Section 204. On-Line Computer Games

01. On-Line Games -- Authorized -- Director’s Authority. The Commission hereby authorizes th e Director to select and operate on-line games which meet the criteria set forth in these rules. (3-25-22) 02. Definitions. As used in Rule 204 these terms have the following definitions: (3-25-22) a. “Drawing.” The procedure determined by the Director by which the Lottery selects the winnin g combination in accordance with the rules of the game. Drawings are open to the public. (3-25-22) b. “On-line Game.” (3-25-22) i. A Lottery game in which a player selects a combination of numbers or symbols, the type of gam e and amount of play, and the drawing date by use of a computer. In return for paying the appropriate price, the playe r receives a computer-generated ticket with the player’s selection printed on it. Each ticket bearer whose valid ticke t includes a winning combination will be entitled to a prize if claim is submitted within the specified time period. (3-25-22) ii. On-line terminal (OLT) instant ticket game having characteristics as defined in Paragraphs 202.02.a., 202.02.b., 202.02.d. and 202.02.i. of these rules. (3-25-22) c. “On-line Retailer.” A person or business authorized by the Lottery to sell on-line tickets. (3-25-22) d. “On-line Terminal (OLT).” The computer hardware by which an on-line retailer or player enters th e combination selected by the player and by which on-line tickets are generated and claims are validated. (3-25-22) e. “On-line Ticket.” A computer-generated ticket issued by an on-line terminal to a player as a receip t for the combination a player has selected. That ticket is the only acceptable evidence of the combination of number s or symbols selected. (3-25-22) f. “Ticket Bearer.” The person who has signed the on-line ticket or who has possession of an unsigned ticket. (3-25-22) g. “Validation.” The process of determining whether an on-line ticket presented for payment is a winning ticket. (3-25-22) h

ceip t for the combination a player has selected. That ticket is the only acceptable evidence of the combination of number s or symbols selected. (3-25-22) f. “Ticket Bearer.” The person who has signed the on-line ticket or who has possession of an unsigned ticket. (3-25-22) g. “Validation.” The process of determining whether an on-line ticket presented for payment is a winning ticket. (3-25-22) h. “Winning Combination.” One (1) or more numbers or symbols randomly selected by the Stat e Lottery or its designee in a public drawing. (3-25-22) 03. Distribution of Tickets. (3-25-22) a. Tickets will be sold by retailers selected by the Director. (3-25-22) b. The Director is authorized to arrange for the distribution of OLTs, player-activated terminal s (PATs), ticket stock, and supplies to certificated retailers. (3-25-22) 04. Sale of Tickets. (3-25-22) a. No person other than a retailer under a contract for the sale of tickets with the Lottery may sell on- line Lottery tickets, except that nothing in this section will be construed to prevent a person who may lawfull y purchase tickets from making a gift of Lottery tickets to another. (3-25-22) b. Tickets may not be sold at a location other than the address listed on the retailer’s contract with th e Lottery. (3-25-22) c. Nothing in this section prohibits the Director from designating certain of its agents and employees to sell Lottery tickets directly to the public. (3-25-22) 05. On-Line Games Criteria. (3-25-22) a. The base price of an on-line ticket will not be less than fifty cents ($.50), except to the extent o f discounts authorized by the Commission. (3-25-22) b. The price for a ticket in any particular on-line game will be set out in the game rules adopted by th e Commission for that game. No person may sell a ticket at a price other than that established in accordance with thes e rules. On the average, the total of all prizes available to be won in an on-line game will not be less than forty-fiv e percent (45%) of the on-line game’s projected revenue

