RULES AND REGULATIONS
Title 61--REVENUE
DEPARTMENT OF REVENUE
[61 PA. CODE CHS. 816, 870 AND 871]
Cash 5, Super 6 Lotto and Powerball
[32 Pa.B. 5516] The Secretary of Revenue, under the authority contained in section 303 of the State Lottery Law (72 P. S. § 3761-303), amends Chapters 816, 870 and 871.21 (relating to Cash 5; Super 6 Lotto; and Powerball) to read as set forth in Annex A.
Because of time constraints associated with the establishment, operation and administration of lottery games, the Department of Revenue (Department), under section 204 of the act of July 31, 1968 (P. L. 769, No. 240) (CDL) (45 P. S. § 1204) and the regulation thereunder, 1 Pa. Code § 7.4 (relating to omissions of notice of proposed rulemaking), finds that notice of proposed rulemaking is, under the circumstances, impracticable and, therefore, may be omitted.
The Department's justification for utilizing the rulemaking omitted process is based upon the time constraints associated with the establishment, operation and administration of lottery games. The efficient and successful operation of the Lottery requires that the Lottery implement the latest innovations and trends in the lottery industry. The inability to adapt marketing strategies quickly may lead to a reduction in lottery revenues. The necessity of the Lottery to react quickly to market forces has been recognized in the past as an appropriate justification for utilizing the proposed rulemaking omitted process as evidenced by the approval of these types of regulations in the past.
Purpose of Amendments
This final-omitted rulemaking amends the Cash 5 and Super 6 Lotto regulations by deleting language that allowed for the cancellation of a ticket to make the rules relating to ticket cancellation consistent with the rule set forth in the Powerball game. The uniform treatment of ticket sales will provide consistency among the on-line games available to Commonwealth players. In addition, the Super 6 Lotto regulations are amended by establishing a new minimum jackpot of $500,000. The change in the minimum jackpot amount is done to accommodate the addition of the Powerball game to the lineup of jackpot games available to Commonwealth players.
The amendment to the Powerball section is necessary to allow the Department adequate time to publish a notice of future changes to the Powerball game.
Explanation of Regulatory Requirements
Section 816.106(d) and (e) (relating to Cash 5 bet slip and ticket characteristics and restrictions) is amended by deleting language that allowed for the cancellation of a ticket. Language is added to § 816.106(d) which specifically states that a Cash 5 ticket may not be canceled or voided once printed. Explanatory language that the placing of bets is done at the player's own risk is added to subsection (e). Language relating to the cancellation of a ticket is also deleted from § 816.110(a)(6), (9) and (11) (relating to ticket validation requirements).
Minor editorial changes were made to the definition of ''ticket'' in §§ 870.3, 870.5 and 870.6(c) (relating to definitions; ticket price; and Super 6 Lotto bet slip and ticket characteristics and restrictions). Section 870.6(d) and (e) is amended by deleting language that allowed for the cancellation of a ticket and by adding language which specifically states that a Super 6 Lotto ticket may not be canceled or voided once printed and explains that the placing of bets is done at the player's own risk.
Section 870.8(g) (relating to determination of prize winners) is amended by revising paragraph (4) to provide that the new minimum jackpot will be at least $500,000. Other revisions were made to paragraphs (2), (4) and (5) to clarify the cash and annuity payment options. The provisions set forth in subsection (l) relating to the reallocation of moneys from the Wild Card Lotto and Keystone Jackpot games are no longer necessary and are deleted from the regulation.
Section 870.10(a)(6) and (9) (relating to ticket validation requirements) is amended by deleting language that allowed for the cancellation of a ticket.
Section 871.21(a) (relating to future changes to Powerball) is amended by changing the public announcement period to 30 days before the change takes effect. As the Department worked through its first change to the Powerball rules with the Multi-State Lottery Association (MUSL), it became apparent that the 90-day period set forth in the original rulemaking was not feasible due to the fact that the MUSL and its member lotteries must respond to changes in market dynamics quickly. In addition, the MUSL is removed from the public announcement process because as a member of the MUSL Powerball Product Group, the Commonwealth's notice of a change is notice by the MUSL.
