WSR 05-04-081

PROPOSED RULES

WASHINGTON STATE LOTTERY


[ Filed February 1, 2005, 3:51 p.m. ]

Original Notice.

Continuance of WSR 05-01-080.

Preproposal statement of inquiry was filed as WSR [05-01-080].

Title of Rule and Other Identifying Information: Chapter 315-34 WAC, Lotto 6 of 49 rules, changes to the Lotto rules allow additional drawing days and all first prizes will be at the discretion of the director.

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: At the Lottery Commission's January 20, 2005, meeting Washington's lottery intends to recommend permanent amendment of this rule, to correctly reflect the drawing schedule change for increased consumer awareness and increased revenue contributions to the state. The rule has been adopted by the Lottery Commission on an emergency basis, effective January 21, 2005. The emergency rule is shown below and is identical to the amendment that will be proposed for permanent adoption.

Reasons Supporting Proposal: The rule broadens players' opportunities and options in the Lotto game.

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-7766.1


AMENDATORY SECTION(Amending WSR 96-15-054, filed 7/15/96, effective 8/15/96)

WAC 315-34-010   Definitions for Lotto.   (1) Number: Any play integer from 1 through 49 inclusive.

(2) Game grids: A field of ((the)) 49 numbers found on the play slip.

(3) Play: One selection of six numbers.

(4) ((Pair)) Set: Two plays.

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

(6) Lotto ticket: A computer-generated receipt evidencing payment for two or more plays in the Lotto game. Tickets shall be issued by ((an on-line terminal)) a licensed lottery retailer and shall list the set of six-number plays that belong to the ticket holder.

[Statutory Authority: RCW 67.70.040. 96-15-054, 315-34-010, filed 7/15/96, effective 8/15/96; 92-11-033, 315-34-010, filed 5/15/92, effective 6/15/92; 90-19-048, 315-34-010, filed 9/14/90, effective 10/15/90.]


AMENDATORY SECTION(Amending WSR 96-15-054, filed 7/15/96, effective 8/15/96)

WAC 315-34-020   Price of Lotto play.   The price of each Lotto play shall be $.50 and shall be sold only in ((pairs)) sets for $1.00.

[Statutory Authority: RCW 67.70.040. 96-15-054, 315-34-020, filed 7/15/96, effective 8/15/96; 92-11-033, 315-34-020, filed 5/15/92, effective 6/15/92; 90-19-048, 315-34-020, filed 9/14/90, effective 10/15/90.]


AMENDATORY SECTION(Amending WSR 90-19-048, filed 9/14/90, effective 10/15/90)

WAC 315-34-030   Play for Lotto.   (1) Type of play: A Lotto player must select six numbers in each play. A winning play is achieved only when 3, 4, 5, or 6 of the numbers selected by the player match, in any order, the six winning numbers drawn by the lottery.

(2) Method of play: The player will use play slips to make number selections. The ((on-line)) lottery terminal will read the play slip and issue ticket(s) with corresponding plays. If a play slip is not available, the ((on-line)) 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 ((play)) pick."

[Statutory Authority: RCW 67.70.040. 90-19-048, 315-34-030, filed 9/14/90, effective 10/15/90.]


AMENDATORY SECTION(Amending WSR 03-23-097, filed 11/17/03, effective 11/17/03)

WAC 315-34-040   ((Prize[d][s])) Prizes for Lotto.   (1) The prize amounts to be paid to each Lotto player who selects a winning combination of numbers in the first, second, third(([,])), and (([fourth])) fourth prize categories are as follows:

WINNING

COMBINATIONS

PRIZE

CATEGORIES

PRIZE AMOUNTS ODDS OF WINNING

(ONE PLAY)

All six ((winner [winning])) winning numbers in one play First Prize Jackpot ((1:6,991,908)) 1:13,983,816
Any five but not six winning numbers in one play Second Prize $1,000 ((1:27,100)) 1:54,201
Any four but not five or six winning numbers in one play Third Prize (([$30]))

$30

((1:516))

1:1,033

Any three but not four, five or six winning numbers in one play Fourth Prize $3 ((1:28))

1:57


(2) Prize amounts.

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

(b) Second prize. The second prize will be $1,000, which will be paid to each player who selected five of the six winning numbers in one play (in any sequence).

(c) Third prize. The third prize will be $30, which will be paid to each player who selected four of the six winning numbers in one play (in any sequence).

(d) Fourth prize. A $3.00 prize is to be paid to each player who selected three of the six winning numbers in one play (in any sequence).

(e) The holder of a winning ticket may win only one prize per play in connection with the winning numbers drawn and shall be entitled only to the highest prize category won by those numbers.

