|(a) Powerball. Powerball is a Multi-State Lottery Association
(MUSL) on-line game offered by all Lotteries that have agreed to MUSL's
Powerball Group Rules. "Powerball" is authorized to be conducted by
the executive director under the conditions of the MUSL rules, the
laws of the State of Texas, this section, and under such further instructions,
directives, and procedures as the executive director may issue in
furtherance thereof. In this regard, the executive director is authorized
to issue such further instructions and directives as may be necessary
to conform the conduct and play of Powerball to the requirements of
the MUSL rules if, in the opinion of the executive director, such
instructions, directives, and procedures are in conformance with state
law. If a conflict arises between this section and §401.304 of
this chapter (relating to On-Line Game Rules (General)), this section
shall have precedence. The purpose of the Powerball game is the generation
of revenue for MUSL Party Lottery members and Mega Millions Party
Lotteries participating under the Reciprocal Game Agreement, through
the operation of a specially designed multi-jurisdiction lottery game
that will award prizes to ticket holders matching specified combinations
of numbers randomly selected in regularly scheduled drawings. In addition
to other applicable rules contained in Chapter 401, this section and
definitions apply unless the context requires a different meaning
or is otherwise inconsistent with the intention of the rules adopted
by the MUSL or the MUSL Powerball Group. To be clear, the authority
to participate in the MUSL Powerball game is provided to the Texas
Lottery by MUSL. The conduct and play of Powerball must conform to
the MUSL Powerball game.
(1) "Agent" or "retailer" means a person or entity
authorized by the Texas Lottery Commission (TLC) to sell lottery Plays.
(2) A "Drawing" refers collectively to the formal draw
event for randomly selecting the winning numbers which determine the
number of winners for each prize level of the Powerball game and the
Power Play multiplier.
(3) "Game board", "board", "panel", or "playboard"
means that area of the playslip which contains two sets of numbered
squares to be marked by the player.
(4) "Game ticket" or "ticket" means an acceptable evidence
of Play, which is a ticket produced in a manner that meets the specifications
defined in the MUSL rules or the rules of each member or participating
Selling Lottery (Ticket Validation), and is a physical representation
of the Play or Plays sold to the player.
(5) "MUSL" means the Multi-State Lottery Association,
a government-benefit association wholly owned and operated by the
MUSL Party Lotteries.
(6) "MUSL Board" means the governing body of the MUSL,
which is comprised of the chief executive officer of each Party Lottery.
"MUSL Finance and Audit Committee" shall mean the committee of that
name established by the MUSL Board.
(7) "MUSL Annuity Factor" shall mean the annuity factor
as determined by the MUSL central office through a method approved
by the MUSL Finance and Audit Committee and which is used as described
in this rule.
(8) "Party Lottery" means a state lottery or lottery
of a political subdivision or entity that has joined MUSL and is authorized
to sell the Powerball game. "Licensee Lottery" shall mean a state
lottery or lottery of a governmental unit, political subdivision,
or entity thereof that is not a Party Lottery but has agreed to comply
with all applicable MUSL and Product Group requirements and has been
authorized by the MUSL and by the Powerball Product Group to sell
the Powerball game. "Selling Lottery" or "Participating Lottery" shall
mean a lottery authorized by the Product Group to sell Powerball Plays,
including Party Lotteries and Licensee Lotteries.
(9) "Play" means the six (6) numbers, the first five
(5) from a field of sixty-nine (69) numbers and the last one (1) from
a field of twenty-six (26) numbers, that appear on a ticket as a single
lettered selection and are to be played by a player in the Powerball
(10) "Playslip" means an optically readable card issued
by the Texas Lottery used by players of Powerball to select Plays
and to elect all features. There shall be five playboards on each
playslip. A playslip has no pecuniary value and shall not constitute
evidence of ticket purchase or of numbers selected.
