Original Notice.

     Continuance of WSR 05-01-080.

     Preproposal statement of inquiry was filed as WSR [05-01-083].

     Title of Rule and Other Identifying Information: Chapter 315-10 WAC, Instant games -- General rules, changes to the instant game rules allow the lottery to offer nontraditional types of instant games.

     Hearing Location(s): Washington's Lottery Headquarters, 814 East 4th Avenue, Olympia, WA 98506, on March 17, 2005, at 10:00 a.m.

     Date of Intended Adoption: March 17, 2005.

     Submit Written Comments to: Ceil Buddeke, 814 East 4th Avenue, Olympia, WA 98506, e-mail Cbuddeke@walottery.com, fax (360) 586-6586, by March 10, 2005.

     Assistance for Persons with Disabilities: Contact Joan Reuell by March 10, 2005, TTY (360) 586-0933.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Traditionally, the lottery's instant games have been "Scratch" games (involving paper tickets with a scratch-off coating). These rule amendments allow the lottery to offer other types of instant games (that do no involve a scratch-off coating).

     Reasons Supporting Proposal: These amendments will offer our players a new way to play the lottery's instant games.

     Statutory Authority for Adoption: Chapter 67.70 RCW.

     Statute Being Implemented: RCW 67.70.040.

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

     Name of Proponent: Washington's Lottery, public.

     Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Ceil Buddeke, 814 East 4th Avenue, Olympia, WA 98506, (360) 664-4833.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule will not impose costs on industry businesses, and the lottery has not been asked to prepare a small business economic impact statement, see RCW 19.85.030.

     A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Ceil Buddeke, 814 East 4th Avenue, Olympia, WA 98506, phone (360) 664-4833, fax (360) 586-6586, e-mail Cbuddeke@walottery.com.

January 31, 2005

Ceil Buddeke

Rules Coordinator

OTS-7817.1

AMENDATORY SECTION(Amending WSR 98-08-067, filed 3/30/98, effective 4/30/98)

WAC 315-10-010   Instant games -- Authorized -- Director's authority.   It is the commission's intent to provide the director broad authority in carrying out the following duties:

     (1) The commission hereby authorizes the director to select, operate, and contract relating to and for the operation of instant games meeting the criteria set forth in this chapter.

     (2) The director shall establish final instant game specifications, including the determination of winning tickets, in executed working papers or software requirement specifications. The director shall keep ((executed working papers on file at the headquarters office location and make them)) the portions of these documents that are subject to public disclosure available for one hundred eighty days after the end of each game for public review during normal business hours.

     (3) The director or designee shall inform commission members of instant game development.

[Statutory Authority: RCW 67.70.040. 98-08-067, § 315-10-010, filed 3/30/98, effective 4/30/98; 97-04-047, § 315-10-010, filed 1/31/97, effective 3/3/97. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-038 (Order 3), § 315-10-010, filed 10/15/82.]

     (2) Instant game. A game in which a ticket is purchased and ((upon removal of a latex covering on the front of the ticket,)) the ticket bearer determines his or her winnings, if any.

     (3) Ticket bearer. The person who has signed the ticket or has possession of the unsigned ticket.

     (4) Play symbols. The numbers or symbols appearing in the designated areas ((under the removable covering)) on the front of the ticket. Play symbols were formerly called play numbers. Both terms shall have the same meaning.

     (5) Your(s). The ticket bearer's play area or areas (for example, "your hand(s)," "your card(s)," or "your roll(s)").

     (6) Their(s). The opponent's play area or areas (for example, "their card(s)," or "their roll(s)").

     (7) Validation number. The multidigit number found on the ticket and on any ticket stub. There must be a validation number on the ticket or any stub.

     (8) Working papers or software requirement specifications. The documents providing production and winning ticket specifications for each instant ticket game. ((Executed working papers (including amendments, if any) are signed and dated by the lottery director.))

     (9) Scratch game. ((Instant game as defined in subsection (1) of this section.)) An instant game in which a ticket is purchased and, upon removal of a scratch-off coating on the front of the ticket, the ticket bearer determines his or her winning, if any.