Fiscal Impact
The Department has determined that this final-omitted rulemaking will have no significant adverse fiscal impact on the Commonwealth and that the games described by the regulations will produce an undetermined net revenue. The change in the minimum jackpot for Super 6 Lotto is expected to affect sales of tickets for that particular game. However, this reduction is estimated to be offset by sales of Powerball game tickets.
Paperwork
This final-omitted rulemaking will not generate substantial paperwork for the public or the Commonwealth.
Effectiveness/Sunset Date
This final-omitted rulemaking will become effective upon publication in the Pennsylvania Bulletin. The regulations are scheduled for review within 5 years of final publication. No sunset date has been assigned.
Contact Person
The contact person for an explanation of this final-omitted rulemaking is Anita M. Doucette, Office of Chief Counsel, Department of Revenue, Dept. 281061, Harrisburg, PA 17128-1061.
Regulatory Review
Under section 5.1(c) of the Regulatory Review Act (71 P. S. § 745.5a(c)), on September 9, 2002, the Department submitted a copy of the regulations with proposed rulemaking omitted to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Finance and the Senate Committee on Finance. On the same date, the final-omitted rulemaking was submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101--732-506).
In accordance with section 5.1(d) of the Regulatory Review Act, the final-omitted rulemaking was deemed approved by the Committees on September 30, 2002. IRRC met on October 24, 2002, and approved the final-omitted rulemaking under section 5.1(e) of the Regulatory Review Act.
Findings
The Department finds that the final-omitted rulemaking is necessary and appropriate for the administration and enforcement of the authorizing statute. Under section 204 of the CDL, the Department also finds that the proposed rulemaking procedures in sections 201 and 202 of the CDL (45 P. S. §§ 1201 and 1202) are impracticable because of the time constraints associated with the establishment, operation and administration of lottery games.
Order
The Department, acting under the authorizing statute, orders that:
(a) The regulations of the Department, 61 Pa. Code Chapters 816, 870 and 871, are amended by amending §§ 816.106, 816.110, 870.3, 870.5, 870.6, 870.8, 870.10 and 871.21 to read as set forth in Annex A.
(b) The Secretary shall submit this order and Annex A to the Office of General Counsel and Office of Attorney General for approval as to form and legality as required by law.
(c) The Secretary shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect upon publication in the Pennsylvania Bulletin.
LARRY P. WILLIAMS,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 32 Pa.B. 5582 (November 9, 2002).)
Fiscal Note: 15-421. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 61. REVENUE
PART V. STATE LOTTERIES
CHAPTER 816. CASH 5 § 816.106. Cash 5 bet slip and ticket characteristics and restrictions.
(a) The player shall select five numbered squares in a game grid on a bet slip or request number selection by quick pick. Bet slips shall be available at no cost to the purchaser. The minimum entry is $1. For $1, play game grid A, for $2, play game grids A and B, for $3, play game grids A, B and C, for $4, play game grids A, B, C and D, for $5, play game grids A, B, C, D and E. Game grids shall be selected in alphabetical order in accordance with the instructions printed on the bet slip. A bet slip has no pecuniary or prize value and does not constitute evidence of the purchase of a ticket or of numbers selected.
(b) To purchase a Cash 5 ticket, a player shall, in addition to the purchase price, submit the completed bet slip, or request number selection by quick pick, to an on-line retailer to have issued a standard game ticket. The ticket shall contain the five number selections played in each game grid identified by a letter as described in subsection (a), the drawing date, the amount bet and the validation number data. This standard game ticket shall be the only valid proof of the bet placed, and the only valid receipt for claiming a prize. The standard game ticket shall only be valid for the drawing date printed on the ticket.
(c) If bet slips are unavailable, plays may also be given to an authorized retailer in groups of five number selections for each game grid for each $1 wagered. The selections shall be manually entered into the computer terminal by the retailer.
(d) A Cash 5 ticket may not be canceled or voided once printed by the Lottery terminal, even if the ticket is printed in error.
(e) It is the sole responsibility of the ticket purchaser or holder to verify the accuracy and condition of data printed on the standard game ticket. The placing of bets is done at the player's own risk through the on-line retailer who is acting on behalf of the player in entering the play or plays.
§ 816.110. Ticket validation requirements.
(a) Valid tickets. To be a valid Cash 5 ticket and entitled to a prize, the following conditions shall be met:
(1) The ticket validation number shall be present in its entirety and shall correspond, using the computer validation file, to the selected numbers printed on the ticket for the date printed on the ticket.
