|(a) Powerball®. Powerball is a Multi-State Lottery
Association (MUSL) lottery draw game offered by all Lotteries that
have agreed to MUSL's Powerball Group Rules. The purpose of the Powerball
game is the generation of revenue for MUSL Party Lottery members and
Mega Millions Party Lotteries participating under the Cross-Sell Agreement,
through the operation of a specially designed multi-jurisdiction lottery
game that will award prizes to ticket holders of validated winning
tickets matching specified combinations of numbers randomly selected
in regularly scheduled Drawings. The Powerball game is authorized
to be conducted by the commission executive director (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 the Powerball game 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. To be clear, the authority to participate in the Powerball game
is provided to the Texas Lottery Commission (commission) by MUSL.
The conduct and play of the Powerball game must conform to the MUSL
Powerball Group 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 rules adopted by the
MUSL or the MUSL Powerball Group.
(1) "Agent" or "retailer" means a person or entity
authorized by the commission to sell lottery Plays.
(2) A "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 Powerball game
and Power Play 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 rules of the Selling Lottery and subsection (g) of
this section, and is a physical representation of the Play or Plays
sold to the player.
(4) "MUSL" means the Multi-State Lottery Association,
a government-benefit association wholly owned and operated by the
MUSL Party Lotteries.
(5) "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.
(6) "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.
(7) "Pari-Mutuel" or "pari-mutuel" as used in this
section shall mean wagered funds that are pooled and then paid in
equal shares to the holders of winning Plays as described in this
section and the MUSL Rules.
(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 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 and are
to be played by a player in the Powerball game.
(A) "Powerball Plays" (PB Plays) shall refer to Plays
purchased as part of the Powerball game, but shall not include Power
(B) "Power Play Plays" shall refer to Plays purchased
as part of the Power Play promotion described in subsection (k) of
(10) "Power Play" shall refer to the Power Play promotion
as described in subsection (k) of this section.
(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.
(A) "The Grand Prize" shall refer to the top prize
in the Powerball game.
(B) The 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, except in circumstances where
there is a guaranteed Grand Prize amount as described in paragraph
(6) of subsection (f) of this section.
(C) The "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.
(13) "Terminal" means a device authorized by the commission
for the purpose of issuing Powerball game tickets and as defined in §401.301
(General Definitions) of this chapter.
(14) "Winning Numbers" means the numbers randomly selected
during a Drawing event which shall be used to determine the winning
Plays for the Powerball game or the Powerball game promotion being
(c) Game Description.
(1) Powerball Game. Powerball is a five (5) out of
sixty-nine (69) plus one (1) out of twenty-six (26) numbers lottery
game drawn on the days specified by the MUSL Powerball Group and announced
by the executive director, as part of the Powerball Drawing, 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 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.
(A) Powerball Winning Numbers applicable to determine
Powerball prizes will be determined in the Powerball Drawing. During
the Powerball Drawing, five (5) numbers shall be drawn from the first
set of sixty-nine (69) and one (1) number shall be drawn from the
second set of twenty-six (26) numbers, which shall constitute the
Powerball Winning Numbers.
(B) 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.
(C) Powerball 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 PB Play. PB 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
(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. 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 Powerball 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) Subscription Sales. A subscription sales program
may be offered, at the discretion of the executive director.
(6) Maximum Purchase. The maximum number of consecutive
Drawings on a single PB Play purchase is ten (10), including Power
Play Plays if purchased.
(d) Powerball Prize Pool.
(1) Powerball Prize Pool.
(A) The prize pool for all Powerball prize categories
shall consist of fifty percent (50%) of each Drawing period's Powerball
sales, inclusive of any specific statutorily-mandated tax of a Selling
Lottery to be included in the price of a PB 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
(iv) The maximum contribution rate to the Grand Prize
Pool shall be 68.0131% of the prize pool (34.0066% of sales). An amount
up to five percent (5%) of a Party Lottery's sales shall be deducted
from a Party Lottery's Grand Prize Pool contribution and placed in
trust in one or more prize pool accounts and prize reserve accounts
held by the Product Group (hereinafter the "prize pool and reserve
deduction") at any time that the prize pool accounts and Party Lottery's
share of the prize reserve accounts is below the amounts designated
by the Product Group. An additional amount up to twenty percent (20%)
of a Party Lottery's sales shall be Cont'd...