LOTTERY RULES AND REGULATIONS

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Code of Colorado Regulations › 200 Department of Revenue › 206 Colorado Lottery › 1 CCR 206-1

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RULE 1 - GENERAL DEFINITIONS

BASIS AND PURPOSE FOR RULE 1

The purpose of Rule 1 is to provide definitions for the Colorado Lottery General Rules

and Regulations. The statutory basis for Rule 1 is found in C.R.S. 4440-101(5), 44-40-

109(1)(a) and (2), and 44-40-110.

1.1

General Provisions

The Colorado Lottery Commission adopts these Definitions which apply to all of the

Lottery Rules and Regulations unless otherwise stated and in addition to any other

definitions that may apply in a specific section of the rules. Suppose there is a direct

conflict between one of these definitions and a definition in a specific section of the

rules. In that case, the latter shall apply.

1.2

Definitions

Unless these Rules and Regulations specifically state otherwise:

“Act” means State Lottery Division, Title 44, Article 40 of the Colorado Revised

Statutes.

“Additional Lottery Prizes” means cash, merchandise, and/or services, as

determined by the Director.

“Advance Play” means the option to Purchase Jackpot Tickets for more than one

future consecutive Drawing, with the first advance play Ticket Purchased for the

next available Drawing.

“Aggregate Prize Fund” means the maximum percentage of sales for each

Jackpot Game that may be used to pay Prizes.

“Barcode” means the barcode on a Ticket that contains the Validation information

which indicates whether the Ticket entitles the Ticket Holder to a Prize.

Code of Colorado Regulations

Secretary of State

State of Colorado

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“Aggregate Prize Fund” means the maximum percentage of sales for each

Jackpot Game that may be used to pay Prizes.

“Barcode” means the barcode on a Ticket that contains the Validation information

which indicates whether the Ticket entitles the Ticket Holder to a Prize.

Code of Colorado Regulations

Secretary of State

State of Colorado

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“Barcode Reader” means the computer hardware/software used by Retailers to

read barcoded information on Tickets.

“Claimant” means a Person claiming a Lottery Prize.

“Claims Center” means any location designated by the Director where a Person

may file a claim for any Lottery Prize.

“Commission” means the Colorado Lottery Commission established under the

Act.

“Coupons” mean marketing tools that entitle the holder to a discounted Lottery

Product and are approved by the Commission.

“Courier” means a Person or entity that receives an order and payment for a

Ticket(s) from a Courier Customer and Purchases the Ticket(s) from a Retailer

on the Licensed Premises on behalf of a Courier Customer and then digitally or

physically delivers the Ticket(s) to the Courier Customer in exchange for a fee

and facilitates redemption of Ticket(s) on behalf of a Courier Customer. A Courier

is an entity separate and apart from the Retailer, meaning a separate legal entity

with separate employees.

“Courier Customer” means a Person who is located within the State of Colorado,

but not within the designated boundaries of federally recognized Indian lands,

and submits an order and payment to a Courier for the Purchase of Ticket(s) in

exchange for a fee using payment methods approved by the Lottery for the sale

of Ticket(s). “Director” means the Senior Director of the Colorado State Lottery

Division.

“Division” means the Colorado State Lottery Division.

“Draw Break” means the period of time prior to a Drawing during which Jackpot

Tickets may not be sold, Purchased, or validated for the upcoming Drawing.

of Ticket(s) in

exchange for a fee using payment methods approved by the Lottery for the sale

of Ticket(s). “Director” means the Senior Director of the Colorado State Lottery

Division.

“Division” means the Colorado State Lottery Division.

“Draw Break” means the period of time prior to a Drawing during which Jackpot

Tickets may not be sold, Purchased, or validated for the upcoming Drawing.

“Drawing” means a random selection process to determine winning numbers as

set forth in specific Game Rules.

“E-instant Game” means a type of Instant Scratch Game that is played digitally

and available for Purchase directly from the Division using Registered Play.

“Electronic Funds Transfer” or “EFT” means the electronic transfer of money from

one bank account to another.

“Executive Director” means the Executive Director of the Colorado Department of

Revenue.

“Force Majeure” means an unexpected event (i.e., a natural disaster) that

prevents the scheduled completion of an activity.

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“Gaming System” means the computer system(s) consisting of Gaming

Terminals, central processing equipment, and a communication network used to

administer Lottery Products.

“Gaming Terminal” means the computer system through which Jackpot Tickets

are generated, Validated, and Instant Scratch Tickets are supported.

“Geolocate” or “Geolocation” means the method, system, or process used to

confirm that a Courier Customer or Person purchasing Lottery Products digitally

is physically present within the State of Colorado and not within the designated

boundaries of federally recognized Indian lands at the time that the Courier

Customer submits an order for Ticket(s) from a Courier.

“Immediate Family” shall include any spouse, child, brother, sister, and/or parent

residing in the same household.

a Courier Customer or Person purchasing Lottery Products digitally

is physically present within the State of Colorado and not within the designated

boundaries of federally recognized Indian lands at the time that the Courier

Customer submits an order for Ticket(s) from a Courier.

“Immediate Family” shall include any spouse, child, brother, sister, and/or parent

residing in the same household.

“Instant Scratch Game” means a type of Lottery game where the Prize is

revealed instantly once the game is played, including but limited to E-instant

Games, Scratch Tickets and any terminal game that instantly reveals a win,

except those that are offered as an add-on to a Jackpot game.

“Instant Scratch Game Guidelines” means the set of guidelines approved by the

Commission that establish the rules for a specific Instant Scratch Game.

“In-state Jackpot Game” is a Jackpot Game that is only available for Purchase

within the State of Colorado.

AA.

“Jackpot Game” is a game in which a player or the Gaming System selects a

combination of numbers in advance of a Drawing.

BB.

“Jackpot Ticket” means a Ticket or image generated by the Gaming Terminal or

Registered Play reflecting the combination of numbers selected for In-state and

Multi-state Jackpot Games.

CC.

“Key Employee” means an officer, director, or employee of a Vendor or an

officer, director, or employee of a Vendor’s subcontractor whose job

responsibilities could reasonably pose a risk to the Lottery, including but not

limited to, employees whose job duties include the marketing, development,

operation, or security of a Lottery Product or related system.

DD.

“Know Your Customer” or “KYC” means the method, system or process used to

verify a Person’s identity, including the age, of a Courier Customer in order to

prevent duplication of accounts and prevent minors or other unauthorized

Persons from ordering Tickets.

ited to, employees whose job duties include the marketing, development,

operation, or security of a Lottery Product or related system.

DD.

“Know Your Customer” or “KYC” means the method, system or process used to

verify a Person’s identity, including the age, of a Courier Customer in order to

prevent duplication of accounts and prevent minors or other unauthorized

Persons from ordering Tickets.

EE.

“Licensed Premises” means the physical location where the Retailer is

authorized to Sell Tickets pursuant to the license issued by the Division or as

otherwise authorized pursuant to the Act or these rules.

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FF.

“Retailer” or “Lottery Retailer” means any business licensed to Sell authorized

Lottery Products pursuant to the Act or these rules.

GG.

“Lottery” means any and all lotteries created and operated pursuant to the Act.

HH.

“Multi-state Jackpot Game” means a Jackpot Game that is sold in Colorado as

well as other jurisdictions.

II.

“Net Sales” means gross sales less cancellations or returns.

JJ.

“Person” means a natural Person.

KK.

“Play Area” means the area on a Scratch Ticket covered with a coating that can

be removed by the player.

LL.

“Play Slip” means a mark-sense game slip used to select plays in Jackpot

Games, including digital game slips. A Play Slip has no financial value and is not

evidence of a Ticket Purchase or of numbers selected.

MM. “Player” means a Person who Purchases a Lottery Product.

NN.

“Player-Selected Item” means a number or group of numbers selected by a

Player in connection with a Lottery Jackpot Game.

OO.

“Prize” means an award, financial or otherwise, from the Lottery.

PP.

“Prize Amounts” means the amount of money payable for Jackpot Games in

each Prize Category, or to each share, or the annuitized future value of each

share in a Prize Category for each Drawing.

QQ.

“Prize Category” means the category of Prize based on matching combinations

as described in the specific Game Rules.

pot Game.

OO.

“Prize” means an award, financial or otherwise, from the Lottery.

PP.

“Prize Amounts” means the amount of money payable for Jackpot Games in

each Prize Category, or to each share, or the annuitized future value of each

share in a Prize Category for each Drawing.

QQ.

“Prize Category” means the category of Prize based on matching combinations

as described in the specific Game Rules.

RR.

“Prize Expense” means the accrued portion of Net Sales from all Lottery

Products paid or designated to be paid out in Prizes.

SS.

“Prize Fund” means the amount of money allocated for Prizes as defined in the

Instant Scratch Game Guidelines or specific Game Rules.

TT.

“Prize Winner” means a Person who is entitled to claim a Prize.

UU.

“Product” or “Lottery Product” means any goods produced by the Lottery for sale

to the public either directly or through a Retailer.

VV.

“Promotional Drawing Guidelines” means guidelines for Promotional Drawings

associated with a specific Lottery Game or related marketing activity.

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WW. “Promotional Ticket” means a Ticket that is either a free Ticket or entitles a

Player to a free Ticket and is approved by the Director for distribution to the

public to promote the Lottery.

XX.

“Quick Pick” means a computer-generated selection of a number, item, or group

of numbers in connection with a Jackpot Game.

YY.

“Registered Play” means a wager where the play is owned by a specifically

identified Player through a means acceptable to the Lottery, and which is

recorded on the computer gaming system and internal computer system.

ZZ.

“Scratch Ticket” means a type of Instant Scratch Game where a Ticket has

preprinted play symbols or characters that are covered with a coating that, when

removed, reveals whether the Player has won a Prize.

AAA. “Sell”, “Sale” or “Purchase” means the payment to a Retailer in exchange for a

Ticket at the fixed price set by the Commission on the Retailer’s Licensed

Premises.

BBB

computer system.

ZZ.

“Scratch Ticket” means a type of Instant Scratch Game where a Ticket has

preprinted play symbols or characters that are covered with a coating that, when

removed, reveals whether the Player has won a Prize.

AAA. “Sell”, “Sale” or “Purchase” means the payment to a Retailer in exchange for a

Ticket at the fixed price set by the Commission on the Retailer’s Licensed

Premises.

BBB. “Shares” means the total number of matching combinations within each Prize

Category as determined for each draw.

CCC. “Ticket” or “Lottery Ticket” means an acceptable evidence of play, which is a

Ticket produced in a manner that meets the specifications defined in these rules

and is either a physical representation of the play or plays sold to the Player; or

electronic evidence of a Ticketless transaction in the form of Registered Play.

DDD. “Ticket Holder” means a Person who has physical possession of a Lottery Ticket

or electronic evidence of a Ticketless transaction in the form of Registered Play.

EEE. “Validation” or “Validate” means the process of determining whether a Lottery

Ticket presented for payment is a winning Ticket.

FFF. “Validation Number” means the unique number printed on a Scratch Ticket that is

used for Validation.

GGG. “Vendor” means any third party that is contracted with the Lottery to provide

services or materials related to any Lottery Product, including but not limited to

the marketing, development, operation, or security of a Lottery Product or related

system. Vendor may include, but is not limited to, a supplier as described in

C.R.S. 44-40-106.

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. “Vendor” means any third party that is contracted with the Lottery to provide

services or materials related to any Lottery Product, including but not limited to

the marketing, development, operation, or security of a Lottery Product or related

system. Vendor may include, but is not limited to, a supplier as described in

C.R.S. 44-40-106.

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RULE 2 – RETAILER LICENSING, DUTIES AND COMPENSATION

BASIS AND PURPOSE FOR RULE 2

The purpose of Rule 2 is to establish and provide the specific factors required for

determining eligibility of an applicant desiring to obtain a license for the Sale of Lottery

Products to the public; to specify certain duties of the Retailers; to authorize the Director

to establish bonding protection for the State of Colorado; to describe the types of

limitations which may be placed upon licenses issued by the Director; to provide for the

circumstances upon which the Director may terminate licenses and issue duplicate

licenses; to specify certain terms, conditions and duties required of Retailers authorized

to Sell Lottery game Products; to specify the rights of the Retailer, as well as the

detailed operation of the Lottery at the retail sales level, including the conditions that

must be met in order for a Retailer to be permitted to Sell Tickets to a Courier. The

provisions of Rule 2 are necessary in order to promote the public interest, as well as the

security and efficient operation of the Lottery. The statutory basis for Rule 2 is found in

C.R.S. 44-40-107 and 44-40-109(1)(a) and (2).

2.1

Application for License to Sell Lottery Products

Any Person, firm, association or corporation, whether for profit or non-profit. P

may apply to the Lottery for a Retailer license by filing an application with the

Division. Such application shall be completed under penalty of perjury on a form

approved by the Director.

A fee in an amount to be determined by the Director shall be paid by the

applicant for a Retail license to the Lottery

ucts

Any Person, firm, association or corporation, whether for profit or non-profit. P

may apply to the Lottery for a Retailer license by filing an application with the

Division. Such application shall be completed under penalty of perjury on a form

approved by the Director.

A fee in an amount to be determined by the Director shall be paid by the

applicant for a Retail license to the Lottery. This fee shall be paid at the time of

the issuance of the license and upon renewal of the license thereafter.

2.2

Retailer Commission

Each Retailer shall be entitled to receive a payment for the Sale or authorized

disbursement of Lottery Products by said Retailer as provided for in C.R.S. 44-

40-107 in the amounts specified in these rules and their Retailer agreement with

the Lottery.

At a minimum, Retailers shall receive the following commissions for the Sale of

Jackpot Games and Scratch Tickets:

6% for the Sale of Jackpot Games; and,

7% for the Sale of Scratch Tickets.

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2.3

Eligibility for License

The Director shall issue licenses for the Sale of authorized Lottery Products in

accordance with the provisions of C.R.S. 44-40-107 and these Rules and

Regulations. The Director shall license only such Persons who, in the Director’s

opinion, will best serve the public interest and trust in the Lottery and promote the

Sale of Lottery Products. Prior to issuing any license, the Director shall consider

all of the following factors:

The moral character and reputation of the applicant per C.R.S. 44-40-

107(4)(e);

The financial responsibility and security of the applicant and its business

or activity;

The accessibility of the public to the Licensed Premises proposed by

applicant;

The number and sufficiency of existing licenses to serve the public

interest;

The volume of the applicant’s expected Lottery Ticket Sales;

The security and efficient operation of the Lottery;

.S. 44-40-

107(4)(e);

The financial responsibility and security of the applicant and its business

or activity;

The accessibility of the public to the Licensed Premises proposed by

applicant;

The number and sufficiency of existing licenses to serve the public

interest;

The volume of the applicant’s expected Lottery Ticket Sales;

The security and efficient operation of the Lottery;

Whether the applicant is ineligible under the provisions of C.R.S. 44-40-

107(4);

Business and security considerations which include but are not limited to:

Past security problems;

Credit history of owners, officers and the business entity; and,

History of administrative or regulatory actions.

Marketing considerations which include but are not limited to:

Projected Sales of Lottery Products; and,

Willingness to promote Lottery Products.

2.4

Duties of Retailers

In order to promote the public interest and the security, and efficient and responsible

operation of the Lottery, each Retail licensee must abide by the following terms,

conditions and duties:

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To be bound by and comply with all lawful provisions of Article 40, Title 44,

C.R.S. and the Lottery Rules and Regulations adopted pursuant thereto; the

Retailer agreement between the Retailer and the Division; and any other lawful

instructions or directives issued by the Director;

To actively promote the responsible Sale of authorized Colorado Lottery

Products, including making them available for Sale at all times when the Gaming

System is available and the Retailer is open to the public;

To maintain regular business hours so that the public knows when the Retailer is

open to the public and has access to purchase authorized Lottery Products;

To pay Prizes worth less than $600.00 to the Prize Winner for any Lottery

Products Validated by the Retailer. All Products Validated by a Retailer must be

paid by that Retailer as follows:

ailable and the Retailer is open to the public;

To maintain regular business hours so that the public knows when the Retailer is

open to the public and has access to purchase authorized Lottery Products;

To pay Prizes worth less than $600.00 to the Prize Winner for any Lottery

Products Validated by the Retailer. All Products Validated by a Retailer must be

paid by that Retailer as follows:

To maintain sufficient funds to pay Prizes worth $150 or less by cash,

check, or money order.

The Retailer will be prompted at the time of Validation whether to accept

the Validation for Prizes greater than $150 but less than $600. If a Retailer

accepts and Validates the Ticket, the Prize must be paid.

Prizes shall be paid during the Retailer's normal business hours, provided

the Validation system is operational and claims can be Validated. The

Retailer shall not charge the Claimant a fee for payment of a Prize or for

cashing a business check drawn on the Retailer’s account.