(2) The ticket shall be intact.
(3) The ticket may not be mutilated, altered, reconstituted or tampered with.
(4) The ticket may not be counterfeit or an exact duplicate of another winning ticket.
(5) The ticket shall have been issued by the Lottery through an on-line retailer in an authorized manner.
(6) The ticket may not have been stolen.
(7) The ticket shall be validated in accordance with § 816.111 (relating to procedures for claiming and payment of prizes).
(8) The player selected or quick pick numbers on the ticket shall be in individual groups of five numbers each associated with a single letter, A, B, C, D or E, and the five numbers and the associated letter shall constitute a single play.
(9) The ticket data shall have been recorded on the central computer system prior to the drawing and the ticket data shall match the computer record in every respect.
(10) The ticket shall be signed and presented to the Lottery or its authorized representative as set forth in § 816.111 and validated at Lottery headquarters.
(11) The player selected or quick pick numbers, the validation number data and the drawing date of the winning ticket shall appear on the official file of winning plays; and a ticket with that exact data may not have been previously paid.
(12) The ticket may not be misregistered, defectively printed or printed or produced in error to an extent that it cannot, in the sole opinion of the Lottery, be processed by the Lottery.
(13) The ticket shall pass other confidential security checks of the Lottery.
(14) By submitting a Cash 5 ticket for validation, the player agrees to abide by this chapter as determined by the Director.
(15) There may not be another breach of this chapter in relation to the ticket which, in the opinion of the Director, justifies disqualification.
(b) Invalid or defective tickets; disputes. A ticket not passing the validation checks in subsection (a) will be considered invalid and will not be paid.
(1) In cases of doubt, the determination of the Secretary is final and binding. The Secretary may replace an invalid ticket with a ticket of equivalent sale price from a current Lottery game.
(2) If a defective ticket is purchased or if the Secretary determines to adjust an error, the sole and exclusive remedy will be the replacement of the defective or erroneous ticket with a ticket of equivalent sale price from a current Lottery game.
(3) If a ticket is not paid by the Lottery and a dispute occurs as to whether the ticket is a valid winning ticket, the Lottery may replace the ticket as provided in paragraph (2). This is the sole and exclusive remedy of the holder of the ticket.
CHAPTER 870. SUPER 6 LOTTO § 870.3. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Apparent winning ticket--A ticket bearing winning numbers which has not been validated by the Lottery.
Cash option--A method of payment that the player selects at the time of purchase of a Super 6 Lotto ticket to receive a pari-mutuel share of the prize money allocated to the first prize category as a cash payment, if the player is a holder of a winning ticket for that category.
Drawing--The process of selecting winning numbers that determine the number of winners for each prize category of the game.
Game section--The area of the Super 6 Lotto bet slip that contains five sections of 69 squares each numbered 1 through 69. Each section is lettered either A, D, G, J or M, and when used to purchase a ticket, corresponds to the numbers selected and the numbers that are quick picked and printed on the ticket.
On-line retailer or retailer--A person who is properly authorized by the Lottery to sell tickets.
Quick pick--The random selection through a Lottery terminal of six different numbers from 1 through 69 that appear on a ticket and are played by a player in the Super 6 Lotto Game.
Super 6 Lotto bet slip--A card having a game section used by a player to play the game.
Ticket--A Super 6 Lotto ticket, produced by a licensed retailer in an authorized manner, containing a letter prefix followed by six selected numbers from 1 through 69 and followed by two additional sets of six numbers from 1 through 69 each preceded by a letter prefix quick picked as bonus selections, a drawing date, the amount bet, cash option selection, if applicable, and validation number data. Each set of six numbers constitutes a play, of which there may be three or more, in multiples of three up to fifteen on a ticket.
Winning numbers--Six numbers, from 1 through 69, selected at a Super 6 Lotto drawing and which have been subsequently validated by the Lottery, which shall be used to determine the winning Super 6 Lotto plays on tickets.
Winnings pool--The amount allocated from Super 6 Lotto gross sales for a particular Super 6 Lotto Game drawing for the purpose of paying prizes in a particular Super 6 Lotto drawing. Money brought forward is allocated to the first prize category as provided in § 870.8(f) (relating to determination of prize winners).