(f) In the event any player who has selected three, four, five, or six of the six 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 further use as prizes, pursuant to RCW 67.70.190.

[Statutory Authority: RCW 67.70.040. 03-23-097, 315-34-040, filed 11/17/03, effective 11/17/03; 01-17-022, 315-34-040, filed 8/6/01, effective 9/6/01; 97-24-076, 315-34-040, filed 12/2/97, effective 1/2/98; 96-15-054, 315-34-040, filed 7/15/96, effective 8/15/96; 94-07-029, 315-34-040, filed 3/8/94, effective 4/8/94; 93-03-008, 315-34-040, filed 1/8/93, effective 2/8/93; 92-11-033, 315-34-040, filed 5/15/92, effective 6/15/92; 92-07-014, 315-34-040, filed 3/6/92, effective 4/6/92; 90-19-048, 315-34-040, filed 9/14/90, effective 10/15/90.]


AMENDATORY SECTION(Amending WSR 01-17-022, filed 8/6/01, effective 9/6/01)

WAC 315-34-050   Ticket purchases.   (1) Lotto tickets may be purchased ((or redeemed during no less than seventeen hours each day)) daily in accordance with a schedule to be determined by the director((, provided that on-line)). Licensed lottery retailers shall sell and redeem tickets only during their normal business hours. Lotto tickets may be purchased only from a licensed lottery retailer.

(2) ((Lotto tickets may be purchased only from a lottery retailer authorized by the director to sell on-line tickets.

(3))) Lotto tickets shall, on the front of the ticket, contain the player's selection of numbers, amount, game grids played, drawing date ((and validation)), ticket serial number and reference numbers. The back of the ticket shall contain overall odds of winning, player instructions, player information and signature area, governing statutes and rules, and the ticket ((serial)) stock number.

[Statutory Authority: RCW 67.70.040. 01-17-022, 315-34-050, filed 8/6/01, effective 9/6/01; 97-24-076, 315-34-050, filed 12/2/97, effective 1/2/98; 90-19-048, 315-34-050, filed 9/14/90, effective 10/15/90.]


AMENDATORY SECTION(Amending WSR 01-17-022, filed 8/6/01, effective 9/6/01)

WAC 315-34-057   Lotto prize claim and payment methods.   The following sets forth requirements for claims and payment of Lotto prizes:

(1) Claims for prize payment shall be made in accordance with chapter 315-30 WAC ((315-30-030(6))).

(2) Prize payments shall be made as follows:

(a) Cash option: After a player has claimed a jackpot prize or a share of a jackpot prize, and after the claim has been validated (including a debt check pursuant to WAC 315-06-125), the player may elect to be paid a one-time single cash payment of fifty percent of his or her share of the announced jackpot, provided:

(i) The player must elect this cash option within sixty days of the validation of his or her prize, by following the procedure required by the lottery;

(ii) If the federal tax code is interpreted by federal authorities to require that this cash option be exercised within sixty days of the drawing for the prize, then (a)(i) of this subsection will not apply and instead, the player must elect this cash option within sixty days of the date of the drawing for the prize;

(iii) The player's choice of payment method as designated by signing the appropriate lottery form is final and may not be changed by the player at a later date.

(b) Annuity: A player who chooses not to elect the cash option or who does not elect the cash option within the sixty-day limit will be paid his or her prize in twenty-five annual installment payments.

[Statutory Authority: RCW 67.70.040. 01-17-022, 315-34-057, filed 8/6/01, effective 9/6/01; 99-19-103, 315-34-057, filed 9/20/99, effective 10/21/99.]


AMENDATORY SECTION(Amending WSR 90-19-048, filed 9/14/90, effective 10/15/90)

WAC 315-34-060   Drawings.   (1) The Lotto drawing shall be held ((each week on Wednesday and Saturday evenings beginning October 24, 1990, except that the director may change the drawing schedule if Wednesday or Saturday is a holiday)) up to once every twenty-four hours, at the discretion of the director.

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

(3) Each drawing shall ((determine, at random, six winning numbers with the aid of mechanical drawing equipment which)) randomly select six winning numbers between 1 and 49. The drawing method shall be tested before and after ((that)) each drawing. Any drawn numbers are not declared winning numbers until the drawing is certified by the lottery. The winning numbers shall be used in determining all Lotto 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.

[Statutory Authority: RCW 67.70.040. 90-19-048, 315-34-060, filed 9/14/90, effective 10/15/90.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 315-34-070 Double Lotto.
WAC 315-34-080 Price of Double Lotto play.
WAC 315-34-090 Prizes for Double Lotto.
WAC 315-34-100 Double Lotto ticket purchases.

Washington State Code Reviser's Office