To maintain authorized displays, notices, equipment and other materials used in

connection with the Sale of Lottery Products in accordance with reasonable

instructions or directives issued by the Director;

To maintain a complete and accurate set of books of account, correspondence

and records of all Lottery transactions and operations, including but not limited to

the receipt, Sale, handling, scratch inventory (both active and inactive), and

returns for credit for all Lottery Products received by Retailer, and any books of

account, correspondence, reports and records that may be required for Lottery

Products. Books, correspondence and records referencing the Lottery account

must be made available during normal business hours, with or without prior

notice, to any duly authorized representative of the Lottery for inspection and

audit by an auditor selected by the Commission or Director;

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ports and records that may be required for Lottery

Products. Books, correspondence and records referencing the Lottery account

must be made available during normal business hours, with or without prior

notice, to any duly authorized representative of the Lottery for inspection and

audit by an auditor selected by the Commission or Director;

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To allow announced and/or unannounced inspections of the Licensed Premises

by duly authorized representatives of the Division during normal business hours,

to determine compliance with the provisions of the Act, Rules and Regulations,

instructions and directives of the Director. The compliance inspection may be

performed online, via telephone, in person or as otherwise provided by the

Division representative. The inspections may be performed annually or in an

otherwise determined time frame;

To indemnify and hold the State of Colorado, the Division and the Commission

harmless from any and all liabilities, claims, actions, and judgments of any kind

or nature arising from or relating to the Retailer’s acts or omissions in the course

of operating and conducting the Sale of Lottery Products;

To pay an administrative fee, to be determined by the Director, to reimburse the

Colorado Lottery for inactive Scratch Tickets that are lost due to negligence or

misconduct of the Retailer;

To provide confirmation that the Retailer is not a member of the Lottery

Commission, an employee of the Lottery or a current Lottery contractor.

To agree that all Lottery Products shall be deemed to have been Purchased by

the Retailer once Activated or Sold, whichever comes first;

Colorado Lottery for inactive Scratch Tickets that are lost due to negligence or

misconduct of the Retailer;

To provide confirmation that the Retailer is not a member of the Lottery

Commission, an employee of the Lottery or a current Lottery contractor.

To agree that all Lottery Products shall be deemed to have been Purchased by

the Retailer once Activated or Sold, whichever comes first;

To pay a communication and/or administrative fee at the discretion of the

Director in an amount to be determined by the Director to cover operational costs

to the Lottery in servicing said Retailer account, including a fee assessed for not

maintaining sufficient funds in the banking account designated to be swept to pay

the Lottery for Lottery Products;

To maintain a secure place for unsold Lottery Products upon instruction or

directive by the Director or designee;

To prominently display the Colorado Lottery Retailer license in an area visible to

the general public;

To agree that all unclaimed Prizes from all Lottery Products remain the property

of the State of Colorado as set forth in C.R.S. 44-40-113 and 40-40-114;

To pay, without reimbursement, all electricity charges in conjunction with the

operation of the any equipment related to the Sale of Lottery Products;

To participate in Lottery training sessions and provide staff training;

To use signage identifying the location as a Lottery Retailer. Nothing herein shall

require Retailer to install signage which is in violation of any state, local, or

municipal code;

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with the

operation of the any equipment related to the Sale of Lottery Products;

To participate in Lottery training sessions and provide staff training;

To use signage identifying the location as a Lottery Retailer. Nothing herein shall

require Retailer to install signage which is in violation of any state, local, or

municipal code;

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To provide authorization for an account with EFT capability to be used for weekly

billing of all Lottery Products;

To maintain a balance in the account sufficient to cover payment due the Lottery

for the established billing period. The Lottery shall utilize EFT to withdraw the

amount due the Lottery on the day specified by the Director. In the event the day

specified for withdrawal occurs on a legal holiday, withdrawal shall occur on the

following business day. If an EFT is unsuccessful due to insufficient funds, the

Division may sweep the fund for any lesser amount until payment of all

outstanding debt has occurred. The Division may assess a fee for late payments;

To Sell Scratch Products in consecutive and numerical order;

To not exchange Lottery Products and/or books with any other Person, including

other Retailers;

To play Lottery Products, if so desired, in a responsible and fair manner.

Retailers are prohibited from playing Lottery games by using any method other

than random, fair chance, or by any method contrary to the principle that every

Lottery Ticket has an equal and random chance of winning;

To print Jackpot Tickets only on the specific ticket stock issued by the

Lottery to the Licensed Premises for that Retailer and not transfer ticket

stock to any other outlet or location;

To acknowledge that the Gaming Terminal and any and all other supplies,

equipment, signage or vending machines issued by the Lottery or a

Vendor remain the property of the Lottery or a Vendor

nce of winning;

To print Jackpot Tickets only on the specific ticket stock issued by the

Lottery to the Licensed Premises for that Retailer and not transfer ticket

stock to any other outlet or location;

To acknowledge that the Gaming Terminal and any and all other supplies,

equipment, signage or vending machines issued by the Lottery or a

Vendor remain the property of the Lottery or a Vendor. The Retailer shall

exercise due diligence in the use and operation of the Gaming Terminal

and all other supplies, equipment, signage, and vending machines issued

by the Lottery or a Vendor, as well as immediately notify the Lottery or a

Vendor about any communications or other systems malfunctions,

including, but not limited to, the issuance of an invalid online ticket,

inaccurate jackpot amounts being displayed on digital signage, or the

inability to generate or redeem an online ticket. The Retailer shall not

perform any mechanical or electrical maintenance on the Gaming

Terminal or any other supplies, equipment, signage, or vending machines

issued by the Lottery or a Lottery Vendor. The Retailer shall not move,

alter, or tamper with the Gaming Terminal except as required by the

Lottery or a Vendor;

To provide, without reimbursement, the full costs of Gaming Terminal

installation and hookup charges, as well as any and all charges related to

the Sale of Lottery Products as specified by the Lottery;

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a Lottery Vendor. The Retailer shall not move,

alter, or tamper with the Gaming Terminal except as required by the

Lottery or a Vendor;

To provide, without reimbursement, the full costs of Gaming Terminal

installation and hookup charges, as well as any and all charges related to

the Sale of Lottery Products as specified by the Lottery;

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To provide, without reimbursement, any requirement the Lottery deems

necessary for the Gaming Terminal or other equipment related to the Sale

or promotion of Lottery Products, including, but not limited to maintenance

of equipment and payment for electricity and internet. and,

2.5

ADA - Americans with Disabilities Act

To prohibit discrimination, no Retailer shall discriminate against any individual on

the basis of disability in the full and equal enjoyment of Lottery-related goods,

services, facilities, privileges, or accommodations of a Licensed Premises.

The Americans with Disabilities Act and subsequent amendments thereto applies

to all Retailers and is enforced by the United States Department of Justice.

2.6

Licensing Disqualifications

A License shall not be granted to:

Any Person, firms, association, or corporations, whether for profit or non-profit,

who will engage in business exclusively as a Lottery sales agent, unrelated to

any other commercial business activity.

Any Person, firms, association, or corporations, whether for profit or non-profit,

who has provided false or misleading information to the Lottery.

Any Person, firms, association, or corporations, whether for profit or non-profit,

who is deemed not financially responsible to operate a business.

iness exclusively as a Lottery sales agent, unrelated to

any other commercial business activity.

Any Person, firms, association, or corporations, whether for profit or non-profit,

who has provided false or misleading information to the Lottery.

Any Person, firms, association, or corporations, whether for profit or non-profit,

who is deemed not financially responsible to operate a business.

Any Person, firms, association, or corporations, whether for profit or non-profit,

whose proposed Licensed Premises is a residence or, by reason of its location is

not accessible to a sufficient number of Persons so as to reasonably justify the

Lottery’s expenditure of public monies to provide and deliver Lottery Products,

services, and supplies to such a location. In making such a determination, the

Director shall consider the possible economic benefit to the State and the

convenience to the public to be gained from licensing such Person.

Any Person, firms, association, or corporations, whether for profit or non-profit,

whose volume of Lottery Ticket Sales projected or anticipated is such as not to

reasonably justify the Lottery’s expenditure of public monies to provide and

deliver Lottery Products, services, and supplies to such a location, when

considering the possible economic benefit and convenience to the public to be

gained there from. For the purpose of initial licensing, a projected or anticipated

volume of instant game Lottery Ticket Sales must meet the current minimum

Sales requirement as determined by the Lottery Director.

Any sole proprietor who is not a resident of the State of Colorado.

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le economic benefit and convenience to the public to be

gained there from. For the purpose of initial licensing, a projected or anticipated

volume of instant game Lottery Ticket Sales must meet the current minimum

Sales requirement as determined by the Lottery Director.

Any sole proprietor who is not a resident of the State of Colorado.

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Any corporation or limited liability company that is neither incorporated nor

authorized to do business in the State of Colorado.

Any partnership, or association, or other type of business entity, in which no

general partner(s), member(s), or representative(s) is a resident of the State of

Colorado.

Any Person who has been convicted, within ten years of an application, of a

felony crime, including but not limited to, robbery, burglary, theft, trespass,

criminal mischief, forgery, computer crime, bribery, perjury, offenses related to

judicial and other proceedings, telecommunications crimes, racketeering, or the

distribution, Sale, manufacturing, dispensation or possession of drugs or drug

paraphernalia. Other convictions, whether felony or misdemeanor, may relate to

a determination that the Person is not of good character and reputation and may

lead to the denial of a license.

Any business entity member that has an outstanding liability with the Division

including amounts transferred to Central Collection Services or has been written

off by the Division due to bankruptcy or for non-payment.

2.7

Bonding Requirement

No license shall be issued or renewed by the Director, unless the applicant or Retailer is

first bonded in such an amount and type as may be required by the Director to protect

the State against any monetary loss that may arise from the Retailer’s Purchase and

Sale of Lottery Products.

Such bonding may take the form of any instrument that is determined by the Director to

satisfy the requirements of C.R.S. 44-40-107(1) and 44-40-121.

2.8

Limitations on Licenses

applicant or Retailer is

first bonded in such an amount and type as may be required by the Director to protect

the State against any monetary loss that may arise from the Retailer’s Purchase and

Sale of Lottery Products.

Such bonding may take the form of any instrument that is determined by the Director to

satisfy the requirements of C.R.S. 44-40-107(1) and 44-40-121.

2.8

Limitations on Licenses

Retailers shall limit the Sale of authorized Lottery Products to the Licensed

Premises. A Person must be present on the Licensed Premises to complete the

Sale of a Lottery Product.

A Retail license shall terminate unless timely renewed. The Director may limit a

Retailer to a particular type of Lottery game or games. A license may be renewed

upon the timely payment of a renewal fee and timely submission of a renewal

application on a form prescribed by the Director.

The Director shall determine:

The length of the Retail license period;

Any limitations on the hours and days of Lottery Product Sales;

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The Licensed Premises where the Sale of Lottery Products shall be

remitted;

The specific Person, firm, association, or for-profit or non-profit

corporation, who is authorized to Sell Lottery Products;

The specific Lottery Products that a Retailer is authorized to Sell;

The specific sporting, charitable, social, or other special event where

Lottery Products may be sold; and,

Such other limitations or conditions of licensing as determined by the

Director to best serve the public convenience; to promote the Sale of

Lottery Products; to protect the security and integrity of the Lottery

Products; or as may be otherwise necessary or desirable for the efficient

and economical operation and administration of the Lottery.

2.9

Non-Transferability of License

A license issued pursuant to these Rules and Regulations shall not be assignable or

transferable

or to best serve the public convenience; to promote the Sale of

Lottery Products; to protect the security and integrity of the Lottery

Products; or as may be otherwise necessary or desirable for the efficient

and economical operation and administration of the Lottery.

2.9

Non-Transferability of License

A license issued pursuant to these Rules and Regulations shall not be assignable or

transferable. If either the Person who has signed the application for licensure is no

longer employed by the Retailer in the capacity stated on the application or if the

ownership of the Retailer substantially changes, the Director reserves the right to

terminate the license. The Retailer shall notify the Director in writing at least thirty (30)

days prior to any such proposed change. A substantial change in ownership shall mean

a transfer of ten percent (10%) or more of either the equity of such business, or the

decision-making authority thereof.

2.10 Duplicate Licenses

Upon the loss, mutilation or destruction of any license issued by the Director, a

duplicate license can be issued. A mutilated license shall be surrendered to the

Director upon issuance or denial of a duplicate license. A lost license, when

found, must be immediately surrendered to the Director.

2.11 Couriers

No Retailer Shall Sell Lottery Products to a Courier without prior approval from

the Division.

The Director has the sole discretion to approve an application by a Retailer to

Sell Lottery Products to a Courier. The Director shall consider whether approving

the application will promote the integrity and security of the Lottery, including but

not limited to whether:

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ry Products to a Courier without prior approval from

the Division.

The Director has the sole discretion to approve an application by a Retailer to

Sell Lottery Products to a Courier. The Director shall consider whether approving

the application will promote the integrity and security of the Lottery, including but

not limited to whether:

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The Retailer has not had any documented issues of non-compliance with

Lottery Rules or Statutes that indicate that the Retailer would be unfit to

handle the additional Sales volume and responsibility that Selling to a

Courier would require.

The Retailer and the Courier are in compliance with the Act, the Retailer

agreement and the Lottery’s Rules & Regulations.

The Retailer does not owe the Lottery any outstanding debts.

The Retailer has verified that the Courier is registered with the Colorado

Secretary of State and is in good standing. Review of the Courier’s status

on the Colorado Secretary of State’s website constitutes verification for

the purposes of these Rule.

The Retailer does not employ a Person who is also employed by a

Courier.

The Retailer has executed a written contract with the Courier.

The Sale and Purchase of Tickets between the Courier and the Retailer

occur only on the Retailer’s Licensed Premises when the Retailer is open

to the public during regular business hours, meaning that an employee of

the Courier shall be on the Licensed Premises to Purchase the Lottery

Tickets from the Retailer in-person.

The Courier is using Play Slips that conform to MUSL standards and has

mechanisms in place to ensure the accurate processing of orders for

Tickets that are placed by Courier Customers and can provide information

on how the Tickets will be stored, tracked, Validated and processed to

ensure the Courier Customer receives any Prizes that they are entitled to.

Tickets from the Retailer in-person.

The Courier is using Play Slips that conform to MUSL standards and has

mechanisms in place to ensure the accurate processing of orders for

Tickets that are placed by Courier Customers and can provide information

on how the Tickets will be stored, tracked, Validated and processed to

ensure the Courier Customer receives any Prizes that they are entitled to.

The Retailer and the Courier have sufficient safeguards to ensure that any

Lottery Tickets Purchased by the Courier on behalf of Courier Customers

are being tracked, stored and Validated in a secure manner that ensures

the Courier Customer gets any Prizes that they are entitled to by virtue of

their Purchase.

10.

The Retailer shall not permit any device to be connected to the Gaming

System, except as specifically approved in writing, in advance, by the

Lottery.

11.

The Retailer has attested to and continues to ensure that the Courier is

doing the following:

Not violating the Act or the Lottery’s rules;

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Undergoing an annual external SOC2 or ISO27001 audit in addition

to a financial audit of its operations to ensure integrity in operations

and provide evidence thereof and any findings to the Retailer and

how they plan to address those findings;

Disclosing all fees charged by the Courier to the Courier Customer

for its services in a manner that makes clear that those fees are

separate from the Ticket price set by the Commission prior to taking

payment from and finalizing the Courier Customer’s order;

Not targeting advertisements for Tickets to under-age Persons or

Persons who are located outside the state of Colorado or within the

designated boundaries of federally recognized Indian lands;

Not using the Lottery’s logo without explicit permission from the

Director of the Lottery and is not holding itself out as being a

licensed Retailer or otherwise affiliated with or acting as an agent of

the Lottery;

advertisements for Tickets to under-age Persons or

Persons who are located outside the state of Colorado or within the

designated boundaries of federally recognized Indian lands;

Not using the Lottery’s logo without explicit permission from the

Director of the Lottery and is not holding itself out as being a

licensed Retailer or otherwise affiliated with or acting as an agent of

the Lottery;

Has a method to contact the Courier’s customer service to attempt

to resolve issues, disputes or complaints related to the Courier’s

services and clearly displays that information to the public and

Courier Customers on its website and in its online and mobile

platforms;

Utilizing Geolocation on any mobile or electronic device that may

be used by a Courier Customer to order Tickets through the Courier

in order to verify that the Courier Customer is located within the

State of Colorado and not within the designated boundaries of

federally recognized Indian lands;

Utilizing KYC or Know Your Customer to verify the identity and age

of a prospective customer to prevent account duplication and

prohibit minors or other unauthorized Persons from placing orders

for Tickets through the Courier;

Securely storing Tickets Purchased on behalf of Courier Customers

for 30 days following either the Prize being paid to the Courier

Customer for the Ticket or expiration of the time period when the

Prize is eligible to be paid, whichever comes first;

Not assessing any fee for the payment of any Prize Amount;

Transfers winning Tickets worth $600 or more to the Courier

Customer to be claimed directly with the Lottery;

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wing either the Prize being paid to the Courier

Customer for the Ticket or expiration of the time period when the

Prize is eligible to be paid, whichever comes first;

Not assessing any fee for the payment of any Prize Amount;

Transfers winning Tickets worth $600 or more to the Courier

Customer to be claimed directly with the Lottery;

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Allows Courier Customers to place daily, weekly and monthly limits

on their spending and allow the Player to self-exclude themselves

from ordering Tickets through the Courier;

Complying with any responsible gaming controls adopted by the

Lottery; and,

Complying with the Colorado Consumer Privacy Act, C.R.S. 6-1-

1301, et seq.

12.

The Retailer agrees to hold the State of Colorado, the Colorado Lottery, its

employees, and agents harmless from any and all disputes arising out of

the use of the Courier’s service for the delivery of Tickets and/or any fees

assessed to the Courier Customer associated with the use of the Courier’s

Service.

13.

The Retailer has an ongoing duty to ensure that the Courier’s operations

comply with the requirements of this Rule 2.13 and present any evidence

of such compliance to the Lottery upon request.

