NOTICES
DEPARTMENT OF REVENUE
Pennsylvania Smart Chip PlayTM Card and Program
[54 Pa.B. 1161]
[Saturday, March 2, 2024]Under the State Lottery Law (72 P.S. §§ 3761-101—3761-314) and 61 Pa. Code § 803.11 (relating to powers and duties of the Secretary of Revenue), the Secretary of Revenue hereby provides public notice of the rules for the following type of lottery.
The Smart Chip PlayTM (hereinafter ''Smart Chip Play'') card and program will be implemented and effective beginning on or after March 6, 2024 and will be effective for six months, unless extended by public notice or unless terminated earlier through the Lottery's standard communication methods. Smart Chip Play provides for a new mechanism by which players may purchase Pennsylvania Lottery game plays as follows:
1. Name: The name of the Lottery product governed by this notice is Smart Chip Play. Smart Chip Play consists of a physical product, the Smart Chip Play card, and the program and system that supports the use of the cards.
2. Purpose: This notice establishes procedures for the creation of the Smart Chip Play lottery program, sales of Smart Chip Play cards and game plays, validation of winners, payment of prizes and compensation of retailers for Smart Chip Play lottery games conducted by the Pennsylvania Lottery.
3. Definitions:
(a) Authorized retailer, retailer: A person who is properly licensed by the Lottery pursuant to 61 Pa. Code §§ 805.1—805.17.
(b) Autoplay: An optional function of Smart Chip Play games that allows a player to purchase and play multiple game rounds of the same Smart Chip Play game in succession. Autoplay can be stopped at any time prior to playing all game rounds at the player's option.
(c) Claim ticket: The document provided to a player by a participating retailer when redeeming a prize over $600, and which must be submitted to the Lottery on a claim form.
(d) Game play: An opportunity to participate in a Smart Chip Play game upon payment of the purchase price.
(e) Participating retailer: An authorized retailer, provided Smart Chip Play cards, Smart Chip Play tablets and Smart Chip Play terminals, and who is authorized by the Lottery to offer Smart Chip Play games.
(f) Play credit: A monetary equivalent of the money loaded on the Smart Chip Play card using cash or generated through prizes won of $600 or less and used to purchase Smart Chip Play game plays.
(g) Prize: Money that can be won by playing a Smart Chip Play game. All prizes are initially rewarded as play credits, which can be converted to cash.
(h) Purchase receipt: The document provided to a player by a participating retailer when depositing cash for play credits through the Smart Chip Play terminal.
(i) Redemption receipt: The document provided to a player by a participating retailer when redeeming an individual prize of $600 or less, or a collection of individual prizes each of which are $600 or less.
(j) Reveal All: An optional function of Smart Chip Play games that allows the player to reveal all game play and/or prize symbols at the same time instead of the standard one-by-one reveal of individual game play and/or prize symbols.
(k) Smart Chip Play card: A bearer instrument issued by the Lottery and purchased through participating retailers, which is the player's record of game play for Smart Chip Play games and contains the Smart Chip Play microchip, which contains certain encrypted game play data, and validation data used for identifying winning and losing game plays, and which transmits game play data to the Smart Chip Play system through the Smart Chip Play tablet upon completion of game play.
(l) Smart Chip Play game: A lottery game of chance, in which players have a chance to win one prize per game play. Smart Chip Play game play outcomes are predetermined at the time the game begins and player selections cannot influence the outcome of any game play.
(m) Smart Chip Play microchip: The secure, encrypted area of the Smart Chip Play card which contains information unique to that microchip including, but not limited to, the play credit balance, the balance of prize winnings, the Smart Chip Play game math, the random number generator that determines game play outcomes, and a log file storing limited game outcome information, and which transmits game play data to the Smart Chip Play system through the Smart Chip Play tablet upon completion of each game play.
(n) Smart Chip Play system: The computer gaming system on which all Smart Chip Play transactions and game plays are recorded, and which is the system of record for all Smart Chip Play transactions.
(o) Smart Chip Play tablet. A touchscreen, tablet, computing device authorized by the Lottery, in which a player inserts a Smart Chip Play card to play Smart Chip Play games, and upon completion of game play to communicate the game play outcome, game play data, and card information from the Smart Chip Play card and microchip to the Smart Chip Play system.
