5-504

5-504. Commission; director; powers and duties;
definitions

A. The commission shall meet with the director not less than once each quarter to
make recommendations and set policy, receive reports from the director and transact other
business properly brought before the commission.

B. The commission shall oversee a state lottery to produce the maximum amount of
net revenue consonant with the dignity of the state. To achieve these ends, the
commission shall authorize the director to adopt rules in accordance with title 41,
chapter 6. Rules adopted by the director may include provisions relating to the
following:

1. Subject to the approval of the commission, the types of lottery games and the
types of game play-styles to be conducted.

2. The method of selecting the winning tickets or shares for noncomputerized online
games, except that no method may be used that, in whole or in part, depends on the
results of a dog race, a horse race or any sporting event.

3. The manner of payment of prizes to the holders of winning tickets or shares,
including providing for payment by the purchase of annuities in the case of prizes
payable in installments, except that the commission staff shall examine claims and may
not pay any prize based on altered, stolen or counterfeit tickets or based on any tickets
that fail to meet established validation requirements, including rules stated on the
ticket or in the published game rules, and confidential validation tests applied
consistently by the commission staff. No particular prize in a lottery game may be paid
more than once, and in the event of a binding determination that more than one person is
entitled to a particular prize, the sole remedy of the claimants is the award to each of
them of an equal portion of the single prize.

4. The method to be used in selling tickets or shares, except that no elected
official's name may be printed on such tickets or shares. The overall estimated odds of
winning some prize or some cash prize, as appropriate, in a given game shall be printed
on each ticket or share.

5. The licensing of agents to sell tickets or shares, except that a person who is
under eighteen years of age shall not be licensed as an agent.

6. The manner and amount of compensation to be paid licensed sales agents necessary
to provide for the adequate availability of tickets or shares to prospective buyers and
for the convenience of the public, including provision for variable compensation based on
sales volume.

7. Matters necessary or desirable for the efficient and economical operation and
administration of the lottery and for the convenience of the purchasers of tickets or
shares and the holders of winning tickets or shares.

C. The commission shall authorize the director to issue orders and shall approve
orders issued by the director for the necessary operation of the lottery. Orders issued
under this subsection may include provisions relating to the following:

1. The prices of tickets or shares in lottery games.

2. The themes, game play-styles, and names of lottery games and definitions of
symbols and other characters used in lottery games, except that each ticket or share in a
lottery game shall bear a unique distinguishable serial number.

3. The sale of tickets or shares at a discount for promotional purposes.

4. The prize structure of lottery games, including the number and size of prizes
available. Available prizes may include free tickets in lottery games and merchandise
prizes.

5. The frequency of drawings, if any, or other selections of winning tickets or
shares, except that:

(a) All drawings shall be open to the public.

(b) The actual selection of winning tickets or shares may not be performed by an
employee or member of the commission.

6. Requirements for eligibility for participation in grand drawings or other runoff
drawings, including requirements for the submission of evidence of eligibility within a
shorter period than that provided for claims by section 5-518.

7. Incentive and bonus programs designed to increase sales of lottery tickets or
shares and to produce the maximum amount of net revenue for this state.

D. Notwithstanding title 41, chapter 6 and subsection B of this section, the
director, subject to the approval of the commission, may establish a policy, procedure or
practice that relates to an existing online game or a new online game that is the same
type and has the same type of game play-style as an online game currently being conducted
by the lottery or may modify an existing rule for an existing online game or a new online
game that is the same type and has the same type of game play-style as an online game
currently being conducted by the lottery, including establishing or modifying the matrix
for an online game by giving notice of the establishment or modification at least thirty
days before the effective date of the establishment or modification.

E. The commission shall maintain and make the following information available for
public inspection at its offices during regular business hours:

1. A detailed listing of the estimated number of prizes of each particular
denomination expected to be awarded in any instant game currently on sale.

2. After the end of the claim period prescribed by section 5-518, a listing of the
total number of tickets or shares sold and the number of prizes of each particular
denomination awarded in each lottery game.

3. Definitions of all play symbols and other characters used in each lottery game
and instructions on how to play and how to win each lottery game.

F. Any information that is maintained by the commission and that would assist a
person in locating or identifying a winning ticket or share or that would otherwise
compromise the integrity of any lottery game is deemed confidential and is not subject to
public inspection.

G. The commission, in addition to other games authorized by this article, shall
establish two special games for each year to be conducted concurrently with other lottery
games authorized under subsection B of this section. The monies for prizes, for operating
expenses and for payment to the commerce and economic development commission fund, as
provided in section 5-522, subsection A, paragraph 2, shall be accounted for separately
as nearly as practicable in the lottery commission's general accounting system. The
monies shall be derived from the revenues of the special games, and monies for prizes do
not become an expense to the lottery commission's annual appropriation as provided in
section 5-505, subsection D and section 5-522, subsection H. Monies saved from the
revenues of the special games, by reason of operating efficiencies, shall become other
revenue of the lottery commission and revert to the state general fund.

H. The commission, in addition to other games authorized by this article, may
establish multistate lottery games to be conducted concurrently with other lottery games
authorized under subsections B and G of this section. The monies for prizes, for
operating expenses and for payment to the state general fund shall be accounted for
separately as nearly as practicable in the lottery commission's general accounting
system. The monies shall be derived from the revenues of multistate lottery games.

I. The commission, in addition to other games authorized by this article, shall
establish special instant ticket games with play areas protected by paper tabs designated
for use by charitable organizations. The monies for prizes and for operating expenses
shall be accounted for separately as nearly as practicable in the lottery commission's
general accounting system. Monies saved from the revenues of the special games, by reason
of operating efficiencies, shall become other revenue of the lottery commission and
revert to the state general fund.

J. The commission or director shall not establish or operate any online or
electronic keno game or any game played on the internet.

K. The commission or director shall not establish or operate any lottery game or
any type of game play-style, either individually or in combination, that uses gaming
devices or video lottery terminals as those terms are used in section 5-601.02, including
monitor games that produce or display outcomes or results more than once per hour.

L. The director shall print, in a prominent location on each lottery ticket or
share, a statement that help is available if a person has a problem with gambling and a
toll-free telephone number where problem gambling assistance is available. The director
shall require all licensed agents to post a sign with the statement that help is
available if a person has a problem with gambling and the toll-free telephone number at
the point of sale as prescribed and supplied by the director. The requirements of this
subsection apply to tickets and shares printed after July 18, 2000.

M. For the purposes of this section:

1. "Charitable organization" means any nonprofit organization, including not more
than one auxiliary of that organization, that has operated for charitable purposes in
this state for at least two years before submitting a license application under this
article.

2. "Game play-style" means the process or procedure that a player must follow to
determine if a lottery ticket or share is a winning ticket or share.

3. "Matrix" means the odds of winning a prize and the prize payout amounts in a
given game.