WSR 97-20-131

PROPOSED RULES

LOTTERY COMMISSION

[Filed October 1, 1997, 10:21 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-00-037 [97-02-037] and 97-11-057.

Title of Rule: New sections WAC 315-11A-208 Instant Game Number 208, 315-11A-209 Instant Game Number 209, 315-11A-210 Instant Game Number 210, 315-11A-211 Instant Game Number 211, 315-11A-212 Instant Game Number 212, 315-11A-213 Instant Game Number 213 and 315-11A-214 Instant Game Number 214; and amendatory section WAC 315-34-040 Prizes for Lotto.

Purpose: To establish the game play rules and criteria for determining winners of Instant Game Nos. 208, 209, 210, 211, 212, 213 and 214; and to amend chapter 315-34 WAC.

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 Rule below.

Name of Agency Personnel Responsible for Drafting: Michael Aoki-Kramer, Rules Coordinator, Olympia, (360) 586-6583; 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: WAC 315-11A-208, 315-11A-209, 315-11A-210, 315-11A-211, 315-11A-212, 315-11A-213 and 315-11A-214, for each game, certain terms must be defined in order to provide consistency in the game play rules. The play criteria will explain how the game functions to licensed retailers and players. Rigid validation requirements are set forth which will prevent the lottery or its retailers from paying out prize money on invalid tickets.

Proposal Changes the Following Existing Rules: Chapter 315-34 WAC, Lotto 6 of 49 Rules, allows players to elect, at the time of purchase, to receive a cash option payment in lieu of twenty annual payments.

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 a 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: Washington State Lottery, 5936 Corson Avenue South, Suite 106, Seattle, WA 98108, on November 7, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Michael Aoki-Kramer by October 29, 1997, (360) 586-6583.

Submit Written Comments to: Michael Aoki-Kramer, Lottery, FAX (360) 586-6586, by November 6, 1997.

Date of Intended Adoption: November 7, 1997.

September 16, 1997

Merritt D. Long

Director

NEW SECTION

WAC 315-11A-208 Instant Game Number 208. (1) Essential game elements shall appear as set forth in the executed working papers for Instant Game Number 208, on file at the lottery headquarters office.

(2) Price per ticket: One dollar.

(3) Prizes available: $1, $2, $3, $4, $5, $6, $10, $20, $25, $50, $100, $500, $1,000, and $2,000. Players may win more than one prize per ticket.

(4) Manner of selecting winning tickets: "Your" (the player's) card is greater than "their" card. Uncover a heart symbol to win instantly.

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NEW SECTION

WAC 315-11A-209 Instant Game Number 209. (1) Essential game elements shall appear as set forth in the executed working papers for Instant Game Number 209, on file at the lottery headquarters office.

(2) Price per ticket: One dollar.

(3) Prizes available: $1, $2, $3, $4, $5, $6, $7, $10, $25, $50, and $500. Players may win more than one prize per ticket.

(4) Manner of selecting winning tickets: Match any of the "Your Symbols" to the "Winning Symbol."

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NEW SECTION

WAC 315-11A-210 Instant Game Number 210. (1) Essential game elements shall appear as set forth in the executed working papers for Instant Game Number 210, on file at the lottery headquarters office.

(2) Price per ticket: Two dollars.

(3) Prizes available: $1, $2, $3, $4, $5, $8, $50, $500, $1,000, $5,000, and $10,000. Players may win more than one prize per ticket.

(4) Manner of selecting winning tickets: Match "Your Numbers" to either of the "Winning Numbers."

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NEW SECTION

WAC 315-11A-211 Instant Game Number 211. (1) Essential game elements shall appear as set forth in the executed working papers for Instant Game Number 211, on file at the lottery headquarters office.

(2) Price per ticket: Two dollars.

(3) Prizes available: $1, $2, $3, $5, $6, $10, $50, $100, $1,000, and $5,000. Players may win more than one prize per ticket.

(4) Manner of selecting winning tickets: The sum of the cards within a hand totals 13. Uncover a king to win instantly.

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NEW SECTION

WAC 315-11A-212 Instant Game Number 212. (1) Essential game elements shall appear as set forth in the executed working papers for Instant Game Number 212, on file at the lottery headquarters office.

(2) Price per ticket: Two dollars.

(3) Prizes available: $1, $2, $3, $4, $5, $7, $9, $10, $25, $45, $50, $100, and $2,000. Players may win more than one prize per ticket.

(4) Manner of selecting winning tickets: "Your" (the player's) number is greater than "their" number. Uncover a mitt symbol to win instantly.

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NEW SECTION

WAC 315-11A-213 Instant Game Number 213. (1) Essential game elements shall appear as set forth in the executed working papers for Instant Game Number 213, on file at the lottery headquarters office.