(p) Smart Chip Play terminal: A device authorized by the Lottery to interact with the Smart Chip Play system, for the purpose of entering, receiving, and processing Smart Chip Play transactions, including loading play credits and processing wins, validating game plays, and transmitting certain reports.
4. Description of the Smart Chip Play card and program:
(a) The Smart Chip Play program offers customers who visit participating retailers a method to play Lottery games of chance for the opportunity to win a prize. The Smart Chip Play program consists of Smart Chip Play cards, the Smart Chip Play system, Smart Chip Play tablets and Smart Chip Play terminals. Smart Chip Play games are played on the Smart Chip Play tablet and the Smart Chip Play card generates the random game results and securely records and transmits information related to game plays to be recorded on the Smart Chip Card system.
(b) The Smart Chip Play card is a multi-use lottery product that allows lottery players to purchase play credits for the purpose of playing Smart Chip Play games through the Smart Chip Play tablet located at participating retailers. The Smart Chip Play card securely processes Smart Chip Play transactions through the unique, secure Smart Chip Play microchip found in each Smart Chip Play card.
(c) Smart Chip Play tablets are geo-fenced and can only be played within the area permitted inside the participating retailer's premises.
(d) To acquire a Smart Chip Play card, a player must request a card from the participating retailer and must load play credits on to the Smart Chip Play card using cash. Players may purchase play credits at any time during the period the program is active in the amounts of $10, $20, $30, $50, $100 or $200. The participating retailer will provide the player with a purchase receipt whenever the player purchases play credits.
(e) Once play credits are loaded onto a Smart Chip Play card, the play credits must be used to purchase Smart Chip Play game plays and cannot be withdrawn. Only prizes can be withdrawn from the Smart Chip Play card. The Smart Chip Play card can only be used to purchase Smart Chip Play game plays during the period that the program is active and cannot be used to purchase any other type of Lottery products.
(f) A Smart Chip Play card, loaded with play credits, can be inserted into the card reader on the Smart Chip Play tablet. Once inserted, the player may play Smart Chip Play games on the Smart Chip Play tablet using the play credits available on the card. Play credits generated by winning prizes of $600 or less can only be used to purchase Smart Chip Play game plays after all play credits loaded onto the card using cash are depleted.
5. Smart Chip Play games:
(a) Game descriptions: The Lottery will post descriptions for each Smart Chip Play game, including game play instructions, which will be accessible from the QR code contained on the back of the Smart Chip Play card and the Lottery's publicly accessible website at https://www.palottery.state.pa.us/smartchipplay, with the following information:
(i) The name of the game.
(ii) The purchase price or range of purchase prices of an individual game play for the game.
(iii) The prizes that can be won.
(iv) The chances of winning a prize in the game.
(v) Instructions for playing the game.
(vi) Other information necessary for the conduct of the game.
(b) Purchase price: The purchase price for a single game play in any individual Smart Chip Play game is determined by the game selected and can range from $0.10 to $30. The price, or range of prices, of any individual game play in any Smart Chip Play game can be found in the game descriptions as further described in this section.
(c) Determination of prize winners:
(i) Prize-winning game plays will be determined under this notice and the specific Smart Chip Play lottery game descriptions posted as required under this section.
(ii) A prize shall be paid only if the Smart Chip Play card and the Smart Chip Play game play meets the criteria established in section 7 (relating to validation and requirements).
(d) Bearer instrument responsibility: The holder of a Smart Chip Play card and any purchase receipt, redemption receipt or claim ticket issued upon presentation of that Smart Chip Play card to a participating retailer has the sole responsibility for checking the condition of the card, the data printed on the purchase receipt, redemption receipt or claim ticket and that the card and any purchase receipt, redemption receipt and claim ticket satisfy the requirements of section 7 (relating to validation and requirements).
(e) Termination of a game: The Secretary may announce a termination date, after which no game plays from a Smart Chip Play game may be sold. The announcement will be disseminated through media used to advertise or promote Smart Chip Play games or through normal communications methods.
6. Smart Chip Play card responsibility:
(a) A Smart Chip Play card is a bearer instrument deemed to be owned by the person holding the card, except that if a name is contained on the back of the card, the person named will, for all purposes, be considered the owner of that card.
(b) The Commonwealth shall not be responsible for a lost or stolen Smart Chip Play card or claim ticket, or for a prize redeemed by a player in error.
(c) If a player believes that the player's Smart Chip Play card was stolen, the player should report the alleged theft to the local police department. The Lottery is not responsible for lost, damaged or stolen Smart Chip Play cards or claim tickets.