14.

The Director in his or her sole discretion may deny, suspend or terminate

the Retailer’s approval to Sell to a Courier upon an investigation and

finding that the Courier poses a threat to the security, integrity or operation

of the Lottery or has otherwise violated the Act or the Rules.

15.

Upon the initial application and annual renewal of the Lottery license, any

Retailer affiliated with a Courier must provide, at a minimum, the following

certifications and information to the Division:

The Retailer must identify all affiliations, partnerships, and contracts

with Courier(s) to the Division and provide the following information:

a) the name of the Person or business serving as the Courier or

Courier Service and b) the contact information for the Courier.

etailer affiliated with a Courier must provide, at a minimum, the following

certifications and information to the Division:

The Retailer must identify all affiliations, partnerships, and contracts

with Courier(s) to the Division and provide the following information:

a) the name of the Person or business serving as the Courier or

Courier Service and b) the contact information for the Courier.

The Retailer must submit annual Sales data and revenue

generated from any affiliation with any Couriers for the prior year,

including the number of Sales and the revenue for all Sales.

The Retailer must certify that the Courier(s) with which they are

affiliated are complying with Section 2.13(a).

16.

The Director has the discretion to administratively suspend and/or seek

the revocation of the license of a Retailer license pursuant C.R.S. 24-4-

105 and 106 if the Retailer who Sells Tickets to a Courier constitutes an

operational threat, threat of loss, fraud, or any other action that impacts

the security and integrity of the Lottery.

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17.

The Director may withhold payment of a Prize to investigate whether a

Ticket sold to a Courier may have been procured in a manner that violates

the security, integrity or operation of the Lottery or otherwise violates the

Act or the Rules.

RULE 2.A

[Repealed eff. 09/30/2008]

RULE 3 - GENERAL RULES AND REGULATIONS

BASIS AND PURPOSE FOR RULE 3

The purpose of Rule 3 is to establish and provide the general rules and regulations for

Lottery Products, including the Purchase, price and payment of Lottery Products. The

statutory basis for Rule 3 is found in C.R.S. 44-40-103, 44-40-104, 44-40-107, C.R.S.

44-40-109, and Article 40 of Title 44.

3.1

Ownership of Tickets not Sold Through Registered Play

A Lottery Ticket that is not sold through Registered Play is a bearer instrument

until signed by the Claimant in the area designated on the Ticket.

cluding the Purchase, price and payment of Lottery Products. The

statutory basis for Rule 3 is found in C.R.S. 44-40-103, 44-40-104, 44-40-107, C.R.S.

44-40-109, and Article 40 of Title 44.

3.1

Ownership of Tickets not Sold Through Registered Play

A Lottery Ticket that is not sold through Registered Play is a bearer instrument

until signed by the Claimant in the area designated on the Ticket.

Lottery Tickets not sold through Registered Play must be signed by the Prize

Winner in order to collect a Prize.

For Lottery Tickets not sold through Registered Play, the Director shall award a

Prize only to a natural Person whose signature appears on the Ticket in the

designated area. Groups, family units, clubs, or organizations must designate

one individual as the Claimant and he or she must sign the Ticket. A Prize will be

awarded only to the Claimant.

In the event there is an inconsistency between in the information submitted on a

claim form and as shown on the winning Lottery Ticket, the Director shall delay

the award of a Prize pending investigation of the inconsistency.

Once a Lottery Ticket not sold through Registered Play is presented and

Validated at a Lottery Claims Center, it will not be returned to the Prize Winner,

and will remain the property of the Lottery.

3.2

Player’s Obligations

In purchasing a Lottery Ticket, the Player agrees to comply with all provisions of

the Act, Lottery Rules and Regulations and all final decisions, instructions, and

directives of the Director.

It shall be the sole responsibility of the Player to verify the accuracy of the game

play or plays and other data printed on his or her Ticket.

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In purchasing a Lottery Ticket, the Player agrees to comply with all provisions of

the Act, Lottery Rules and Regulations and all final decisions, instructions, and

directives of the Director.

It shall be the sole responsibility of the Player to verify the accuracy of the game

play or plays and other data printed on his or her Ticket.

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3.3

Sale of Tickets

A Retailer shall Sell authorized Lottery Products on the Licensed Premises

pursuant to the terms and conditions of the Retailer Agreement and the Lottery

Rules and Regulations.

Retailers shall Sell Jackpot Tickets to the public during their regular business

hours between the hours of 4:30 a.m. and 11:59 p.m. MST Monday through

Saturday and 8:00 a.m. and 11:59 p.m. MST on Sunday if those hours are

included in the Retailer’s normal business hours and when the Gaming System is

available.

Retailers shall make Instant Scratch Tickets available for Sale to the public

during the Retailer’s normal business hours which shall be identified on their

application for licensure.

All Ticket Sales are final and the return of a Lottery Ticket after Sale shall not be

accepted by the Retailer, unless otherwise directed by the Director, or as set

forth in these Rules and Regulations.

The Division may Sell Instant Scratch Games and Jackpot Games, as

determined by the Director and consistent with responsible gaming best

practices, including but not limited to online, via mobile application, at special

events, vending machines and Claims Centers. For sales by the Division that

occur outside of a physical location, i.e

e Director, or as set

forth in these Rules and Regulations.

The Division may Sell Instant Scratch Games and Jackpot Games, as

determined by the Director and consistent with responsible gaming best

practices, including but not limited to online, via mobile application, at special

events, vending machines and Claims Centers. For sales by the Division that

occur outside of a physical location, i.e. online or via mobile application or

another manner other than an in-person transaction, shall utilize KYC to verify

the age of the Player and Geolocation to verify that the Player is physically

present within the State of Colorado and not within the designated boundaries of

federally recognized Indian lands at the time that the Courier Customer submits

an order for Ticket(s) from a Courier.

A Retailer may be permitted, upon prior written approval of the Director or

designee, to use Lottery Products as a means of promoting the Sale of goods

and services to the public.

The Director may limit the number of Lottery Tickets that may be Sold at a

Retailer as is necessary to protect the security and the integrity of the Lottery.

No device shall be connected to a Gaming Terminal for any reason, except as

may be approved by the Division. Unapproved devices may be seized by the

Division.

3.4

Persons Ineligible to Purchase or Sell Tickets

No Person under the age of eighteen (18) may Purchase or Sell Lottery

Products.

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he security and the integrity of the Lottery.

No device shall be connected to a Gaming Terminal for any reason, except as

may be approved by the Division. Unapproved devices may be seized by the

Division.

3.4

Persons Ineligible to Purchase or Sell Tickets

No Person under the age of eighteen (18) may Purchase or Sell Lottery

Products.

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Lottery Tickets may not be Purchased by, and no Prize shall be paid to, any of

the following:

Members of the Commission or their Immediate Families;

Employees of the Lottery or their Immediate Families, except when

authorized by the Director for investigative purposes. But in no event shall

such Persons be entitled to payment of a Prize;

Any Key Employee or a member of their Immediate Family; or,

Persons who operate Drawing equipment during a Drawing or officially

witness a Drawing and members of their Immediate Family.

3.5

Lost or Stolen Tickets

The Director reserves the right to withhold the award of a Prize, pending the findings of

an investigation, when the Ticket presented for Validation has been reported lost or

stolen. At the Director’s discretion, Tickets that are determined to be stolen will not be

paid.

3.6

Payment of Prizes

A Claimant may claim a Prize worth less than $600 at any Retailer’s Licensed

Premise during the Retailer’s normal business hours and game operation hours

for Validation and payment. The Retailer must Validate Tickets and pay Prizes

worth $150.00 or less. The Retailer may Validate Tickets and pay Prizes worth

more than $150 and less than $600. A Prize shall be paid by the Retailer upon

Validation of the Ticket pursuant to Lottery Rules and Regulations and Instant

Scratch Game Guidelines, where applicable.

A Claimant may claim a Prize worth any amount by presenting a Ticket at a

Lottery Claims Center for Validation and payment.

$150.00 or less. The Retailer may Validate Tickets and pay Prizes worth

more than $150 and less than $600. A Prize shall be paid by the Retailer upon

Validation of the Ticket pursuant to Lottery Rules and Regulations and Instant

Scratch Game Guidelines, where applicable.

A Claimant may claim a Prize worth any amount by presenting a Ticket at a

Lottery Claims Center for Validation and payment.

The Director shall prescribe a digital claims process that allows Claimants to

claim Prizes via electronic means, including but not limited to, payment of Prizes

through EFT.

The Lottery’s claims process for any Prize worth $600.00 or more, whether

electronic or in-person, shall, at a minimum, incorporate the following:

Verification that the Claimant is not a Person disqualified by law or by

these Rules and Regulations to claim or otherwise accept a Prize from the

Lottery;

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Notification that the Claimant’s first name, last initial, city of residence, and

Prize amount are public information. This same notification is given to an

authorized representative or a Person signing on behalf of a Claimant who

has a disability that prevents the Claimant from signing on his/her own

behalf; and

Withholding of taxes as required by state and/or federal law; and,

Verification that the Claimant has no outstanding obligations pursuant to

C.R.S. 44-40-113(6) and 44-40-114. If the intercept system identifies an

outstanding obligation owed by the Claimant, the Prize or a portion thereof

shall be withheld from the Claimant to pay any outstanding obligations

pursuant to C.R.S. 44-40-113(6) and 44-40-114. No Prize or portion

thereof shall be paid to a Claimant until the obligation identified in the

intercept system is paid in full.

The Lottery is not liable for any loss that results from a misrepresentation by a

Prize Winner or Claimant, or the Person claiming the Prize on the Prize Winner

or Claimant’s behalf.

t to pay any outstanding obligations

pursuant to C.R.S. 44-40-113(6) and 44-40-114. No Prize or portion

thereof shall be paid to a Claimant until the obligation identified in the

intercept system is paid in full.

The Lottery is not liable for any loss that results from a misrepresentation by a

Prize Winner or Claimant, or the Person claiming the Prize on the Prize Winner

or Claimant’s behalf.

The claims and/or Validation process may contain any other provision that the

Director or the Director’s designee may deem necessary and proper to promote

the public interest and trust, and the security and efficient operation of the

Lottery.

Payment of a Prize will not occur unless all of the requirements of the claims

prescribed by the Lottery Rules and Regulations and the Director have been met.

There is no obligation or duty of the Division, its employees or Retailers, to make

any inquiry of the truthfulness of information that is presented as part of the

claims process before payment of the Prize to the Prize Winner.

If a Prize is paid in a lump sum, the Prize shall be paid within a reasonable time

of Validation.

Any Prize requiring annuitized or installment payments shall be paid as specified

in the specific game rules or game guidelines, or as otherwise provided in these

Rules and Regulations. In the event of the death of a Claimant during the

payment period and upon the petition of the estate of the Claimant (the Estate) to

the Lottery, and subject to federal, state or district applicable laws, the Lottery

may accelerate the payment of all of the remaining Lottery proceeds to the

Estate. If the Lottery makes such a determination, then securities and/or cash

held to fund the deceased Claimant’s annuitized Prize may be distributed to the

Estate. The identification of the securities to fund the annuitized Prize shall be at

the sole discretion of the Lottery.

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the payment of all of the remaining Lottery proceeds to the

Estate. If the Lottery makes such a determination, then securities and/or cash

held to fund the deceased Claimant’s annuitized Prize may be distributed to the

Estate. The identification of the securities to fund the annuitized Prize shall be at

the sole discretion of the Lottery.

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The Director may delay any payment of a Prize in order to review a change of

circumstances relative to the Prize awarded, the payee, the claim, or any other

matter that is required to promote the integrity and the security of the Lottery. All

delayed payments will immediately upon the Director’s confirmation that the

payee is entitled to such payment; any remaining payments shall be paid per the

specific Game Rule.

The Director’s decision with respect to the payment of all Prizes shall be final and

binding.

The Director reserves the right to request additional information from a Claimant,

including disclosure of the location or Person from where the Ticket was

Purchased or otherwise obtained.

Payment of any Prize shall be made to the Prize Winner of the Ticket. Any

liability of the State, its officers and employees, and the Commission shall

terminate upon payment of the Prize.

3.6.1 Use of Coupons and Promotional Tickets

All Coupons and Promotional Tickets are only intended for the public to promote

the Lottery. In the event the Lottery uses a promotional partner or Retailer to

distribute Coupons or Promotional Tickets, the promotional partner or Retailer

must ensure distribution only to the public and return any remaining Coupons or

Promotional Tickets to the Lottery.

At no time may Coupons or Promotional Tickets be sold, used to Purchase

goods or services, used to pay off Lottery debts or reimburse a Retailer for any

loss.

If Coupons or Promotional Tickets shall be redeemable for Lottery Tickets at

Retailers, but Retailers shall not Purchase Coupons or Promotional Tickets from

any Person.

urn any remaining Coupons or

Promotional Tickets to the Lottery.

At no time may Coupons or Promotional Tickets be sold, used to Purchase

goods or services, used to pay off Lottery debts or reimburse a Retailer for any

loss.

If Coupons or Promotional Tickets shall be redeemable for Lottery Tickets at

Retailers, but Retailers shall not Purchase Coupons or Promotional Tickets from

any Person.

At no time may a co-promoter or Vendor, who has received a cash payment from

the Lottery as part of a promotional agreement, use the cash payment to

Purchase Tickets for the promotion that the payment funded.

3.6.2 Use of Barcodes for Entry into Promotional Drawings

The Director may authorize the use of Barcodes to be printed on Jackpot Tickets

to promote the Lottery.

A Ticket may have a barcode that allows for entry into Promotional Drawings

through the Lottery Mobile Application.

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Second chance Drawings are a type of Promotional Drawing that are approved

by the Director. If the Purchase of an Instant Scratch Game is eligible for entry

into a second chance Drawing, it shall be noted in the Scratch Game Guidelines.

However, the second chance Drawing itself is a Promotional Drawing and not a

Lottery.

Promotional Drawings are offered at the sole discretion of the Director and

details for the Promotional Drawing, including but not limited to, eligibility,

determination of winners and fulfillment of Prizes are defined in the Promotional

Drawing Guidelines approved by the Director.

3.6.3 Redemption of Coupons

The Commission may from time to time deem it proper to authorize the use of Coupons

to promote Lottery Products. In the event such use is authorized by the Commission,

Retailers shall comply with all requirements and restrictions specified on the coupon

and shall redeem and exchange Coupons for Lottery Tickets only and not for cash

g Guidelines approved by the Director.

3.6.3 Redemption of Coupons

The Commission may from time to time deem it proper to authorize the use of Coupons

to promote Lottery Products. In the event such use is authorized by the Commission,

Retailers shall comply with all requirements and restrictions specified on the coupon

and shall redeem and exchange Coupons for Lottery Tickets only and not for cash.

3.7

Director’s Discretion

The Director has the sole discretion to determine if any Prize shall be paid pursuant to

the Lottery Rules and Regulations. If no Prize is paid, the Director, at their sole

discretion, may authorize a refund for the price of the Lottery Product or replace the

disputed Ticket or game with the same or similar Product with the same retail value.

This remedy shall be the sole and exclusive remedy available to the Person who

Purchased the Lottery Product.

RULE 4 - SUSPENSION, REVOCATION, OR NON-RENEWAL OF RETAILER

LICENSE

BASIS AND PURPOSE FOR RULE 4

The purpose of Rule 4 is to provide specific notice of the causes and procedures for the

denial, suspension, revocation, or non-renewal of a license to Sell Tickets. The statutory

basis for Rule 4 is found in C.R.S. 44-40-107 and 44-40-109.

4.1

Mandatory Revocation of License

A license to Sell Lottery Products shall be denied, revoked upon a finding by the

Director that the Retailer:

Has provided false or misleading information to the Lottery;

Has been convicted of any gambling-related offense;

Has endangered the security of the Lottery;

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.S. 44-40-107 and 44-40-109.

4.1

Mandatory Revocation of License

A license to Sell Lottery Products shall be denied, revoked upon a finding by the

Director that the Retailer:

Has provided false or misleading information to the Lottery;

Has been convicted of any gambling-related offense;

Has endangered the security of the Lottery;

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Has been a Person whose character is no longer consistent with the protection of

the public interest; or,

Has intentionally refused to pay a Prize in his possession to a Person entitled to

receive the Prize.

4.2

Discretionary Denial, Suspension, Revocation or Non-Renewal of License

A license to Sell Lottery Products may be denied, suspended, revoked or not renewed

upon a finding by the Director that the Retailer:

Has changed its business location without properly notifying the Lottery;

Has insufficient Sales volume;

Has failed to remit or has been delinquent remitting money owed to the Lottery;

Has endangered the efficient operation of the Lottery;

Has been convicted of a felony, including but not limited to, robbery, burglary,

theft, trespass, criminal mischief, forgery, computer crime, bribery, perjury,

offenses related to judicial or other proceedings, telecommunications crimes,

racketeering, accounting fraud, or the distribution, Sale, manufacturing,

dispensation or possession of drugs or drug paraphernalia. Other convictions,

whether felony or misdemeanor, may relate to a determination that the Licensee

is a Person whose character is no longer consistent with the protection of the

public interest and trust in the Lottery and may lead to the suspension or

revocation of a license;

Has any violation of Article 40, Title 44, C.R.S. or any Rule or Regulation

adopted pursuant thereto;

Has not reported a change in ownership to the Lottery;

emeanor, may relate to a determination that the Licensee

is a Person whose character is no longer consistent with the protection of the

public interest and trust in the Lottery and may lead to the suspension or

revocation of a license;

Has any violation of Article 40, Title 44, C.R.S. or any Rule or Regulation

adopted pursuant thereto;

Has not reported a change in ownership to the Lottery;

Has failed to comply with any rule established by the Commission, requirement in

the Retailer Agreement or any instruction issued by the Director; or,

Has tampered with or attempted to tamper with the Gaming System, Gaming

Terminal or any Product.

