WSR 02-03-109

PROPOSED RULES

LOTTERY COMMISSION


[ Filed January 22, 2002, 10:01 a.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 01-21-079.

     Title of Rule: Chapter 315-37 WAC, new rules for a new game called Lotto Plus.

     Purpose: To establish the rules of a new game, Lotto Plus.

     Statutory Authority for Adoption: RCW 67.70.040.

     Statute Being Implemented: RCW 67.70.040.

     Summary: Chapter 315-37 WAC will establish the rules for the new game, Lotto Plus.

     Name of Agency Personnel Responsible for Drafting: Mary Jane Ferguson, Olympia, (360) 664-4833; Implementation and Enforcement: Robert C. Benson Jr., Acting Director, Olympia, (360) 664-4800.

     Name of Proponent: Lottery Commission, governmental.

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

     Explanation of Rule, its Purpose, and Anticipated Effects: Under the rules of the new game, Lotto Plus, players will select five numbers out of a field of 1 through 43 and one number out of a field of 1 through 23, in order to try to match the number selected by the lottery to win a prize. The purpose of the new game is to stimulate interest in the Lotto game and maintain revenues for the state.

     Proposal does not change existing rules.

     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 administrative actions in the case of the revocation or suspending of a retailer's license; and (2) the rules will have a negligible impact, if any, on the normal operation of 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. This 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: Department of Labor and Industries Building, 7273 Linderson Way S.W., Tumwater, WA, on March 15, 2002, at 9:00 a.m.

     Assistance for Persons with Disabilities: Contact Mary Jane Ferguson by March 11, 2002, TDD (360) 586-0933, or (360) 664-4833.

     Submit Written Comments to: Mary Jane Ferguson, Lottery, fax (360) 586-6586, by March 11, 2002.

     Date of Intended Adoption: March 15, 2002.

January 18, 2002

Mary Jane Ferguson

Rules Coordinator

OTS-5403.1

Chapter 315-37 WAC

LOTTO PLUS


NEW SECTION
WAC 315-37-010   What is Lotto Plus and how do I play?   (1) Lotto Plus is an on-line lottery game in which you purchase a computer-generated ticket and try to match your two sets of numbers (one set of five numbers and one set of one number) to the two sets of numbers chosen by the lottery. The game is conducted in accordance with the rules for on-line games found in chapter 315-30 WAC, the general rules found in chapter 315-06 WAC, and this chapter.

     (2) To play Lotto Plus, you pick one set of five numbers from "01" to "43" and one number from "01" to "23" for a chance to win a prize, or you can let the computer pick both sets or either set of numbers for you. If you have the computer pick for you, this is called a "quick pick" or "quick play."

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NEW SECTION
WAC 315-37-020   How much does a Lotto Plus ticket cost?   The price of each Lotto Plus play is $.50 and is sold in pairs for $1.00.

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NEW SECTION
WAC 315-37-030   What are the prizes for Lotto Plus and the odds of winning the prizes?   (1) The prizes and odds for matching numbers in your set(s) of numbers to the numbers drawn by the lottery are as set forth below. The jackpot amount varies due to roll-over and the parimutuel calculation of prizes.

Numbers Matching Winning Numbers In Set of Five Number Matching Winning Number In Set of One Prize Amount Odds (per $1 play)
5 1 Jackpot 11,069,877
5 0 $2,000 503,176
4 1 $500 58,263
4 0 $25 2,648
3 1 $15 1,575
3 0 $3 72
2 1 $3 131
1 1 $2 30
0 1 $1 22
Overall Odds: 1:10

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

     (3) Roll-over feature for the jackpot prize is as follows:

     (a) If no player selects winning numbers entitling him or her to the jackpot prize, 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) The director shall have the discretion to increase the jackpot prize, in addition to the roll-over specified in (a) of this subsection.

     (4) All prize payments are subject to federal income tax withholding requirements and debt checks, pursuant to RCW 67.70.255.

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NEW SECTION
WAC 315-37-040   When will Lotto Plus start?   Lotto Plus will start on a date designated at the discretion of the director. The start date will be advertised. Lotto Plus will replace Lotto 6 of 49 as described in chapter 315-34 WAC. However, the director may choose at any time to have one or the other of the lotto games (Lotto 6 of 49 as set forth in chapter 315-34 WAC and/or Lotto Plus as set forth in this chapter) run alone or both at the same time.

