NOTICES
DEPARTMENT OF REVENUE
Terminal-Based Lottery Game Sales through iLottery
[49 Pa.B. 5075]
[Saturday, August 31, 2019]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 Chapter 876 (relating to iLottery games—temporary regulations), the Secretary of Revenue hereby provides public notice of the establishment of specific rules related to terminal-based lottery games sold through the iLottery system, the Lottery's web sites and the Lottery's Official Mobile Application:
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, web sites at www.palottery.com and www.PAilottery.com, and the Pennsylvania Lottery's Official Mobile Application. Terminal-based lottery games are operated under 61 Pa. Code §§ 871.1—871.22 (relating to Powerball), 61 Pa. Code §§ 875.1—875.17 (relating to terminal-based lottery games) 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 §§ 871.1—871.22, 875.1—875.17 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 §§ 871.1—871.22 (relating to Powerball), 61 Pa. Code §§ 875.1—875.17 (relating to terminal-based lottery games) 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 registered iLottery player's lottery account through a unique identifier that confers ownership of the ticketless transaction to the specific lottery account used to purchase the play, chance or share.
(b) Ticketless transaction: The purchase of a play, chance or share through the iLottery system, the Lottery's web sites or the Lottery's Official Mobile Application 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, chances or shares 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 http://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, chance or share.
(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, rules and notices promulgated thereunder.
4. Operation of terminal-based lottery games and procedures for purchasing a play, chance or share:
(a) Terminal-based lottery games provide registered iLottery players with the opportunity to win one prize, per play, chance or share.
(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, chance or share, registered iLottery players must have a valid and active 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 www.PAilottery.com or through the iLottery section in the Pennsylvania Lottery's Official Mobile Application.
(e) Registered iLottery players may purchase a play, chance or share 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 registered iLottery player's lottery account.
(f) To purchase a play, chance or share for a specific terminal-based lottery game, the registered iLottery 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 apply any add-ons such as Power Play®, Megaplier, Wild Ball, and the like, the numbers to select or whether to utilize the quick pick option.
(g) To complete a purchase, the registered iLottery 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 registered iLottery player's lottery account.
(h) Upon a successful purchase, the registered iLottery player will be presented with information related to the purchase, including the drawing date or dates for which the play, chance or share was purchased, the number selections, the number of consecutive drawings selected, whether an add-on was selected and the total amount of the purchase.
(i) A registered iLottery player may view any plays, chances or shares purchased in the registered iLottery player's lottery account details on the iLottery web site. Prior to a drawing being held on the plays, chances or shares purchased, the webpage will display the purchase date, the numbers played, whether an add-on was selected, the draw date or dates for the play, chance or share 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, chance or share.
5. Procedures for claiming and payment of prizes:
(a) After purchasing a play, chance or share for a specific terminal-based lottery game, the registered iLottery player must check the player's lottery account details after the drawing date or dates for the play, chance or share 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, chance or share to a registered iLottery player's lottery account. All plays, chances or shares purchased through the iLottery system, the Lottery's web sites or the Lottery's Official Mobile Application shall be registered plays, chances or shares that are linked to the purchasing, registered iLottery player's lottery account through a secure, encrypted validation method that will allow a prize to be credited to only the purchasing, registered iLottery player's lottery account.
(c) Prizes under $1,000,000 won by playing terminal-based lottery games through the iLottery system, the Lottery's web sites or the Lottery's Official Mobile Application will be deposited into the registered iLottery player's lottery account and may be withdrawn from the player's lottery 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 registered iLottery 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, chance or share 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, chance or share 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, chance or share 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, chances or shares, deposit or withdraw funds from the registered iLottery player's lottery account or otherwise participate in iLottery and iLottery promotions prior to the conclusion of the self-exclusion period.
(d) A registered iLottery player may be prohibited from purchasing plays, chances or shares, depositing or withdrawing money from the registered iLottery 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 lottery 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, other rules and policies as set forth by the Lottery 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 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, the Lottery's web sites and the Lottery's Official Mobile Applications.
(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.
C. DANIEL HASSELL,
Secretary
[Pa.B. Doc. No. 19-1330. Filed for public inspection August 30, 2019, 9:00 a.m.]
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