b. The price for a ticket in any particular on-line game will be set out in the game rules adopted by th e Commission for that game. No person may sell a ticket at a price other than that established in accordance with thes e rules. On the average, the total of all prizes available to be won in an on-line game will not be less than forty-fiv e percent (45%) of the on-line game’s projected revenue. (3-25-22) c. The manner and frequency of drawings may vary with the type of on-line game as defined i n Subparagraph 204.02.b.i. of these rules. (3-25-22) d. The times, locations, and drawing procedures will be determined by the Director. (3-25-22) e. OLT instant ticket game as defined in Subparagraph 204.02.b.ii. of these rules will operate with a finite number of tickets per game and a predetermined and guaranteed prize structure approved by the Director. (3-25-22) f. A ticket bearer entitled to a prize must submit the winning ticket as specified by the Director. Th e winning ticket must be validated by the Lottery or an on-line retailer through use of the validation number and an y other means specified by the Director. (3-25-22) 06. Payment of Prizes. (3-25-22) a. To claim an on-line game prize of less than six hundred dollars ($600) the claimant may present the winning on-line ticket to any on-line retailer, or to the Lottery office: (3-25-22) i. If the claim is presented to an on-line retailer, the on-line retailer must validate the claim and, i f determined to be a winning ticket, pay the amount due the claimant as set forth in Rule 204.10.b. If the on-line retailer cannot validate the claim, the claimant may obtain and complete a claim form and submit it with the disputed ticket t o the Lottery. Upon determination that the ticket is a winning ticket, the Lottery will make payment of the amount du e in cash, by check, or money order. If the ticket is determined to be a non winning ticket, the claim will be denied and the claimant will be promptly notified

ler cannot validate the claim, the claimant may obtain and complete a claim form and submit it with the disputed ticket t o the Lottery. Upon determination that the ticket is a winning ticket, the Lottery will make payment of the amount du e in cash, by check, or money order. If the ticket is determined to be a non winning ticket, the claim will be denied and the claimant will be promptly notified. Non-winning tickets will not be returned to the claimant. (7-1-25) ii. If the claim is presented to the Lottery office, the claimant will be required to complete a clai m form and submit it with the winning ticket,. Upon determination that the ticket is a winning ticket, the Lottery wil l make payment of the amount due in cash, by check, or money order, less any withholding required by the Interna l Revenue Code. If the ticket is determined to be a non-winning ticket, the claim will be denied and the claimant wil l be promptly notified. Non-winning tickets will not be returned to the claimant. (7-1-25) b. To claim an on-line prize of six hundred dollars ($600) or more, the claimant must obtain an d complete a claim form and submit it with the winning ticket to the Lottery office. Prizes of six hundred dollars ($600 ) or more can be paid only from the Lottery office. Upon determination that the ticket is a winning ticket, the Lotter y will make payment of the amount due by check or money order, less any withholding required by the Interna l Revenue Code and the state of Idaho. The amount due will be calculated according to the rules adopted for th e particular on-line game. If the ticket is determined to be a non-winning ticket, the claim will be denied and th e claimant will be promptly notified. Non-winning tickets will not be returned to the claimant. (7-1-25) c. All prizes must be claimed within one hundred eighty (180) days from the drawing in which th e prize was won

amount due will be calculated according to the rules adopted for th e particular on-line game. If the ticket is determined to be a non-winning ticket, the claim will be denied and th e claimant will be promptly notified. Non-winning tickets will not be returned to the claimant. (7-1-25) c. All prizes must be claimed within one hundred eighty (180) days from the drawing in which th e prize was won. If the final day of the one hundred eighty (180) day period falls on a Saturday, Sunday or a state holiday, the claim period will be extended to the end of the next business day. Any prize not claimed within th e specified period will be forfeited and placed into the State Lottery account. (3-25-22) 07. Drawings and End of Sales Prior to Drawings. (3-25-22) a. Drawings will be conducted in a location and at days and times designated by the Director. (3-25-22) b. For each type of on-line game, the Director will establish a time before the drawing for the end o f sales. (3-25-22) c. The Director will designate the type of equipment to be used and will establish procedures t o randomly select the winning combination for each type of on-line game. Drawing procedures will include provision s for the substitution of backup drawing equipment if the primary drawing equipment malfunctions or fails for an y reason. (3-25-22) d. The equipment used to determine the winning combination will not be electronically or otherwis e connected to the central computer or to any tapes, discs, files, etc., generated or produced by the central computer . The drawing results, including sales, number of winners and numbers drawn, will be audited and reviewed after eac h drawing to assure proper operation and lack of tampering or fraud. (3-25-22) e. All drawings may be broadcast live on television, provided the facilities for such broadcasts ar e available and operational and can be done at a reasonable cost. (3-25-22) f. The Director will establish procedures governing the conduct of drawings for each type of on-line game

