Title 36 — Subtitle 02. Lottery Provisions

Chapter 01. General

Regulation .01 Definitions.Link Copy Citation

In addition to the terms defined in State Government Article, §9-101, Annotated Code of Maryland, and in COMAR 36.01.01.01, which have the same meanings in this subtitle, the following terms have the meanings indicated.

Terms Defined.

(1)

“Activate” means:

(a)

To make a book of instant tickets ready for sale in the Lottery Central System; or

(b)

To make a ticket ready for sale.

(2)

“Announced end of game” means the date set by the Agency after which retailers may not activate instant tickets for that game.

(3)

Bonus Drawing.

(a)

“Bonus drawing” means a game the Agency designates as a bonus drawing that may have a claiming period other than 182 days after the drawing in which the prize is won.

(b)

“Bonus drawing” does not include a daily or weekly lottery drawing.

(4)

Bonus Game.

(a)

“Bonus game” means a game the Agency designates as a bonus game that may have a claiming period other than 182 days after the drawing in which the prize is won.

(b)

“Bonus game” does not include a:

(i)

Daily or weekly lottery game; or

(ii)

Specific play features on a ticket.

(5)

“Claim form” means a paper or computer-generated document that identifies a prize claimant, prize amount, game and ticket characteristics.

(6)

“Coupon” means a paper or computer-generated code that a player may apply to purchase a ticket.

(7)

“Daily game” means a draw game for which the Agency offers a drawing at least once every day.

(8)

“Designated cutoff time” means the time after which a ticket may no longer be purchased for the next drawing of a specified lottery game.

(9)

Draw Game.

(a)

“Draw game” means a lottery game for which a winning result is determined by a drawing for which a ticket:

(i)

Is sold and redeemed through a subscription or through a terminal at retailer locations; and

(ii)

May be generated by a terminal and is a record of a transaction for a draw game.

(b)

“Draw game” includes:

(i)

A jackpot game including a multi-jurisdictional jackpot game;

(ii)

A nonjackpot game including a multi-jurisdictional jackpot game;

(iii)

A monitor game; and

(iv)

Any other Agency-authorized lottery game designated as a draw game.

(10)

“Draw ticket” means a ticket purchased from a terminal or through a subscription for a draw game.

(11)

“Drawing” means a random selection event used for determining winning numbers game data of certain lottery games.

(12)

“Drawing date” means the day, days of the week, or times of day on which the winning game data a lottery game are selected.

(13)

“Entry” means a qualifying purchase or action by which a player may participate in a promotion or special activity.

(14)

“ePlayslip” means an on-screen display or two-dimensional code, that:

(a)

Contains player-selected or randomly generated game data; and

(b)

Is electronically generated by a website or mobile application authorized by the Agency.

(15)

Fast Play Game.

(a)

“Fast Play game” means a game issued by the Lottery Central System where predetermined game results are obtained from a finite pool of randomly generated results for that game and are available through the terminal.

(b)

“Fast Play game” does not include a draw game.

(16)

“Game data” means any item or symbol used to identify:

(a)

A winner of a lottery game, including:

(i)

Numerals;

(ii)

Letters;

(iii)

Symbols, and

(iv)

Icons including branded logos;

(b)

The cost of a ticket; and

(c)

Number of draws and which draws on a ticket.

(17)

“In-lane ticket” means a ticket that:

(a)

Is purchased by a player;

(b)

May only be purchased at a retailer that is a commercial establishment; and

(c)

Is activated for play or produced when it is processed through a third-party point of sale terminal or cash register.

(18)

Instant Game.

(a)

“Instant game” means a lottery game for which a ticket has a covered area that the player exposes in accordance with the game instructions, and includes:

(i)

Scratch-off tickets; and

(ii)

Tickets using other methods of revealing a hidden area with pre-determined results.

(b)

“Instant game” does not include an in-lane ticket for a draw game.

(19)

“Instant ticket” means a ticket issued in an instant game.

(20)

“Instant ticket pack” or “instant ticket book” means group of tickets in sequential order bundled together.

