Texas Lottery approves new game to start in fall

PART 9. TEXAS LOTTERY COMMISSION

CHAPTER 401. ADMINISTRATION OF STATE LOTTERY ACT

SUBCHAPTER D. LOTTERY GAME RULES

16 TAC §401.320

The Texas Lottery Commission (Commission) proposes new 16 TAC §401.320 (“All or Nothing” On-Line Game Rule). The purpose of the proposed rule is to establish and share with the public, details of the game design, matrix, prize level structure and operation of the proposed on-line game.

Kathy Pyka, Controller, has determined that the new rule will result in an estimated $40.5 million for the first five year period. The fiscal impact for each year of the first five years the rule is in effect is as follows: FY 2012, $1.3M; FY 2013, $9.8M; FY 2014, $9.8M; FY 2015 $9.8M; FY 2016, $9.8M. There will be no adverse effect on small businesses, micro businesses, or local or state employment. There will be no additional economic cost to persons required to comply with the new rule as proposed. Furthermore, an Economic Impact Statement and Regulatory Flexibility Analysis is not required because the new rule will not have an economic effect on small businesses as defined in Texas Government Code §2006.001(2).

Michael Anger, Lottery Operations Director, has determined that for each year of the first five years the new rule will be in effect, the public benefit anticipated is additional revenue for the Foundation School Fund, additional commissions for retailers, and a wider variety of lottery game offerings and features for players.

The Commission requests comments on the proposed new rule from any interested person. Comments on the proposed new rule may be submitted to Pete Wassdorf, Assistant General Counsel, by mail at Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email at legal.input@lottery.state.tx.us. The Commission will hold a public hearing on this proposal at 9:00 a.m. on Wednesday, February 29, 2012, at 611 E. 6th Street, Austin, Texas 78701. Comments must be received within 30 days after publication of this proposal in order to be considered.

The new rule is proposed under Texas Government Code, §466.015, which authorizes the Commission to adopt rules governing the operation of the lottery, and under the authority of Texas Government Code §467.102, which provides the Commission with the authority to adopt rules for the enforcement and administration of the laws under the Commission’s jurisdiction.

This proposal is intended to implement Texas Government Code, Chapter 466.

§401.320.”All or Nothing” On-Line Game Rule.

(a) “All or Nothing.” The executive director is authorized to conduct a game known as “All or Nothing.” The executive director may issue further directives for the conduct of “All or Nothing” that are consistent with this rule. In the case of conflict, this rule takes precedence over §401.304 of this title (relating to On-Line Game Rules (General)).

(b) Object of the Game. The object of the game is to either select as many or as few numbers that match the 12 numbers drawn in the drawing. If a player matches more than seven (7) or fewer than five (5) numbers drawn in the drawing, the player wins a prize. (See the prize schedule chart in subsection (g) of this section.) If the player matches all 12 numbers drawn in the drawing, or does not match any numbers drawn in the drawing, the player wins the Top Prize ($250,000). If more than one ticket has been sold in which a player has matched all or none of the numbers drawn in the drawing, each player possessing such ticket shall win the Top Prize of $250,000.

(c) Definitions. When used in this rule, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise.

(1) Play–The selection of twelve different numbers from 1 through 24 for one opportunity to win in “All or Nothing” and the purchase of a ticket evidencing that selection.

(2) Playboard–A field of 24 numbers on a playslip for use in selecting numbers for an “All or Nothing” play.

(3) Playslip–An optically readable card issued by the Commission for use in selecting numbers for one or more “All or Nothing” plays.

(d) Plays and tickets.

(1) A ticket may be sold only by an on-line retailer and only at the location listed on the retailer’s license. A ticket sold by a person other than an on-line retailer is not valid.

(2) The price of an individual play is $2.

(3) A player may complete up to five playboards on a single playslip.

(4) A player may use a single playslip to purchase the same play(s) for up to 24 consecutive drawings, to begin with the next drawing after the purchase.

(5) A person may select numbers for a play either:

(A) by using a playslip to select numbers;

(B) by selecting a Quick Pick and allowing a random number generator operated by the terminal to select numbers; or

(C) by requesting a retailer to manually enter numbers.

(6) Playslips must be completed manually. A ticket generated from a playslip that was not completed manually is not valid.

(7) An on-line retailer may accept a request to manually enter selections or to make Quick Pick selections only if the request is made in person. A retailer shall not accept telephone or mail-in or other requests not made in person to manually enter selected numbers.

(8) An on-line retailer shall issue a ticket as evidence of one or more plays. A ticket must show the numbers selected for each play, the number of plays, the draw date(s) and time(s) for which the plays were purchased, the cost of the ticket and the security and transaction serial numbers. Tickets must be printed on official Texas Lottery paper stock.

(9) A playslip, or any document other than a ticket issued as described in paragraph (8) of this subsection, has no monetary value and is not evidence of a play.

(10) It shall be the exclusive responsibility of the player to verify the accuracy of the player’s selection(s) and other data printed on the ticket.

(11) An unsigned winning ticket is payable to the holder or bearer of the ticket if the ticket meets all applicable validation requirements. Neither the Commission nor its sales agents shall be responsible for lost or stolen tickets.

(12) The executive director may authorize promotions in connection with the “All or Nothing” On-Line game. Current promotions will be posted on the Commission’s web site, and published in the “In Addition” section of the Texas Register.

(e) Drawings.

(1) “All or Nothing” drawings will be held four times a day, at 10:00 a.m., 12:27 p.m., 6:00 p.m., and 10:12 p.m.) six days a week (Monday through Saturday). The executive director may change the drawing schedule, if, in the executive director’s sole discretion, it is deemed necessary or expedient.

(2) Twelve different numbers from 1 through 24 shall be drawn at each “All or Nothing” drawing.

(3) Numbers drawn must be certified by the Commission in accordance with the Commission’s drawing procedures.

(4) The numbers selected in a drawing shall be used to determine all winners for that drawing.

(5) A drawing will not be invalidated based on the financial liability of the lottery.

(f) Announcement of incentive or bonus program. The executive director shall announce each incentive or bonus program prior to its commencement. The announcement shall specify the beginning and ending time, if applicable, of the incentive or bonus program and the value for the award.

(g) Prizes.

(1) The Top Prize is $250,000.

(A) Each person who holds a valid ticket for a play matching (in any order) the twelve numbers drawn in a drawing, or matching none of the twelve numbers drawn in a drawing is entitled to a prize in the amount of $250,000. All other prizes are in amounts for matching or non-matching selections as shown in the following chart. All prizes are paid in cash.

Figure: 16 TAC §401.320(g)(1)(A)

(B) All payments shall be made upon completion of Commission validation procedures.

(C) A claim for any prize of $600 or more must be presented at a Texas Lottery claim center.

(2) A person may win only one prize per play per drawing. A player who holds a valid ticket for a winning play is entitled to the highest prize for that play.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency’s legal authority to adopt.

Filed with the Office of the Secretary of State on February 6, 2012.

TRD-201200590

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Earliest possible date of adoption: March 18, 2012

For further information, please call: (512) 344-501