[Statutory Authority: RCW 67.70.040. 98-08-067, § 315-10-020, filed 3/30/98, effective 4/30/98; 97-04-047, § 315-10-020, filed 1/31/97, effective 3/3/97; 89-21-029, § 315-10-020, filed 10/10/89, effective 11/10/89; 86-01-060 (Order 83), § 315-10-020, filed 12/16/85; 84-05-008 (Order 51), § 315-10-020, filed 2/7/84. Statutory Authority: RCW 67.70.040 and 67.70.050. 83-05-029 (Order 14), § 315-10-020, filed 2/10/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-038 (Order 3), § 315-10-020, filed 10/15/82.]

     (1) Play field is generally the area ((under the latex covering that players scratch off to reveal)) that may contain play symbols, play symbol captions, prize symbols, prize symbol captions, and validation numbers;

     (2) Play spots are the specific areas ((under the latex covering)) where play symbols are located;

     (3) Play symbols are symbols, letters, or numbers appearing in each play spot of a ticket;

     (4) Play symbol captions are small printed characters generally associated with each play symbol ((appearing)) which may appear on the play field ((which)) and correspond with and verify that play symbol. These captions spell out, in full or abbreviated form, the play symbol. There is only one play symbol caption for each play symbol, and each play symbol caption is associated with the three-digit ticket number;

     (5) Prize symbols ((are)) may be numeric or symbolic representations, printed either in a display printed prize legend or on the play field, which indicate the amount of money a player may win;

     (6) Prize symbol captions ((are)) may be small printed characters generally associated with each prize symbol appearing on the play field which correspond to and verify that prize symbol. The prize symbol caption is a spelling out, in full or abbreviated form, of the prize symbol;

     (7) Validation number is a unique multidigit number on the ((front of the)) ticket ((that appears under the removable latex covering and is identified as "val. no."));

     (8) Pack-ticket number is a ((thirteen-digit number of the form XXXXXXXXX-X-XXX printed on the back of the ticket. The first three digits are the game identifier. The first nine digits of the pack-ticket number constitute the "pack number," which starts at XXX000001; the last three digits constitute the "ticket number," which starts at 000 and indicates the ticket's position within each pack of tickets)) number that may include the game, pack and ticket identifier;

     (9) Retailer verification code ((consists of small letters found under the removable covering on the front of the ticket which the lottery retailer uses to verify instant winners of $600.00 or less. A retailer verification code for a winning ticket of a particular game is a unique multiple letter code which corresponds to the prize value of the ticket for that game. Each letter of the code appears in varying locations beneath the removable latex covering on the front of the ticket)) is the code on the ticket that the lottery retailer uses to verify instant winners; and

     (10) Odds of winning shall always appear on the back of the ticket.

[Statutory Authority: RCW 67.70.040. 97-04-047, § 315-10-022, filed 1/31/97, effective 3/3/97.]

[Statutory Authority: RCW 67.70.040. 98-08-067, § 315-10-023, filed 3/30/98, effective 4/30/98.]

     (a) Higher number. Your (the player's) number is greater than their number.

     (b) Match one or more. Match your play symbols to the winning play symbol(s).

     (c) Bonus play. ((Uncover)) Find a bonus symbol to win a bonus prize instantly.

     (d) Match two or more consecutive. Match two or more consecutive "Game Cards" within a game to the "Draw Cards" to win the corresponding amount shown on the ticket.

     (e) Match two or more. Match two or more "Game Cards" within a game to the "Draw Cards" to win the corresponding amount shown on the legend on the ticket.

     (f) Three like cards. Get three like cards with one hand to win the corresponding amount shown on the ticket.

     (g) Grand prize drawing. ((Uncover)) Find a bonus symbol that qualifies you to enter a grand prize drawing or submit one or more nonwinning tickets to enter a grand prize drawing.

     (h) Match symbols. ((Uncover)) Match a specified number of identical play symbols on a play area.

     (i) Add up "yours." Add up the play symbols designated as "yours" and the total is greater than, less than or equal to the symbol or symbols designated as "theirs."

     (j) Add up. Add up the play symbols and the amount is greater than or equal to the designated symbols on the ticket.

     (k) Tic tac toe. ((Uncover)) Match three identical play symbols, in a row, column, or diagonal, on a ((9 symbol)) grid ((on)) in the play area.

     (l) Sequence. ((Uncover)) Find the designated play symbols in the specified sequential order.

     (m) Spellout. ((Uncover)) Find the play symbols to form the designated word or words.