Fails to make payment of a Validated Prize or makes payment and the payment

is dishonored for any reason.

Fails to make payment to the lottery or makes payment to the Lottery and the

payment is dishonored for any reason.

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4.3

Procedures for Licensing Decisions

The procedures contained in C.R.S. 24-4-104 and 24-4-105 shall apply to the issuance,

renewal, denial, revocation, suspension, limitation and modification of licenses for the

Sale of Lottery Tickets. The Director may designate an administrative law judge to take

evidence and make findings and report them to the Director.

4.4

Felony Review Panel

When a felony conviction or a conviction involving fraud is an issue in the issuance,

suspension, revocation or renewal of a license, the Director shall cause the initial

decision, the Director’s determination, and any relevant investigative documents to be

delivered to the Felony Review Panel. The Director shall notify the applicant or Licensee

of the date on which the Director forwarded the final order and any other material to the

Felony Review Panel.

The Executive Director shall be the Chairman of the Felony Review Panel.

e Director shall cause the initial

decision, the Director’s determination, and any relevant investigative documents to be

delivered to the Felony Review Panel. The Director shall notify the applicant or Licensee

of the date on which the Director forwarded the final order and any other material to the

Felony Review Panel.

The Executive Director shall be the Chairman of the Felony Review Panel.

Each member of the Felony Review Panel shall notify the Executive Director in

writing of the panel member’s decision whether to accept or reject the Director’s

determination within thirty (30) days of the date on which the Director forwarded

the determination and any other materials to the Felony Review Panel. If the

panel member fails to notify the Executive Director of the Department of Revenue

of the panel member’s decision within thirty (30) days of the date on which the

Director forwarded the determination to the panel, the panel member shall be

deemed to have accepted the Director’s determination.

If two or more members of the Felony Review Panel accept the Director’s

determination, the determination shall become the order of the Felony Review

Panel. The Executive Director shall notify the Director and the Retailer or the

applicant of such acceptance in writing, and the order of the Felony Review

Panel shall be deemed final on the date of such written notice.

If two or more members of the Felony Review Panel reject the Director’s

determination, the Executive Director shall notify the Director and the Retailer or

the applicant of such rejection in writing and shall state the reasons for such

rejection. The Director shall modify his or her determination, conduct additional

proceedings, and/or dismiss the proceeding in accordance with the order of the

Felony Review Panel. The Executive Director shall notify the applicant or

Licensee and the Division of such modification, additional proceedings, or

dismissal in writing.

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for such

rejection. The Director shall modify his or her determination, conduct additional

proceedings, and/or dismiss the proceeding in accordance with the order of the

Felony Review Panel. The Executive Director shall notify the applicant or

Licensee and the Division of such modification, additional proceedings, or

dismissal in writing.

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RULE 5 - LOTTERY INSTANT SCRATCH GAMES

BASIS AND PURPOSE OF RULE 5

The purpose for Rule 5 is to provide details and requirements for the general

administration of all Instant Scratch Games. The statutory basis for Rule 5 is found in

C.R.S. 44-40-109(1) and (3), 44-40-113 and 44-40-114.

5.1

General Provisions

Instant Scratch Games shall be conducted and sold pursuant to the Lottery Rules and

Regulations, Instant Scratch Game Guidelines, terms and conditions published to

Players and any further instructions and directives issued by the Director and/or the

Commission.

5.2

Instant Scratch Game Guidelines

The Commission will adopt Instant Scratch Game Guidelines prior to the Division

launching an Instant Scratch Game.

The Instant Scratch Game Guidelines shall be posted on the Division’s website

and are binding on Players and Claimants for Instant Scratch Games.

The Instant Scratch Game Guidelines shall include, at a minimum, instructions

governing the following:

The method for determining Instant Scratch Game winners;

The establishment of claim periods;

The price to play the Instant Scratch Game;

The numbers and size of Prizes; and,

The method for selecting and Validating Prizes.

In the event of a conflict between the provisions in this Rule 5, the terms and

conditions or marketing published to Players, the instructions and directives

issued by the Director and/or the Commission and/or the Instant Scratch Game

Guidelines, the Scratch Game Guidelines shall control

ant Scratch Game;

The numbers and size of Prizes; and,

The method for selecting and Validating Prizes.

In the event of a conflict between the provisions in this Rule 5, the terms and

conditions or marketing published to Players, the instructions and directives

issued by the Director and/or the Commission and/or the Instant Scratch Game

Guidelines, the Scratch Game Guidelines shall control.

5.3

Damaged or Altered Scratch Tickets

If a Scratch Ticket is mutilated, unreadable, altered, reconstituted, torn, miscut or

tampered with in any way, credit will not be issued to the Scratch Ticket Holder, unless

the Director or designee is satisfied that the Scratch Ticket is genuine. Scratch Tickets

submitted to the Lottery for credit becomes the property of the Lottery and the Scratch

Ticket becomes invalid and ineligible for a Prize.

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5.4

Validation Requirements for Scratch Tickets

To be a valid and winning Scratch Ticket, all of the following conditions must be

met:

The Scratch Ticket must have a complete Barcode that can be scanned

and read by the Barcode Reader;

The Scratch Ticket must have been issued by an authorized Retailer or

the Lottery and Purchased in an authorized manner;

The Scratch Ticket must not have been stolen, acquired illegally, or

appear on any list of omitted Scratch Tickets at the Lottery;

The Scratch Ticket must meet all Validation requirements in the Instant

Scratch Game Guidelines;

The Validation Number on the Scratch Ticket must appear in the

Validation file;

The Scratch Ticket must have a Validation Number that indicates a Prize

has not previously been paid.

No portion of the Scratch Ticket may be blank and the Ticket may not be

mis-registered, defective, or printed/produced in error; and

The Scratch Ticket must pass all other confidential security checks of the

Lottery.

Other Instant Scratch Games shall be Validated through a means acceptable to

the Director.

ust have a Validation Number that indicates a Prize

has not previously been paid.

No portion of the Scratch Ticket may be blank and the Ticket may not be

mis-registered, defective, or printed/produced in error; and

The Scratch Ticket must pass all other confidential security checks of the

Lottery.

Other Instant Scratch Games shall be Validated through a means acceptable to

the Director.

In the event a defective Scratch Ticket is Purchased, the only responsibility or

liability of the Lottery or the Retailer shall be the replacement of the defective

Ticket with another Ticket of an equivalent Purchase price from any current

Instant Scratch Game.

5.5

Termination Date and Claims Period

Unless otherwise stated in the Game Guidelines, the Director will announce an

end-of-game date for each Scratch Ticket, after which date no further Tickets for

that game shall be issued or activated.

All Scratch Tickets must be claimed within one hundred and eighty (180)

days after the announced end-of-game date. The claim period may be

extended at the Director’s discretion in the event of Force Majeure.

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Any Person who fails to claim a Prize during the one hundred and eighty

(180) day claim period shall forfeit all rights to the Prize and the amount of

the Prize shall remain in the Prize Fund.

Prizes claimed by mail must be documented as received by the Lottery by

the one hundred and eightieth (180th) day after the announced end-of-

game date.

For all other Instant Scratch Games, the Instant Scratch Game Guidelines shall

determine the claims period and how the game shall be terminated.

5.6

Determination of Scratch Ticket Prize Winners

Prize Winners for Instant Scratch Tickets shall be determined as set forth in the

specific Instant Scratch Game Guidelines and, if applicable, Instant Scratch

Game Drawing Guideline.

of-

game date.

For all other Instant Scratch Games, the Instant Scratch Game Guidelines shall

determine the claims period and how the game shall be terminated.

5.6

Determination of Scratch Ticket Prize Winners

Prize Winners for Instant Scratch Tickets shall be determined as set forth in the

specific Instant Scratch Game Guidelines and, if applicable, Instant Scratch

Game Drawing Guideline.

The number of times a Person may win on a single Scratch Ticket shall be set

forth in the specific Instant Scratch Game Guidelines.

The determination of Prize Winners shall be subject to the general Scratch Ticket

Validation requirements set forth on the back of each Scratch Ticket and as set

forth in the Instant Scratch Game Guidelines and, if applicable, the specific

Instant Scratch Game Drawing Guidelines.

5.7

Lost or Stolen Scratch Tickets

If a Scratch Ticket has been reported as lost or stolen, the Director reserves the right to

withhold payment of a Prize pending an investigation. At the Director’s discretion,

Scratch Tickets that are determined to be stolen will not be paid.

5.8

Director’s Discretion

The Director has the sole discretion to determine if a Prize shall be paid pursuant to this

Rule 5. If no Prize is paid, the Director, at their sole discretion, may replace the disputed

Ticket with an un-played, equivalent Scratch Ticket of the same game or a ticket of

equivalent purchase price from any other current Scratch Ticket game. This remedy

shall be the sole and exclusive remedy of the bearer of the Ticket.

RULE 6 - ETHICAL OBLITATIONS OF COMMISSION

BASIS AND PURPOSE OF RULE 6

The purpose of Rule 6 is to provide specific guidelines in compliance with C.R.S. 44-40-

110(1)(f) regarding ethics. The statutory basis for Rule 6 is found in C.R.S. 44-40-108

and 44-40-109.

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his remedy

shall be the sole and exclusive remedy of the bearer of the Ticket.

RULE 6 - ETHICAL OBLITATIONS OF COMMISSION

BASIS AND PURPOSE OF RULE 6

The purpose of Rule 6 is to provide specific guidelines in compliance with C.R.S. 44-40-

110(1)(f) regarding ethics. The statutory basis for Rule 6 is found in C.R.S. 44-40-108

and 44-40-109.

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6.1

Purpose

Public confidence in the integrity of state government demands that public officials

demonstrate the highest ethical standards at all times. Those who serve the people of

the State of Colorado as public officials should do so with integrity and honesty, and

should discharge their duties in an independent and impartial manner. At the same time,

qualified individuals should be encouraged to serve in state government and have

reasonable opportunities with all citizens to develop private economic and social

interests. This Rule strives to accomplish these ends by providing standards by which

the conduct of all who serve on the Colorado Lottery Commission for the Colorado

Department of Revenue can be measured.

6.2

Code of Ethics

All appointees of the Commission:

Shall serve the public with respect, concern, courtesy and responsiveness;

Shall demonstrate the highest standards of personal integrity, truthfulness and

honesty and shall through Personal conduct inspire public confidence and trust in

government;

Shall not use public office to bestow any preferential benefit on anyone related to

the appointee by family, business or social relationship;

Shall not disclose or use or allow others to use confidential information acquired

by virtue of their service on the Commission;

Shall not accept any compensation, gift, payment of expenses, or any other thing

of value offered, except as permitted by state law;.

Shall not use state time, property, equipment or supplies for private gain;

ointee by family, business or social relationship;

Shall not disclose or use or allow others to use confidential information acquired

by virtue of their service on the Commission;

Shall not accept any compensation, gift, payment of expenses, or any other thing

of value offered, except as permitted by state law;.

Shall not use state time, property, equipment or supplies for private gain;

Shall not knowingly engage in any activity or business which creates a conflict of

interest or has an adverse effect on the confidence of the public in the integrity of

government;

Shall carry out all duties as a public servant by exposing corruption or impropriety

in government whenever discovered; and,

Shall comply at all times with the standards of conduct set forth in title 24, article

18 of the Colorado Revised Statutes.

6.3

Certification of Review and Compliance

All members of the Commission shall submit to the Executive Director’s Office

within 30 days of initial appointment to the Commission, a signed form verifying

that they have read and intend to abide by this Code of Ethics.

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All members of the Commission shall submit to the Executive Director’s Office

within 30 days of initial appointment, and on or before January 30th of each year,

a form disclosing any potential conflict of interest. Additionally, members of the

Commission shall amend their annual statement not more than 30 days after any

conflict of interest arises.

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ATIONS

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All members of the Commission shall submit to the Executive Director’s Office

within 30 days of initial appointment, and on or before January 30th of each year,

a form disclosing any potential conflict of interest. Additionally, members of the

Commission shall amend their annual statement not more than 30 days after any

conflict of interest arises.

RULE 9

[Repealed eff. 09/30/2008]

RULE 10 - IN-STATE JACKPOT GAMES

BASIS AND PURPOSE OF RULE 10

The purpose for Rule 10 is to provide general details and requirements for In-state

Jackpot Games related to the sale of Tickets, payment of Prizes, and the method for

selecting and Validating winning Tickets. The statutory basis for Rule 10 is found in

C.R.S. 44-40-101(5), 44-40-109(1)(a) and (2), 44-40-113, and 44-40-114.

10.1 General Provisions

All In-state Jackpot Games will be conducted pursuant to the following Rules and

Regulations and such further instructions and directives as the Director and

Commission may issue.

10.2 Sale of Tickets & Payment of Prizes for In-state Jackpot Games

The purchase price of an In-state Jackpot Ticket is set forth in the specific Game

Rules.

The Prize Amounts or total amount of Prize money allocated to the Prize

Categories for In-state Jackpot Games shall be set forth in the specific Game

Rules.

In the event the Prize Expense for an In-state Jackpot Game is less than the

Commission approved in the Aggregate Prize Fund for a specific game, the

Director may authorize the difference to be used to increase Prize Amounts or

pay Additional Lottery Prizes for that game.

An In-state Jackpot Ticket shall be the only acceptable evidence of the

combination of numbers selected for the purposes of claiming a Prize.

10.3 In-state Jackpot Drawings

kpot Game is less than the

Commission approved in the Aggregate Prize Fund for a specific game, the

Director may authorize the difference to be used to increase Prize Amounts or

pay Additional Lottery Prizes for that game.

An In-state Jackpot Ticket shall be the only acceptable evidence of the

combination of numbers selected for the purposes of claiming a Prize.

10.3 In-state Jackpot Drawings

The manner and frequency of Drawings for In-state Jackpot Games, including

location, date and time, shall be determined by and in accordance with the

specific Game Rules, except that the Drawing may be rescheduled at the

Director or designee’s discretion in the event of a Force Majeure.

The Director shall determine the Draw Break for each In-state Jackpot Game.

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The Lottery shall designate the type of equipment to be used and shall establish

Drawing procedures to randomly select the Winning Combination for each In-

state Jackpot Drawing.

All In-state Jackpot Drawings, inspections and tests shall be recorded on

videotape.

An In-state Jackpot Game Drawing shall not be invalidated on sole the basis that

the numbers drawn create excessive Prize liability for the Lottery, unless

otherwise specified in the Game Rules.

An independent auditor, as required in C.R.S. 44-40-109(2)(d), will observe and

certify each In-state Jackpot Drawing.

The auditor must submit a report in a timely manner that documents

compliance or non- compliance with the Drawing procedures. For each

instance of non-compliance with Drawing procedures, the report must

identify the discrepancy, the risk associated with the discrepancy and any

recommendations to better ensure the Drawing procedures are followed in

the future. The auditor’s report shall become a part of the Lottery’s

Drawing records and maintained in accordance with the Lottery’s records

retention policy

awing procedures. For each

instance of non-compliance with Drawing procedures, the report must

identify the discrepancy, the risk associated with the discrepancy and any

recommendations to better ensure the Drawing procedures are followed in

the future. The auditor’s report shall become a part of the Lottery’s

Drawing records and maintained in accordance with the Lottery’s records

retention policy. Reports that identify an instance of non-compliance with

the Drawing procedures must also be distributed to the appropriate Lottery

personnel, including the Lottery Director and the Director of Security.

All Drawing equipment used for an In-state Jackpot Drawing shall be

examined by the auditor at the In-state Drawing Site once within thirty (30)

minutes before a Drawing and once within thirty (30) minutes after the

Drawing.

Drawing results are not official until certified by the auditor.

10.4 Cancellation and Return of In-state Jackpot Tickets

Except as otherwise provided in the specific Game Rules, a Retailer may not

cancel In-state Jackpot Tickets.

If cancellation is permitted by the specific Game Rules, a Player may only return

an In-state Jackpot Ticket and receive a refund of the Purchase price upon

cancellation of the Ticket if the following criteria are met:

The Ticket was Purchased in-person from a Retailer or the Division;

The In-state Jackpot Ticket is legible and is returned to the same location from

where it was Purchased.

It is returned within one (1) hour of Purchase;

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t and receive a refund of the Purchase price upon

cancellation of the Ticket if the following criteria are met:

The Ticket was Purchased in-person from a Retailer or the Division;

The In-state Jackpot Ticket is legible and is returned to the same location from

where it was Purchased.

It is returned within one (1) hour of Purchase;

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The Gaming System is available for wagering; and,

The Gaming System has not converted to the next Drawing period.

10.5 Damaged or Altered In-state Jackpot Tickets

If an In-state Jackpot Ticket is mutilated, unreadable, altered, reconstituted, torn, miscut

or tampered with in any way, credit will not be issued to the Ticket Holder, unless the

Director or designee is satisfied that the Ticket is genuine. In-state Jackpot Tickets

submitted to the Lottery for credit become the property of the Lottery the Ticket

becomes invalid and ineligible for a Prize.

