Document No. 2694
CHAPTER 44
Statutory
Authority: 2001 Act No.59
44-10 – 44-140.
Synopsis:
The
South Carolina Education Lottery Act (Act 59 of 2001) requires the South
Carolina Lottery Commission to promulgate regulations to carry out and
implement its powers and duties to regulate the conduct and operation of
lottery games. The proposed regulations
will provide the Commission with necessary policies and procedures to organize
and operate the Commission, regulate the conduct of lottery games, and address
other matters necessary and desirable for the efficient and effective operation
of the lottery for the public convenience.
Sections 44-10
through 44-130 address the purpose of the new regulations, its applicability,
requirements, and definitions.
44-10 Defines the meaning of words and terms used
throughout SCEL regulations.
44-20.10 Establishes general licensure
provisions. Authorizes
the Executive Director to issue lottery licenses. Requires an applicant to
file an application. Provides
that the issuance of a lottery license is a privilege which is subject to suspension, revocation,
or termination as provided in Section 59-150-150(B)(4).
44-20.20 Establishes that an applicant for a lottery
license may not be approved if: (1) the business is to be solely engaged in
the sale of lottery products; (2)
the gross revenues of the business from the sale of lottery tickets is more
than 60%; (3) the applicant is
under 21 years of age; (4) a
foreign corporation is not registered in South Carolina; or (5) the business is ineligible
pursuant to the Education Lottery Act or regulations or rules of SCEL.
44-20.30 Provides that a criminal background check must be performed
on certain applicants applying for retail lottery licenses, including
operational managers and employees of businesses selling lottery products.
44-20.40 Authorizes the Executive Director to license lottery
retailers for a period of time of not less than one year. For purposes of licensure, the Executive
Director shall consider the following:
(1) the moral character and reputation of the applicant; (2) the
financial responsibility of the applicant’s business; (3) the accessibility of
the applicant’s business to the public; (4) the number and sufficiency of
businesses selling lottery products; (5) the expected volume of lottery game
sales; (6) the security and efficient operation of the Lottery; (7) the
eligibility of the applicant to be licensed under the Act; (8) whether the applicant’s
application is truthful; (9) whether the applicant is current on his/her state
tax; and (10) whether the applicant owes an unpaid debt to SCEL.
44-20.50 Provides that licenses shall be renewed annually and
renewals may be staggered, but all applications for renewal must be returned to
SCEL 30 days prior to expiration. The
Executive Director may issue a license pending a final determination of
eligibility for licensure.
44-20.60 Provides the justification for the Executive Director to cancel, revoke,
suspend, terminate, or deny the renewal of a license as required by the
Act. Some of the reasons include: (1) selling a ticket at a price greater than
that authorized by the Commission; (2) selling a lottery ticket to a person
under 18 years of age; (3) accepting anything other than cash for a lottery
ticket; (4) transferring ticket stock without consent of SCEL; (5) selling
lottery tickets at a location that is not on the license certificate; (6)
material misrepresentation on an applicant’s application for licensure; (7)
failure to properly notify, report, or settle accounts with SCEL regarding
lottery tickets; (8) failure to display license and display material; and (9)
failure to report a conviction of any felony or a crime related to gambling
during the term of the license.
44-20.70 Provides that licenses may not be transferred and lottery
game tickets may only be sold by the retailer named on the license or his
employee or agent.
44-30 Authorizes the Executive Director to enter into a contract
with a lottery retailer for the sale of lottery tickets or refuse to renew or
license a retailer. A retailer may
appeal an adverse decision of the Executive Director regarding licensing to the
Commission and appeal an adverse decision of the Commission to the
Administrative Law Judge Division. SCEL
is also authorized to establish a weekly fee for online services to recoup some
of the cost of administering the online services and associated
telecommunication charges. No retailer
who sells only instant tickets may be charged an online fee.
44-40.10 Authorizes SCEL to select, operate, and contract for the operation of
instant games and establishes the criteria for instant games including types of
games, maximum cost of tickets, frequency of ticket drawings and additional
special prize drawings. The price of a
ticket shall not be more than $10.
Winning tickets are determined by matching or specified alignment of
numbers, digits, and symbols on the tickets.