(2) Price per ticket: One dollar.

(3) Prizes available: $1, $2, $3, $4, $5, $6, $8, $10, $20, $50, and $500. Players may win more than one prize per ticket.

(4) Manner of selecting winning tickets: "Your" (the player's) number is greater than "their" number.

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NEW SECTION

WAC 315-11A-214 Instant Game Number 214. (1) Essential game elements shall appear as set forth in the executed working papers for Instant Game Number 214, on file at the lottery headquarters office.

(2) Price per ticket: One dollar.

(3) Prizes available: $1, $2, $3, $4, $5, $6, $10, $100, and $2,000. Players may win more than one prize per ticket.

(4) Manner of selecting winning tickets: "Your" (the player's) number is greater than "their" number. Uncover a "2" and double the prize shown.

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

WAC 315-34-040 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, and third prize categories vary due to parimutuel calculation of prizes.

winning odds of winning

combinations prize categories (one play)

All six winning First Prize (Jackpot) 1:13,983,816

numbers in one

play

Any five but not six Second Prize 1:54,201

winning numbers in

one play

Any four but not Third Prize 1:1,033

five or six winning

numbers in one play

Any three but not Fourth Prize 1:57

four, five or six

winning numbers in

one play

(2) Reserved.

(3) Prize amounts.

(a) First prize (jackpot). The first prize 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. 2.3 percent of the Lotto sales for the drawing shall be divided equally among all players who selected five of the six winning numbers in one play (in any sequence).

(c) Third prize. 4.6 percent of the Lotto sales for the drawing shall be divided equally among all players 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) Reserved.

(f) Second and third prizes will be rounded down to the nearest dollar.

(g) 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.

(h) The holder of two or more jackpot winning tickets with a cumulative total cash value of $250,000 or more may elect to receive a single prize based on the total cash value with prize payments in accordance with subsection (5)(a) or (b) of this section.

(i) 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.

(4) Roll-over feature.

(a) If no player selects all six winning numbers for any given drawing, the jackpot accumulated for that drawing will be added to the jackpot accumulation for the next drawing. This process is repeated until the jackpot is won.

(b) If no player selects five of the six winning numbers for any given drawing, the second prize allocation will be added to the jackpot accumulation for the next drawing.

(c) If no player selects four of the six winning numbers for any given drawing, the third prize allocation will be added to the jackpot accumulation for the next drawing.

(((5) Prize payments will be made in accordance with WAC 315-30-030(6).

(a) Each prize that has a cash value of $500,000 or more shall be paid in twenty annual payments.

(b) Each prize that has a cash value of more than $250,000 but less than $500,000 shall, at the discretion of the director, be paid either in ten annual payments or twenty annual payments.

(c) Each prize that has a cash value of $250,000 or less shall be paid in a single payment.

(d) For prizes paid over a period of years, the lottery will make the first annual payment. The remaining payments will be paid in the form designated by the director.))

[Statutory Authority: RCW 67.70.040. 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 90-19-048, filed 9/14/90, effective 10/15/90)

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

(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 and reference numbers. The back of the ticket shall contain overall odds of winning, player instructions, player information and signature area, and the ticket serial number.

(4) At the time of ticket purchase, the player may elect the cash option method of jackpot prize payment.

(5) The election of payment method at the time of purchase is final and irrevocable.

[Statutory Authority: RCW 67.70.040. 90-19-048, 315-34-050, filed 9/14/90, effective 10/15/90.]

NEW SECTION

WAC 315-34-055 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 WAC 315-30-030(6).

(2) Prize payments shall be made as follows:

(a) Annuity: A player who elects their prize to be paid annually shall be paid as follows:

(i) If the player's share of the announced jackpot prize is $500,000 or more, the player shall be paid in twenty annual installment payments.

(ii) If the player's share of the announced jackpot prize is less than $500,000, the director shall have the discretion of paying the winner as follows:

(A) The present cash value of the jackpot prize share based on the cost to purchase a twenty-year annuity: Provided, That the present cash value is equal to or greater than fifty percent of their share of the announced jackpot;

(B) If the present cash value of the player's share of the announced jackpot is less than fifty percent of their share of the announced jackpot, then the player shall receive a one-time single cash payment of fifty percent of their share of the announced jackpot; or

(C) The player shall be paid in twenty annual installment payments.

(b) Cash option: A player who elects the cash option shall be paid as follows:

(i) The player shall receive a one-time single cash payment of fifty percent of their share of the announced jackpot; or

(ii) If the director exercises his or her discretion as set forth in (a)(ii)(A) or (B) of this subsection, a player who elects the cash option will receive the same amount as those who have chosen to receive an annuity.