10.6 Validation Requirements for In-state Jackpot Tickets

To be a valid winning In-state Jackpot Ticket, all of the following conditions must

be met:

All printing on the Ticket shall be present in its entirety, be legible, and

correspond to the Gaming System Record;

The Ticket must be intact;

The Ticket must not be mutilated, altered, or tampered with in any

manner;

The Ticket must not be counterfeit or an exact duplicate of another

winning ticket;

The Ticket must have been issued by an authorized Jackpot

GameRetailer or the Division in an authorized manner;

The Ticket must not have been acquired illegally;

The Ticket must not have been canceled or previously paid; and

The Ticket must pass all other confidential security checks of the Lottery.

Any Ticket failing one of the Validation requirements listed in Rule 10.6(A) is

invalid and the Claimant is ineligible for a Prize, unless the Director authorizes

award of a Prize on the grounds that the Ticket can be Validated through another

method to confirm its authenticity.

een canceled or previously paid; and

The Ticket must pass all other confidential security checks of the Lottery.

Any Ticket failing one of the Validation requirements listed in Rule 10.6(A) is

invalid and the Claimant is ineligible for a Prize, unless the Director authorizes

award of a Prize on the grounds that the Ticket can be Validated through another

method to confirm its authenticity.

In the event a Jackpot Ticket is defective at the time of Purchase, the only

responsibility or liability of the Lottery or the Retailer shall be the replacement of

the defective Jackpot Ticket with another Jackpot Ticket of the same retail value

or refund of the Purchase price.

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10.7 Time to Claim an In-state Jackpot Ticket Prize

An In-state Jackpot Game Prize must be claimed no later than one hundred and eighty

(180) days after the Drawing for which the Ticket was Purchased. Any Person who fails

to claim a Prize during the one hundred and eighty (180) day claim period shall forfeit all

rights to the Prize and the amount of the Prize shall remain in the Lottery Fund. Prizes

claimed by mail must be documented as received by the Lottery by the one hundred

and eightieth (180th) day after the announced end-of-game date.

RULE 10.A “COLORADO LOTTO+” GAME RULES

BASIS AND PURPOSE OF RULE 10.A

The purpose of Rule 10.A is to provide details, instructions and requirements for the In-

state Jackpot Game “Colorado Lotto+, including the “Plus” option which is available as

an add-on at additional cost. The statutory basis for Rule 10.A is found in C.R.S. 44-40-

109 (1)(a) and (2), 44-40-113 and 44-40-114.

10.A.1 General Provisions

The In-state Jackpot Game to be known as “Colorado Lotto+” including the Plus option

shall be conducted pursuant to the following Rules and Regulations and under such

further instructions and directives as the and Commission may issue

e as

an add-on at additional cost. The statutory basis for Rule 10.A is found in C.R.S. 44-40-

109 (1)(a) and (2), 44-40-113 and 44-40-114.

10.A.1 General Provisions

The In-state Jackpot Game to be known as “Colorado Lotto+” including the Plus option

shall be conducted pursuant to the following Rules and Regulations and under such

further instructions and directives as the and Commission may issue. If a conflict arises

between another provision of the Lottery Rules and Regulations and this Rule 10.A,

Rule 10.A shall apply.

10.A.2 Definitions

In addition to the definitions provided in Rule 1.1, the following Definitions apply to this

Rule 10.A.:

“Game Board” means that area of the Play Slip where the grid contains forty (40)

squares, numbers one (1) through forty (40).

“Jackpot Prize” means a pari-mutuel Prize that is advertised to be paid with per-

winner annuities or as a lump sum cash payment, unless otherwise specified by

the Lottery.

“Number” means any Play integer from one (1) through forty (40) inclusive.

“Play” means the six (6) numbers selected on each Game Board and displayed

on the Ticket.

“Roll-over” means the amount from the direct Prize Category contribution from

previous Drawing(s) in the Jackpot Prize Category that is carried forward to the

Jackpot Prize Category for the next Drawing.

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10.A.3 Price of “Colorado Lotto+” Ticket

The price of each “Colorado Lotto+” Play shall be Two Dollars ($2.00).

10.A.4 Play for “Colorado Lotto+”

A “Colorado Lotto+” Player must select six (6) numbers per Play; six (6) numbers

out of forty (40). A winning Play is achieved only when the following combinations

of numbers selected match, in any order, three (3), four (4), five (5), or six (6) of

the winning Numbers drawn by the Lottery.

The Player can use Play Slips to make number selections. The Gaming Terminal

reads the Play Slip and issues a Ticket with corresponding Play(s)

six (6) numbers per Play; six (6) numbers

out of forty (40). A winning Play is achieved only when the following combinations

of numbers selected match, in any order, three (3), four (4), five (5), or six (6) of

the winning Numbers drawn by the Lottery.

The Player can use Play Slips to make number selections. The Gaming Terminal

reads the Play Slip and issues a Ticket with corresponding Play(s). If a Play Slip

is not available, the Retailer may enter the selected numbers manually via the

keyboard. If offered by the Lottery, a Player may leave all or a portion of his/her

Play selections to a random number generator operated by the terminal,

commonly referred to as a Quick Pick or partial Quick Pick.

Each “Colorado Lotto+” Ticket has a randomly selected multiplier value of 2X,

3X, 4X, or 5X that applies to all non-Jackpot Prizes.

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10.A.5 Prizes For “Colorado Lotto+”

The Prize shall be determined on a pari-mutuel basis. The Prize money allocated

to the Jackpot Prize Category shall be divided equally by the number of Plays

matching all six (6) of the winning Numbers. All other Prizes awarded shall be

paid as set Prizes with the following odds of winning a Prize.

WINNING

COMBINATIONS

BASE

PRIZE

CATEGORY

2X PRIZE

CATEGORY

3X PRIZE

CATEGORY

4X PRIZE

CATEGORY

5X PRIZE

CATEGORY

ODDS

WINNING

All six (6)

numbers in a

Play

Jackpot

N/A

1 in

3,838,380

Any five (5)

numbers in a

Play

$250

$500

$750

$1,000

$1,250

1 in

18,816

Any four (4)

numbers in a

Play

$25

$50

$75

$100

$125

1 in 456

Any three (3)

numbers in a

Play

$12

$15

1 in 32

MULTIPLIER

ODDS

N/A

1 in 2

3 in 10

1 in 10

N/A

PRIZE

CATEGORY

3X PRIZE

CATEGORY

4X PRIZE

CATEGORY

5X PRIZE

CATEGORY

ODDS

WINNING

All six (6)

numbers in a

Play

Jackpot

N/A

1 in

3,838,380

Any five (5)

numbers in a

Play

$250

$500

$750

$1,000

$1,250

1 in

18,816

Any four (4)

numbers in a

Play

$25

$50

$75

$100

$125

1 in 456

Any three (3)

numbers in a

Play

$12

$15

1 in 32

MULTIPLIER

ODDS

N/A

1 in 2

3 in 10

1 in 10

N/A

OVERALL ODDS

1 in 30

The projected aggregate Prizes as a percentage of sales for “Colorado Lotto” is

fifty-five (55.5%). This projection does not include unclaimed Prizes.

Prize Categories

Jackpot Prize – The Jackpot will start at an annuitized value of One Million

Dollars ($1,000,000) for the first Drawing after it is won. The total Prize

Category contribution for a Drawing may include the following:

A direct Prize Category contribution of twenty-five percent (25%) of

Net Sales for the Drawing, which may be adjusted as authorized by

the Director.

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A base contribution of $500,000. The “Colorado Lotto” base

contribution may be adjusted as authorized by the Director if

increased sales warrant a higher starting jackpot.

A Roll-over contribution.

An indirect Prize Category contribution authorized by the Director.

Second Prize – The second Prize Category may include the following:

The set base Prize Amount ($250) times the number of Shares for

the Prize Category.

An indirect Prize Category contribution as authorized by the

Director.

The Prize Amount shall be calculated by multiplying the base Prize

Amount ($250) times the multiplier value displayed on the winning

Ticket.

Third Prize – The third Prize Category may include the following:

The set base Prize Amount ($25) times the number of Shares for

the Prize Category.

An indirect Prize Category contribution as authorized by the

Director.

thorized by the

Director.

The Prize Amount shall be calculated by multiplying the base Prize

Amount ($250) times the multiplier value displayed on the winning

Ticket.

Third Prize – The third Prize Category may include the following:

The set base Prize Amount ($25) times the number of Shares for

the Prize Category.

An indirect Prize Category contribution as authorized by the

Director.

A Prize Amount shall be calculated by multiplying the base Prize

Amount ($25) times the multiplier value displayed on the winning

Ticket.

Fourth Prize – The fourth Prize Category may include the following:

The set base Prize Amount ($3) times the number of Shares for the

Prize Category.

An indirect Prize Category contribution as authorized by the

Director.c.

A Prize Amount shall be calculated by multiplying the

base Prize Amount ($3) times the multiplier value displayed on the

winning Ticket

10.A.6 Payment of Prizes for Colorado Lotto+

The holder of a winning Ticket for the Colorado Lotto+ may win only one Prize

per Play in connection with the winning Numbers drawn and shall be entitled only

to the highest Prize Category won by those Numbers.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

Prize Winners will be given the option of receiving their Share of the Jackpot

Prize over a period of twenty-four (24) years through a fixed progressive twenty-

four (24) year annuity with the initial payment made by the Lottery on the date of

claim and twenty-four (24) additional payments made yearly on the anniversary

of the first payment, or a one-time lump sum payment equal to fifty percent (50%)

of their Share of the annuitized Jackpot Prize Amount.

The annuitized future value of the Jackpot Prize Category shall be twice the cash

value of the total Jackpot Prize Category contribution as defined in section

10.A.5.C.1.

To determine the annuitized future value of each Prize Amount, the annuitized

future value of the Prize Category is divided by the Shares

t equal to fifty percent (50%)

of their Share of the annuitized Jackpot Prize Amount.

The annuitized future value of the Jackpot Prize Category shall be twice the cash

value of the total Jackpot Prize Category contribution as defined in section

10.A.5.C.1.

To determine the annuitized future value of each Prize Amount, the annuitized

future value of the Prize Category is divided by the Shares. A Share is the

matching combination, in one Play, of all six (6) numbers drawn (in any

sequence).

If the annuitized future value of each Prize Amount results in an initial payment of

Ten Thousand Dollars ($10,000) or more and the annuity option has been

selected, the Prize Amount shall be a fixed progressive twenty-five (25) year

annuity. The initial annuity payment shall be paid by the Lottery at the time of

claim and be 2.5% of the future value of the annuity. Each subsequent annual

payment; two (2) through twenty-five (25) shall increase by 3.7% of the previous

annual payment.

Players who select the annuitized payment shall have the ability to change their

Prize payment selection from annuitized payment to lump sum payment for up to

ninety days (90) from the original date of claim. This period may be extended at

the discretion of the Director or designee. If a Player chooses the lump sum

payment after the initial annuitized payment is made to the Player by the Lottery,

the Player will receive the remaining amount of the original cash value Prize, less

taxes, in a single second payment.

If the annuitized future value of any Prize Amount results in an initial payment of

less than Ten Thousand Dollars ($10,000) to a Claimant, then the annuity option

will not be allowed and the Prize Amount will be paid in a one-time lump sum

payment equal to fifty percent (50%) of the Claimant’s Share of the annuitized

Jackpot Prize Amount.

10.A.7 “Colorado Lotto+” Drawings

Drawings for the Colorado Lotto+ shall be held each week on Monday,

Wednesday and Saturday evenings, unless the schedule is changed by the

Lottery.

a Claimant, then the annuity option

will not be allowed and the Prize Amount will be paid in a one-time lump sum

payment equal to fifty percent (50%) of the Claimant’s Share of the annuitized

Jackpot Prize Amount.

10.A.7 “Colorado Lotto+” Drawings

Drawings for the Colorado Lotto+ shall be held each week on Monday,

Wednesday and Saturday evenings, unless the schedule is changed by the

Lottery.

The Drawings will be conducted by Lottery officials and comply with all Colorado

Lottery Statutes, Rules and Regulations, and Drawing procedures. Each Drawing

shall determine, at random, six (6) winning Numbers. The winning Numbers shall

be used in determining all “Colorado Lotto+” Prize Winners for that Drawing.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

10.A.8 Price and Selection of “Plus” Add-on Option

The In-state Jackpot Game to be known as “Colorado Lotto+” shall have a game

option known as “Plus” which allows Players to pay an additional one dollar

($1.00) for a chance to win in a second Drawing using the same six (6) Numbers

as the “Colorado Lotto+” Play.

A Player of a “Colorado Lotto+” Ticket must choose, at the time of Purchase,

whether or not they want the “Plus” option. If the Player chooses the “Plus” option

for the Ticket, the additional cost for each “Colorado Lotto+” Play will be one

dollar ($1.00) in addition to the base price of the “Colorado Lotto+” Ticket.

The “Plus” option applies to all boards on a single Ticket and cannot be

Purchased on a board-by-board basis. A “Colorado Lotto+” Ticket with the “Plus”

option shall show, at a minimum, the Player’s selection of Numbers, the number

of Plays, the Drawing date, the multiplier number, and Validation Numbers.

A Player using a Play Slip can select the option of “Plus” to be eligible in the

“Plus” Drawing. If a Play Slip is not available, the Retailer may select the “Plus”

option via the keyboard at the time the “Colorado Lotto+” Ticket is generated.

tion shall show, at a minimum, the Player’s selection of Numbers, the number

of Plays, the Drawing date, the multiplier number, and Validation Numbers.

A Player using a Play Slip can select the option of “Plus” to be eligible in the

“Plus” Drawing. If a Play Slip is not available, the Retailer may select the “Plus”

option via the keyboard at the time the “Colorado Lotto+” Ticket is generated.

A Player may Purchase up to ten (10) “Colorado Lotto+” Plays with ten (10)

“Plus” Plays as an add-on to a single Colorado Lotto+ Ticket.

10.A.9 Play for “Plus” Add-on Option

The six (6) Numbers out of forty (40) Numbers that were selected for the

“Colorado Lotto+” Play will be eligible to win in a “Plus” Drawing. A winning “Plus”

Play is achieved only when the following combinations of Numbers selected

match, in any order, three (3), four (4), five (5), or six (6) of the winning Numbers

drawn by the Lottery.

The randomly selected multiplier value of 2X, 3X, 4X, or 5X that applies to the

“Colorado Lotto+” Play non-jackpot Prizes will also apply to all “Plus” non-jackpot

Prizes.

A Player may Purchase up to ten (10) “Colorado Lotto+” Plays with ten (10)

“Plus” Plays as an add-on to a single Colorado Lotto+ Ticket.

10.A.10

“Plus” Add-on Option Prizes and Odds

In addition to any Prize won in the first “Colorado Lotto+” Drawing, the holder of a

winning “Colorado Lotto+” with “Plus” Ticket may win only one (1) “Plus” Prize

per Play in connection with the winning Numbers drawn in the second “Plus”

Drawing and shall be entitled only to the highest Prize Category won by those

Numbers.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

All Prizes awarded, except as defined in 10.A.12, shall be paid as set Prizes with

the foregoing odds of winning a Prize.

th “Plus” Ticket may win only one (1) “Plus” Prize

per Play in connection with the winning Numbers drawn in the second “Plus”

Drawing and shall be entitled only to the highest Prize Category won by those

Numbers.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

All Prizes awarded, except as defined in 10.A.12, shall be paid as set Prizes with

the foregoing odds of winning a Prize.

WINNING

COMBINATIONS

BASE

PRIZE

CATEGORY

2X PRIZE

CATEGORY

3X PRIZE

CATEGORY

4X PRIZE

CATEGORY

5X PRIZE

CATEGORY

ODDS

WINNING

All six (6)

Numbers in a

Play

$250,000

N/A

1 in

3,838,380

Any five (5)

Numbers in a

Play

$300

$600

$900

$1,200

$1,500

1 in

18,816

Any four (4)

Numbers in a

Play

$30

$60

$90

$120

$150

1 in 456

Any three (3)

Numbers in a

Play

$12

$16

$20

1 in 32

MULTIPLIER

ODDS

N/A

1 in 2

3 in 10

1 in 10

N/A

OVERALL ODDS

1 in 30

10.A.11

“Plus” Drawings

The “Plus” Drawing shall be held each week on Monday, Wednesday and

Saturday evenings following the “Colorado Lotto+ Drawing,” unless the schedule

is changed by the Lottery.

The Drawings will be conducted by Lottery officials and comply with all Colorado

Lottery Statutes, Rules and Regulations, and Drawing procedures.

Each Drawing shall determine, at random, six (6) winning Numbers. The winning

Numbers shall be used in determining all “Plus” Winners for that Drawing.

Any Numbers drawn are not declared winning Numbers until the Drawing is

certified pursuant to Rule 10.4.F. If a Drawing is not certified, another Drawing

will be conducted to determine Prize Winners.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

shall determine, at random, six (6) winning Numbers. The winning

Numbers shall be used in determining all “Plus” Winners for that Drawing.

Any Numbers drawn are not declared winning Numbers until the Drawing is

certified pursuant to Rule 10.4.F. If a Drawing is not certified, another Drawing

will be conducted to determine Prize Winners.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

10.A.12

Payment of Prizes for the “Plus” Drawings

The Jackpot Prize shall be a set Prize for one (1) to eight (8) Prize Winners in a

single Drawing.