(11) "Powerball Group" or "Product Group" means the
MUSL member group of lotteries which have joined together to offer
the Powerball product pursuant to the terms of the Multi-State Lottery
Agreement and the Powerball Group's rules, including the MUSL Powerball
Drawing Procedures. In this rule, wherever either term is used it
is referring to the MUSL Powerball Group.
(12) "Prize" means an amount paid to a person or entity
holding a winning ticket. "Grand Prize" shall refer to the top prize
in the Powerball game. "Advertised Grand Prize" shall mean the estimated
annuitized Grand Prize amount as determined by the MUSL Central Office
by use of the MUSL Annuity Factor and communicated through the Selling
Lotteries prior to the Grand Prize Drawing. The "Advertised Grand
Prize" is not a guaranteed prize amount and the actual Grand Prize
amount may vary from the advertised amount.
(13) "Set Prize" or "low-tier prize" means all other
prizes, except the Grand Prize, and, except in instances outlined
in this section, will be equal to the prize amount established by
the Product Group for the prize level.
(14) "Terminal" means a device authorized by a Selling
Lottery to function in an on-line, interactive mode with the gaming
computer system for the purpose of issuing lottery tickets and entering,
receiving, and processing lottery transactions, including purchases,
validating tickets, and transmitting reports.
(15) "Winning Numbers" means the numbers randomly selected
during a Drawing event which shall be used to determine the winning
Plays for the Powerball game contained on a game ticket.
(c) Game Description.
(1) Powerball is a five (5) out of sixty-nine (69)
plus one (1) out of twenty-six (26) numbers lottery game drawn every
Wednesday and Saturday, as part of the Powerball Drawing event, which
pays the Grand Prize, at the election of the player made in accordance
with this rule, or by a default election made in accordance with this
rule, either on an annuitized pari-mutuel basis or as a single lump
sum payment of the total funding held in the Grand Prize Pool for
the winning drawing on a pari-mutuel basis. Except as provided in
this section, all other prizes are paid on a single payment basis.
Powerball Winning Numbers applicable to determine Powerball prizes
will be determined in the Powerball Drawing event. To play Powerball,
a player shall select five (5) different numbers, from one (1) through
sixty-nine (69) and one (1) additional number from one (1) through
twenty-six (26), or request the retailer to generate a Quick Pick
selection of numbers from the lottery terminal. The additional number
may be the same as one of the first five numbers selected by the player.
Plays can be purchased for two dollars (U.S. $2.00), including any
specific statutorily-mandated tax of a Selling Lottery to be included
in the price of a Play. Plays may be purchased from a Selling Lottery
approved sales outlet in a manner as approved by the Selling Lottery
and in accordance with MUSL Rules. The Drawing Procedures adopted
by MUSL shall include procedures for randomly selecting the Powerball
game Winning Numbers and the Power Play multiplier.
(2) Claims. A ticket shall be the only proof of a game
Play or Plays and is subject to the validation requirements set forth
in subsection (g) of this section. The submission of a winning ticket
to the issuing Selling Lottery or its authorized agent shall be the
sole method of claiming a prize or prizes. A playslip has no pecuniary
or prize value and shall not constitute evidence of Play purchase
or of numbers selected. A terminal-produced paper receipt has no pecuniary
or prize value and shall not constitute evidence of Play purchase
or of numbers selected.
(3) Cancellations Prohibited. A Play may not be voided
or canceled by returning the ticket to the selling agent or to the
lottery, including tickets that are printed in error. A Selling Lottery
may develop an approved method of compensating retailers for Plays
that are not transferred to a player for a reason acceptable to the
Selling Lottery. No Play that is eligible for a prize can be returned
to the lottery for credit. Plays accepted by retailers as returned
Plays and which cannot be re-sold shall be deemed owned by the bearer
(4) Player Responsibility. It shall be the sole responsibility
of the player to verify the accuracy of the game Play or Plays and
other data printed on the ticket. The placing of Plays is done at
the player's own risk through the licensed sales agent who is acting
on behalf of the player in entering the Play or Plays.