(21)

“Jackpot game” means a lottery game for which the top prize amount varies:

(a)

Based on sales; and

(b)

If the top prize was won in the preceding drawing.

(22)

“Lottery Central System” means an integrated computer service and equipment that the Agency authorizes and procures for the purposes of:

(a)

Producing lottery tickets at retailer locations;

(b)

Facilitating lottery ticket transactions;

(c)

Providing tools and the means by which retailers:

(i)

Determine sales;

(ii)

Cash tickets;

(iii)

Confirm receipt and activate an instant ticket book;

(iv)

Display of animations of winning numbers;

(v)

Process a ticket, ePlayslip, or playslip;

(vi)

Print special reports and tickets;

(vii)

Order instant tickets;

(viii)

Order supplies; and

(ix)

Coordinate the distribution of tickets;

(d)

Providing random number generating equipment to conduct and offer monitor games, Cash Pop and Fast Play games;

(e)

Communicating with lottery retailers; and

(f)

Performing any other function, the Agency identifies as necessary to the operation of the State lottery and accounting for its proceeds.

(23)

“Lottery Central System contractor” means the person under contract with the Agency to provide all the goods and services required under the contract for the Lottery Central System.

(24)

“Monitor” means a television screen or similar type of screen used to display monitor game results and other Agency communications.

(25)

“Monitor game” means a draw game for which:

(a)

Tickets are generated by a terminal;

(b)

The Lottery Central System generates the winning result; and

(c)

Drawing results may be graphically displayed on a monitor.

(26)

“Multi-jurisdictional game” means a lottery game offered by the Agency and:

(a)

Any other political entity outside Maryland or outside the United States;

(b)

Any private licensee of a state or a foreign nation; or

(c)

Both §B26(a) and (b) of this regulation.

(27)

“Nonjackpot game” means a lottery game where the top prize remains static.

(28)

“Odds” means the likelihood of an outcome to occur or not occur.

(29)

“Pari-mutuel” means dividing the prize money available for winners of a certain prize level in a lottery game equally among all plays winning the prize in a particular drawing.

(30)

Player-Activated Terminal or PAT.

(a)

“Player-activated terminal” or “PAT” means a machine through which a player may purchase a ticket or claim a prize under an applicable tax reporting or taxable prize threshold without intervention by a retailer.

(b)

Player-activated terminal or PAT does not mean a machine that dispenses cash.

(31)

“Playslip” means a document issued by the Agency and used by a player to select the player’s game data.

(32)

“Probability” means the long-run ratio of the number of winning outcomes to the number of all outcomes.

(33)

“Progressive jackpot” means a jackpot offered in a lottery game that may increase in value based on sales of that game.

(34)

Promotion.

(a)

“Promotion” means:

(i)

An activity or game offered by the Agency to increase awareness of the Agency and its products and services;

(ii)

A contest that uses a second-chance drawing to determine a winner; or

(iii)

A cooperative marketing project under State Finance and Procurement Article, §11-203, Annotated Code of Maryland.

(b)

“Promotion” may include a lottery game if additional consideration is required for a player to participate.

(35)

“Retailer” means a person licensed by the Agency to sell lottery tickets.

(36)

Special Bonus.

(a)

“Special bonus” means an extra payment to a retailer or its employees that the Agency authorizes;

(b)

“Special bonus” may not exceed one-half of 1% of the gross receipts from ticket sales for the year for which the bonuses are awarded;

(c)

“Special bonus” does not include:

(i)

A bonus drawing; or

(ii)

Game play features on a ticket.

(37)

“Special license” means a retailer license issued by the Director for a conditional or limited purpose as determined by the Director.

(38)

“Subscription” means a method of playing a lottery game by which a player completes an application to play a specific number of lottery games using the same game data for a period of consecutive drawings.

(39)

Terminal.

(a)

“Terminal” means a computerized unit or software program that operates through the Lottery Central System and is specifically designed for:

(i)

Issuing, processing or printing a ticket;

(ii)

Processing an ePlayslip;

(iii)

Processing a playslip.