Nine (9) or more Jackpot Prize Winners in a single Drawing will equally divide

Two Million Dollars ($2,000,000) by the number of Plays matching all six (6) of

the winning Numbers.

All Prizes are paid in a single cash payment equal to the value of the Prize.

10.A.13

Sale of Colorado Lotto+ Tickets with “Plus” Option

“Colorado Lotto+” Tickets, with or without the “Plus” option, may only be

Purchased from a Retailer authorized to Sell In-state Jackpot Tickets or directly

from the Division.

“Colorado Lotto+” Tickets, with or without the “Plus” option, shall show, at a

minimum, the Player’s selection of numbers, the number of Plays, the Drawing

date, and Validation Numbers.

“Colorado Lotto+” Plays Purchased at a Retailer or directly from the Division may

be entered manually using the Gaming Terminal keypad or by means of a Play

Slip provided by the Lottery. To select the “Plus” Play can be selected on a Play

Slip option of “Plus” to be eligible in the “Plus” Drawing. If a Play Slip is not

available, the Retailer may select the “Plus” option via the keyboard at the time

the “Colorado Lotto+” Ticket is generated.

10.A.14

rectly from the Division may

be entered manually using the Gaming Terminal keypad or by means of a Play

Slip provided by the Lottery. To select the “Plus” Play can be selected on a Play

Slip option of “Plus” to be eligible in the “Plus” Drawing. If a Play Slip is not

available, the Retailer may select the “Plus” option via the keyboard at the time

the “Colorado Lotto+” Ticket is generated.

10.A.14

Advance Play

Advance Play provides the opportunity to Purchase “Colorado Lotto+” Tickets, with or

without the Plus option, for more than one (1) consecutive Drawing. Advance Play

Tickets shall be available for Purchase in variable increments. The Advance Play

feature shall be available at the discretion of the Director.

RULE 10.B “PICK 3” GAME RULES

BASIS AND PURPOSE FOR RULE 10.B

The purpose of Rule 10.B is to provide specific game details, instructions and

requirements for the In-state Jackpot Game “Pick 3” such as type of play, Prizes,

method of selecting winning numbers, Drawings, and the allocation of revenues. The

statutory basis for Rule 10.B is found in C.R.S. 44-40-109 (1) (a) and (2), 44-40-113 and

44-40-114.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

10.B.1 General Provisions

A Colorado Lottery Jackpot game to be known as “Pick 3” is authorized to be conducted

by the Director under the following Rules and Regulations and under such further

instructions and directives as the Director may issue in furtherance thereof. If a conflict

arises between another provision of the Lottery’s Rules and Regulations, this Rule 10.B,

Rule 10.B shall apply.

10.B.2 Definitions

In addition to the definitions provided in Paragraph 1.1 of Rule 1 and Rule 10:

“Board” means a field of three (3) matrixes of ten (10) numbers found on the Play

Slip.

“Matrix” means the grid of numbers comprised of ten (10) numbers (0 - 9) from

which Pick 3 game numbers are selected.

rovision of the Lottery’s Rules and Regulations, this Rule 10.B,

Rule 10.B shall apply.

10.B.2 Definitions

In addition to the definitions provided in Paragraph 1.1 of Rule 1 and Rule 10:

“Board” means a field of three (3) matrixes of ten (10) numbers found on the Play

Slip.

“Matrix” means the grid of numbers comprised of ten (10) numbers (0 - 9) from

which Pick 3 game numbers are selected.

“Maximum Liability” means a combination of numbers will be considered sold out

when the liability for the combination in exact play style reaches one thousand

(1,000) combinations sold.

“Number” means any play integer from 0 through 9 inclusive.

A “Play” shall consist of three (3) numbers selected by the player or Quick Pick.

“Play Slip” means a mark-sense game card used by players of Pick 3 to select

Plays. There shall be five (5) game boards on each Play Slip identified as A, B,

C, D and E. A Play Slip has no pecuniary value and shall not constitute evidence

of ticket purchase or of numbers selected.

“Prize Category Contribution” means and refers to contributions for each drawing

to the prize categories from the prize pool.

“Quick Pick” means a computer-generated selection of one (1), two (2), or three

(3) numbers.

“Ticket” contains one (1) to five (5) play(s).

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

10.B.3 Price of Pick 3 Ticket

The price of each Pick 3 play shall be fifty cents ($0.50). Tickets may be Purchased in

fifty cent ($0.50) increments and beginning April 27, 2014, may be Purchased in any of

the following combinations:

Exact Order 1 Play

Base price $0.50

Optional prices $1.00, $2.00, $5.00

Any Order (6-way) 1

Play

Base price $0.50

Optional prices $1.00, $2.00, $5.00

Any Order (3-way) 1

Play

Base price $0.50

Optional prices $1.00, $2.00, $5.00

Exact/Any Order 2

Plays

Base Price $1.00

Optional prices $2.00, $5.00

1. Exact Order (6-

way)

2. Any Order (6-way)

Exact/Any Order 2

Plays

Base Price $1.00

Optional prices $2.00, $5.00

1. Exact Order (3-

way)

s $1.00, $2.00, $5.00

Any Order (6-way) 1

Play

Base price $0.50

Optional prices $1.00, $2.00, $5.00

Any Order (3-way) 1

Play

Base price $0.50

Optional prices $1.00, $2.00, $5.00

Exact/Any Order 2

Plays

Base Price $1.00

Optional prices $2.00, $5.00

1. Exact Order (6-

way)

2. Any Order (6-way)

Exact/Any Order 2

Plays

Base Price $1.00

Optional prices $2.00, $5.00

1. Exact Order (3-

way)

2. Any Order (3-way)

Front Pair 1 Play

Base price $0.50

Optional prices $1.00, $2.00, $5.00

Back Pair 1 Play

Base price $0.50

Optional prices $1.00, $2.00, $5.00

10.B.4 Play for Pick 3

Pick 3 play shall consist of three (3) numbers.

Method of play:

The Player may select three (3) numbers from a field of numbers, 0 – 9

inclusive. The selected numbers may be three (3) separate individual

numbers or an individual number may be repeated two (2) or three (3)

times in a single play. Examples of single plays are:

Individual numbers selected - (1, 3, 5)

Two numbers repeated – (1,1,5) (1,5,1) (5,1,1)

Three numbers repeated (1,1,1)

The Player will select a bet type:

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

Exact Order - Equals one (1) play. Player selects either three (3)

unique numbers, one (1) unique number and two (2) numbers

repeated, or three (3) numbers repeated from the field of zero

through nine (0-9), inclusive.

Any Order (6-way) – Equals one (1) play. Player selects three (3)

unique numbers from the field of zero through nine (0-9), inclusive.

Any Order (3-way) – Equals one (1) play. Player selects one (1)

unique number and two (2) numbers repeated from the field of zero

through nine (0-9), inclusive.

Exact Order/Any Order (6-way) - Equals two (2) plays. Player

selects three (3) unique numbers from the field of zero through nine

(0-9), inclusive.

Exact Order/Any Order (3-way) - Equals two (2) plays. Player

selects one (1) unique number and two (2) repeated numbers from

the field of zero through nine (0-9), inclusive.

Front Pair - Equals one (1) play

zero

through nine (0-9), inclusive.

Exact Order/Any Order (6-way) - Equals two (2) plays. Player

selects three (3) unique numbers from the field of zero through nine

(0-9), inclusive.

Exact Order/Any Order (3-way) - Equals two (2) plays. Player

selects one (1) unique number and two (2) repeated numbers from

the field of zero through nine (0-9), inclusive.

Front Pair - Equals one (1) play. Player selects either three (3)

unique numbers, one (1) unique number and two (2) repeated

numbers, or three (3) repeated numbers from the field of zero

through nine (0-9), inclusive.

Back Pair - Equals one (1) play. Player selects either three (3)

unique numbers, one (1) unique number and two (2) repeated

numbers, or three (3) repeated numbers from the field of zero

through nine (0-9), inclusive.

The Player may use Play Slips to make number selections. The Game

Terminal will read the Play Slip and issue Ticket(s) with corresponding

Plays. If a Play Slip is not available, the Retailer or Lottery may enter the

selected numbers manually via the keyboard on the Gaming Terminal. A

Player may leave all or a portion of his/her play selections to Quick Pick.

Methods of winning

Exact Order – The Player-Selected three (3) numbers match the Lottery

numbers drawn in the exact same order

Any Order – The Player-Selected three (3) numbers match the Lottery

numbers drawn in any order

Exact Order/Any Order – The Player-Selected three (3) numbers match

the Lottery numbers drawn in exact order or any order

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

Front Pair - The first two (2) Player-Selected numbers match the first two

(2) Lottery numbers drawn in exact order

Back Pair - The last two (2) Player-Selected numbers match the last two

drawn in any order

Exact Order/Any Order – The Player-Selected three (3) numbers match

the Lottery numbers drawn in exact order or any order

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

Front Pair - The first two (2) Player-Selected numbers match the first two

(2) Lottery numbers drawn in exact order

Back Pair - The last two (2) Player-Selected numbers match the last two

(2) Lottery numbers drawn in exact order

10.B.5 Prizes For Pick 3

Pick 3 Prize Amounts, for each Drawing, are paid to those Players who select a

matching combination of numbers from the three (3) numbers selected by the

Lottery in a random Drawing. The Prize Amounts for each Prize Category and

odds of winning are as follows:

TYPE

Odds

You

Play

Winning

Combinations

$0.50

$1.00

$2.00

$5.00

Exact

Order

1:1000

567

$250

$500

$1,000

$2,500

Any

Order (6-

way) 3

unique

numbers

1:167

567

567 576 657

675 756 765

$40

$80

$160

$400

Any

Order (3-

way) 2 of

the same

number

1:333

566

566 656 665

$80

$160

$320

$800

Exact

Order/Any

Order (6-

way exact

order)

1:1000

567

N/A

$250

$500

$1250

Exact

Order/Any

Order (6-

way any

order)

1:167

567

567 576 657

675 756 765

N/A

$40

$80

$200

Exact

Order/Any

Order (3-

way exact

order)

1:1000

566

N/A

$250

$500

$1250

Exact

1:333

566

566 656 665

N/A

$80

$160

$400

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

TYPE

Odds

You

Play

Winning

Combinations

$0.50

$1.00

$2.00

$5.00

Order/Any

Order (3-

way any

order)

Front Pair

1:100

56x

560 561 562

563 564 565

566 567 568

569

$30

$60

$120

$300

Back Pair

1:100

X65

065 165 265

365 465 565

665 765 865

965

$30

$60

$120

$300

1000

566

N/A

$250

$500

$1250

Exact

1:333

566

566 656 665

N/A

$80

$160

$400

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

TYPE

Odds

You

Play

Winning

Combinations

$0.50

$1.00

$2.00

$5.00

Order/Any

Order (3-

way any

order)

Front Pair

1:100

56x

560 561 562

563 564 565

566 567 568

569

$30

$60

$120

$300

Back Pair

1:100

X65

065 165 265

365 465 565

665 765 865

965

$30

$60

$120

$300

The maximum total liability for exact play style match is reached when a single

combination is Purchased one thousand (1,000) times. No additional exact

combinations may be sold once the one thousand (1,000) limit is reached ( e.

1,2,3 is sold 1,000 times, no additional bets of 1,2,3 are allowed in the Exact

Order or Exact/Any Order betting options).

All Prizes levels are fixed as indicated in 10.B.5.A.

The Prize Fund for Pick 3 is fifty and twenty-nine one hundredths percent

(50.29%).

10.B.6 Payment of Prizes

The Ticket Holder shall be entitled to the highest Prize Amount based on the play

selection and bet amount as indicated in section 10.B.5 A.

10.B.7 Ticket Purchases

Pick 3 Tickets may only be Purchased from a Retailer or directly from the Lottery.

Pick 3 Tickets shall show, at a minimum, the numbers selected, the bet type, the

bet amount, Drawing date, Drawing time (mid/eve/both), Validation and reference

numbers.

Returns shall not be accepted and Tickets shall not be canceled.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

cket Purchases

Pick 3 Tickets may only be Purchased from a Retailer or directly from the Lottery.

Pick 3 Tickets shall show, at a minimum, the numbers selected, the bet type, the

bet amount, Drawing date, Drawing time (mid/eve/both), Validation and reference

numbers.

Returns shall not be accepted and Tickets shall not be canceled.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

10.B.8 Drawings

Pick 3 Drawings shall be held twice daily unless the schedule is changed by the

Lottery.

Each Drawing shall determine, at random, three (3) winning numbers. The

winning numbers shall be used in determining all Pick 3 winners for that Drawing.

10.B.9 Advance Play

Advance Play provides the opportunity to Purchase Pick 3 Tickets for more than one

consecutive Drawing. Advance Play Tickets shall be available for Purchase in variable

increments. The Advance Play feature shall be available at the discretion of the Lottery

Director.

RULE 10.D CASH 5 GAME RULES

BASIS AND PURPOSE OF RULE 10.D

The purpose of Rule 10.D is to provide specific game details, instructions, and

requirements for the Colorado Lottery Jackpot Game “CASH 5” and the “EZ Match”

add-on, such as type of play, Prizes, method of selecting winning numbers, Drawings,

and the allocation of revenues. The statutory basis for Rule 10.D is found in C.R.S. 44-

40-109 (1) (a) and (2), 44-40-113 and 44-40-114.

10.D.1 General Provisions

A Colorado Lottery Jackpot Game to be known as “CASH 5” with an “EZ MATCHTM”

add-on option is authorized to be conducted by the Director under the following Rules

and Regulations and under such further instructions and directives as the Director may

issue in furtherance thereof. If a conflict arises between another provision of the

Lottery’s Rules and Regulations and this Rule 10.D, Rule 10.D shall apply.

10.D.2 Definitions

In addition to the definitions provided in Rule 1.1 and Rule 10, the following definitions

apply to this Rule 10.D.2:

“Board” means a field of the 32 numbers found on the Play Slip.

and directives as the Director may

issue in furtherance thereof. If a conflict arises between another provision of the

Lottery’s Rules and Regulations and this Rule 10.D, Rule 10.D shall apply.

10.D.2 Definitions

In addition to the definitions provided in Rule 1.1 and Rule 10, the following definitions

apply to this Rule 10.D.2:

“Board” means a field of the 32 numbers found on the Play Slip.

“Number” means any play integer from 1 through 32 inclusive.

“Play” means the 5 numbers selected on each Board and displayed on the

Ticket.

10.D.3 Price of CASH 5 Tickets

The price of each CASH 5 play shall be $1.00 but may be adjusted at the Director, or

designee’s, discretion.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

10.D.4 Play For CASH 5

Type of play:

A CASH 5 Player must select five numbers in each play. A winning play is achieved

only when 2, 3, 4, or 5 of the numbers selected by the Player match, in any order, the

five winning numbers drawn by the Lottery. The Player can use Play Slips to make

number selections. The Gaming Terminal reads the Play Slip and issues a Ticket with

corresponding Play(s). If a Play Slip is not available, the Retailer may enter the selected

numbers manually via the keyboard. If offered by the Lottery, a Player may leave all or a

portion of his/her Play selections to Quick Pick.

Method of play:

Manual - The Jackpot Game retailer may enter the player’s selected

numbers via the keyboard on the Jackpot Game terminal.

Play Slip - The player may use an original Play Slip provided by the

Lottery to make number selections. The Jackpot Game terminal will read

the Play slip and issue a ticket with corresponding plays.

Facsimiles of Play Slips, copies of Play Slips, or other materials

that have not been printed or approved by the Lottery shall not be

used to enter a play.

ii.

No device shall be connected to a Jackpot Game terminal to enter

plays, except as may be approved by the Lottery.

10.D.5 CASH 5 Prizes

ions. The Jackpot Game terminal will read

the Play slip and issue a ticket with corresponding plays.

Facsimiles of Play Slips, copies of Play Slips, or other materials

that have not been printed or approved by the Lottery shall not be

used to enter a play.

ii.

No device shall be connected to a Jackpot Game terminal to enter

plays, except as may be approved by the Lottery.

10.D.5 CASH 5 Prizes

CASH 5 Prize Amounts, for each Drawing, are paid to those Players who select a

matching combination of numbers from the five (5) numbers selected by the

Lottery in a random Drawing. The Prize Amounts for each Prize Category and

odds of winning are as follows:

MATCHING COMBINATIONS

PRIZE

CATEGORY

ODDS OF

WINNING (ONE

PLAY)

All five matching numbers in one play

$20,000.00

1:201,375

Any four but not five matching numbers in

one play

$200,00

1:1,491

Any three but no four or five matching

numbers in one play

$10,00

1:57

Any two but not three, four or five matching

numbers in one play

$1.00

1:6

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

In the event more than ten (10) Tickets win the top Prize in any single Drawing

(correctly match five numbers in any one play), all top Prize winning Tickets will

receive an equal share of Two Hundred Thousand Dollars ($200,000.00).

The projected Aggregate Prize Fund for CASH 5 is Fifty-five and Twenty-nine

One Hundredths Percent (55.29%).

Additional Lottery Prizes may be awarded as authorized by the Director from the

Indirect Prize Category Contribution.

The holder of a winning Ticket may win only one Prize per Play in connection

with the winning numbers drawn and shall be entitled only to the highest Prize

Category won by those numbers.

10.D.6 CASH 5 Drawings

CASH 5 Drawings shall be held once daily unless otherwise scheduled by the

Director.

