NOTICES
DEPARTMENT OF REVENUE
Terminal-Based Lottery Game Sales Through iLottery
[52 Pa.B. 6279]
[Saturday, October 1, 2022]Under the State Lottery Law (72 P.S. §§ 3761-101—3761-314) under Title 4, Amusements (4 Pa.C.S. §§ 501—505) and 61 Pa. Code § 876.2b (relating to traditional lottery products), the Secretary of Revenue hereby provides an updated public notice of the specific rules related to terminal-based lottery games sold through the iLottery system that includes information related to subscriptions. This notice replaces the Terminal-Based Lottery Game Sales Through iLottery notice previously published at 49 Pa.B. 5075 (August 31, 2019) in its entirety. The content of the notice is amended throughout:
1. Purpose: This notice shall provide notice of the specific rules governing the play of all terminal-based lottery games through the Pennsylvania Lottery's iLottery system and web sites at https://www.palottery.com and https://www.PAilottery.com. Terminal-based lottery games are operated under 61 Pa. Code §§ 875.1—875.17 (relating to terminal-based lottery games), 61 Pa. Code §§ 871.1—871.22 (relating to Powerball) and notices published in the Pennsylvania Bulletin for each terminal-based lottery game, as applicable. Except as set forth in this notice, each terminal-based lottery game shall be operated and governed as set forth in 61 Pa. Code §§ 875.1—875.17, 871.1—871.22 or the notices published in the Pennsylvania Bulletin, as applicable.
2. Definitions: Unless provided for in this section, the words and terms, when used in this notice, have the meanings ascribed to them under 61 Pa. Code §§ 875.1—875.17 (relating to terminal-based lottery games), 61 Pa. Code §§ 871.1—871.22 (relating to Powerball) and 61 Pa. Code § 876.2 (relating to definitions), unless the context clearly indicates otherwise.
(a) Registered play: The method by which a ticketless transaction is specifically linked to a player's identity through a unique identifier that confers ownership of the ticketless transaction to the specific lottery account used to purchase the lottery game play.
(b) Ticketless transaction: The purchase of a lottery game play through the iLottery system that does not result in the player receiving a physical, bearer instrument that confers ownership through possession of the instrument.
3. Eligibility requirements: To be eligible to participate in iLottery and purchase plays for terminal-based lottery games, a person must meet all of the following requirements:
(a) A person must become a registered iLottery player by establishing a lottery account with the Lottery through the Pennsylvania Lottery's iLottery web site at https://www.PAiLottery.com or by downloading the Pennsylvania Lottery's Official Mobile Application.
(b) A registered iLottery player must be 18 years of age or older.
(c) A registered iLottery player must be located within the physical boundaries of the Commonwealth of Pennsylvania to purchase a play, to establish a new subscription or to activate an inactive, existing subscription.
(d) A registered iLottery player must agree to the terms and conditions for registration and participation in iLottery.
(e) A registered iLottery player shall abide by all other requirements of 4 Pa.C.S. §§ 501—505 and any regulations promulgated thereunder.
4. Operation of terminal-based lottery games and procedures for purchasing a play:
(a) Terminal-based lottery games provide registered iLottery players with the opportunity to win one prize, per play.
(b) Terminal-based lottery games are games of chance, the outcomes of which are determined by a random number generator or through the conduct of a live drawing.
(c) To purchase a play, registered iLottery players must have a valid Lottery account as referenced in section 3(a) (relating to eligibility requirements).
(d) Registered iLottery players must fund the player's lottery account with money from an approved payment provider, as further detailed at https://www.PAilottery.com or through the iLottery section in the Pennsylvania Lottery's Official Mobile Application.
(e) Registered iLottery players may purchase a play using the player's own money or by using bonus or promotional money provided to the registered iLottery player by the Lottery at the Lottery's discretion, which is deposited into the player's lottery account.
(f) To purchase a play for a specific terminal-based lottery game, the player must select the game to play by clicking on the game image and following the prompts displayed on the subsequent webpages. Prompts will be displayed for age verification, the number of plays to select, the number of consecutive drawings to select, whether to purchase a subscription (as defined in section 12, below), whether to apply any add-ons such as Power Play®, Megaplier, Wild Ball, and the like, the play symbols to select or whether to utilize the quick pick option.
(g) To complete the purchase of a play, the player must elect to authorize the purchase at the price indicated, by selecting the ''Buy Now'' button. At that time, money will be drawn from the player's lottery account.