The Commission shall determine the numerical frequency and prize amounts
for winning tickets. Also provides
procedures for claiming instant prizes are established and retailers are
required to pay prizes up to and including $500 during normal business hours. Prizes may be paid up to 90 days after the
end of the official game and retailers must return all unopened tickets for
each game within 30 days of the game ending.
SCEL has no obligation to grant credit for tickets not returned more
than 30 days after the official game ends.
44-40.20 Provides that an instant ticket must pass validation requirements to be
eligible for a prize. Some of the
requirements for validation include: (1)
the ticket must be issued as authorized by the Executive Director;(2) the
ticket may not be altered, mutilated, unreadable, reconstructed, or tampered
with; (3) the ticket is not counterfeit; (4) the ticket is not stolen; (5) the
ticket is complete and not blank or partially blank; and (6) the ticket passes
all additional confidential validation requirements. Once validated, a lottery retailer must
deface the ticket in a manner as prescribed by the Executive Director.
44-50.10 Authorizes SCEL to select, operate, and contract for the operation of online games and
establishes the criteria for instant games including types of games, maximum
cost of tickets, frequency of ticket drawings and additional special prize
drawings. The price of a ticket shall
not be less than $0.50. Also provides
procedures for claiming instant prizes are established and retailers are
required to pay prizes up to and including $500 during normal business
hours. Retailers may pay prizes in cash,
or business check, certified check, money order, or a combination thereof. Prizes may also be claimed by submitting a
winning ticket to SCEL for validation and payment. Prizes may be paid up to 180 days after the
drawing in which the prize was won.
44-50.20 Provides that the Executive Director shall determine the
location, times, and days of prize drawings, including the equipment to be used
to establish randomly selected winning combinations. Also, the Executive Director is required to
establish procedures governing the conduct of drawings for each online
game. This includes procedures to be
used when a mechanical failure occurs resulting in a foul called by the drawing
representative. The Executive Director
shall delay payment of all prizes if any evidence of tampering or fraud has
occurred until an investigation is completed and the drawing is certified.
44-50.30 Provides that a winning online ticket must meet all of the
following conditions to be validated:
(1) All printing on the ticket shall be present in its entirety, be
legible and correspond, using the computer validation file, to the combination
and date printed on the ticket. (2) The
ticket must be intact. (3) The ticket
shall not be altered, mutilated, unreadable, reconstructed, or tampered
with. (4) The ticket shall not be
counterfeit. (5) The ticket must have
been sold by a lottery retailer. (6) The
ticket shall not have been stolen or canceled.
(7) The ticket shall not have been previously paid. (8) The ticket shall pass all confidential
security checks
44-55 Provides that SCEL may enter into a multi-state agreement
for the sale of instant game tickets, online game tickets, and other such
related products including game shows and promotional products as authorized by
Section 59-150-59. Rules governing the
sales, validation and redemption of prizes shall be governed by the multi-state
agreement entered into on behalf of SCEL.
44-60 Requires that the Executive Director submit to the
Commission a draft of all online game rules.
The Commission may adopt or modify the online game rules as necessary
for the efficient and effective operation of the lottery.
44-70 Prohibits the award
of a prize to an individual who
is not 18 years of age and who has not completed and signed a claim form. In
the event that a group of people win a prize, the group must designate one
person to file the claim. No prize will
be paid by the lottery for a prize that is not claimed within the required
time. The lottery may deny awarding a
prize to a claimant if the ticket is printed or produced in error.
44-80 Authorizes
the Executive Director to make lawful payment on a claim to someone other than
the purchaser, if certain conditions exist.
SCEL may pay a claim to a court-appointed guardian, executor,
administrator, receiver, or other court-appointed assignees. The Executive Director may pay prizes to a
decedent’s estate or petition the court to determine the payee for a decedent.
44-90.10 Provides
that all retailers must make payments to SCEL for lottery sales by using
Electronic Funds Transfer (EFT). The
retailer must deposit proceeds from lottery sales into the special account as
required by SCEL. The Executive Director
may revise the times of deposit as necessary for the efficient operation of the
lottery.
