| deducted from a Party Lottery's
Grand Prize Pool contribution and placed in trust in the GPCFP to
be held by the Product Group at a time as determined by the Product
Group.
(v) The Product Group may determine to expend all or
a portion of the funds in the Powerball prize pool accounts (except
the Powerball Grand Prize Pool account and the GPCFP) and the prize
reserve accounts: (1) for the purpose of indemnifying the Selling
Lotteries for the payment of prizes to be made by the Selling Lottery;
and, (2) for the payment of prizes or special prizes in the game,
limited to prize pool and prize reserve contributions from lotteries
participating in the special prize promotion, subject to the approval
of the Board's Finance and Audit Committee or that Committee's failure
to object after given two weeks' notice of the planned action, which
actions may be appealed to the full MUSL Board by the Product Group.
The GPCFP may only be expended to fund the starting minimum annuity
Grand Prize.
(vi) The prize reserve shares of a Party Lottery may
be adjusted with refunds to the Party Lottery from the prize reserve
account(s) as may be needed to maintain the approved maximum balance
and sales percentage shares of the Party Lotteries.
(vii) A Party Lottery may contribute to its sales percentage
share of prize reserve accounts over time, but in the event of a draw
down from a prize reserve account, a Party Lottery is responsible
for its full sales percentage share of the prize reserve account,
whether or not it has been paid in full.
(viii) Any amount remaining in the Powerball prize
pool accounts or prize reserve accounts when the Product Group declares
the end of this game shall be returned to the lotteries participating
in the accounts after the end of all claim periods of all Selling
Lotteries, carried forward to a replacement game or otherwise expended
in a manner at the election of the individual Members of the Product
Group in accordance with jurisdiction statute.
(2) Expected Powerball Prize Payout Percentages. The
Grand Prize payout shall be determined on a pari-mutuel basis. Except
as otherwise provided in this section, all other prizes awarded shall
be paid as single payment set cash prizes. All prize payouts are made
with the following expected prize payout percentages, although the
prize payout percentage per draw may vary:
Attached Graphic
(A) The prize money allocated to the Powerball Grand
Prize category shall be divided on a pari-mutuel basis by the number
of PB Plays winning the Powerball Grand Prize.
(B) Powerball Set Prize Pool Carried Forward. For Party
Lotteries, the Powerball Set Prize Pool (for single payment prizes
of $1,000,000 or less) shall be carried forward to subsequent draws
if all or a portion of it is not needed to pay the Powerball Set Prizes
awarded in the current draw.
(C) Pari-Mutuel Powerball Prize Determinations. Except
as otherwise provided, if the total of the Powerball Set Prizes (as
multiplied by the respective Power Play multiplier, if applicable)
awarded in a Drawing exceeds the percentage of the prize pool allocated
to the Powerball Set Prizes, then the amount needed to fund the Powerball
Set Prizes, including Power Play prizes, awarded shall be drawn first
from the amount available in the Powerball Set Prize Pool and the
Power Play Prize Pool, if any; second from the SPRA, if available,
not to exceed forty million dollars ($40,000,000.00) per Drawing;
and, third from other amounts as agreed to by the Product Group in
their sole discretion.
(D) If, after these sources are depleted, there are
not sufficient funds to pay the Set Prizes awarded, including Power
Play Prizes, then the highest Set Prize shall become a pari-mutuel
prize. If the amount of the highest Set Prize, when paid on a pari-mutuel
basis, drops to or below the next highest Set Prize and there are
still not sufficient funds to pay the remaining Set Prizes awarded,
then the next highest Set Prize, including Power Play prizes, shall
become a pari-mutuel prize. This procedure shall continue down through
all Set Prize levels, if necessary, until all Set Prize levels become
pari-mutuel prize levels. In that instance, the money available from
the funding sources listed in this rule shall be divided among the
winning PB Plays in proportion to their respective prize percentages.
Powerball Set Prizes and Power Play Prizes will be reduced by the
same percentage.