7. Validation and requirements:
(a) All winning game plays must be validated through the Smart Chip Play system.
(b) All winning game plays in excess of $600 will be immediately validated through the Smart Chip Play system following completion of each game play, and the card and tablet will lock. Players with Smart Chip Play cards containing suspected winning game plays in excess of $600 must remove the card to unlock the tablet and present the card to the participating retailer, who will insert the card into the terminal to further validate the win, generate a claim ticket and unlock the card. The retailer will issue a claim ticket from the Smart Chip Play terminal to begin the claim process, as further provided for in section 8 (relating to procedures for claiming and payment of prizes).
(c) Winning game plays of $600 or less are immediately validated through the Smart Chip Play system following the completion of each game play. Players with Smart Chip Play cards containing winning game plays validated through the Smart Chip Play system will have their prizes added to their play credits total, which can be used to purchase Smart Chip Play game plays after all play credits loaded to the Smart Chip Play card have been depleted, or which may be paid by a participating retailer any time, at the player's request.
(d) To be a valid Smart Chip Play card, the Smart Chip Play card must meet the following conditions:
(i) The card must be intact.
(ii) The card must not be mutilated, altered, reconstituted or tampered with.
(iii) The card must not be counterfeit, or a duplicate.
(iv) The card must be validly issued.
(e) Winning game plays must be validated in accordance with section 8 (relating to procedures for claiming and payment of prizes) and as follows:
(i) The redemption receipt or claim ticket must not be defectively printed or printed or produced in error, such that it cannot be processed and validated by the Lottery, and must agree in all respects to the information contained in the Smart Chip Play system. In the event of a printing error of a claim ticket, the participating retailer may print a claim ticket copy, which must be submitted with the original claim ticket with the Lottery claim form.
(ii) The transaction number of the winning game play must appear on the Lottery's official file of transaction numbers of winning game plays, and a winning game play with that transaction number must not have been previously paid.
(iii) The redemption receipt or claim ticket, and the game play data contained on the Smart Chip Play system, must pass other confidential security checks of the Lottery.
(iv) A redemption receipt or claim ticket not passing the validation requirements in this section will not be considered valid and will not be paid.
(f) In any cases of doubt, the determination of the Secretary is final. The Lottery reserves the right, in its sole discretion, to require a player to present any prize-winning Smart Chip Play card, redemption receipt or claim ticket for the purpose of inspection and validation.
8. Procedures for claiming and payment of prizes:
(a) A prize may be claimed through a participating retailer or the Lottery, as provided in this section. A prize must be claimed within 1 year of the end of the Smart Chip Play program.
(b) A participating retailer is authorized to pay prizes of $600 or less. The holder of a Smart Chip Play card evidencing a winning game play representing a prize of $600 or less will have their prizes added to their play credits total. The player may be paid by a participating retailer if a proper redemption receipt was issued by the retailer's Smart Chip Play terminal.
(c) The holder of a Smart chip Play card evidencing a winning game play representing a prize in excess of $600 when validated through the retailer's Smart Chip Play terminal must submit the claim ticket as well as a completed Lottery claim form to a Lottery District Office, or Lottery Headquarters. In the event of a printing error of a claim ticket, the participating retailer may print a claim ticket copy, which must be submitted with the original claim ticket with the Lottery claim form.
(d) The holder of a claim ticket issued by a participating retailer and evidencing a winning game play shall mail the receipt and claim form to the Lottery Headquarters or a Lottery District Office. The Lottery will issue payment if:
(i) The game play is validated through the Smart Chip Play system;
(ii) A claim form is properly and fully completed and is accompanied by a valid claim ticket;
(iii) The identification of the claimant is confirmed; and
(iv) The winning game play has not expired, pursuant to this section or section 10 (relating to unclaimed prizes).
(e) The Commonwealth shall not be responsible for a winning game play paid in error by a participating retailer.
(f) In the event a prize described in these rules is not available, the Lottery may either provide a substitute prize, determined by the Secretary to have an equivalent value to the prize won, or make a cash payment to the winner, in an amount determined by the Secretary to have an equivalent value to the prize won.
(g) The Lottery reserves the right, in its sole discretion, to require a player to present any prize-winning Smart Chip Play card, redemption receipt or claim ticket for the purpose of inspection and validation.