44-90.20 Provides that a lottery retailer may have his license suspended for failing to
timely deposit funds into his or her EFT account for the payment of lottery
games. SCEL may assess the following
penalties: (1) for a first occurrence in
a twelve-month period shall be a written warning of the future consequence of
such actions; (2) for a second occurrence in a twelve-month period the Executive
Director shall suspend all lottery activity for up to seven days and assess a
fine of not less than $100 nor more than 10% of the average gross proceeds from
the last 10 weeks; (3) for a third occurrence in a twelve-month period the
Executive Director shall suspend all lottery activity for up to seven days and
assess a fine of not less than $300 nor more than 20% of the average gross
proceeds from the last 10 weeks. The
Executive Director may exercise discretion in determining whether the
provisions of this section have been violated.
44-90.30 Requires that SCEL create certain financial accounts for the efficient
operation of the lottery as required by the Act. Also provides for the use of such accounts
and requires that no less than 45% of the gross proceeds from the sale of
lottery games for the payment of prizes.
44-90.40 Authorizes
the Executive Director to require a retailer to post a bond or other
appropriate security as proof of financial responsibility. The Executive Director shall determine the
amount and the form of any required bond.
44-100 Individuals may be required to use identifying numbers on payments,
statements and transactions with SCEL.
44-110 Requires lottery retailers to provide information to
SCEL in a form prescribed by SCEL.
44-120 The Executive Director is responsible for providing certain daily, monthly and annual reports
as may be requested by the Commission.
44-130 Authorizes SCEL to enter into licensing agreements for the use of
trademarks or other copyrighted materials. SCEL may allow lottery
retailers to use and display the Lottery logo, trademark, and other advertising
materials without charge.
44-140 Provides that regulations may not be construed to allow any
lottery or lottery games prohibited by the Act.
Instructions: Add new R.44-10 through 44-140, South
Carolina Lottery Commission, to new Chapter 44.
Text:
44-10. Definitions.
A. “Act” means the
South Carolina Education Lottery Act (Act 59 of 2001).
B. “Applicant” means a corporation, partnership,
unincorporated association, or other legal entity.
C. “Bank” means and
includes all commercial banks, mutual savings banks, savings and loan
associations, credit unions, trust companies, and any other type or form of
banking institution organized under the authority of the State of South
Carolina or the United States of America whose principal place of business is
within the State of South Carolina and which is designated to perform banking
institution functions, activities, or service in connection with the operations
of SCEL for the deposit and handling of lottery funds, the accounting of the
funds and the safekeeping of records.
D. “Bar code
validation” means a system which allows any winning lottery ticket, printed
with computer readable bar codes, for a prize of up to $500, or other amount as
directed by the Commission, to be read electronically at any lottery retailer
location and paid by the retailer regardless of where the player purchased the
ticket.
E. “Certified Drawing”
means a number selection event about which SCEL and an independent certified
public accountant attest that the drawing equipment functioned properly and
that a random selection of a winning combination occurred.
F. “Commission” or “Board” means the South
Carolina Lottery Commission (SCEL) created by the Act, as and if amended.
G. “Depository” means
any entity, including a bank or state agency, performing activities or services
in connection with the operation of the SCEL for the deposit and handling of
lottery funds, the accounting for lottery funds, and the safekeeping of
tickets.
H. “Drawing” means the
procedure determined by the Commission to select the winning combination in
accordance with the game rules of the particular lottery game.
J. “Executive
Director” means the individual appointed by the Commission to initiate,
supervise, and administer the operation of SCEL games.
K. “Game” means any
individual or particular type of lottery authorized by the Commission pursuant
to the Act including but not limited to instant game tickets and online game
tickets.
L. “Instant Game” means
a game in which a ticket is purchased and upon removal of a latex covering or
other covering on the front of the ticket or the opening of the sealed ticket,
the ticket bearer determines his or her winnings, if any, which are payable
upon presentation to a lottery retailer or to SCEL for payment.
M. “Instant Ticket” means a printed card or slip purchased for
participation in an instant game.
N. “Lottery” or “SCEL”
means the South Carolina Lottery Commission, the Commissioners, and the
Executive Director which operates and administers the South Carolina Education
Lottery Act.
O. “Lottery Game” means
the public gaming system or games established and operated by SCEL.
P. “Lottery Retailer”
means any person licensed by SCEL to sell and dispense instant tickets and
materials or lottery games, not to include operation of electronic computer terminals
in lottery sales and dispensing, unless otherwise authorized.
Q. “Lottery Ticket” or
“Tickets” means tickets or other tangible evidence of participation used in
lottery games pursuant to the Act.