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NEW SECTION
WAC 315-37-050   How are the winning sets of numbers selected?   Lottery officials conduct the drawing for the winning sets of numbers, as specified in the general rules for on-line game drawings, WAC 315-30-040. The director has the discretion to specify the means for randomly drawing the winning numbers. Each drawing shall be independent and shall determine, at random, five numbers from "01" through "43," and one number from "01" to "23" which will be the winning sets of numbers. No two of the five numbers in the winning set of five numbers will be identical. The one number in the set of one number may be identical to a number in the set of five numbers. Any drawn numbers will not be declared winning numbers until the drawing is validated by the lottery. The winning numbers shall be used to determine all Lotto Plus winners for that drawing. If a drawing is not validated, another drawing will be conducted to determine the winning sets of numbers. The drawing shall not be invalidated based on the liability of the lottery.

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NEW SECTION
WAC 315-37-060   How often are the winning sets of numbers chosen?   The Lotto Plus drawing for the winning sets of numbers is held at least once a week and may be held up to once a day, seven days a week, at the discretion of the director of the lottery. The director, in addition, has the discretion to change the drawing schedule or cancel the drawing if it falls on a holiday.

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NEW SECTION
WAC 315-37-070   Where can I buy or redeem Lotto Plus tickets?   You can buy or redeem Lotto Plus tickets only from a lottery retailer licensed by the director of the lottery to sell on-line, computer generated tickets. You can buy or redeem the tickets during no less than seventeen hours each day, according to a schedule determined by the director of the lottery, but each on-line retailer will sell and redeem tickets only during normal business hours. In redeeming tickets, a retailer may only pay out prizes up to $600. For prizes over $600, you must obtain a lottery claim form as described in WAC 315-06-120, and submit your ticket to the lottery by mail or in person. Tickets will be validated and redeemed in accordance with the general rules for on-line games found in chapter 315-30 WAC.

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NEW SECTION
WAC 315-37-080   What information is included on a Lotto Plus ticket and playslip?   The front of the ticket includes the selection of numbers, amount wagered, drawing date, and validation and reference numbers. The back of the playslip includes an estimate of the probability of purchasing a winning ticket, player instructions, and player information.

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NEW SECTION
WAC 315-37-090   How are prizes paid?   (1) Every Lotto Plus prize other than the jackpot prize will be paid in a single payment.

     (2) The jackpot prize will be paid in accordance with WAC 315-30-030(6); 315-06-120 and the following procedure:

     (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.

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NEW SECTION
WAC 315-37-100   What happens to unclaimed Lotto Plus prizes?   When a player who holds a winning ticket does not claim his or her prize within one hundred eighty days of the drawing in which the prize was won, that prize is retained in the state lottery fund for further use as prizes, as provided for in RCW 67.70.190.

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NEW SECTION
WAC 315-37-110   Definitions for Lotto Plus.   (1) Number: Any play number from "01" to "43" for the set of five numbers and any play number from "01" to "23" for the set of one number.

     (2) Set: One selection of five numbers, which constitute a set of five numbers, or one selection of one number, which constitutes a set of one number. Each play shall consist of the player's choice of one set of five numbers and one set of one number.

     (3) Play slip: A mark-sense game card used by players to select their sets of numbers.

     (4) Lotto Plus ticket: A computer-generated receipt showing payment for at least two plays in a Lotto Plus game. Tickets shall be issued by an on-line terminal at locations licensed by the lottery and shall list the sets of numbers that belong to the ticket holder.

     (5) Quick pick or quick play: A method for choosing a set of numbers by the use of the random number generator within the on-line computer terminal.

     (6) Play: One set of five numbers and one set of one number constitute a play.

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NEW SECTION
WAC 315-37-120   Suspension or termination of Lotto Plus.   At the discretion of the director, Lotto Plus may be suspended or terminated at any time, to be effective prior to the beginning of sales for any future drawing. The director may suspend or terminate sales only where no sales have been made for the drawing.

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© Washington State Code Reviser's Office