     (n) In between. ((Uncover)) Find the play symbol or symbols designated as "yours" with a value less than the play symbol or symbols designated as "their high ((card)) value" and greater than the play symbol or symbols designated as "their low ((card)) value."

     (2) Each of the methods described in subsection (1) of this section may include a special variant such as "automatic win feature," "doubler," "wild card," or "free space" that provides added or alternative methods of winning.

[Statutory Authority: RCW 67.70.040. 98-08-067, § 315-10-024, filed 3/30/98, effective 4/30/98.]

     (2) There is no required frequency of drawing or method of selection of a winner in an instant game.

     (3) At the director's discretion, an instant game may include a grand prize drawing(s). The criteria for the grand prize drawing shall be as follows:

     (a) Finalists for a grand prize drawing shall be selected in an elimination drawing(s) from ((redeemed)) tickets meeting the criteria stated on the ticket and in executed working papers ((on file at lottery headquarters)) or software requirement specifications or stated in lottery promotional materials, at the discretion of the director. Participation in the elimination drawing(s) shall be limited to such tickets ((which)) that are actually received or ticket information is actually received and validated by the director on or before a date to be announced by the director. The director may reserve the right to place any semi-finalist whose entry was not entered in the elimination drawing(s) and who is subsequently determined to have been entitled to such entry into an elimination drawing of a subsequent instant game, and the determination of the director shall be final.

     (b) The number of prizes and the amount of each prize in the grand prize drawing(s) shall be determined by the director to correspond with the size and length of the instant game and to comply with subsection (1) of this section.

     (c) The dates and times as well as the procedures for conducting the elimination drawing and grand prize drawing shall be determined by the director.

[Statutory Authority: RCW 67.70.040. 98-08-067, § 315-10-030, filed 3/30/98, effective 4/30/98; 97-04-047, § 315-10-030, filed 1/31/97, effective 3/3/97; 94-03-020, § 315-10-030, filed 1/7/94, effective, see WAC 315-04-180; 89-21-029, § 315-10-030, filed 10/10/89, effective 11/10/89; 88-17-024 (Order 111), § 315-10-030, filed 8/11/88; 85-22-057 (Order 81), § 315-10-030, filed 11/5/85; 85-16-031 (Order 77), § 315-10-030, filed 7/30/85; 85-09-004 (Order 72), § 315-10-030, filed 4/5/85; 84-05-008 (Order 51), § 315-10-030, filed 2/7/84; 83-16-029 (Order 30), § 315-10-030, filed 8/27/83. Statutory Authority: 1982 2nd ex.s. c 7 § 4. 83-03-034 (Order 10), § 315-10-030, filed 1/14/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-038 (Order 3), § 315-10-030, filed 10/15/82.]

[Statutory Authority: RCW 67.70.040. 97-04-047, § 315-10-035, filed 1/31/97, effective 3/3/97.]

[Statutory Authority: RCW 67.70.040. 86-01-060 (Order 83), § 315-10-040, filed 12/16/85. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-038 (Order 3), § 315-10-040, filed 10/15/82.]

     (2) In order to participate in a grand prize drawing in which the entry is the submittal of one or more winning or nonwinning tickets, a player must redeem and submit such a ticket or tickets or ticket information within the time limits set forth in chapter ((315-11)) 315-06 WAC governing the conduct of that specific game.

[Statutory Authority: RCW 67.70.040. 97-04-047, § 315-10-055, filed 1/31/97, effective 3/3/97.]

     (a) The ticket must have been issued by the director in an authorized manner.

     (b) The ticket must not be altered, unreadable, or tampered with in any manner.

     (c) The ticket must not be counterfeit in whole or in part.

     (d) The ticket must not be stolen nor appear on any list of omitted tickets on file with the lottery.

     (e) The ticket must be complete and not blank or partially blank, miscut, misregistered, defective, or printed or produced in error.

     (f) If play symbol and play symbol captions are present in the playfield, the ticket must have at least one play symbol and at least one play symbol caption under each play spot. ((These elements)) Play symbols must be present in their entirety, legible, right-side up, and not reversed in any manner.

     (g) The ticket must have at least one pack-ticket number or serial number, exactly one retailer verification code, and exactly one validation number. These elements must be present in their entirety, legible, ((right-side up,)) and not reversed in any manner.

     (h) The validation number of an apparent winning ticket shall appear on the lottery's official list of validation numbers of winning tickets; and a ticket with that validation number shall not have been previously paid.