9. Funding for prizes: Moneys will be drawn from the State Lottery Fund to the extent necessary to fund the payment of Smart Chip Play prizes.
10. Unclaimed prizes: Unclaimed prize money on winning game plays will be retained by the Secretary for payment to the persons entitled thereto for 1 year from end of the Smart Chip Play program. If no claim is made within 1 year from the end of the Smart Chip Play program, the right of a Smart Chip Play card holder to claim the prize represented by that card, if any, shall expire.
11. Retailer promotion programs: Retailer incentive and marketing promotion programs, including the use of free Smart Chip Play cards, may be implemented at the discretion of the Secretary.
12. Purchase and prize restrictions: A Smart Chip Play card, play credits or game play may not be purchased by, and a prize may not be paid to, an officer or employee of the Lottery, Lottery professional services contractors or subcontractors, or to a spouse, child, brother, sister or parent residing in the same household of an officer, employee, contractor or subcontractor who is involved in the production, distribution or operation of systems for the validation or accounting of Smart Chip Play Games.
13. Withholding: Federal and state taxes will be withheld by the Lottery from certain prize payments in amounts required in accordance with applicable provisions of law.
14. Lottery winnings intercept: If the Department of Human Services, pursuant to 23 Pa.C.S.A. § 4308, the Department of Revenue or the Administrative Office of Pennsylvania Courts, pursuant to 72 P.S. § 215, determines that a winner of more than $2,500 is a delinquent support obligor as provided in 23 Pa.C.S.A. § 4308 or has an outstanding state tax liability or owes court-ordered obligations as provided in 72 P.S. § 215 the amount of any arrearages shall be deducted from the prize. After the delinquent support obligation, state tax liability or court-ordered obligation is met, the prize-winner will receive the remaining portion of the prize, if any, which shall be fulfilled according to Lottery procedure.
15. Governing law:
(a) By purchasing a Smart Chip Play card or a game play for any Smart Chip Play game, the purchaser agrees to comply with and abide by the State Lottery Law (72 P.S. §§ 3761-101—3761-314), this notice, instructions, conditions and final decisions of the Secretary and procedures established by the Secretary for the conduct of Smart Chip Play Games.
(b) Decisions made by the Secretary, including the declaration of prizes and the payment thereof, in interpretation of this notice, as well as individual Smart Chip Play game descriptions, are final and binding on players and persons making a claim in respect thereof.
16. Retailer compensation:
(a) Authorized retailers may be entitled to compensation as determined by the Lottery.
(b) No authorized retailer or employee of an authorized retailer shall request, demand or accept gratuities or any compensation other than as provided in subsection (a) in exchange for the performance of duties authorized pursuant to the Lottery retailer's license without the Lottery's prior written authorization.
17. Retailer bonus and incentive programs:
(a) The Lottery may conduct a separate Retailer Incentive Program for retailers who sell Smart Chip Play game plays.
(b) The Lottery may offer a retailer bonus in connection with the sale of Smart Chip Play game plays. If a retailer bonus is offered, a Lottery retailer shall be eligible for a bonus as described in this section. Lottery retailers who sell a winning game play that entitles the game play holder to a prize, either payable in a single installment or having a guaranteed minimum payout, of at least $100,000 and not exceeding $500,000 shall be paid a bonus of $500. Lottery retailers who sell a winning game play that entitles the game play holder to a prize, either payable in a single installment or having a guaranteed minimum payout, of at least $500,001 and not exceeding $1,000,000 shall be paid a bonus of $5,000. Lottery retailers who sell a winning game play that entitles the game play holder to a prize, either payable in a single installment or having a guaranteed minimum payout, of at least $1,000,001 and not exceeding $10,000,000 shall be paid a bonus of $10,000. A Lottery retailer is entitled only to the largest bonus for which they qualify on a winning game play. A bonus will be initiated for payment after the winning game play is claimed and validated.
18. Termination of the Smart Chip Play program: The Smart Chip Play program will last for an initial period of six months, unless extended further by the Secretary through public notice or terminated earlier through the Lottery's standard communication methods. Unclaimed prizes may still be claimed for one year from the end of the Smart Chip Play program, as further detailed in section 10 (relating to unclaimed prizes).
19. Applicability: This notice applies only to the Smart Chip Play card and program provided for in this notice.
PATRICK BROWNE,
Secretary
[Pa.B. Doc. No. 24-280. Filed for public inspection March 1, 2024, 9:00 a.m.]
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