will be audited and reviewed after eac h drawing to assure proper operation and lack of tampering or fraud. (3-25-22) e. All drawings may be broadcast live on television, provided the facilities for such broadcasts ar e available and operational and can be done at a reasonable cost. (3-25-22) f. The Director will establish procedures governing the conduct of drawings for each type of on-line game. The procedures must include provisions for deviations that include but are not limited to: (3-25-22) i. Malfunction of the drawing equipment before determination of the winning combination; (3-25-22) ii. Fouled drawing; (3-25-22) iii. Delayed drawing; and (3-25-22) iv. Other equipment, facility or personnel difficulties. (3-25-22) g. If a deviation occurs, the drawing will be completed under the supervision of the Lottery or it s designee. The winning combination will be provided to the public. (3-25-22) h. If, during any live-broadcasted drawing for a game, a mechanical failure or operator error causes an interruption in the selection of all numbers or symbols, a “foul” will be called by Lottery security or the Lottery’ s designee. Any number drawn before a “foul” is called will stand and be deemed official after passing inspection and certification by Lottery security or the Lottery’s designee. (3-25-22) i. The Director will delay payment of all prizes if any evidence exists or there are grounds for suspicion that tampering or fraud has occurred. Payment will be made after an investigation is completed and th e drawing approved by Lottery security or the Lottery’s designee. If the drawing is not approved, it will be void an d another drawing will be conducted to determine the actual winner. (3-25-22) 08. Validation Requirements. (3-25-22) a. To be a valid winning on-line ticket, the ticket must: (3-25-22) i. Have all printing on the ticket in its entirety, be legible, and correspond, using the compute r validation file, to the combination and the date printed on the ticket. (3-25-22) ii

t approved, it will be void an d another drawing will be conducted to determine the actual winner. (3-25-22) 08. Validation Requirements. (3-25-22) a. To be a valid winning on-line ticket, the ticket must: (3-25-22) i. Have all printing on the ticket in its entirety, be legible, and correspond, using the compute r validation file, to the combination and the date printed on the ticket. (3-25-22) ii. Be intact, not be mutilated, altered, or tampered with in any manner. (3-25-22) iii. Not be counterfeit or an exact duplicate of another winning ticket. (3-25-22) iv. Have been issued by an authorized on-line retailer or dispensed by a player-activated terminal in a n authorized manner. (3-25-22) v. Not have been stolen or cancelled. (3-25-22) vi. Not have been previously paid. (3-25-22) vii. Pass all other confidential security checks of the Lottery. (3-25-22) viii. Be signed if the prize is for six hundred dollars ($600) or more. (3-25-22) b. A ticket failing any of the validation requirements listed in Paragraph 204.08.a. of this rule is invalid and ineligible for a prize. The final decision on whether a prize is paid will be made by the Director. (3-25-22) c. If there is a dispute between the Director and a claimant whether a ticket is a winning ticket, and i f the Director determines that the ticket is not valid and a prize is not paid, the Director may replace the disputed ticke t with a ticket of equivalent sales price for a future drawing of the same type of game. This will be the sole an d exclusive remedy of the claimant. (3-25-22) d. If a defective on-line ticket is purchased, the only responsibility or liability of the Lottery or of th e on-line retailer is the replacement of the defective on-line ticket with another on-line ticket of equivalent value for a future drawing of the same type of game. (3-25-22) 09. Retailer Duties. Retailers with an on-line terminal (OLT) must perform the following duties: (3-25-22) a

3-25-22) d. If a defective on-line ticket is purchased, the only responsibility or liability of the Lottery or of th e on-line retailer is the replacement of the defective on-line ticket with another on-line ticket of equivalent value for a future drawing of the same type of game. (3-25-22) 09. Retailer Duties. Retailers with an on-line terminal (OLT) must perform the following duties: (3-25-22) a. Pay costs associated with providing a telephone line or internet or similar connection that must b e located as specified by the Lottery. Payment of the telephone line or internet or similar connection is nonrefundabl e after installation, except if the Lottery denies, through no fault of retailer, the installation of the on-line terminal. (3-25-22) b. Pay the Lottery for the local monthly telephone or internet or similar charges per OLT as specifie d by the Lottery. The Lottery will pay for the mileage charges (if any) between the retailer’s location and the Lottery’ s central site. (3-25-22) c. Hold funds generated from the sale of on-line tickets in trust for the Lottery. At a time specified b y the Lottery, the retailer must pay these funds to the Lottery plus the monthly communications charge specified abov e in Paragraph 204.09.b. of this rule, less: (3-25-22) i. Prizes paid; (3-25-22) ii. Any credit; and (3-25-22) iii. The retailer discount. (3-25-22) d. Locate the OLT within the retailer’s premises at a point-of-sale location approved by the Lottery . The retailer is prohibited from moving an OLT unless the retailer follows the procedures established by the Director , including reimbursing the State Lottery for any telephone or internet or similar charges associated with the change o f OLT location if the retailer requested the change. (3-25-22) e. Provide dedicated AC power to within approximately five (5) feet of the terminal. Dedicated AC power means that there is no other equipment on the line that is to be used for the on-line terminal

