|(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
(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;
(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.
(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
(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
(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
(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.
(G) The ticket data shall have been recorded on the
central computer system prior to the drawing, and the ticket data
must match the computer record data in every respect.
(H) The ticket shall pass all other confidential security
checks of the commission.
(2) The commission may pay the prize for a draw game
ticket that is partially mutilated or not intact if the ticket can
still be validated by the other validation requirements.
(3) Liability for void tickets, if any, is limited
to the replacement of ticket or refund of the sales price.
(4) A ticket shall be the only valid receipt for claiming
a prize. A copy of a ticket or a playslip has no pecuniary or prize
value and shall not constitute evidence of ticket purchase or of numbers
(5) In submitting an official draw game ticket for
validation, the player agrees to abide by applicable laws, all commission
rules, regulations, policies, directives, instructions, conditions,
procedures, and final decisions of the executive director.
(6) All prizes shall be subject to tax withholdings,
offsets, and other withholdings as provided by law.
(f) Payment of prizes by retailers.
(1) A retailer may pay to the ticket bearer game prizes
of an amount less than $600 for any valid claims presented to that
retailer. All tickets validated by a retailer must be paid by that
retailer. Retailers may pay claims for prizes if the commission's
validation system is operational. The retailer shall not charge the
claimant any fee for payment of the prize or for cashing a business
check drawn on the licensed retailer's account.
(2) Retailers may pay prizes in cash. If acceptable
to the claimant, retailers may also pay cash prizes by business check,
certified check, cashier's check, money order, gift card, stored-value
card, or store merchandise. If a retailer decides to pay with anything
other than cash, it is the responsibility of the retailer to ensure
the claimant has voluntarily agreed to the non-cash prize payment.
(g) Payment of prize awarded to minor.
(1) A person 18 years of age or older may purchase
a ticket to give as a gift to another person, including a minor.
(2) If a minor is entitled to a cash prize of less
than $600, the commission shall deliver to an adult member of the
minor's family or to the minor's guardian a check or warrant in the
amount of the prize payable to the order of the minor.
(3) If a minor is entitled to a cash prize of $600
or more, the commission shall deposit the amount of the prize in a
custodial bank account, with an adult member of the minor's family
or the minor's guardian serving as custodian for the minor.
(4) If a minor is entitled to a prize other than money,
the commission shall pay the cash equivalent of such prize in the
manner provided by paragraphs (2) and (3) of this subsection.
(5) A retailer is not authorized to pay a prize claimed
by a minor.
(h) Game termination and prize claim period.
(1) The executive director or his/her designee, at
any time, may announce the termination date for a draw game. If this
occurs, no tickets for that draw game shall be sold past the termination
(2) Draw game prizes shall be claimed no later than
180 days after the applicable draw date of the draw game. In the event
any player who has a valid winning ticket does not claim the prize
within 180 days after the drawing in which the prize was won, the
prize amount shall be deposited in accordance with Government Code, §466.408.
|Source Note: The provisions of this §401.304 adopted to be effective February 16, 1993, 18 TexReg 707; amended to be effective September 20, 1993, 18 TexReg 5885; transferred effective December 27, 1993, as published in the Texas Register January 4, 1994, 19 TexReg 78; amended to be effective March 14, 1996, 21 TexReg 1756; amended to be effective August 31, 1999, 24 TexReg 6971; amended to be effective November 29, 2001, 26 TexReg 9589; amended to be effective December 26, 2007, 32 TexReg 9609; amended to be effective December 31, 2017, 42 TexReg 7385; amended to be effective August 30, 2020, 45 TexReg 5908