(h) To complete a subscription purchase:
(1) The player must elect to authorize a recurring payment at the price indicated by selecting ''Yes'' at the subscription prompt.
(2) The player must choose a payment method to fund the subscription purchase from the options provided, and then select ''Buy Now.''
(i) Upon completing a successful purchase, the player will be presented with information related to the purchase, including the drawing date or dates for which the play was purchased, the play symbols selected, the number of consecutive drawings elected, whether an add-on was selected, the total amount of the purchase and whether a subscription was purchased.
(j) A player may view any plays purchased in the player's account details on the iLottery web site. Prior to a drawing being held on the plays purchased, the webpage will display the purchase date, the play symbols selected, whether an add-on was selected, the draw date or dates for the play or plays purchased and the total cost of the wager. After a drawing has been held, the webpage will indicate the same information, plus any prize won on the play.
5. Procedures for claiming and payment of prizes:
(a) After purchasing a play for a specific terminal-based lottery game, the registered iLottery player must check the player's account details after the drawing date or dates for the play or plays purchased to reveal whether a prize is awarded.
(b) All terminal-based lottery game transactions conducted through the iLottery system are ticketless transactions that provide a registered play to an iLottery player's lottery account. All plays purchased through the iLottery system shall be registered plays that are linked to the purchasing player's lottery account through a secure, encrypted validation method that will allow a prize to be credited to only the purchasing player's lottery account.
(c) Prizes under $1,000,000 won by playing terminal-based lottery games through the iLottery system will be deposited into the registered iLottery player's lottery account and may be withdrawn from the player's account at the player's discretion and as further detailed in the iLottery terms and conditions.
(d) With respect to prizes of $1,000,000 and greater, won by playing terminal-based lottery games through the iLottery system, the player must appear, in person, at the Pennsylvania Lottery Headquarters to validate the win and present proof of identity to claim the prize.
(e) The Lottery will report taxable events to the relevant taxing authorities based on established statutory thresholds and registered iLottery players will be provided tax statements according to Lottery procedures.
(f) State and Federal withholding taxes, as further provided in section 7 (relating to withholding), will be automatically deducted from prizes meeting established statutory thresholds and shall be remitted to the appropriate taxing authorities as required by law.
(g) Statutorily required offsets under 23 Pa.C.S. § 4308 and 72 P.S. § 215 shall be automatically deducted from prizes meeting statutory thresholds and shall be paid to the relevant agencies as required by law.
6. Unclaimed prizes: If a terminal-based lottery game prize is unclaimed for any reason, the prize money from a winning play will be retained by the Secretary for payment to the person entitled thereto for a period of 1 year from the date on which a terminal-based lottery game prize is won. If no claim is made within 1 year of the date on which a prize is won, the right of a player to claim the prize, if any, will expire and the prize money will be paid into the State Lottery Fund and used for purposes provided for by statute.
7. Withholding: State and Federal withholding taxes will be withheld by the Lottery for prize payments in amounts required in accordance with applicable provisions of law.
8. Purchase and prize restrictions:
(a) A play may not be purchased by, and a prize will not be paid to, any individual failing to meet any of the requirements of section 3 (relating to eligibility requirements).
(b) A play may not be purchased by, and a prize will not be paid to, an officer or employee of the Lottery, Lottery and iLottery professional services contractors or subcontractors who are directly involved in the operation of the Lottery and iLottery and the provision of Lottery and iLottery related services, or to a spouse, child, brother, sister or parent residing in the same household of the officer, employee, contractor or subcontractor.
(c) During any period of self-exclusion as provided for under 61 Pa. Code § 876.16, no self-excluded registered iLottery player shall purchase plays, deposit or withdraw funds from the registered iLottery player's account or otherwise participate in iLottery and iLottery promotions prior to the conclusion of the self-exclusion period. Any subscription renewal purchases scheduled to occur during a self-exclusion or cool-off period will not be funded, and those subscriptions will become ''Inactive.'' Subscriptions that are changed to ''Inactive'' must be manually changed to ''Active'' by the player, as described in section 12(j), below, after the self-exclusion or cool-off period has ended.
(d) A registered iLottery player may be prohibited from purchasing plays, managing subscriptions, depositing or withdrawing money from the player's lottery account or otherwise participating in iLottery and iLottery promotions subject to any responsible gambling limits as set forth in the iLottery terms and conditions and as selected by the registered iLottery player, including deposit limits, spend limits, time-related limits or iLottery account access limits.
