<<Prev Rule

Texas Administrative Code

Next Rule>>
RULE §401.304Draw Game Rules (General)

(a) Price of tickets and prizes.

  (1) The purchase price of each draw game ticket shall be as set forth in the rules of the specific game being played; provided that, the purchase price for promotional groups of tickets shall be determined by the executive director.

  (2) The prize pool for draw games shall have contributions to prize categories as set forth in the rules of the specific game being played.

(b) Sale of tickets.

  (1) Entry of Plays. Plays may be entered using the lottery retailer terminal keypad or touch screen, by means of a playslip, using authorized third-party point-of-sale ("POS") systems, or by other means approved by the commission. Retailers shall not permit any device to be physically or wirelessly connected to a lottery terminal to enter Plays, except as approved by the commission. A ticket generated using a selection method that is not approved by the commission is not valid. Acceptable methods of Play selection may include:

    (A) using a self-service lottery ticket vending machine;

    (B) using a playslip;

    (C) using a previously-generated draw game ticket, from the game being played, provided by the player;

    (D) selecting a Quick Pick;

    (E) requesting a retailer to manually enter numbers; or

    (F) using a QR code generated through a Texas Lottery Mobile Application offered and approved by the commission.

  (2) Except to the extent that sales in draw games are impeded by draw breaks, draw game tickets may be sold during draw game operating hours. Retailers must give prompt service to lottery customers present and waiting at the terminal to purchase tickets for draw games.

  (3) Draw game tickets shall be sold only at the location listed on each retailer's license from the commission. For purposes of this section, the sale of a draw game lottery ticket at the licensed location means a lottery transaction in which all elements of the sale between the retailer and the purchaser must take place at the retailer location using their terminal, including the exchange of consideration, the exchange of the playslip if one is used, and the exchange of the draw game ticket.

  (4) The executive director may authorize promotions in connection with any draw game.

  (5) Announcement of incentive or bonus program. The executive director shall announce each incentive or bonus program prior to its commencement. The announcement shall specify the beginning and ending time, if applicable, of the incentive or bonus program and the value for the award.

  (6) 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.

(c) Drawings and end of sales prior to drawings.

  (1) The manner and frequency of drawings shall be as set forth in the rules of the specific game being played and the draw procedures for the specific game.

  (2) The drawings shall be conducted at times and locations to be announced by the executive director.

  (3) The executive director shall establish the times for draw breaks for each draw game.

  (4) The executive director or his/her designee shall designate the type of drawing equipment to be used and shall establish draw procedures to randomly select the winning combination for each type of draw game. Draw procedures shall include provisions for the substitution of backup drawing equipment in the event the primary drawing equipment malfunctions or fails for any reason.

  (5) A lottery drawing representative and an independent certified public accountant, shall be responsible for conducting the drawing in compliance with the lottery's draw procedures. A lottery drawing representative and an independent certified public accountant, shall attest whether the drawing was conducted in accordance with proper draw procedures at the end of each drawing.

(d) Procedures for claiming draw game prizes.

  (1) All apparent winning tickets presented for payment to the lottery or a retailer must meet the commission's validation requirements as set forth in subsection (e) of this section.

  (2) To claim a draw game prize of less than $600, the claimant may present the winning draw game ticket to a retailer or to the commission. All tickets validated by a retailer must be paid by that retailer. If the retailer chooses not to validate the winning draw game ticket, the retailer does not have to pay the draw game prize. The commission will pay all winning draw game tickets pursuant to this section.

  (3) To claim a draw game prize of $600 or more, the claimant shall present the winning draw game ticket to the commission. For purposes of this provision, the term "commission" includes claim centers located throughout Texas. In connection with certain draw games, the top-level prizes must be claimed at commission headquarters. For any claim presented to the commission, the claimant shall follow all procedures of the commission related to claiming a prize, including but not limited to filling out a claim form, presenting appropriate identification as required, completing the back of the ticket, and submitting these items including the apparent winning ticket to the commission by mail or in person. Upon validation of the ticket as a winning ticket, the commission shall pay the claimant the amount due in accordance with commission procedures. If the ticket is determined to be a non-winning ticket, the claim shall be denied and the claimant shall be promptly notified. Tickets will not be returned to the claimant.

  (4) Before paying any prize, claim center personnel shall validate the winning ticket according to established validation requirements and procedures.

  (5) All prizes shall be subject to tax withholding, offsets, and other withholdings as provided by law.

  (6) If a person is indebted or owes delinquent taxes to the state, other than those specified in paragraph (5) of this subsection, the winnings of a person shall be withheld until the debt or taxes are paid.

  (7) When paying a prize of $600 or more, the commission shall file the appropriate income reporting form with the Internal Revenue Service.

  (8) Payment of a prize will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification following the completion of all procedures of the commission related to claiming a prize.

  (9) The commission shall recognize only one person as claimant of a particular prize. A claim may be made in the name of a person other than an individual only if the person possesses a federal employer identification number (FEIN) issued by the Internal Revenue Service and such number is shown on the claim form. Groups, family units, clubs, organizations, or other persons without an FEIN shall designate one individual in whose name the claim is to be filed. If a claim is erroneously entered with multiple claimants, the claimants shall designate one of them as the individual recipient of the prize, or, if they fail to designate an individual recipient, the director may designate any one of the claimants as the sole recipient. In either case, the claim shall then be considered as if it were originally entered in the name of the designated individual and payment of any prizes won shall be made to that single individual. Once a ticket is submitted as a claim, it will not be returned to the winner.

  (10) The executive director has discretion to set a maximum total cash amount or maximum payment time period for each prize level.

(e) Validation requirements.

  (1) To be a valid winning draw game ticket, all of the following conditions must be met.

    (A) All printing on the ticket shall be present in its entirety, be legible, and correspond, using the computer validation file, to the combination and data printed on the ticket. The ticket must have been produced prior to the drawing.

    (B) The ticket shall not be mutilated, altered, unreadable, reconstituted, misregistered, defective, incomplete, or tampered with in any manner.

    (C) The ticket shall not be counterfeit or forged, in whole or in part, or an exact duplicate of another winning ticket.

    (D) The ticket must have been issued by an authorized retailer in an authorized manner on official Texas Lottery paper stock, or, for third-party point-of-sale systems approved by the commission, printed on paper stock or otherwise issued in a manner approved by the commission to provide tangible evidence of participation in a lottery game.

    (E) The ticket shall not be stolen. Neither the commission nor its retailers shall be responsible for the payment of prizes for lost or stolen tickets.

    (F) The ticket shall not have been previously paid.


Next Page

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page