R. “Online Game” means
a lottery game in which a player pays a fee to a lottery retailer and selects a
combination of digits, numbers, or symbols, the type and amount of play, and
the drawing date, and receives a computer-generated ticket with those
selections printed on it.
S. “Online Terminal”
means the electronic computer terminal through which a lottery retailer enters
the combination of digits, numbers, or symbols selected by a player and by
which online tickets are generated and claims are validated.
T. “Online Ticket”
means a computer-generated ticket issued by a lottery retailer to a player as a
receipt for the combination of digits, numbers, or symbols a player has
selected.
U. “Person” means a
human being, association, corporation, club, trust, estate, society,
governmental entity, company, joint stock company, receiver, trustee, assignee,
referee, and anyone acting in a fiduciary or representative capacity, whether
appointed by a court or otherwise, and any combination of human beings.
V. “Prize” means any
award, financial or otherwise, awarded by the Commission.
W.“Ticket
Bearer” means the person who has signed the ticket or has possession of the
unsigned ticket.
X. “Ticket Number”
means the preprinted number found on the back of each ticket which identifies
that particular ticket as one (1) of a series of tickets.
Y. “Ticket Pack Number”
means the printed number or numbers appearing on the back of each ticket.
Z. “Unclaimed Prize”
means the prize on a winning ticket for which no claim is made within 180 days
after the drawing or winner selection event which made the ticket a winning
ticket.
AA. "Unclaimed
Prize Account" means the SCEL account to which unclaimed prizes are
transferred.
BB. “Validation”
means the process of determining whether an instant or online ticket presented
for payment is a winning ticket.
CC. “Validation Number”
means the multi-digit number found on the face of the ticket. There must be a validation number on each
ticket.
DD. “Winner of an instant
game” means the holder of an instant lottery ticket determined to have the
required match or the specific alignment of the play numbers, digits or symbols
or the required sum of the play numbers or digits in accordance with the game
rules for the specific game.
EE. “Winner
selection” means the drawing process used by SCEL to select the winning numbers
in online games with live drawings.
FF. “Winning Combination”
means numbers or symbols chosen during the drawing process used by SCEL to
select the winning numbers in online games with live drawings.
44-20.10. Licensing.
A. Pursuant to Section
59-150-40(H), the Commission delegates to the Executive Director the authority
to issue lottery retail sales licenses as provided in Section
59-150-150(A). Lottery retailers must
meet the security and integrity standards of the Commission, the statutory and
regulatory requirements for licensing, promote the sale of lottery games and
promote the best interest of the Lottery and
B. An applicant interested in obtaining a license
as a lottery retailer must submit an application with the Executive Director on
a form supplied for that purpose by the Executive Director. The retail sales application shall be
designed to solicit sufficient relevant information from an applicant to permit
the Executive Director to evaluate the applicant and the sales location as
required by the Education Lottery Act and regulations for issuance of a license
by the Commission.
C. The license issued for a lottery retail sales
location is a privilege and does not create a property interest and is not a
legal right. The license and lottery
retailer contract is subject to suspension, revocation or termination by the
Executive Director as provided in Section 59-150-150(B)(4). Upon demand, a lottery retail sales license
must be surrendered to the Executive Director.
44-20.20. Eligibility
for licensing.
A. An application for
licensure as a lottery retailer may not be approved if:
(1) the business is to be solely engaged in the sale of lottery
products;
(2) the annual gross revenue of the business from the sale of
lottery games or shares accounts for more than sixty percent (60%) of the
annual gross revenue of the business;
(3) the applicant is under the age of twenty-one (21);
(4) a foreign corporation is not currently registered to do
business within
(5) the business is ineligible pursuant to the Act or the
regulations or policies established by the Commission.
44-20.30. Background
Investigations for Licensing.
A. For purposes of the criminal background
investigation required by Sections 59-150-150(C) and 59-150-165(C), “the
operational manager” is the employee who has day-to-day operational management
responsibilities for the business or entity.
As provided in Section 59-150-165(C)(2), the
Commission finds and determines that the operational manager is one of the
appropriate employees on whom a criminal background investigation must be
conducted unless otherwise directed by the Commission. For purposes of retail sales licensing, the
operational manager is deemed to be the employee who is designated by the
applicant as the employee responsible and accountable for the overall
supervision of the lottery operation for the applicant that is seeking
licensure for one or more retail locations.