9. Governing law: By registering to participate in iLottery, the registered iLottery player agrees to comply with and abide by Federal and State laws, the iLottery regulations, applicable game rules, the terms and conditions for registration and participation in iLottery and final decisions of the Secretary.
10. Termination of the game: The termination of specific terminal-based lottery games or the removal of terminal-based lottery game sales through the iLottery system will be communicated through the Pennsylvania Lottery's Official web site.
11. Applicability:
(a) This notice applies only to terminal-based lottery games as offered by the Lottery for sale through the iLottery system.
(b) Terminal-based lottery games are available through Lottery retailers and the conduct of the games as sold by Lottery retailers shall be governed by 61 Pa. Code §§ 871.1—871.22, 875.1—875.17 and the terminal-based lottery game notices published in the Pennsylvania Bulletin, as applicable.
12. Subscriptions:
(a) An ''Active'' subscription authorizes the Lottery to deduct payment from a player's lottery account on a recurring basis for purchases authorized by the player for a specific terminal-based lottery game available online at https://www.pailottery.com.
(b) The subscription renewal period for each terminal-based lottery game, available through https://www.pailottery.com, shall be determined by the Lottery. The subscription renewal period shall be available on the ''Buy Now'' page of each individual terminal-based lottery game.
(c) Subscriptions shall renew automatically consistent with the renewal periods established by the Lottery as set forth in subsection (b) above.
(d) When a player purchases a new subscription for a specific terminal-based lottery game, the player receives a play for each drawing held from the date of the subscription purchase through and including the subscription period end date. The player will receive an email notification whenever a new subscription is purchased.
(e) Upon the initial purchase of a subscription, the player is enrolled in an ''Active'' subscription.
(f) Whenever a subscription is purchased or renewed, the Lottery deducts the price of the subscription from the player's lottery account and the player receives the number of plays for the applicable subscription period.
(g) When a player purchases a subscription, the player shall have the option to select the play symbols for that subscription via Quick Pick or may manually choose the play symbols to be used for that subscription. The selected play symbols are effective for the original subscription and any subsequent renewals.
(h) Whenever the number of plays purchased as part of an ''Active'' subscription reaches zero and the subscription period ends, that subscription will automatically renew and the player will receive the same number of plays for the same game again. The player will receive an email notification whenever a subscription renewal occurs.
(i) The default payment selection for all subscriptions and any renewals shall be the funds remaining in the player's lottery account.
(j) A player may change an ''Active'' subscription to an ''Inactive'' subscription using the ''My Subscriptions'' page of the player's lottery account. A player may also change an ''Inactive'' subscription to an ''Active'' subscription using the ''My Subscriptions'' page of the player's lottery account. The player will receive an email notification whenever a subscription's status changes.
(k) If a subscription is changed to ''Inactive'' at any time during the subscription period, any plays remaining for that subscription period will be cancelled and will not be used in any drawings until the subscription is made ''Active'' again.
(l) If a subscription is changed to ''Inactive'' at any time during the subscription period, any plays previously purchased, including plays where the drawing has not yet occurred, shall not be refunded.
(m) When an ''Inactive'' subscription is changed to ''Active'' again, that subscription will automatically renew when the number of remaining plays on the re-activated subscription reaches zero.
(n) If for any reason a player's subscription renewal purchase fails to fund, the player will receive an email notification indicating the reason for the failure to fund. In the event that a player's subscription renewal fails to fund, the subscription will automatically become ''Inactive.''
(o) A player may view and edit subscription information on the ''My Subscriptions'' page of the player's lottery account.
(1) The player may view the subscription game name, subscription period start and end dates, play symbols and add-ons selected, subscription identification number, last subscription renewal date and next subscription renewal date on the ''My Subscriptions'' page of the player's lottery account.
(2) A player can change a subscription to ''Active'' or ''Inactive'' on the ''My Subscriptions'' page of the player's lottery account. All changes must be confirmed by the player before taking effect.
(3) A player can manage the payment method used to fund subscriptions using the ''Edit Payment'' button at the top of the ''My Subscriptions'' page of the player's lottery account.
C. DANIEL HASSELL,
Secretary
[Pa.B. Doc. No. 22-1526. Filed for public inspection September 30, 2022, 9:00 a.m.]
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