(iv)

Printing a report;

(v)

Confirming and activating a retailer’s receipt of an instant ticket book;

(vi)

Accepting payment for a ticket;

(vii)

Processing the validation and redemption of a ticket;

(viii)

Carrying out functions available to the retailer; and

(ix)

Any other process the Agency identifies as necessary for the State lottery and within the scope of the Lottery Central System contract.

(b)

“Terminal” includes:

(i)

A player-activated terminal or PAT; and

(ii)

A retailer-activated terminal; and

(iii)

Associated lottery equipment.

(40)

Unusual Claim.

(a)

“Unusual claim” means a claim of a prize, or multiple claims for prizes, over $600 that is abnormal in amount, frequency, pattern, or type.

(b)

“Unusual claim” includes a claim made by a claimant under circumstances indicating that a law or regulation may be violated and that the Director has a reasonable belief to be, based on the totality of the circumstances.

(41)

“Validate” or “validation” means the process of verifying through the Lottery Central System, whether a ticket is a valid winning ticket.

(42)

“Valid winning ticket” means a lottery ticket that has been validated.

(43)

Winner.

(a)

“Winner” means a person that holds a winning ticket.

(b)

“Winner” includes the claimant of a prize.

Regulation .02 Sponsorship Request.Link Copy Citation

Scope. This regulation sets out procedures under which a person may submit a sponsorship request to the Agency pursuant to State Government Article, § 9-111(d)(1), Annotated Code of Maryland to promote the Maryland State Lottery.

A person holding an event in Maryland may submit a request to the Agency to sponsor the event.

Form and Content of Request.

(1)

A requestor for Agency sponsorship shall submit a request in writing to the Assistant Director of Communications.

(2)

The sponsorship request shall describe the event and include:

(a)

The date, time, and location;

(b)

A description;

(c)

The expected number of people in attendance;

(d)

The number of years it has taken place in Maryland;

(e)

The types of sponsorship opportunities that are available;

(f)

The cost associated with each type of sponsorship opportunity; and

(g)

An explanation with examples as to why the event may be a good fit for the Agency.

The decision to sponsor an event is within the sole discretion of the Agency and is not subject to review.

Chapter 02. Retailer Licensing

Regulation .01 Definitions.Link Copy Citation

In this chapter, the following terms have the meanings indicated.

Terms Defined.

(1)

“Applicant” means a person applying for a retailer license and includes the individual completing the application.

(2)

“Probationary license” means a retailer license issued by the Director to a new retailer that is valid for a 12-month period, beginning with the first week of sales.

(3)

“Regular license” means a retailer license issued by the Director to a retailer who has satisfactorily completed the requirements of a probationary license.

(4)

“Special license” means a license issued within the Director’s authority for special purposes.

(5)

“Terminate” or “revoke” means, with regard to a retailer license or special license, or removal of the right to sell lottery tickets.

(6)

“Total sales” means the value of lottery products sold or settled lottery by a retailer, less the value of canceled or returned lottery tickets.

Regulation .02 License Required.Link Copy Citation

A person who sells a lottery ticket shall be licensed by the Agency as a retailer.

A person to be licensed as a retailer shall be issued a probationary license before being eligible to receive a regular license.

No individual younger than 21 years old may be licensed as a lottery retailer.

A governmental entity that seeks a license as a lottery retailer shall demonstrate to the satisfaction of the Director the permission of any other person, board, commission, agent, or instrumentality of the State or its subdivisions that may have controlling authority over the applicant. A. A person who sells a ticket shall be licensed by the Agency as a retailer.

A person licensed as a retailer shall be issued a probationary license before being eligible to receive a regular license.

No individual younger than 21 years old may be licensed as a retailer.

A governmental entity that seeks a license as a retailer shall demonstrate to the satisfaction of the Director the permission of any other person, board, commission, agent, or instrumentality of the State or its subdivisions that may have controlling authority over the applicant.

