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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) Subscription Sales. A subscription sales program
may be offered, at the discretion of the executive director.
(5) Maximum Purchase. The maximum number of consecutive
Drawings on a single PB Play purchase is fifteen (15), 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, or to fund Guaranteed Grand Prizes
per subsection (f)(6)(E) of this section; 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.
(iv) The maximum contribution rate to the Grand Prize
Pool shall be 68.0131% of the prize pool (34.0066% of sales) except
as provided in subsection (f)(6)(E) of this section. 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 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.
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