ed by the Director , including reimbursing the State Lottery for any telephone or internet or similar charges associated with the change o f OLT location if the retailer requested the change. (3-25-22) e. Provide dedicated AC power to within approximately five (5) feet of the terminal. Dedicated AC power means that there is no other equipment on the line that is to be used for the on-line terminal. The retailer i s responsible for all costs associated with providing dedicated AC power. The Lottery will provide a schematic o f outlet requirements to the retailer’s electrical contractor. (3-25-22) f. Sell all Lottery games, including but not limited to instant game tickets offered by the Lottery. Th e retailer agrees to continue the sale of instant tickets from all cash registers or other points of purchase. (3-25-22) g. Conduct the sale of on-line tickets during all hours and days that the retailer’s business is open and the on-line system is functioning. The retailer must post the hours that redemption of winning tickets may take plac e if these hours are different from the retailer’s normal business hours. The retailer must monitor ticket supply level s and give timely notice when any item is in short supply. (3-25-22) h. Post winning numbers prominently where tickets are sold as soon as possible following th e drawing. (3-25-22) i. Provide secure storage for OLT supplies and a secure area for the OLT. (3-25-22) j. Exercise due diligence in the operation of the OLT and immediately notify the Lottery and th e central computer facility of any telephone line, internet, radio, or OLT malfunction, such as the issuance of invali d on-line Lottery ticket, inability to sell or redeem an on-line ticket, and non-issuance of an on-line ticket. The retaile r is prohibited from performing mechanical or electrical maintenance on the OLT. (3-25-22) k. Replace ribbons and on-line or instant ticket stock and clear paper jams as required for the OLT pe r the instructions provided by the Lottery. (3-25-22) l

as the issuance of invali d on-line Lottery ticket, inability to sell or redeem an on-line ticket, and non-issuance of an on-line ticket. The retaile r is prohibited from performing mechanical or electrical maintenance on the OLT. (3-25-22) k. Replace ribbons and on-line or instant ticket stock and clear paper jams as required for the OLT pe r the instructions provided by the Lottery. (3-25-22) l. Pay, without reimbursement, all electricity charges in connection with the operation of OLT. (3-25-22) 10. Payment of Prizes by On-Line Retailers. (3-25-22) a. An on-line retailer must pay to the ticket bearer on-line games prizes of less than six hundre d dollars ($600) for any validated claims presented to that on-line retailer. These prizes must be paid during all norma l business hours of the on-line retailer, unless redemption hours differ from normal business hours that have bee n posted pursuant to Paragraph 204.09.g. of this rule, provided, that the on-line system is operational and claims can b e validated. (3-25-22) b. An on-line retailer may pay prizes in cash or by business check, certified check, money order, o r any combination thereof. An on-line retailer that pays a prize with a check that is dishonored may be subject t o suspension or termination of its contract. (3-25-22) 11. Retailer Settlement. (3-25-22) a. On-line retailers must establish an account for deposit of monies derived from on-line games with a financial institution that has the capability of electronic funds transfer (EFT). (3-25-22) b. The amount deposited must be sufficient to cover monies due the Lottery. The Lottery wil l withdraw by EFT the amount due the Lottery on the day specified by the Director. If the day specified for withdrawa l falls on a state holiday, withdrawal may be delayed until the next business day. (3-25-22) 12. Prize Rights Unassignable