Regulation .03 License Restrictions.Link Copy Citation

A retailer license is specific to an individual and may not be transferred or sold.

A retailer license may not be issued to a person to engage in business primarily as a lottery retailer.

A retailer license does not permit a retailer to:

(1)

Have a system or program that allows a person to purchase a ticket through a device that connects to the Internet;

(2)

Sell a ticket over the phone or other manner of electronic communication;

(3)

Sell a ticket over the Internet; or

(4)

Sell a ticket at a price higher than the price established by the Director; or

(5)

Sell a ticket at a location other than the location identified in the license.

Regulation .04 Application Process.Link Copy Citation

To obtain a retailer license, a person shall electronically submit to the Agency:

(1)

A completed application on a form required by the Director; and

(2)

Any other information and documentation required by the Director.

The Director shall consider:

(1)

The financial responsibility and security of the applicant and the applicant's business or activity;

(2)

The ownership interests of the applicant;

(3)

The honesty and integrity of the applicant;

(4)

The accessibility of the applicant's place of business or activity to the public;

(5)

The suitability of the applicant's business for the sale of lottery tickets;

(6)

The applicant’s compliance with State and local business and taxation requirements;

(7)

The sufficiency of existing licenses to serve the public convenience;

(8)

The volume of the applicants expected total sales;

(9)

The accuracy of the information supplied in the application for a lottery retailer’s license;

(10)

The status or enforcement actions taken on any licenses related to the applicant’s business; and

(11)

Any other relevant information.

Regulation .05 Security.Link Copy Citation

The Director may require an applicant or retailer to obtain security of at least $5,000.

The security may be:

(1)

A surety bond;

(2)

An irrevocable letter of credit;

(3)

A cash security deposit;

(4)

Lottery escrow deposit; or

(5)

Any other form of security approved by the Director.

The Agency may require security:

(1)

To protect the financial contributions to the State;

(2)

If a retailer fails to make a payment to the Agency or has insufficient funds for a lottery transfer;

(3)

To ensure the integrity of an applicant or the owner of an applicant and is based on a financial evaluation; and

(4)

To pay for damage, loss or misuse of supplies, equipment, or tickets.

The Agency may use the security:

(1)

To offset amounts due from the retailer for the proceeds from the sale of tickets; or

(2)

To pay for the cost of damaged, stolen, lost or misused supplies, equipment, or tickets.

The security shall remain in place until such time that the Director determines it may be removed.

Regulation .06 Probationary License.Link Copy Citation

New Retailer.

(1)

A license issued by the Director to a new retailer shall be a probationary license.

(2)

The Director may terminate a probationary license without a hearing upon the determination of the Director that the retailer has violated a provision in this subtitle.

Termination.

(1)

Before terminating a probationary license, the Director shall send written notice to the retailer of the Agency’s intent to terminate the probationary license.

(2)

The notice shall include:

(a)

The reason for the termination of the probationary license; and

(b)

A statement that the retailer, upon written request, may appear before the Director or the Directors designee to present the retailers views.

(3)

A written request to appear before the Director or the Director’s designee shall be submitted within 10 days of the date of the notice of termination.

(4)

Failure to timely submit a written request to appear before the Director or the Director’s designee shall result in termination of the probationary license

(5)

The decision of the Director to terminate a probationary license is final and not appealable.

Regulation .07 Special License.Link Copy Citation

The Director may issue a special license, subject to those conditions or limitations as the Director considers appropriate.

The conditions or limitations for the special license may include:

(1)

The type of lottery operation;

(2)

The length of the license period;

(3)

The hours or days when tickets may be sold;

(4)

The location where tickets may be sold;

(5)

Those persons who are allowed to sell tickets;

(6)

Those sporting, charitable, social, or other special events where tickets may be sold; or

(7)

Any other condition or limitation the Director considers appropriate.

The Director may deny or terminate a special license for any reason.

The decision of the Director to deny or terminate a special license is final and not appealable.

