WASHINGTON STATE LOTTERY

[Filed January 9, 2020, 10:16 a.m.]

Preproposal statement of inquiry was filed as WSR 19-23-053.

Title of Rule and Other Identifying Information: Chapter 315-39 WAC, Hit 5 game rules, amendments would change current language within the chapter to increase the interest amongst players.

Hearing Location(s): On April 23, 2020, at 8:30 a.m., at Washington's Lottery, 814 4th Avenue East, Olympia, WA 98506.

Date of Intended Adoption: April 23, 2020.

Submit Written Comments to: Kristi Weeks, P.O. Box 4300, Olympia, WA 98504-3000, email KWeeks@walottery.com, fax 360-515-0416, by April 22, 2020.

Assistance for Persons with Disabilities: Contact Debbie Robinson, phone 360-791-3045, TTY 360-586-0933, email DRobinson@walottery.com, by April 17, 2020.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Proposed amendments to chapter 315-39 WAC include changing elements of the draw game Hit 5 such as draw frequency, game odds, and prize structure. These modifications will potentially provide more appeal to players as well as increase sales and contributions to the lottery's beneficiaries.

Reasons Supporting Proposal: Recent sales from Hit 5 and data from other states with similar games suggest that players and the state would benefit from changes to the game in order to enhance interest and attract new players.

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: Washington's lottery, governmental.

Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Kristi Weeks, 814 4th Avenue East, Olympia, WA, 360-810-2881.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. The lottery is not an agency listed in RCW 34.05.328 (5)(a)(i). Further, the lottery does not voluntarily make that section applicable to the adoption of this rule pursuant to subsection (5)(a)(ii) and to date the joint administrative rules review committee has not made the section applicable to the adoption of this rule.

The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. This rule will not result in any cost to small businesses.

Legal Services Director

AMENDATORY SECTION(Amending WSR 07-03-113, filed 1/22/07, effective 2/22/07)

WAC 315-39-010Definitions for Hit 5 Game.

(1) Number: Any play integer from 1 through ((39))42 inclusive.

(2) Game grids: A field of ((39))42 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.

AMENDATORY SECTION(Amending WSR 07-03-113, filed 1/22/07, effective 2/22/07)

WAC 315-39-040Prizes 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))150.00. 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))15.00. The prize amount to be ((paid))given to each Hit 5 Game player who holds a winning combination of numbers in the fourth prize category shall be $((1.00))a free play.

WINNING COMBINATIONS	PRIZE CATEGORIES		ODDS OF WINNING (ONE PLAY)
All five winning numbers in one play		First Prize: Cashpot	((1:575,757))1:850,668.00
Any four but not five winning numbers in one play		Second Prize: $((100.00)) 150.00	((1:3,387))1:4,598.21
Any three but not four or five winning numbers in one play		Third Prize: $((10.00)) 15.00	((1:102))1:127.73
Any two, but not three, four or five winning numbers in one play		Fourth Prize: (($1.00)) free play	((1:9.6))1:10.95

(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))150.00 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))15.00 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))free play prize is to be ((paid))given 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.

AMENDATORY SECTION(Amending WSR 07-03-113, filed 1/22/07, effective 2/22/07)

WAC 315-39-060Drawings.

(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.

(5) The Hit 5 game drawings shall be held on a daily basis, Monday through Sunday, except that the director may exclude certain holidays from the drawing schedule.