery retailers.

A cost-benefit analysis is not required under RCW 34.05.328. The proposed rule making is not subject to RCW 34.05.328 (5)(a)(i), nor is the agency applying this section to this rule making. See RCW 34.05.328 (5)(d).

Friday, November 17, 2006

Jana L. Jones

Director of Legal Services

OTS-9415.1

Chapter 315-39 WAC

HIT 5 GAME RULES


NEW SECTION
WAC 315-39-010   Definitions for Hit 5 Game.   (1) Number: Any play integer from 1 through 39 inclusive.

(2) Game grids: A field of 39 numbers found on the play slip.

(3) Play: One selection of five numbers.

(4) Play slip: A mark-sensitive game card used by players of Hit 5 Game to select plays.

(5) Hit 5 Game ticket: A computer-generated receipt evidencing payment for one or more plays in the Hit 5 Game. Tickets shall be issued by a licensed lottery retailer and shall list the set of five-number plays that belong to the ticket holder.

(6) Cashpot: The game's top prize.

(7) Lottery drawing official: Lottery personnel designated by the director to conduct drawings.

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NEW SECTION
WAC 315-39-020   Price of Hit 5 Game play.   The price of each Hit 5 Game play shall be $1.00. Each Hit 5 Game ticket shall contain at least one Hit 5 Game play.

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NEW SECTION
WAC 315-39-030   Play for Hit 5 Game.   (1) Type of play: A Hit 5 Game player must select five numbers in each play. A winning play is achieved only when 2, 3, 4, or 5 of the numbers selected by the player match, in any order, the five winning numbers drawn by the lottery.

(2) Method of play: The player will use play slips to make number selections. The lottery terminal will read the play slip and issue ticket(s) with corresponding plays. If a play slip is not available, the lottery retailer may enter the selected numbers via the keyboard. A player may choose to have the number selections made by the lottery terminal, a random number generator operated by the computer, commonly referred to as "quick pick."

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NEW SECTION
WAC 315-39-040   Prizes for Hit 5 Game.   (1) The prize amount to be paid to each Hit 5 Game player who holds a winning combination of numbers in the first prize category shall vary due to the parimutuel calculation of prizes. The prize amount to be paid to each Hit 5 Game player who holds a winning combination of numbers in the second prize category shall be $100. The prize amount to be paid to each Hit 5 Game player who holds a winning combination of numbers in the third prize category shall be $10.00. The prize amount to be paid to each Hit 5 Game player who holds a winning combination of numbers in the fourth prize category shall be $1.00.


WINNING COMBINATIONS PRIZE CATEGORIES ODDS OF WINNING (ONE PLAY)
All five winning numbers in one play First Prize: Cashpot 1:575,757
Any four but not five winning numbers in one play Second Prize: $100.00 1:3,387
Any three but not four or five winning numbers in one play Third Prize: $10.00 1:102
Any two, but not three, four or five winning numbers in one play Fourth Prize: $1.00 1:9.6

(2) Prize amounts.

(a) First prize (cashpot). All first prizes will be the amount announced by the director as the Hit 5 Game cashpot. The cashpot will be divided equally among all players who selected all five winning numbers in one play (in any sequence).

(b) Second prize. A $100 prize is to be paid to each player who holds four of the five winning numbers in one play in any sequence.

(c) Third prize. A $10.00 prize is to be paid to each player who holds three of the five winning numbers in one play in any sequence.

(d) Fourth prize. A $1.00 prize is to be paid to each player who holds two of the five winning numbers in one play in any sequence.

(e) The holder of a winning ticket may win only one prize per play.

(f) In the event any player who holds two, three, four or five of the five winning numbers does not claim the prize won within one hundred eighty days after the drawing in which the prize was won, that player's prize shall be retained in the state lottery account for use, pursuant to RCW 67.70.190.

(3) Prize payments will be made in accordance with WAC 315-30-030(6). Each prize shall be paid in a single payment. Federal income tax shall be withheld from prize payments as required by law.

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NEW SECTION
WAC 315-39-050   Ticket purchases.   (1) Hit 5 Game tickets may be purchased daily in accordance with a schedule to be determined by the director. Licensed lottery retailers shall sell and redeem tickets only during their normal business hours. Hit 5 Game tickets may be purchased only from a licensed lottery retailer.

(2) Hit 5 Game tickets shall, on the front of the ticket, contain the selection of numbers, amount, drawing date, ticket serial number and reference numbers. The back of the ticket shall contain overall odds of winning, player instructions, player information, signature area, governing statutes and rules, and the ticket stock number. The front of the ticket may include the overall odds of winning.

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NEW SECTION
WAC 315-39-060   Drawings.   (1) The Hit 5 Game drawings shall be held pursuant to WAC 315-30-040.

(2) The drawing will be conducted by lottery drawing officials.

(3) Each drawing shall randomly select five winning numbers. The drawing method shall be tested before and after each drawing. Any drawn numbers are not declared winners until the drawing is certified by the lottery. The winning numbers shall be used in determining all Hit 5 Game winners for that drawing. If a drawing is not certified, another drawing will be conducted to determine actual winners.

(4) The drawing shall not be invalidated based on the liability of the lottery.

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Washington State Code Reviser's Office