|(a) Mega Millions®. The Multi-State Lottery Association
("MUSL") has entered into an Agreement ("Cross-Sell Agreement") with
those U.S. lotteries operating under an agreement to sell a draw game
known as Mega Millions ("Mega Millions Lotteries") to permit the MUSL
Party Lotteries who are members of the MUSL Mega Millions Product
Group ("Product Group"), including the Texas Lottery Commission (commission),
to sell the Mega Millions lottery game. The purpose of the Mega Millions
game is the generation of revenue for Mega Millions Lotteries and
Product Group members participating under the Cross-Sell 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. The
Mega Millions game is authorized to be conducted by the commission
executive director (executive director) under the conditions of the
Cross-Sell Agreement, 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 the Mega Millions game to the requirements
of the MUSL rules and the Cross-Sell Agreement, if, in the opinion
of the executive director, such instructions, directives, and procedures
are in conformance with state law. To be clear, the authority to participate
in the Mega Millions game is provided to the commission by MUSL through
the Cross-Sell Agreement. The conduct and play of the Mega Millions
game must conform to the Product Group's Mega Millions game rules
("MUSL MM Rules"). Further, if a conflict arises between this section
and §401.304 of this chapter (relating to Draw Game Rules (General))
, this section shall have precedence. In addition to other applicable
rules contained in Chapter 401, this section and definitions herein
apply unless the context requires a different meaning or is otherwise
inconsistent with the intent of the MUSL MM Rules adopted by the Product
(b) Definitions. In addition to the definitions provided
in §401.301 of this subchapter (relating to General Definitions),
and unless the context in this section otherwise requires, the following
(1) "Agent" or "retailer" means a person or entity
authorized by the commission to sell lottery Plays.
(2) "Drawing" refers collectively to the formal draw
event for randomly selecting the winning numbers that determine the
number of winning Plays for each prize level of the Mega Millions
game and Megaplier® Promotion.
(3) "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 Selling Lottery, and
is a physical representation of the Play or Plays sold to the player
as described in subsection (g) of this section (Ticket Validation).
(4) "Just the Jackpot® Play" ("JJ Play") shall
refer to a wager purchased which includes two (2) Plays as part of
the Just the Jackpot Promotion as described in subsection (l) of this
(5) "Megaplier Plays" shall refer to Plays purchased
as part of the Megaplier Promotion described in subsection (k) of
(6) "Mega Millions Lotteries" refers to those lotteries
that have joined under the Mega Millions Lottery Agreement and that
have entered into the Cross-Sell Agreement with MUSL for the selling
of the Mega Millions game by the Product Group. "Mega Millions Finance
Committee" refers to a Committee of the Mega Millions Lotteries that
determines the Grand Prize amount (cash value option and annuity).
(7) "Mega Millions Plays" ("MM Plays") shall refer
to Plays purchased as part of the Mega Millions game, but shall not
include JJ Plays or Megaplier Plays.
(8) "MUSL" means the Multi-State Lottery Association,
a government-benefit association wholly owned and operated by the
MUSL Party Lotteries.
(9) "MUSL Board" means the governing body of the MUSL,
which is comprised of the chief executive officer of each Party Lottery.
(10) "Party Lottery" means a state lottery or lottery
of a political subdivision or entity that has joined MUSL and, in
the context of the Product Group rules, has joined in selling the
games offered by the Product Group. "Selling Lottery" or "Participating
Lottery" shall mean a state lottery or lottery of a political subdivision
or entity that is participating in selling the Mega Millions game
and that may be a member of either the Product Group or the Mega Million
(11) "Play" means a set of six (6) numbers, the first
five (5) from a field of seventy (70) numbers and the last one (1)
from a field of twenty-five (25) numbers, that appear on a ticket
and are to be played by a player in the game. As used in this section,
unless otherwise indicated, "Play" includes both Mega Millions Plays
("MM Plays") and Just the Jackpot Plays ("JJ Play"). "Megaplier Plays"
are separately described in subsection (k) of this section.
(12) "Prize" means an amount paid to a person or entity
holding a winning ticket. The terms "Grand Prize" or "Jackpot" may
be used interchangeably and shall refer to the top prize in the Mega
Millions game. "Advertised Grand Prize" or "Advertised Jackpot" shall
mean the estimated annuitized Grand Prize amount as determined by
the Mega Millions Finance Committee and communicated through the Selling
Lotteries prior to the next Mega Millions Drawing. The Advertised
Grand Prize is not a guaranteed prize amount and the actual Grand
Prize amount may vary from the advertised amount, except in circumstances
where there is a guaranteed Grand Prize amount as described in subsection
(f)(1) of this section.
(13) "Product Group" means the MUSL Party Lotteries
who are members of the MUSL Mega Millions Product Group and who offer
the Mega Millions game product pursuant to the terms of the Cross-Sell
Agreement between MUSL and the Mega Millions Lotteries, and in accordance
with the Multi-State Lottery Agreement and the MUSL MM Rules.
