Title 61--REVENUE DEPARTMENT OF REVENUE [61 PA. CODE CH. 870] Super 6 Lotto [28 Pa.B. 3945] The Secretary of Revenue (Secretary), under the authority set forth in section 303 of the State Lottery Law (72 P. S. § 3761-303), by this notice of proposed rulemaking omitted, adds Chapter 870 (relating to Super 6 Lotto).
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, finds that notice of proposed rulemaking is under the circumstances impracticable and, therefore, may be omitted.
The Department's justification for utilizing the proposed 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.
Chapter 870 establishes and details the procedures that will be followed in operating and administering the Super 6 Lotto game. The Super 6 Lotto game will replace the current Wild Card Lotto and Keystone Jackpot games. The Wild Card Lotto and Keystone Jackpot regulations will remain in place to allow for winning tickets to be validated and prize claims to be paid after the suspension of the two games.
The object of the Super 6 Lotto game is for a player to select in a single play on a ticket six numbers that match the six winning numbers drawn for the game in which the ticket is participating. For the purchase of $1, individuals will be given three individual game plays, one of which, at the owner's option can be the numbers selected by the player, the remaining two numbers plays are quick pick selections. On the specified drawing date, the Lottery will draw at random six numbers from a set of balls numbered from 1 through 69 with the aid of mechanical drawing equipment.
A first prize of at least $3 million will be awarded to the group of players selecting the same 6 numbers drawn by the Lottery. There will be three additional prize categories as follows: (i) five winning numbers; (ii) four winning numbers; and (iii) three winning numbers.
Fiscal Impact
The Department has determined that the regulations will have no significant adverse fiscal impact on the Commonwealth and that the game described by the regulations will produce an undetermined net revenue.
Paperwork
The regulations will not generate substantial paperwork for the public or the Commonwealth.
Effectiveness/Sunset Date
The regulations will become effective upon publication in the Pennsylvania Bulletin. These regulations are scheduled for review within 5 years of publication. No sunset date has been assigned.
Contact Person
The contact person for an explanation of the regulations is Anita M. Doucette, Office of Chief Counsel, PA Department of Revenue, Dept. 281061, Harrisburg, PA 17128-1061.
Statutory Authority
The regulations are promulgated under section 303 of the State Lottery Law. Section 303 of the Law specifically provides the Secretary with the power and duty to promulgate rules and regulations governing the establishment and operation of the lottery.
Regulatory Review
Under section 5.1(c) of the Regulatory Review Act (71 P. S. § 745.5a(c)), on July 9, 1998, 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 regulations were 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-form regulations were deemed approved by the House and Senate Committees on July 14, 1998. IRRC met on July 30, 1998, and approved the final-form regulations, under section 5.1(e) of the Regulatory Reveiw Act.
Findings
The Department finds that the regulations are 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, are amended by adding §§ 870.1--870.17 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.
ROBERT A. JUDGE, Sr.,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 28 Pa.B. 4007 (August 15, 1998).)
Fiscal Note: 15-404. No fiscal impact; (8) recommends adoption.
Annex A TITLE 61. REVENUE PART V. STATE LOTTERIES CHAPTER 870. SUPER 6 LOTTO Sec.
870.1. Creation. 870.2. Purpose. 870.3. Definitions. 870.4. Ticket sales retailers. 870.5. Ticket price. 870.6. Super 6 Lotto bet slip and ticket characteristics and
restrictions.870.7. Time, place and manner of conducting drawing. 870.8. Determination of prize winners. 870.9. Ticket responsibility. 870.10. Ticket validation requirements. 870.11. Procedures for claiming and payment of prizes. 870.12. Pari-mutuel prize pool. 870.13. Unclaimed prize money. 870.14. Withholding. 870.15. Purchase and prize restrictions. 870.16. Governing law. 870.17. Probability of winning. § 870.1. Creation.
Under the act and this part, there is created a numbers game, called Super 6 Lotto, which will commence at the discretion of the Secretary, and will continue until the Secretary publicly announces a suspension or termination date.
§ 870.2. Purpose.