This employee must have decision-making authority for lottery
transactions, including but not limited to, the authority for placing ticket
orders with the Commission or the authority to designate the employees to
transact business with the Commission.
An applicant may elect to include an operational manager for each retail
location but is not required to do so.
The operational manager(s) must be designated on the retailer license
application.
B. In the case of an applicant doing business
as a sole proprietorship, the sole proprietor must undergo a background
investigation required by Section 59-150-165(C).
C. In addition to the criminal background
investigation provided for operational managers by Section 59-150-165(C)(2)(e), a criminal background investigation must be performed
on all principals of the person (applicant).
For purposes of this investigation unless otherwise specified by the
Commission, “principal” means:
(1) the directors and
officers of an association;
(2) all partners of a
partnership, limited partnership, or limited liability partnership;
(3) all members of a
limited liability company, or if the company is a manager-managed company, all
members and managers;
(4) all trustees of a
trust; and
(5) for a corporation, its
directors, officers, and stockholders with a ten percent or more direct or
beneficial interest or any person or entity that receives more than ten percent
of the net income.
D. If a corporation is a member of a controlled
group of corporations, as defined in 26 U.S.C. 1563, or a member of an
affiliated group of corporations, as defined in 26 U.S.C. 1504, and at least
one member of the group of corporations is a publicly-held corporation, only
the corporation which seeks the retailer contract pursuant to this chapter is
considered a principal for purposes of this chapter, along with its directors,
officers, and stockholders as described in subsection (C)(5) of this section.
(1) For purposes of this section, “publicly-held
corporation” means a corporation:
(a) whose shares are
traded on a national exchange; and
(b) whose total assets
at the end of the corporation's most recent fiscal quarter exceeded one billion
dollars.
E. The individuals identified in subsection (A)
of this section for each respective applicant must (1) be listed on the Retail
Sales Application and (2) undergo a background investigation conducted by the
South Carolina Law Enforcement Division.
If
the headquarters of the corporation or other business entity listed in
subsection (A) is not located in
F. The Executive Director is granted the
discretion to exercise judgment, consistent with the intent of these
regulations, to determine which individuals should undergo a criminal
background investigation when a combination of business entities or sub
entities are organized or arranged in such a way as to not precisely conform with the provisions of subsection (C) or (D). The Executive Director, upon information or
belief, may require additional background or follow-up investigative work to be
conducted when, in his or her discretion, the integrity or security of the
Lottery warrants such action.
44-20.40. Issuance of licenses.
A. Upon receipt, review
and investigation of an application and applicant background, the Executive
Director may issue a lottery retail sales license for the sale of lottery games
in accordance with the Act and these regulations for a period of time not less
than a year. The Executive Director
shall license only those retail sales locations which will best serve the
public interest and public trust in the lottery and promote the sale of lottery
games. The Executive Director shall
consider the following factors for licensure and renewal:
(1) The moral
character and reputation of the applicant;
(2) The financial
responsibility and security of the applicant’s business or activity;
(3) The
accessibility of the public to the licensed premises proposed by the applicant;
(4) The number and
sufficiency of existing licenses to serve the public interest;
(5) The expected
volume of lottery game sales;
(6) The security
and efficient operation of the Lottery;
(7) Whether the
applicant is ineligible under any provisions of the Education Lottery Act;
(8) Whether the applicant has provided false or
misleading information or has misrepresented information regarding
qualifications or fitness for licensure;
(9) Whether the
applicant is currently licensed to do business within the State of South
Carolina and whether the applicant is current in state tax payments and the
filing of state tax returns; and
(10) Whether any person listed on the application
owes an unpaid debt to the Lottery.
44.20.50. License term and renewal, fees.
A. Every holder of a
license shall renew the license annually.
Renewal applications shall be returned to SCEL thirty (30) days prior to
the expiration of the license to be considered a timely application. The Executive Director may revise the
established renewal dates to allow renewals to be staggered on a monthly basis.
B. Pending a final
resolution of any question arising in respect to a licensing decision, the
Executive Director may issue a license subject to any terms and conditions he or
she considers appropriate.
44-20.60. Revocation; grounds for removal or
suspension of license or non-renewal of license.