Each Drawing shall determine, at random, five winning numbers in accordance

with Drawing Guidelines. The winning numbers shall be used in determining all

CASH 5 winners for that Drawing

winning numbers drawn and shall be entitled only to the highest Prize

Category won by those numbers.

10.D.6 CASH 5 Drawings

CASH 5 Drawings shall be held once daily unless otherwise scheduled by the

Director.

Each Drawing shall determine, at random, five winning numbers in accordance

with Drawing Guidelines. The winning numbers shall be used in determining all

CASH 5 winners for that Drawing.

10.D.7 Price and Selection of “EZ MATCHTM” Add-on

CASH 5 has a game option known as “EZ MATCHTM which allows Players the

option to pay an additional one dollar ($1) for a chance to win an instant Prize.

This game option is authorized to be conducted at the discretion of the Director.

If a conflict arises between Rule 10.D and this Rule 10.E, Rule 10.E shall apply.

The price of each “EZ MATCHTM”“ play selected shall be $1.00.

A Player may Purchase up to ten (10) “CASH 5” plays with ten (10) “EZ

MATCHTM” plays for a single draw as follows:

Number

“CASH

5” plays

Number of

“CASH 5”

boards

Cost of

“CASH

5”

boards

Number of

“EZ

MATCHTM”

boards

Cost of

“EZ

MATCHTM”

boards

Total cost “CASH

5” boards with “EZ

MATCHTM”

One Board

$1.00

One Board

$1.00

$2.00

Two Boards $2.00

Two Boards

$2.00

$4.00

Three

Boards

$3.00

Three Boards

$3.00

$6.00

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

Number

“CASH

5” plays

Number of

“CASH 5”

boards

Cost of

“CASH

5”

boards

Number of

“EZ

MATCHTM”

boards

Cost of

“EZ

MATCHTM”

boards

Total cost “CASH

5” boards with “EZ

MATCHTM”

Four

Boards

$4.00

Four Boards

$4.00

$8.00

Five Boards $5.00

Five Boards

$5.00

$10.00

Six Boards

$6.00

Six Boards

$6.00

$12.00

Seven

Boards

$7.00

Seven

Boards

$7.00

$14.00

Eight

Boards

$8.00

Eight Boards

$8.00

$16.00

Nine

Boards

$9.00

Nine Boards

$9.00

$18.00

Ten Boards

$10.00

Ten Boards

$10.00

$20.00

TM”

boards

Cost of

“EZ

MATCHTM”

boards

Total cost “CASH

5” boards with “EZ

MATCHTM”

Four

Boards

$4.00

Four Boards

$4.00

$8.00

Five Boards $5.00

Five Boards

$5.00

$10.00

Six Boards

$6.00

Six Boards

$6.00

$12.00

Seven

Boards

$7.00

Seven

Boards

$7.00

$14.00

Eight

Boards

$8.00

Eight Boards

$8.00

$16.00

Nine

Boards

$9.00

Nine Boards

$9.00

$18.00

Ten Boards

$10.00

Ten Boards

$10.00

$20.00

10.D.8 EZ MATCHTM Method of play

The EZ MATCHTM option is effective only for Players who choose the EZ

MATCHTM option at time of Purchase and pay an additional $1.00 per board.

Selection of EZ MATCH has no impact on the Play for the CASH 5 Game.

Tickets with the “EZ MATCHTM” option will display five (5) randomly selected

numbers below the “CASH 5” board Purchased in an “EZ MATCHTM” option Play

Area of the “CASH 5” Ticket.

Each of the five (5) “EZ MATCHTM” option numbers will have a Prize value

randomly assigned.

If one or more of the “EZ MATCHTM” option numbers matches (is the same as)

one or more of the numbers displayed in the “CASH 5” board the EZ Match

option is an instant winner.

10.D.9 Prizes For “CASH 5” with “EZ MATCHTM”

Players who choose the “EZ MATCHTM” option and pay the extra $1.00 per board

will be awarded Prizes based on the Instant Win numbers matched in the “EZ

MATCHTM” Play Area of their “CASH 5” Ticket with the numbers displayed in the

“CASH 5” board.

Players can match one (1) to five (5) instant win numbers per board.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

Odds of winning an ““EZ MATCHTM” Prize are shown in the table below.

he extra $1.00 per board

will be awarded Prizes based on the Instant Win numbers matched in the “EZ

MATCHTM” Play Area of their “CASH 5” Ticket with the numbers displayed in the

“CASH 5” board.

Players can match one (1) to five (5) instant win numbers per board.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

Odds of winning an ““EZ MATCHTM” Prize are shown in the table below.

Division

Odds

(within

group of

84,000)

Expected

Number of

Winners /

Grid

Prize

per

Winner

Prize

Percentage

Payout

Percentage

1 :

42,000

$500

1.95%

1.19%

1 :

42,000

$250

0.97%

0.60%

1 :

21,000

$100

0.78%

0.48%

1 : 2,800

$50

2.92%

1.79%

1 : 1,680

$20

1.95%

1.19%

1 : 840

100

$15

2.92%

1.79%

1 : 168

500

$10

9.75%

5.95%

1 : 105

800

7.80%

4.76%

1 : 76

1100

8.58%

5.24%

1 : 17

5000

29.24%

17.86%

1 : 10

8500

33.14%

20.24%

1 : 5.22

16,088

100%

61.07%

10.D.10

EZ MATCHTM Prize Payment

EZ MATCHTM option instant wins will be paid separately from any CASH 5 wins

on the associated CASH 5 board for tax reporting purposes.

The EZ MATCHTM option instant win Ticket may be redeemed for payment

immediately. If a winning EZ MATCHTM option Ticket is presented prior to the

associated CASH 5 Drawing occurring a CASH 5 exchange Ticket will be

generated.

The EZ MATCHTM option instant win Ticket may be held until after the Drawing

for which the CASH 5 Ticket was Purchased.

10.D.11

Ticket Purchases

CASH 5 Tickets with the EZ MATCHTM option may be Purchased only from a

Retailer authorized by the Director to Sell Jackpot Game Tickets or directly from

the Lottery.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

icket will be

generated.

The EZ MATCHTM option instant win Ticket may be held until after the Drawing

for which the CASH 5 Ticket was Purchased.

10.D.11

Ticket Purchases

CASH 5 Tickets with the EZ MATCHTM option may be Purchased only from a

Retailer authorized by the Director to Sell Jackpot Game Tickets or directly from

the Lottery.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

CASH 5 Tickets with the EZ MATCHTM option shall show, at a minimum, the

Player’s selection of numbers, the boards played, Drawing date, Validation and

reference numbers, “EZ MATCHTM” Instant Win numbers and “EZ MATCHTM”

Instant Win Prize values.

A Player of a “CASH 5” Ticket must choose, at the time of Purchase, whether or

not he/she wants the “EZ MATCHTM” option. If the Player chooses the “EZ

MATCHTM” option for the Ticket, the additional cost for each “CASH 5” board will

be $1.00. (See Paragraph 10.E.3 of this Rule 10.E for detailed “EZ MATCHTM”

costs.) The Option applies to all boards on a single Ticket and cannot be

Purchased on a board-by-board basis.

Players who Purchase multiple boards per “CASH 5” Ticket and select the “EZ

MATCHTM” option will receive one (1) Ticket per board Purchased.

“CASH 5” Tickets with the “EZ MATCHTM” option shall not be returned or

cancelled.

10.D.12

Advance Play

Advance Play provides the ability to Purchase “CASH 5” Tickets for more than one

Drawing. A Player of “CASH 5” Advance Play Tickets may also Purchase the “EZ

MATCHTM” option. If an Advance Play “CASH 5” Ticket is Purchased with the “EZ

MATCHTM” option, the option only applies to the original Purchase for an instant win.

“EZ MATCHTM” does not apply to, or affect, any “CASH 5” Advance Play win. If an

Advance Play “CASH 5” Ticket is redeemed when there are remaining draws the

exchange Ticket that is produced will not contain the “EZ MATCHTM” option.

RULE 10.F [Repealed eff. 01/30/2014]

RULE 11

[Repealed eff. 10/30/2013.]

RULE 12

[Repealed eff. 07/30/2012]

RULE 13

[Repealed eff. 07/30/2012]

Rule 14

r an instant win.

“EZ MATCHTM” does not apply to, or affect, any “CASH 5” Advance Play win. If an

Advance Play “CASH 5” Ticket is redeemed when there are remaining draws the

exchange Ticket that is produced will not contain the “EZ MATCHTM” option.

RULE 10.F [Repealed eff. 01/30/2014]

RULE 11

[Repealed eff. 10/30/2013.]

RULE 12

[Repealed eff. 07/30/2012]

RULE 13

[Repealed eff. 07/30/2012]

Rule 14

MULTI-STATE JACKPOT GAMES

BASIS AND PURPOSE OF RULE 14

The purpose for Rule 14 is to provide general details and requirements for all Multi-state

Jackpot Games, such as the sale of Tickets, payment of Prizes, and the method for

selecting and Validating winning Tickets. The statutory basis for Rule 14 is found in

C.R.S. 44-40-101(5) and (6), 44-40-104(4)(a), 44-40-109(1)(a) and (h), and (2), 44-40-

113 and 44-40-114.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

14.1 General Provisions

Multi-state Jackpot Games will be conducted pursuant to the following Rules and

Regulations and such further instructions and directives as the Director may issue.

The Director and the Division are authorized to enter into a Multi-state

Agreement for the purposes of promoting and Selling Multi-state Jackpot Games.

All Multi-state Jackpot Game Rules or changes thereto must be approved by the

Commission prior to implementation in Colorado.

The Director shall be a voting member of any Multi-state Board during the

timeframe in which the Lottery is a member of the Multi-state Group.

If at any time the Director determines that any provision of the Multi-state

Governing Rules or of the Multi-state specific Game Rules do not sufficiently

provide for the security and integrity necessary to protect the Lottery, the Director

shall recommend to the Commission that the Lottery end its membership with the

specified Multi-state Group or Multi-state Jackpot Game. If the Commission

concurs, such action shall be taken

termines that any provision of the Multi-state

Governing Rules or of the Multi-state specific Game Rules do not sufficiently

provide for the security and integrity necessary to protect the Lottery, the Director

shall recommend to the Commission that the Lottery end its membership with the

specified Multi-state Group or Multi-state Jackpot Game. If the Commission

concurs, such action shall be taken.

14.2 Definitions

In addition to the definitions provided in Rule 1.1, the following definitions apply to this

Rule 14.2 and any other Section that governs the game rules for a Multi-state Jackpot

Game:

“Breakage” means the results of rounding Prize Amounts down to the nearest

whole dollar.

“Multi-state Agreement” means the document made and entered into by the Party

Lotteries, containing the mutual covenants agreed to by the Party Lotteries.

“Multi-state Jackpot Ticket” means a computer-generated Ticket issued by a

Lottery Licensee (Licensee) to a Player as a receipt for the combination of

numbers selected in a Jackpot Game.

“Multi-state Board” means the governing body of a specific Jackpot Game, which

is comprised of the chief executive officer of each Party Lottery.

“MUSL” means the Multi-state Lottery Association.

“Party Lottery” means a State Lottery or Lottery of a political subdivision or entity

which has joined a Multi-state Game and, in the context of the Product Group

Rules, has joined in Selling the specified Jackpot Game.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

s comprised of the chief executive officer of each Party Lottery.

“MUSL” means the Multi-state Lottery Association.

“Party Lottery” means a State Lottery or Lottery of a political subdivision or entity

which has joined a Multi-state Game and, in the context of the Product Group

Rules, has joined in Selling the specified Jackpot Game.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

“Product Group” means a group of Lotteries which have joined together to offer a

Product pursuant to the terms of the Multi-state Agreement and the group’s own

rules.

Roll-over” means the amount from the direct Prize Category contribution from

previous Drawing(s) in the Grand Prize Category, that is not won, that is carried

forward to the Grand Prize Category for the next Drawing.

“Set Prize” means all other Prizes except the Grand Prize and, except in

instances outlined in these rules, will be equal to the Prize amount established

within the specific Game Rules.

14.3 Price of Tickets & Prizes

The Purchase price of each Multi-state Jackpot Ticket shall be set forth in

specific Game Rules.

The Prize Amounts or total amount of Prize money allocated to the Prize

categories for Multi-state Jackpot Games shall be set forth in specific Game

Rules.

In the event the Prize Expense is less than the Commission approved Aggregate

Prize Fund for a specific game, the Director may authorize the difference to be

used to increase Prize Amounts or pay Additional Lottery Prizes for that game.

14.4 Drawings and End of Sales Prior To Multi-state Drawings

The manner and frequency of Drawings shall be as set forth in specific Game

Rules. In the event of a Force Majeure, the Drawing shall be rescheduled at the

direction of the Product Group for the Multi-state Jackpot Game.

Drawings shall be conducted at a location, on days, and at times announced to

the public. Drawing results are not official until verified.

es Prior To Multi-state Drawings

The manner and frequency of Drawings shall be as set forth in specific Game

Rules. In the event of a Force Majeure, the Drawing shall be rescheduled at the

direction of the Product Group for the Multi-state Jackpot Game.

Drawings shall be conducted at a location, on days, and at times announced to

the public. Drawing results are not official until verified.

The Director shall determine when each Multi-state Jackpot Game goes into

Draw Break before the Drawing, consistent with MUSL rules and guidelines,

unless otherwise noted in the specific Game Rules. Once a Jackpot Game is in

Draw Break, Jackpot Game Terminals will not allow any further Purchases for

that Drawing.

The Drawing shall not be invalidated because the Numbers drawn create an

excessive Prize liability for the Lottery.

Each Drawing shall be witnessed by an independent auditor as required in

C.R.S. 44-40109(2)(d).

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

All Drawing equipment used shall be examined by the auditor located at the

Multi-state Drawing Site within thirty (30) minutes before a Drawing and within

thirty (30) minutes after the Drawing.

14.5 Cancellation of Tickets

A Multi-state Jackpot Ticket may not be cancelled unless otherwise stated in the

specific Game Rules.

14.6 Validation Requirements

To be a valid winning Multi-state Jackpot Ticket, all of the following conditions

must be met:

All printing on the Ticket shall be present in its entirety, be legible, and

correspond to the Gaming System Record;

The Ticket must be intact;

The Ticket must not be mutilated, altered, or tampered with in any

manner;

The Ticket must not be counterfeit or an exact duplicate of another

winning Ticket;

The Ticket must have been issued by Retailer or the Division in an

authorized manner;

The Ticket must not have been acquired illegally;

The Ticket must not have been previously paid; and

The Ticket must pass all other confidential security checks of the Lottery

tered, or tampered with in any

manner;

The Ticket must not be counterfeit or an exact duplicate of another

winning Ticket;

The Ticket must have been issued by Retailer or the Division in an

authorized manner;

The Ticket must not have been acquired illegally;

The Ticket must not have been previously paid; and

The Ticket must pass all other confidential security checks of the Lottery.

Any Ticket failing one of the Validation requirements listed in Rule 14.8(A) is

invalid and the Claimant is ineligible for a Prize, unless the Director authorizes

award of a Prize on the grounds that the Ticket can be Validated through another

method to confirm its authenticity.

In the event a Jackpot Ticket is defective at the time of Purchase, the only

responsibility or liability of the Lottery or the Retailer shall be the replacement of

the defective Jackpot Ticket with another Lottery Product of the same Retail

value or refund of the Purchase price.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

14.7 Time to Claim a Multi-state Jackpot Prize

A Multi-state Jackpot Prize must be claimed no later than one hundred and eighty (180)

days after the Drawing for which the Ticket was Purchased. Any Person who fails to

claim a Prize during the one hundred and eighty (180) day claim period shall forfeit all

rights to the Prize and the amount of the Prize shall remain in the Lottery Fund. Prizes

claimed by mail must be documented as received by the Lottery by the one hundred

and eightieth (180th) day after the announced end-of- game date.

14.8 Annuity Payments

The Multi-state Board shall act as an agent for the Party Lotteries jointly operating

games requiring annuitized payments and shall Purchase investments for the benefit of

the Party Lotteries who receive valid claims for each Prize paid as an annuity. The

investment Purchase process shall be handled according to the Multi-state Game Rules

Processes (solicitation of bids, selection of investment, premium payment, etc.)

shall act as an agent for the Party Lotteries jointly operating

games requiring annuitized payments and shall Purchase investments for the benefit of

the Party Lotteries who receive valid claims for each Prize paid as an annuity. The

investment Purchase process shall be handled according to the Multi-state Game Rules

Processes (solicitation of bids, selection of investment, premium payment, etc.). The

investment so Purchased shall be held in the trust account for the benefit of each Party

Lottery for eventual distribution to a Prize Winner.

14.9 Audit of Lottery Contributions to the Multi-state Group

The Lottery is responsible for verifying all Multi-state Group Prize Fund and reserve

allocations, interest earnings and expenditures received or paid on behalf of the Lottery.

The Lottery’s Fiscal Department will perform analytical procedures on the Multi-state

Group’s audited financial statements annually as set forth in Recommendation #2 of the

June 30, 2003 financial audit. If anything of concern surfaces by applying these

procedures, the Director and the Lottery Controller will be notified.

14.10 Interest Earnings

The Director shall request the Multi-state Group to distribute all interest earned

on the unreserved account on a quarterly basis. If the interest earned on the

unreserved account is immaterial, the Director may postpone the distribution

request until the end of the fiscal year.