§ 870.5. Ticket price.
Tickets may be purchased for $1 per ticket, which ticket shall consist of three individual game plays, one of which, at the owner's option can be the numbers selected by the player; the remaining two number plays are quick pick selections. Additional tickets may, at the discretion of the player, be purchased in increments of three individual game plays per $1 wagered.
§ 870.6. Super 6 Lotto bet slip and ticket characteristics and restrictions.
(a) The player shall select, or request selection by computer, six numbered squares, in one or more of the game sections on a Super 6 Lotto bet slip. Super 6 Lotto bet slips shall be available at no cost to the player. The minimum entry is $1. For $1, play game A; for $2, play games A and D; for $3, play games A, D and G; for $4, play games A, D, G and J; for $5, play games A, D, G, J and M. Game sections shall be selected in alphabetical order in accordance with the instructions printed on the Super 6 Lotto bet slip. A Super 6 Lotto bet slip has no pecuniary or prize value and does not constitute evidence of the purchase of a ticket or the numbers selected.
(b) To purchase a ticket, players shall, in addition to the purchase price, submit the completed Super 6 Lotto bet slip, or request number selection, either by quick pick or manual terminal entry, to an on-line retailer to have issued a ticket. The ticket shall contain three six number selections, two of which will be quick pick selections, in each game section, (for each $1 wagered) identified by a letter, the drawing date, amount bet, cash option selection if applicable, and validation number data. This ticket shall be the only valid proof of the bet placed, and the only valid receipt for claiming a prize. The ticket shall only be valid for the drawing date printed on the ticket.
(c) If Super 6 Lotto bet slips are unavailable, number selections may be given to an on-line retailer in groups of six number selections, one for each game section, for each $1 wagered. The selections shall be manually entered into the computer terminal by the retailer.
(d) A Super 6 Lotto ticket may not be canceled or voided once printed by the Lottery terminal, even if the ticket is printed in error.
(e) It is the sole responsibility of the ticket holder to verify the accuracy and condition of data printed on the ticket. The placing of bets is done at the player's own risk through the on-line retailer who is acting on behalf of the player in entering the play or plays.
§ 870.8. Determination of prize winners.
(a) The pari-mutuel prize to be awarded to an owner of an apparent winning ticket will be determined as follows:
Tickets Containing the Following,
In One Single Lettered Game PlayPrize
CategoryPercent (%) of Winners
Pool Allocated to Prize
CategoryAll Six Winning Numbers 1st
76.0%
Five Winning Numbers 2nd
8.0%
Four Winning Numbers 3rd
7.5%
Three Winning Numbers 4th
8.5% (b) Prize money allocated to the first prize category will be paid on a pari-mutuel basis, divided equally by the number of plays on tickets determined by the Lottery to be entitled to claim a first prize.
(c) Prize money allocated to the second prize category will be paid on a pari-mutuel basis, divided equally by the number of plays on tickets determined by the Lottery to be entitled to claim a second prize.
(d) Prize money allocated to the third prize category will be paid on a pari-mutuel basis, divided equally by the number of plays on tickets determined by the Lottery to be entitled to claim a third prize.
(e) Prize money allocated to the fourth prize category will be paid on a pari-mutuel basis, divided equally by the number of plays on tickets determined by the Lottery to be entitled to claim a fourth prize.
(f) If, in a Super 6 Lotto drawing, there are no plays on tickets which qualify for a particular prize category, the pari-mutuel prize money allocated to the particular prize category will be reallocated and added to the amount allocated for the first prize category money in the next Super 6 Lotto drawing.
(g) Super 6 Lotto prizes will be paid as follows:
(1) Individual ticket prize payments will be paid entirely in cash with the exception of the first prize category.
(2) Prizes payable to the first prize category winners will be paid either by an initial cash payment plus equal annual payments over a specified term of 25 years or a one-time cash payment if the owner selected the cash option at the time of purchase.
(3) If more than one winning first prize play is determined, each, upon meeting the requirements of §§ 870.10 and 870.11 (relating to ticket validation requirements; and procedures for claiming and payment of prizes), is entitled to a prorated payment share of the total first prize category.