(E) By agreement, the Licensee Lotteries shall independently
calculate their Set Prize pari-mutuel prize amounts. The Party Lotteries
and the Licensee Lotteries shall then agree to set the pari-mutuel
prize amounts for all lotteries selling the game at the lesser of
the independently-calculated prize amounts.
(e) Probability of Winning Powerball Plays. The following
table sets forth the probability of winning PB Plays and the probable
distribution of winning PB Plays in and among each prize category,
based upon the total number of possible combinations in the Powerball
game. The Set Prize Amount shall be the prizes set for all Selling
Lotteries unless prohibited or limited by a jurisdiction's statute
or judicial requirements.
Attached Graphic
(f) Powerball Prize Payment.
(1) Powerball Grand Prizes. The Advertised Grand Prize
in a Powerball game is not a guaranteed amount; it is an estimated
amount, and all advertised prizes, even advertised Set Prizes, are
estimated amounts. At the time of ticket purchase, a player must select
a payment option of either a single lump sum payment (cash value option
or CVO) or annuitized payments (Annuity) of a share of the Grand Prize
if the PB Play is a winning Play. If no selection is made, payment
option will be as described in the chart below:
Attached Graphic
(A) A player's selection of the payment option at the
time of purchase is final and cannot be revoked, withdrawn, or otherwise
changed.
(B) The Grand Prize available in the Grand Prize Pool
shall be determined on a pari-mutuel basis among all winning PB Plays
of the Grand Prize. A player(s) who elects a cash value option payment
shall be paid their share(s) in a single lump sum payment. The annuitized
option prize shall be determined by multiplying the winning Play's
share of the Grand Prize Pool by the annuity factor established in
accordance with Texas law and the rules of the Texas Comptroller of
Public Accounts. The MUSL Annuity Factor will not be used for Texas
Lottery players. Neither MUSL nor any Selling Lottery shall be responsible
or liable for changes in the advertised or estimated annuity prize
amount and the actual amount purchased after the prize payment method
is actually known to MUSL.
(C) In certain instances announced by the Powerball
Group, the Grand Prize shall be a guaranteed amount and shall be determined
pursuant to paragraph (6) of this subsection.
(D) If individual shares of the Grand Prize Pool funds
held to fund an annuity is less than $250,000.00, the Powerball Group,
in its sole discretion, may elect to pay the winners their share of
the funds held in the Grand Prize Pool. All annuitized prizes shall
be paid annually in thirty (30) payments with the initial payment
being made in a single payment, to be followed by twenty-nine (29)
payments funded by the annuity.
(E) All annuitized prizes shall be paid annually in
thirty (30) graduated payments, as provided by the MUSL rules, (increasing
each year) at a rate as determined by the MUSL Product Group. Prize
payments may be rounded down to the nearest one thousand dollars ($1,000).
(F) Funds for the initial payment of an annuitized
prize or the lump sum cash value option payment shall be made available
by MUSL for payment by the Selling Lottery no earlier than the fifteenth
calendar day (or the next banking day if the fifteenth day is a holiday)
following the Drawing. If necessary, when the due date for the payment
of a prize occurs before the receipt of funds in the prize pool trust
sufficient to pay the prize, the transfer of funds for the payment
of the full lump sum cash value option payment amount may be delayed
pending receipt of funds from the Selling Lotteries. The identification
of the securities to fund the annuitized prize shall be at the sole
discretion of the State of Texas. If the State of Texas purchases
the securities, or holds the prize payment annuity for a Powerball
prize won in this state, the prize winner will have no recourse on
the MUSL or any other Party Lottery for payment of that prize.
(2) Payment of Prize Payments upon the Death of a Prize
Winner. In the event of the death of a prize winner, payments may
be made in accordance with §401.310 of this chapter (relating
to Payment of Prize Payments Upon Death of Prize Winner), otherwise,
payment of prize payments will be made to the estate of a deceased
prize winner in accordance with Texas Government Code §466.406.
Cont'd... |