At the end of each fiscal year, the Multi-state group shall prepare a schedule of

revenues and expenses resulting in the Multi-state Group’s net income for the

fiscal year. The revenues will include all investment earnings, except the interest

earned on the unreserved account. The net income will be available to be

distributed to each Party Lottery in accordance with procedures as set forth by

the Multi-state Group. The chief executive officer of each Party Lottery shall

request the remittance of their proportionate share of net income following the

close of the fiscal year.

nues will include all investment earnings, except the interest

earned on the unreserved account. The net income will be available to be

distributed to each Party Lottery in accordance with procedures as set forth by

the Multi-state Group. The chief executive officer of each Party Lottery shall

request the remittance of their proportionate share of net income following the

close of the fiscal year.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

RULE 14.A “POWERBALL®” GAME RULES

BASIS AND PURPOSE OF RULE 14.A

The purpose of Rule 14.A is to provide details and requirements for the Multi-state

Jackpot Game “Powerball®” such as sale of Tickets, payment of Prizes, and method for

selecting and Validating winning Tickets. The statutory bases for Rule 14.A are C.R.S.

44-40-101, 44-40-109 (1)(a) and (2), 44-40-113, and 44-40-114.

14.A.1

General Provisions

The Multi-state Jackpot Game known as “Powerball®” shall be conducted pursuant to

the following Rules and Regulations and such further instructions and directives as the

Colorado Lottery Director and Colorado Lottery Commission may issue. If a conflict

arises between another provision of the Lottery Rules and Regulations and this Rule

14.A, Rule 14.A shall apply. If a conflict arises between this Rule 14.A and the

“Powerball®” Official Game Rule provided by the Multi-state Lottery Association, the

“Powerball®” Official Game Rule shall apply.

14.A.2

Definitions

In addition to the definitions provided in Rules 1.1 and Rule 14.2, the following

definitions shall apply to this Rule 14.A and any other Section that governs the game

rules for a Multi-state Jackpot Game:

“Game Board” means that area of the Play Slip that contains a set of two (2)

grids. The first grid contains sixty-nine (69) squares, numbered one (1) through

sixty-nine (69), and the second grid contains twenty-six (26) squares, numbered

one (1) through twenty-six (26).

definitions shall apply to this Rule 14.A and any other Section that governs the game

rules for a Multi-state Jackpot Game:

“Game Board” means that area of the Play Slip that contains a set of two (2)

grids. The first grid contains sixty-nine (69) squares, numbered one (1) through

sixty-nine (69), and the second grid contains twenty-six (26) squares, numbered

one (1) through twenty-six (26).

“Grand Prize” means a pari-mutuel Prize that is advertised to be paid with per-

winner annuities or as a lump sum cash payment, unless otherwise specified by

the Lottery.

“MUSL Board” means the governing body of MUSL, which is comprised of the

chief executive officer of each Party Lottery.

“Number” means any Play integer from one (1) through sixty-nine (69) inclusive.

“Play” means the six (6) numbers selected on each Game Board and printed on

the Ticket.

“Prize Pool” means a defined percentage of sales as specified in this rule.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

“Set Prize Pool” means an account held by MUSL that holds the temporary

balances, transferred to MUSL from Party Lotteries, which results from having

fewer-than-expected Prize Winners in the Set Prize Categories. This money is

paid out to Party Lotteries in subsequent Drawings that have more Prize Winners

than are statistically expected in the Set Prize Categories.

14.A.3

Price of “Powerball®” Ticket

The price of each “Powerball®” Play shall be Two Dollars ($2.00).

14.A.4

Play for “Powerball®”

A “Powerball®” Player must select six (6) numbers per Play; five (5) numbers out

of sixty-nine (69) plus one (1) out of twenty-six (26). A winning Play is achieved

only when the following combinations of numbers selected match, in any order,

the five (5) plus one (1) Winning Numbers drawn. Those combinations are 5+1,

5+0, 4+1, 4+0, 3+1, 3+0, 2+1, 1+1, and 0+1.

The Player can use Play Slips, as described in section 14.A.8, to make number

selections

Play; five (5) numbers out

of sixty-nine (69) plus one (1) out of twenty-six (26). A winning Play is achieved

only when the following combinations of numbers selected match, in any order,

the five (5) plus one (1) Winning Numbers drawn. Those combinations are 5+1,

5+0, 4+1, 4+0, 3+1, 3+0, 2+1, 1+1, and 0+1.

The Player can use Play Slips, as described in section 14.A.8, to make number

selections. The Gaming Terminal reads the Play Slip and issues a Ticket with

corresponding Play(s). If a Play Slip is not available, the Retailer may enter the

selected numbers via the keyboard. If offered by the Lottery, a Player may leave

all or a portion of his/her Play selections to a random number generator operated

by the Gaming Terminal, commonly referred to as a Quick Pick or partial Quick

Pick.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

14.A.5

Prizes for “Powerball®”

Odds of winning a Prize are displayed in the table below:

WINNING COMBINATIONS

PRIZE

CATEGORY

ODDS OF

WINNING (ONE

PLAY)

All five (5) of first set plus one (1) of

second set

Grand Prize

1:292,201,338.0000

All five (5) of first set plus none of second

set

Second Prize

1:11,668,053.5200

Any four (4) of first set, but not five, plus

one (1) of second set

Third Prize

1:913,129.1813

Any four (4) of first set, but not five, plus

none of second set

Fourth Prize

1:36,525.1673

Any three (3) of first set, but not four or

five, plus one (1) of second set

Fifth Prize

1:14,494.1140

Any three (3) of first set, but not four or

five, plus none of second set

Sixth Prize

1:579.7646

Any two (2) of first set, but not three, four,

or five, plus one (1) of second set

Seventh Prize

1:701.3281

Any one (1) of first set, but not two, three,

four, or five, plus one (1) of second set

Eighth Prize

1:91.9775

None of first set plus one (1) of second set Ninth Prize

1:38.3239

Overall odds of winning any prize

1:24.8671

but not four or

five, plus none of second set

Sixth Prize

1:579.7646

Any two (2) of first set, but not three, four,

or five, plus one (1) of second set

Seventh Prize

1:701.3281

Any one (1) of first set, but not two, three,

four, or five, plus one (1) of second set

Eighth Prize

1:91.9775

None of first set plus one (1) of second set Ninth Prize

1:38.3239

Overall odds of winning any prize

1:24.8671

The Prize Pool contribution for all Prize Categories shall consist of fifty percent

(50%) of each Drawing period sales, unless as described in section 14.A.10.D of

this Rule 14.A, the Prize reserve and pool accounts are not funded at the

balances set by the “Powerball®” Product Group. All Prize payouts are made

with the following expected Prize payout percentages, although the Prize payout

percentage per Drawing may vary.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

PRIZE POOL

PRIZE CATEGORY

PRIZE

AMOUNTS

ALLOCATION OF

PRIZE POOL

PERCENTAGE

OF SALES

Grand Prize

Announced

Jackpot

68.0131%

34.0066%

Second Prize

$1,000,000

8.5558%

4.2279%

Third Prize

$50,000

5.4757%

2.7378%

Fourth Prize

$100

0.2738%

0.1369%

Fifth Prize

$100

0.6899%

0.3450%

Sixth Prize

1.2074%

0.6037%

Seventh Prize

0.9982%

0.4990%

Eighth Prize

4.3489%

2.1744%

Ninth Prize

10.4373%

5.2187%

TOTAL PAYOUT

100.00%

50.00%

Prize Categories - The Grand Prize shall be determined on a pari-mutuel basis.

The Grand Prize shall be divided equally by the number of Game Plays matching

all five (5) of the first set plus one (1) of the second set. Except as provided in

14.A.9.E.4., below, all other Prizes Amounts awarded shall be paid as Set Prizes

with the foregoing expected Prize payout percentages.

14.A.6

Payment of Prizes

Grand Prizes shall be paid at the election of the Ticket Holder either by a single

cash payment or in a series of annuity payments. The Ticket Holder becomes

entitled to the Prize at the time the Prize is Validated

Except as provided in

14.A.9.E.4., below, all other Prizes Amounts awarded shall be paid as Set Prizes

with the foregoing expected Prize payout percentages.

14.A.6

Payment of Prizes

Grand Prizes shall be paid at the election of the Ticket Holder either by a single

cash payment or in a series of annuity payments. The Ticket Holder becomes

entitled to the Prize at the time the Prize is Validated. However, the Grand Prize

is paid by the Lottery upon receipt of funds from MUSL no earlier than fifteen (15)

calendar days of Validation of the Grand Prize Ticket and when the Player makes

their final selection of cash or annuity, no later than sixty (60) days after

Validation of the Grand Prize Ticket. An election made after the Ticket Holder

becomes entitled to the Prize is final and cannot be revoked, withdrawn or

otherwise changed. The Validation record will be kept secured and on file at the

Lottery until the Ticket Holder makes a payment election. If the Ticket Holder

does not make a payment election within sixty (60) days after Validation, then the

Prize shall be paid as an annuity Prize.

Shares of the Grand Prize shall be determined by dividing the cash

available in the Grand Prize Pool equally among all plays matching all five

(5) of the first set plus one

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

(1)

of the second set of drawn Numbers. Winner(s) who elect a cash

payment shall be paid their Share(s) in a single cash payment. The

annuitized option Prize shall be determined by multiplying a Prize

Winner’s Share of the Grand Prize Pool by the MUSL annuity

factor. Neither MUSL nor the Party Lotteries shall be responsible or

liable for changes in the advertised or estimated annuity Prize

Amount and the actual amount Purchased after the Prize payment

method is actually known to MUSL. In certain instances announced

by the “Powerball®” Product Group, the Grand Prize shall be a

guaranteed amount and shall be determined pursuant to section

14.A.6.E. of this Rule 14.A

her MUSL nor the Party Lotteries shall be responsible or

liable for changes in the advertised or estimated annuity Prize

Amount and the actual amount Purchased after the Prize payment

method is actually known to MUSL. In certain instances announced

by the “Powerball®” Product Group, the Grand Prize shall be a

guaranteed amount and shall be determined pursuant to section

14.A.6.E. of this Rule 14.A. If individual Shares of the cash held to

fund an annuity are less than Two Hundred and Fifty Thousand

Dollars ($250,000), the “Powerball®” Product Group, in its sole

discretion, may elect to pay the Prize Winners Share of the cash

held in the Grand Prize Pool.

All annuitized Prizes shall be paid annually in thirty (30) graduated

payments with the initial payment being made in cash, to be followed by

twenty-nine (29) payments funded by the annuity.

Funds for the initial payment of an annuitized Prize or the lump sum cash

Prize shall be made available by MUSL for payment by the Lottery no

earlier than the fifteenth calendar day (or the next banking day if the

fifteenth day is a holiday) following the Drawing. If necessary, when the

due date for the payment of a Prize occurs before the receipt of funds in

the Prize Pool trust sufficient to pay the Prize, the transfer of funds for the

payment of the full lump sum cash amount may be delayed pending

receipt of funds from the Party Lotteries. The Lottery may elect to make

the initial payment from its own funds after Validation, with notice to

MUSL.

The Grand Prize Amount held by MUSL for subsequent payment to an

annuity Prize Winner shall be transferred to the Lottery and the Lottery

shall have payment to the annuity Prize Winner on the anniversary date,

or if such date falls on a non-business day the first day following the

anniversary date, of the Drawing.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

, with notice to

MUSL.

The Grand Prize Amount held by MUSL for subsequent payment to an

annuity Prize Winner shall be transferred to the Lottery and the Lottery

shall have payment to the annuity Prize Winner on the anniversary date,

or if such date falls on a non-business day the first day following the

anniversary date, of the Drawing.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

In the event of the death of a Lottery Prize Winner during the annuity

payment period, the “Powerball®” Product Group, in its sole discretion,

upon the petition of the estate of the Lottery Prize Winner (the “Estate”) to

the Lottery, and subject to federal, state, or district applicable laws, may

accelerate the payment of all of the remaining Lottery proceeds to the

Estate. If the “Powerball®” Product Group makes such a determination,

then securities and/or cash held to fund the deceased Lottery Prize

Winner’s annuitized Prize may be distributed to the Estate. The

identification of the securities to fund the annuitized Prize shall be at the

sole discretion of the “Powerball®” Product Group.

The Director’s decision with respect to the Validation and payment of Set Prizes,

whether during a “Powerball®” game or any Drawing related thereto, shall be

final and binding upon all participants in the Lottery.

All Set Prizes (excluding the Grand Prize) shall be paid by the Lottery. The

Lottery may begin paying Set Prizes after receiving authorization to pay from the

MUSL Central Office.

Annuitized payments of the Grand Prize or a share of the Grand Prize may be

rounded to facilitate the Purchase of an appropriate funding mechanism.

Breakage on an annuitized Grand Prize win shall be added to the first cash

payment to the Prize Winner(s).

Set Prizes, which, under these rules, may become pari-mutuel Prizes, may be

rounded down so that Prizes can be paid in multiples of whole dollars. Breakage

resulting from rounding these Prizes shall be carried forward to the Prize Pool for

the next Drawing.

appropriate funding mechanism.

Breakage on an annuitized Grand Prize win shall be added to the first cash

payment to the Prize Winner(s).

Set Prizes, which, under these rules, may become pari-mutuel Prizes, may be

rounded down so that Prizes can be paid in multiples of whole dollars. Breakage

resulting from rounding these Prizes shall be carried forward to the Prize Pool for

the next Drawing.

If the Grand Prize is not won in a Drawing, the Prize money allocated for the

Grand Prize shall Roll-Over and be added to the Grand Prize Pool for the

following Drawing.

The “Powerball®” Product Group may offer guaranteed minimum Grand Prize

Amounts or minimum increases in the Grand Prize Amount between Drawings or

make other changes in the allocation of Prize money where the “Powerball®”

Product Group finds that it would be in the best interest of the game. If a

minimum Grand Prize Amount or a minimum increase in the Grand Prize Amount

between Drawings is offered by the “Powerball®” Product Group, then the Grand

Prize Shares shall be determined as follows:

If there are multiple Grand Prize winners during a single Drawing, each

selecting the annuitized option Prize, then a Prize Winner’s Share of the

guaranteed annuitized Grand Prize shall be determined by dividing the

guaranteed annuitized Grand Prize by the number of Prize Winners.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

If there are multiple Grand Prize winners during a single Drawing and at

least one of the Grand Prize Winners has elected the annuitized option

Prize, then the best bid submitted by MUSL’s pre-approved qualified

brokers shall determine the cash pool needed to fund the guaranteed

annuitized Grand Prize.

the number of Prize Winners.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

If there are multiple Grand Prize winners during a single Drawing and at

least one of the Grand Prize Winners has elected the annuitized option

Prize, then the best bid submitted by MUSL’s pre-approved qualified

brokers shall determine the cash pool needed to fund the guaranteed

annuitized Grand Prize.

If no Prize Winner of the Grand Prize during a single Drawing has elected

the annuitized option Prize, then the amount of cash in the Grand Prize

Pool shall be an amount equal to the guaranteed annuitized amount

divided by the average annuity factor of the most recent three best quotes

provided by MUSL’s pre-approved qualified brokers submitting quotes.

In no case shall quotes be used which are more than two (2) weeks old

and if less than three (3) quotes are submitted, then MUSL shall use the

average of all quotes submitted. Changes in the allocation of Prize money

shall be designed to retain approximately the same Prize allocation

percentages, over a year’s time, set out in these rules.

14.A.7

Drawings

There shall be three (3) “Powerball®” Drawings each week on Monday,

Wednesday and Saturday evenings, unless the Drawing schedule is changed by

the MUSL Board.

Each Drawing shall determine, at random, six (6) winning Numbers in

accordance with Drawing Procedures. Any Numbers drawn are not declared the

Winning Combination until the Drawing is certified by MUSL in accordance with

the “Powerball®” Drawing Procedure. The Winning Combination shall be used in

determining all “Powerball®” Prize Winners for that Drawing. If a Drawing is not

certified, another Drawing will be conducted to determine certified Prize Winners.

The Drawing procedures shall provide that a minimum of fifty-nine (59) minutes

elapse between the close of the game Ticket sales and the time of the Drawing

for those Tickets sold. F.

All Drawings shall be open to the public.

14.A.8

Sale of Tickets

erball®” Prize Winners for that Drawing. If a Drawing is not

certified, another Drawing will be conducted to determine certified Prize Winners.

The Drawing procedures shall provide that a minimum of fifty-nine (59) minutes

elapse between the close of the game Ticket sales and the time of the Drawing

for those Tickets sold. F.

All Drawings shall be open to the public.

14.A.8

Sale of Tickets

“Powerball®” Tickets may be Purchased from a Retailer authorized to Sell Multi-

state Jackpot Tickets or directly from the Lottery.

“Powerball®” Tickets shall show, at a minimum, the Player’s selection of

Numbers, the number of Plays, the Drawing date, and Validation Numbers.

CODE OF COLORADO REGULATIONS

1 CCR 206-1

Colorado Lottery

Plays may be entered manually using the Gaming Terminal keypad or by means

of a Play Slip provided by the Lottery. No device shall be connected to a Gaming

Terminal to enter Plays, except as may be approved by the Lottery. D.

“Powerball®” Tickets may not be cancelled.

If the “Powerball®” Game is cancelled by the “Powerball®” Product Group

prior to the occurrence of all Drawings for which Plays have been sold, the

Lottery may provide a refund mechanism for such Plays to the Pl

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