(14) "Set Prize" or "low-tier prize" means all other
prizes, except the Grand Prize and, except in instances outlined in
this section, or the MUSL MM Rules, will be equal to the prize amount
established by the MUSL Board for the prize level.
(15) "Terminal" means a device authorized by the commission
for the purpose of issuing Mega Millions game tickets and as defined
in §401.301 (General Definitions) of this chapter.
(16) "Winning Numbers" means the indicia or numbers
randomly selected during a Drawing event which shall be used to determine
the winning Plays for the Mega Millions game contained on a game ticket.
(c) Game Description. Mega Millions is a five (5) out
of seventy (70) plus one (1) out of twenty-five (25) lottery game
drawn on the day(s), time(s) and location(s) as determined by the
Mega Millions Lotteries, and which pays the Grand Prize, at the election
of the player made in accordance with this section, or by a default
election made in accordance with this section, either on a graduated
annuitized annual pari-mutuel basis or as a cash value option using
a rate determined by the Mega Millions Finance Committee on a pari-mutuel
basis. Except as provided in this section, all other prizes are paid
on a single payment basis. During the Drawing event, five (5) numbers
shall be drawn from the first set of seventy (70) numbers, and one
(1) number shall be drawn from the second set of twenty-five (25)
numbers, which shall constitute the Winning Numbers.
(1) Mega Millions Play. To play Mega Millions, a player
shall select (or request a Quick Pick) five (5) different numbers,
from one (1) through seventy (70) and one (1) additional number from
one (1) through twenty-five (25). The additional number may be the
same as one of the first five numbers selected by the player. MM Plays
can be purchased for two dollars (U.S. $2.00), including any specific
statutorily-mandated tax of a Party Lottery to be included in the
price of a lottery Play. Plays may be purchased from a Party Lottery
approved sales outlet in a manner as approved by the Party Lottery
and in accordance MUSL rules.
(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 commission 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
(3) Cancellations Prohibited. In all instances, a Play
recorded on the Lottery gaming system may not be voided or cancelled
by returning the ticket to the selling agent or to the commission,
including tickets that are misprinted, illegible, printed in error,
or for any reason not successfully transferred to an authorized selling
entity or player. 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 and not prohibited
by the Mega Millions Product Group. No Play that is eligible for a
prize can be returned to the commission for credit. Plays accepted
by retailers as returned Plays and which cannot be re-sold shall be
deemed owned by the bearer thereof.
(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) Maximum Purchase. The maximum number of consecutive
drawings on a single Play purchase is ten (10).
(6) Subscription sales. A subscription sales program
may be offered, at the discretion of the executive director.
(d) Mega Millions Prize Pool. The prize pool for all
prize categories offered by the Party Lotteries shall consist of up
to fifty-five percent (55%) of each Drawing period's sales, inclusive
of any specific statutorily-mandated tax of a Party Lottery to be
included in the price of a MM Play, and inclusive of contributions
to the prize pool accounts and prize reserve accounts, but may be
higher or lower based upon the number of winning Plays at each prize
level, as well as the funding required to meet a guaranteed Annuity
Grand Prize as may be required by subsection (f)(1) of this section.
(1) Mega Millions Prize Pool Accounts and Prize Reserve
Accounts. The Product Group shall set the contribution rates to the
Prize Pool and Prize Reserve Accounts established by this section.
(A) The following Prize Reserve Account for the Mega
Millions game is hereby established: the 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,
to fund deficiencies in the Set-Aside Pool, and to fund pari-mutuel
prize deficiencies as defined and limited in subsections (d)(3)(A)
and (k)(9)(B)(i) of this section.
(B) The following Prize Pool Accounts for the Mega
Millions game are hereby established:
(i) The Grand Prize Pool (GPP), which is used to fund
the current Grand Prize;
(ii) The Set Prize Pool (SPP), which is used the fund
the Set Prizes. The SPP shall hold the temporary balances that may
result from having fewer than expected winners in the Set Prize (aka
low-tier prize) categories. The source of the SPP is the Party Lottery's
weekly prize contributions less actual Set Prize liability; and
(iii) The Set-Aside Pool (SAP), which is used to fund
the payment of the awarded minimum starting Annuity Grand Prizes and
the minimum Annuity Grand Prize increase, if necessary (subject to
the limitations in this section or the MUSL MM Rules), as may be set
by the Product Group. The source of the SAP funding shall accumulate
from the difference between the amount in the Grand Prize Pool at
the time of a Grand Prize win and the amount needed to fund Grand
Prize payments as determined by the Mega Millions Lotteries.
(C) The above Prize Reserve Account shall have maximum
balance amounts or balance limiter triggers that are set by the Product
Group and are detailed in the Comments to
MUSL MM Rule 28. The maximum balance amounts and balance limit 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 Product 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.