(a) The purpose of the Super 6 Lotto Game is to determine winners from ticket holders matching six numbers from 1 through 69, or a designated combination thereof, within a single play, with the six winning numbers to be randomly drawn. Drawings will be conducted twice a week or as determined and publicly announced by the Secretary.
(b) The object of the game is for a player to select in a single play on a ticket six numbers that match the six winning numbers drawn for the game in which the ticket is participating. Correctly matching the six winning numbers drawn, or a designated combination thereof, and meeting other validation criteria, entitles the ticket holder to a prize identified in § 870.8 (relating to determination of prize winners).
§ 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 2 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 plays 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).
§ 870.4. Ticket sales retailers.
(a) Super 6 Lotto Game ticket sales may only be made through licensed retailers the Director will appoint and contract with as provided in § 815.42 (relating to ticket sales agents).
(b) The Lottery may terminate sales by a retailer without prior notice to the retailer if the retailer becomes delinquent in payment of proceeds due the Lottery, or fails to handle Lottery funds in the prescribed manner, or if the retailer fails to follow the contract or an addendum thereof, this part or procedures established governing the sale of tickets or if the Lottery deems it to be in the best interest of the Commonwealth.
§ 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 ticket may only be canceled by a player if he produces the ticket, returns the ticket to the selling agent, and the retailer cancels the ticket within the time limits established by the Lottery prior to the drawing and if no drawing applicable to the ticket has previously been held.
(e) It is the sole responsibility of the ticket holder to verify the accuracy and condition of data printed on the ticket. The sole remedy of the purchaser or holder is cancellation as described in subsection (d).
§ 870.7. Time, place and manner of conducting drawing.
(a) Time of drawing. A Super 6 Lotto drawing will be held twice a week or as determined and publicly announced by the Secretary.
(b) Place of drawing. A Super 6 Lotto drawing will be conducted in the Harrisburg area unless the Secretary directs that a drawing or part of the drawing procedure be conducted at some other location.
(c) Manner of conducting drawings. The Lottery will draw at random, six numbers from a set of balls numbered from 1 through 69, with the aid of mechanical drawing equipment. The validity of a drawing will be solely determined by the Lottery.
§ 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:
Percent (%) of Tickets Containing Winnings Pool the Following, In One Prize Allocated to Single Lettered Game Play Category Prize Category All 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 of initial cash payments and annual payments over the term for the first prize category will be at least $3 million, or, if the cash option is selected at the time of purchase, a one time cash payment in an amount equal to the funds that would be necessary, as determined by the Lottery, to purchase an annuity of at least $3 million if the annuity were to 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 funds that would be necessary, as determined by the Lottery, to purchase an annuity of at least $3 million if the annuity were to be paid in an initial cash payment plus equal annual payments over a specified term of 25 years.
(6) The prize pool will be increased as necessary from funds authorized for the payment of prizes, to meet the minimum payment obligations in paragraph (4).
(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.
(l) If, at the suspension of the Wild Card Lotto drawings, prior to the start of the Super 6 Lotto, there are no plays on Wild Card Lotto standard game tickets which qualify for a particular prize category as set forth in §§ 817.111--817.127 (relating to Wild Card Lotto), the prize money allocated to the particular Wild Card Lotto prize category will be reallocated and added to the amount allocated to the Super 6 Lotto first prize category and that amount shall be divided in accordance with subsection (b). If, at the suspension of the Keystone Jackpot Game drawings, prior to the start of the Super 6 Lotto Game, there are no plays on Keystone Jackpot standard game tickets which qualify for a particular prize category as set forth in Chapter 868 (relating to Keystone Jackpot), the prize money allocated to the particular Keystone Jackpot prize category will be reallocated and added to the amount allocated to the Super 6 Lotto first prize category and that amount will be divided in accordance with subsection (b).
§ 870.9. Ticket responsibility.
(a) A ticket is a bearer document deemed to be owned by the person holding the ticket, except that if a name is contained on the ticket, the person so named will, for all purposes, be considered the owner of the ticket.
(b) The Commonwealth will not be responsible for lost or stolen tickets.
(c) The purchaser of the ticket has the sole responsibility for checking the accuracy and condition of the data printed on the ticket.