A. If, at any time
after issuance of a license, it is determined by the Executive Director that a
lottery retailer no longer meets the standards for licensure, the Executive
Director or his designee may cancel, suspend, revoke, terminate or deny renewal
of a license or contract, upon giving notice to the lottery retailer. The suspension shall remain in effect until
the reason for suspension has been abated or cured, or in the alternative, the
Executive Director may revoke the license.
B. If the lottery
retailer fails to observe and comply with the procedures and regulations of the
Commission or with the provisions of the Act, or orders or instructions of the
Executive Director, the license and/or contract may be canceled, suspended,
revoked or terminated.
C. Additional grounds
for suspension or revocation of license:
(1) The Executive
Director may suspend or revoke the license of a lottery retailer who does not
comply with the Act and all rules, conditions, standards and other policies
adopted, promulgated or issued under the Act, by the Commission or the
Executive Director.
(2) The Commission
or Executive Director may suspend or revoke the license of any lottery retailer
who violates one of the following prohibitions:
(a) Selling
a ticket at a price greater than or less than that stated by the Commission.
(b) Selling
a ticket at a location or premises different than that shown on the license
certificate.
(c) Permitting
the sale of tickets by someone other than the retailer’s employees or agents.
(d) Selling
a ticket to a person under eighteen (18) years of age.
(e) Inviting,
soliciting, demanding, or offering or accepting any payment, contribution,
favor, or other consideration to influence the award, renewal or retention of a
license, directly or indirectly, on behalf of himself or herself or another
corporation.
(f) Accepting
anything other than cash for the sale of a ticket.
(g) Transferring
ticket stock, used for online terminals, between stores unless prior written
consent is granted by the Executive Director or his or her designee.
(h) Transferring
instant tickets between individual stores unless prior written consent is
granted by the Executive Director or his or her designee.
(i) Selling any lottery ticket, lottery
chance or lottery product unless the game being sold is approved by the
Commission.
D. The Executive
Director may suspend the license or suspend operation or revoke the license of
a retail sales location(s) of a lottery retailer for any of the following:
(1) Material misrepresentation in connection with
his or her application for a license, in any of his or her reports, or to any
person in connection with a lottery transaction;
(2) Engaging in the
sale of lottery tickets as his or her sole business, occupation or activity;
(3) Failure to take
adequate security precautions for the safe handling of tickets, lottery
materials or ticket sales proceeds due from the lottery retailer's ticket
sales;
(4) Failure to
regularly, promptly and accurately settle the accounts of his or her lottery
transactions and pay the amounts due from the lottery retailer's ticket sales;
(5) Failure to notify
the Executive Director of any change in ownership ten days prior to any
proposed change in ownership;
(6) Failure to open
his or her books or records for reasonable inspection by the Commission, the
Executive Director or his or her designee during normal business hours;
(7) Failure to
display his or her license or required advertising and display material;
(8) Failed to make
a report of a violation of the Act, these regulations, the policies or
procedures required by the Commission or the Executive Director; or
(9) Failure to
report a conviction of any felony or a crime related to theft or gambling,
during the term of his or her license.
If a lottery retailer is convicted of a felony or a gambling-related
offense, the lottery retailer shall within fourteen (14) days, notify the
Executive Director, in writing, of the conviction and the offense. For purposes of this section, a lottery
retailer includes the operational manager or an individual or person who holds
an ownership interest requiring a criminal background investigation as provided
in R.44-30.
44-20.70. License transfers prohibited.
A. No license may be
transferred or assigned.
B. Lottery games may be
sold only by the lottery retailer named on the license or by an employee or
agent of the retailer named on the license and only at the location named on
the lottery retailer license.
44-30.
Contract.
A. The Executive
Director shall enter into a contract for each approved lottery retail sales
location. The contract shall set out the
duties, responsibilities, and obligations pertaining to the parties to the
contract. The contract shall continue in
effect during the period in which the retailer complies with applicable
statutes, rules, fee requirements, and any other duties or requirements under
the terms of the contract, the Act or these regulations.
B. A party to a retail
contract pursuant to the Act, which is aggrieved by an action of the Executive
Director or his or her designee must receive notice of a right to a hearing and
be afforded a hearing within sixty (60) days of the date of notice. An appeal of the Executive Director’s
decision is to the Commission and then to the Administrative Law Judge
Division.