     (i) The ticket must pass all additional confidential validation requirements, if any, established by the director.

     (2) The director may authorize reconstruction of an alleged winning ticket which was not received and/or cannot be located by the lottery; provided, that the person requesting reconstruction submits to the lottery sufficient evidence to enable reconstruction and that they have submitted a claim for the prize, if any, for that ticket. If the reconstructed ticket is a winning ticket and meets the validation requirements contained in subsection (1) of this section and the specific validation requirements contained in the rules for its specific game, the director may authorize payment of the prize; provided, that the ticket shall not be validated nor the prize paid prior to ((the)) one hundred ((eighty-first)) eighty days following the official end of that instant game. A ticket(s) validated pursuant to this subsection shall not entitle the claimant entry into the grand prize drawing, if any, for that or any subsequent instant game.

     (3) Any ticket not passing all the validation requirements in subsection (1) of this section and the specific validation requirements contained in the rules for its specific game is invalid and ineligible for any prize.

     (4) The director may replace any invalid ticket with an unplayed ticket of equivalent sales price from any current instant game. In the event a defective ticket is purchased, the only responsibility or liability of the lottery shall be the replacement of the defective ticket with an unplayed ticket of equivalent sales price from any current instant game, or issue a refund of the sales price. However, if the ticket is partially mutilated or if the ticket is not intact but it still can be validated by other validation tests, the director may pay the prize for that ticket.

[Statutory Authority: RCW 67.70.040. 97-04-047, § 315-10-070, filed 1/31/97, effective 3/3/97; 85-16-031 (Order 77), § 315-10-070, filed 7/30/85; 84-22-047 (Order 68), § 315-10-070, filed 11/7/84.]

     (1) To claim an instant game prize of $600.00 or less the claimant may either ((may)) present the apparent winning ticket to any lottery retailer regardless of where the ticket was purchased, or may present the apparent winning ticket to the lottery by mail or in person. When a retailer is presented with a claim under this section, the retailer shall verify the claim and, if acceptable, make payment of the amount due the claimant. The prizes shall be paid during all normal business hours of that retailer provided that claims can be validated on the lottery's ((instant ticket scanner)) terminal. The retailer shall not charge the claimant any fee for payment of the prize or for cashing a business check drawn on the retailer's account.

     (2) In the event the retailer cannot verify the claim, the claimant shall present a claim to the lottery by mail or in person. If the claim is validated by the lottery, ((a check)) funds shall be forwarded to the claimant in payment of the amount due. In the event that the claim is not validated by the director, the claim shall be denied and the claimant shall be promptly notified.

     (3) To claim an instant prize of more than $600.00, the claimant shall complete a claim form, as provided in WAC 315-06-120, which is obtained from the lottery retailer or the lottery and mail or present in person the completed form together with the apparent winning ticket to the lottery. Upon validation by the director, ((a check)) funds shall be ((mailed)) forwarded or presented to the claimant in payment of the amount due, less any applicable federal income tax withholding and deductions pursuant to RCW 67.70.255 and WAC 315-06-125. In the event that the claim is not validated by the director, the claim shall be denied and the claimant shall be promptly notified.

     (4) To claim an instant prize pursuant to WAC 315-10-070(2), the claimant shall notify the lottery of the claim and request reconstruction of the ticket not later than one hundred eighty days after the official end of that instant game or one hundred eighty days from purchase of a computer generated ticket. If the director authorizes reconstruction, the ticket shall not be validated nor the prize paid prior to ((the)) one hundred ((eighty-first)) eighty days following the official end of that instant game or one hundred eighty days from purchase of a computer generated ticket. A ticket(s) validated pursuant to WAC 315-10-070(2) shall not entitle the claimant entry into the grand prize drawing, if any, for that or any subsequent instant game.

     (5) Any ticket not passing all the validation checks specified by the director is invalid and ineligible for any prize and shall not be paid. However, the director may, solely at his or her option, replace an invalid ticket with an unplayed ticket (or tickets of equivalent sales price from any other current game). In the event a defective ticket is purchased, the only responsibility or liability of the director shall be the replacement of the defective ticket with another unplayed ticket (or tickets of equivalent sale price from any other current game).

[Statutory Authority: RCW 67.70.040. 97-04-047, § 315-10-075, filed 1/31/97, effective 3/3/97.]

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