(5) Entry of Plays. Plays may only be entered manually
using the lottery retailer terminal touch screen or by means of a
playslip provided by the Texas Lottery and hand-marked by the player
or by such other means approved by the Texas Lottery. Retailers shall
not permit the use of facsimiles of playslips, copies of playslips,
or other materials that are inserted into the terminal's playslip
reader that are not printed or approved by the Texas Lottery. Retailers
shall not permit any device to be connected to a lottery terminal
to enter Plays, except as approved by the Texas Lottery. A ticket
generated using a selection method that is not approved by the Texas
Lottery is not valid. A selection of numbers for a Play may be made
only if the request is made in person. Acceptable methods of Play
(A) using a self-service terminal;
(B) using a playslip;
(C) using a previously-generated "Powerball" ticket
provided by the player;
(D) requesting a retailer to use a Quick Pick to select
(E) requesting a retailer to manually enter numbers;
(F) using a QR code generated through a Texas Lottery
Mobile Application offered and approved by the Texas Lottery.
(6) Subscription sales. A subscription sales program
may be offered, at the discretion of the executive director.
(d) Powerball Prize Pool.
(1) Powerball Prize Pool.
(A) The prize pool for all prize categories shall consist
of fifty percent (50%) of each Drawing period's sales, inclusive of
any specific statutorily-mandated tax of a Selling Lottery to be included
in the price of a Play, and including contributions to the prize pool
accounts and prize reserve accounts.
(B) Powerball Prize Pool Accounts and Prize Reserve
Accounts. The Product Group shall set the contribution rates to the
prize pool and to one or more prize reserve or pool accounts established
by the MUSL Powerball Group Rules.
(i) Prize Reserve Accounts. The Product Group has established
the following prize reserve accounts for the Powerball game: the Powerball
Prize Reserve Account (PRA), which is used to guarantee the payment
of valid, but unanticipated, Grand Prize claims that may result from
a system error or other reason; and the Powerball Set Prize Reserve
Account (SPRA), which is used to fund deficiencies in low-tier Powerball
prize payments, subject to the limitations of the MUSL rules.
(ii) Prize Pool Accounts. The Product Group has established
the following prize pool accounts for the Powerball game: the Grand
Prize Pool, which is used to fund the current Grand Prize; the Powerball
Set Prize Pool, which is used to fund the Powerball Set Prizes; the
Powerball Set-Aside Pool, which is used to fund the payment of the
awarded minimum starting annuity Grand Prizes and minimum annuity
Grand Prize increase, if necessary (subject to the limitations in
the MUSL Powerball Group Rules), as may be set by the Product Group;
and the Grand Prize Carry Forward Pool (GPCFP), which is used to fund
the starting minimum annuity Grand Prize, as may be set by the Product
Group, if such funds are available, and if sales do not fund the Grand
Prize. The Power Play Prize Pool is described in subsection (k)(4)
of this section. The Powerball Set Prize Pool shall hold the temporary
balances that may result from having fewer than expected winners in
the Powerball Set Prize (aka low-tier prize) categories and the source
of the Powerball Set Prize Pool is the Party Lottery's weekly prize
contributions less actual Powerball Set Prize liability.
(iii) The above prize reserve accounts, the GPCFP and
the Set-Aside Pool shall have maximum balance amounts or balance limiter
triggers that are set by the Product Group and are detailed in the Comments to the MUSL Rule. The maximum balance
amounts and balance limiter triggers are subject to review by the
MUSL Board Finance and Audit Committee. The Finance and Audit Committee
shall have two weeks to state objections, if any, to the approved
maximum balance amounts or balance limiter triggers. Approved maximum
balance amounts or balance limiter triggers shall become effective
no sooner than two weeks after notice is given to the Finance and
Audit Committee and no objection is stated or sooner if the Committee
affirmatively approves the maximum balance amounts or balance limiter
triggers. The Group may appeal the Committee's objections to the full
Board. Group approved changes in the maximum balance amounts or balance
limiter triggers set by the Product Group shall be effective only
after the next Grand Prize win.