(4) For first prize category payments, the total one-time cash payment for the first prize category will be in an amount which is the greater of either the cash available in the winnings pool for the first prize category or the announced cash option amount; or, if the annuity option is selected at the time of purchase, the total of the initial and annual payments over the term for the first prize will be the greater of either the announced annuity jackpot or the annuity that could be purchased with the cash available in the winnings pool for the first prize category. The minimum jackpot will be at least $500,000. The annuity will be paid in an initial cash payment plus equal annual payments over a specified term of 25 years. If more than one winning play is determined, each is entitled to a prorated share of the total first prize category as provided in paragraph (3).
(5) For first prize category payments, the Secretary may elect to make payment entirely as a one-time cash payment, if public notice is given in accordance with subsection (j). This one-time cash payment shall be the amount equal to the greater of either the cash available in the winnings pool for the first prize category or the announced cash option jackpot.
(h) A winning Super 6 Lotto play is entitled only to the highest prize won by those numbers.
(i) For purpose of calculating a Super 6 Lotto prize, the amount to be paid will be rounded down to the nearest 50¢.
(j) The number of prize categories, the allocation of prize money among the prize categories and the annuity term may be changed at the discretion of the Secretary and the change will be announced by public notice. The changes will only apply prospectively to Super 6 Lotto drawings as of the date specified in the public notice.
(k) Retailer incentive and marketing promotion programs, including the use of unfunded free tickets, may be implemented at the discretion of the Secretary. Funds for the programs, if needed, will be drawn from the Lottery fund.
§ 870.10. Ticket validation requirements.
(a) Valid tickets. To be a valid ticket, the following conditions shall be met:
(1) The ticket validation number shall be present in its entirety and shall correspond, using the computer validation file, to the selected numbers printed on the ticket for the date printed on the ticket.
(2) The ticket shall be intact.
(3) The ticket may not be mutilated, altered, reconstituted or tampered with.
(4) The ticket may not be counterfeit or an exact duplicate of a winning ticket.
(5) The ticket shall have been issued by the Lottery through a licensed retailer.
(6) The ticket may not have been stolen.
(7) The ticket shall be validated in accordance with § 870.11 (relating to procedures for claiming and payment of prizes).
(8) The player-selected or computer-selected numbers on the ticket shall be in individual groups of six numbers each associated with a single letter, A, B, C, D, E, F, G, H, I, J, K, L, M, N or O and the six numbers, and the associated letter shall constitute a single game play.
(9) The ticket data shall have been recorded on the Lottery's central computer system prior to the drawing and the ticket data shall match this computer record in every respect.
(10) The player selected or computer selected numbers, cash option selection, if applicable, the validation number data and the drawing date of an apparent winning ticket shall appear on the official file of winning tickets; and a ticket with that exact data may not have been previously paid.
(11) The ticket may not be misregistered, defectively printed, or printed or produced in error to an extent that it cannot be processed by the Lottery.
(12) The ticket shall pass other confidential security checks of the Lottery.
(13) By submitting a ticket for validation, the player agrees to abide by this chapter as determined by the Secretary.
(14) There may not be another breach of this part in relation to the ticket which, in the opinion of the Secretary, justifies disqualification.
(b) Invalid or defective tickets/disputes. A ticket not passing the validation checks in subsection (a) will be considered invalid and will not be paid.
(1) In cases of doubt, the determination of the Secretary is final and binding. The Secretary may replace an invalid ticket with a ticket of equivalent sale price from a current Lottery game.
(2) If a defective ticket is purchased or if the Secretary determines to adjust an error, the sole and exclusive remedy will be the replacement of the defective or erroneous ticket with a ticket of equivalent sale price from a current Lottery game.
(3) If a ticket is not paid by the Lottery and a dispute occurs as to whether the ticket is a winning ticket, the Lottery may replace the ticket as provided in paragraph (2). This is the sole and exclusive remedy of the holder of the ticket.
CHAPTER 871. POWERBALL § 871.21. Future changes to Powerball.
(a) The MUSL reserves the right to modify the Powerball game in order to address changes in player participation or population of member states. If the MUSL decides to make a change, it will be publicly announced by the Secretary at least 30 days before the change takes effect.
(b) The Secretary will publish notice of the change in the Pennsylvania Bulletin and the change will be codified in § 871.22 (relating to changes to Powerball).
[Pa.B. Doc. No. 02-2000. Filed for public inspection November 8, 2002, 9:00 a.m.]
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