at has the capability of electronic funds transfer (EFT). (3-25-22) b. The amount deposited must be sufficient to cover monies due the Lottery. The Lottery wil l withdraw by EFT the amount due the Lottery on the day specified by the Director. If the day specified for withdrawa l falls on a state holiday, withdrawal may be delayed until the next business day. (3-25-22) 12. Prize Rights Unassignable. No right of any person to a prize drawn is assignable, except tha t payment of any prize drawn may be paid to the estate of a deceased prize winner, and that any person may be paid th e prize to which the winner is entitled pursuant to an appropriate judicial order. The Director will be discharged of al l liability upon payment of a prize pursuant to this rule. (3-25-22) 13. Payment of Prizes to Persons Under Eighteen Years of Age. If a person entitled to a prize for a winning ticket is under the age of eighteen (18) years, the Director may direct payment of the prize to an adult member of the minor’s family or to the minor’s guardian by a check or draft payable to the adult member of th e minor’s family or to the minor’s guardian. The adult member of the minor’s family or the minor’s guardian will hav e the same duties and powers as a person designated as a custodian in accordance with Idaho Law. For purposes of thi s Subsection the terms “adult member of a minor’s family” and “guardian of a minor” have the same meaning as in the Idaho Gifts to Minors Law. The Director will be discharged of all liability upon payment of a prize to a mino r pursuant to this rule. (3-25-22) 14. Prizes Payable After Death or Disability of Owner. (3-25-22) a. All prizes, and portions of prizes, that remain unpaid at the time of the prize winner’s death will b e payable to the personal representative of the prize winner’s estate once satisfactory evidence of the persona l representative’s appointment has been provided, and the Director is satisfied that payment to the personal representative is lawful and proper

eath or Disability of Owner. (3-25-22) a. All prizes, and portions of prizes, that remain unpaid at the time of the prize winner’s death will b e payable to the personal representative of the prize winner’s estate once satisfactory evidence of the persona l representative’s appointment has been provided, and the Director is satisfied that payment to the personal representative is lawful and proper. The Director may rely on a certified copy of a court order appointing of a personal representative (or similar person responsible for the prize winner’s estate, whether denominated a n administrator, executor, executrix, or other representative of the prize winner’s estate) or may petition the court t o determine the proper payee. Payment to the personal representative of the estate of the deceased owner of any priz e winnings will absolve the Director and the Lottery’s employees of any further liability for payment of prize winnings. (3-25-22) b. The Lottery may petition any court of competent jurisdiction for a determination of the rightfu l payee of any prize winnings that are or may be due to a person under a disability including, but not limited to , minority, mental deficiency, physical or mental incapacity. (3-25-22) 15. Discharge of State Lottery Upon Payment. The state of Idaho, its agents, officers, employees and representatives, the Lottery, its Director, agents, officers, employees and representatives are discharged of all liabilit y upon payment of a prize or any one (1) installment thereof to the holder of any winning Lottery ticket or i n accordance with the information set forth on the claim form supplied by the Director

te Lottery Upon Payment. The state of Idaho, its agents, officers, employees and representatives, the Lottery, its Director, agents, officers, employees and representatives are discharged of all liabilit y upon payment of a prize or any one (1) installment thereof to the holder of any winning Lottery ticket or i n accordance with the information set forth on the claim form supplied by the Director. If there is a conflict between the information on a winning Lottery ticket and the information on the claim form, the Lottery may rely on the clai m form after the ticket for which it has been filed has been validated as a winning ticket and, in so doing, it will b e relieved of all responsibility and liability in the payment of a prize in accordance with the information set fort h therein. The Lottery’s decisions and judgments in respect to the determination of a winning ticket or of any othe r dispute arising from payment or awarding of prizes will be final and binding upon all participants in the Lotter y unless otherwise provided by law or these rules. If a question arises concerning the winning ticket, a claim form, th e payment, or the awarding of any prize, the Lottery may deposit the prize winnings into an escrow fund until i t determines the controversy and reaches a decision, or it may petition a court of competent jurisdiction for instruction s and a resolution of the controversy. (3-25-22) 16. Disclosure. The Lottery may use the names, addresses, and photographs of winners in any Lotter y promotional or publicity campaign. The address used will not contain the winner’s street or house number without th e winner’s consent. The Lottery may condition payment of the prize upon agreement to these terms and conditions. (3-25-22)