C. As provided in the lottery retailer contract,
a lottery retailer shall pay a weekly
fee for each dedicated telephone line provided by SCEL to partially defray and
recoup the cost of the telephone line and associated telecommunication charges.
D. SCEL
may not charge an online service fee to a retailer who sells only instant tickets.
44-40.10. Instant games.
A. The Commission
authorizes the Executive Director to select, operate, and contract to and for
the operation of instant games which meet the criteria generally set forth in
this section.
(1) Instant game
criteria.
(a) The
price of an instant game ticket shall not be more than ten dollars ($10.00)
unless otherwise approved by the Commission.
(b) Winners
of an instant game are determined by the matching or specified alignment of the
play numbers, digits and symbols on the tickets. The ticket bearer shall notify SCEL of the
win and submit the winning ticket as specified by the Executive Director. The winning ticket shall be validated by SCEL
through the use of the validation number and any other means as specified by the
Commission.
(c) The
instant game shall be designed to pay out prizes in amounts on a numerical
frequency to be determined by SCEL.
(d) The
duration of ticket sales for an instant game shall be determined by SCEL. The start date and closing date of the
instant game shall be publicly announced.
(e) The
frequency and determination of a winner in any instant game shall be determined
by SCEL in specific game rules.
(f) At
SCEL's discretion, an instant game may include a
special prize drawing or drawings that make use of the nonwinning
instant tickets, so as to encourage nonwinners to
accumulate their tickets instead of disposing of them. SCEL shall establish procedures for the
additional games.
B. Procedures for
claiming instant prizes:
(1) A claimant may present the winning ticket for
a prize not exceeding five hundred dollars ($500) to any lottery retailer or
mail the signed ticket to SCEL for payment.
If the lottery retailer validates the claim as a valid winner, the
lottery retailer must make payment of the amount due the claimant. Prizes shall be paid during the normal business
hours of lottery retailer. If the
lottery retailer cannot validate the claim, the claimant shall fill out a SCEL
claim form and present or mail the completed form, together with the disputed
ticket to SCEL. A check shall be
forwarded to the claimant in payment of the amount due if the claim is
validated. In the event that the claim
is not validated, the claimant shall be promptly notified that the claim is
denied.
(2) The claimant of
a prize of more than five hundred dollars ($500) shall complete a claim form
and mail or present the form together with the winning ticket to SCEL. Upon validation, a check shall be forwarded
to the claimant in payment of the amount due.
SCEL will deduct from the amount due any applicable federal and state
income tax withholdings and any withholding required by Section
59-150-330. In the event that the claim
is not validated, the claim shall be denied and the claimant shall be promptly notified that the claim is denied.
(3) Any ticket not
passing all the validation checks is invalid and ineligible for payment as a
prize. The Executive Director may,
solely at his or her option, replace an invalid ticket with an unplayed ticket or tickets of equivalent sales price from
any other current game or issue a refund of the sales price. If a defective ticket is purchased, the only
responsibility or liability of SCEL is the replacement of the defective ticket
with another unplayed ticket or tickets of equivalent
sale price from any other current game.
(4) A lottery
retailer may pay prizes in cash or by business check, certified check, money
order or a combination thereof. A
lottery retailer that pays a prize with a check which is dishonored, in
addition to full payment of the amount of the check and all nonsufficient
funds charges and any other legitimate banking charge, may be subject to
suspension or revocation of its license.
SCEL may not impose a monetary fine against a retailer who issues a
check or other negotiable instrument that is dishonored for the payment of a
prize.
C. Official end of
game.
(1) SCEL shall
announce the official end of each instant game.
A ticket may be validated for prize payment up to ninety (90) days after
the official end of game. In order to
participate in a special prize drawing, a player shall redeem a ticket which
qualifies for entry into that special prize drawing within the time limits
governing the conduct of that specific game.
(2) A lottery retailer
may continue to sell tickets for each instant game up to ninety (90) days after
the official end of that game.
(3) A lottery
retailer may return to SCEL full or partial packs of unsold lottery tickets for
each game within thirty (30) days of the official end of that game in order to
receive credit from SCEL as provided for in the retailers’ contract. Partial pack returns shall be allowed when a
retailer closes a business, changes ownership, or other criteria approved by
the Executive Director. The Lottery has no obligation to grant credit for
tickets returned more than thirty (30) days after the last day that a ticket
may be sold.