(d) The Commonwealth will not be responsible for tickets redeemed in error by a player from an on-line retailer.
§ 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 or canceled.
(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 and may not have been canceled.
(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.
§ 870.11. Procedures for claiming and payment of prizes.
(a) A prize shall be claimed only through a licensed on-line retailer beginning on the day following the drawing.
(b) An on-line retailer is authorized and required to make payment of a prize of $2,500 or less, if the ticket is presented within a designated time period as announced by the Secretary, on an individual winning ticket, if the retailer has sufficient funds available for payment.
(c) The holder of an apparent winning ticket containing a single lettered game play selection representing a prize of $2,500 or less will be paid by participating on-line retailers as provided in subsection (b), if the ticket validation requirements in § 870.10 (relating to ticket validation requirements) have been met, a proper validation pay ticket has been issued by the retailer's computer terminal and other procedures have been complied with as outlined in the Retailer Operating Procedure for Pennsylvania Lottery Numbers Games and addendum's thereto.
(d) The holder of an apparent winning ticket containing a single game play selection representing a prize in excess of $2,500, with the exception of the First Prize Category, shall first validate the apparent winning ticket at a participating on-line retailer to receive a validation ticket and then present the winning ticket and validation ticket to an authorized claim center--on-line retailer--under Chapter 811 (relating to prizes).
(e) The holder of an apparent winning ticket containing a single game play selection representing a First Prize Category prize shall first validate the apparent winning ticket at a participating on-line retailer to receive a validation ticket and then present, in person, the apparent winning ticket and validation ticket to Lottery Headquarters or a Lottery Area Office under Chapter 811.
(f) The payment of a prize to a person who dies before receiving any or all of a particular prize and to a person under 18 years of age will be paid under §§ 811.16 and 811.27 (relating to prizes payable after death of prize winner; and payment of prizes to persons under 18 years of age).
(g) The Commonwealth will be discharged of liability after payment of prizes as provided in § 811.26 (relating to discharge of State liability upon payment).
§ 870.12. Pari-mutuel prize pool.
(a) Fifty-two percent of Super 6 Lotto gross sales for a Super 6 Lotto drawing will be reserved for prizes and allocated to the winnings pool for payment of prizes as enumerated in § 870.8 (relating to determination of prize winners).
(b) If the Super 6 Lotto is terminated for any cause, prize monies remaining undistributed will be paid out of the State Lottery Fund and used for purposes otherwise provided for by law.
(c) If the prize pool for a drawing is not sufficient to fund an announced minimum first prize, the prize pool will be increased as necessary from funds authorized for the payment of prizes.
§ 870.13. Unclaimed prize money.
Prize money on a winning Super 6 Lotto play may be retained by the Secretary for payment to the person entitled to it. If within 1 year of the drawing date on the ticket, no claim is made on a winning play, as determined by the Secretary, the right to claim prize money terminates, and the prize money will be paid into the State Lottery Fund and used for purposes otherwise provided for by statute.
§ 870.14. Withholding.
Federal withholding taxes will be withheld by the Lottery for prize payments in amounts required in accordance with applicable provisions of law.
§ 870.15. Purchase and prize restrictions.
A ticket may not be purchased by, and a prize will not be paid to, an officer or employe of the Lottery professional services contractor or subcontractor, or to a spouse, child, brother, sister or parent residing in the same household of the contractor who is involved in the operation of the on-line lottery games system or its associated drawings.
§ 870.16. Governing law.
(a) In purchasing a ticket, the purchaser agrees to comply with and abide by applicable laws, this part, instructions, conditions and final decisions of the Secretary, and procedures established by the Director for the conduct of the Super 6 Lotto.
(b) Decisions made by the Director or the Secretary including the declaration of prizes and the payment thereof in interpretation of this part are final and binding on players and persons making a claim in respect thereof.
§ 870.17. Probability of winning.
Number of Winning Probability
Prize Numbers Selected of Winnings
Category by Player Per Play 1st 6 of 6 119,877,472 2nd 5 of 6 317,136 3rd 4 of 6 4,092 4th 3 of 6 151 [Pa.B. Doc. No. 98-1313. Filed for public inspection August 14, 1998, 9:00 a.m.]