Regulation .08 Denial of a License.Link Copy Citation

If the Director recommends the denial of a license, the Director shall promptly provide the applicant with written notice of the:

(1)

Basis for the recommended denial; and

(2)

Applicant’s right to request a reconsideration meeting with the Director or the Director’s designee.

An applicant may submit to the Director a written request for a reconsideration meeting within 15 days of the date of the notice described in §A of this regulation.

If an applicant fails to timely submit a written request for a reconsideration meeting, the Commission may adopt as final the recommendation of the Director.

During a reconsideration meeting, an applicant may:

(1)

Be represented by counsel; and

(2)

Present evidence as to why the license should be granted;

If after the reconsideration meeting the applicant is dissatisfied with the recommendation of the Director or the Director’s designee, the applicant may submit to the Commission, in writing:

(1)

A request for a hearing before the Commission to appeal the recommended denial of the license; and

(2)

The applicant’s legal and factual basis for disagreeing with the recommended denial of the license.

An applicant must submit a hearing request to the Commission within 15 days of the date of the recommendation of the Director or the Director’s designee after the reconsideration meeting.

If an applicant fails to submit a hearing request that complies with §§E and F of this regulation, the Commission may adopt as final the recommendation of the Director or the Director’s designee to deny the license.

A timely written hearing request shall be the subject of a Commission hearing conducted pursuant to COMAR 36.01.02.06.

Judicial Review. The Commission’s final action on a license denial is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.

Limitation on Reapplication. An applicant may not submit an application or be included in the application of another person for 1 year after the later of:

(1)

The final action on the denial of a license; or

(2)

If judicial review of the final action on a license denial is taken, the date an adverse decision is entered against the retailer by the highest court to which an appeal is taken.

Regulation .09 Corrective Action.Link Copy Citation

Deficiency. If the Director determines that a retailer no longer meets a license requirement of this chapter, or that there is cause for imposing sanctions under Regulation .10 of this chapter, the Director shall:

(1)

Assess the seriousness of the deficiency;

(2)

Determine whether it is necessary to emergently suspend the retailer’s license;

(3)

Determine whether to allow a retailer to submit a corrective action plan.

If the Agency permits a retailer to submit a corrective action plan:

(1)

Evaluate the corrective action plan;

(2)

If acceptable to the Agency, approve the corrective action plan;

(3)

Determine appropriate timelines for the completion of corrective action;

(4)

Conduct periodic monitoring of a retailer to assess the retailer’s progress toward remedying the deficiencies; and

(5)

Recommend that the Commission impose a sanction under Regulation .10 of this chapter if a deficiency is not remedied.

The Agency may determine whether to permit a retailer to submit a corrective action plan.

Corrective Action Plan.

(1)

Within 10 days of receipt of a deficiency notice under §F of this regulation, the retailer shall submit a corrective action plan to the Director for the Director’s approval.

(2)

The Director shall review the corrective action plan and inform the retailer whether the corrective action plan is acceptable.

(3)

If the retailer fails to submit an acceptable corrective action plan within the time described under §D(1) of this regulation, the Director may:

(a)

Provide the retailer with additional time within which to submit a revised corrective action plan; or

(b)

Impose a sanction on the retailer under Regulation .10 of this chapter.

(4)

If the Director provided a retailer notice under §F of this regulation and received no timely written response, the Commission may adopt as final the Director’s decision to impose a sanction under Regulation .10 of this chapter.

Corrective Action Outcomes.

(1)

If at any time during the corrective action period the Director determines that the retailer has failed to fulfill a requirement of the corrective action plan or has made insufficient progress toward remedying a deficiency, the Director may:

(a)

For good cause, extend the time for completion of a corrective action plan; or

(b)

Emergently suspend the retailer’s license.

(2)

If at the end of the corrective action period the retailer has failed to adequately remedy a deficiency, the Director may impose a sanction under Regulation .10 of this chapter.

Deficiency Notice. Upon determining that corrective action is required to remedy a deficiency, the Director shall give written notice to a retailer that includes:

(1)

A description of the violation;

(2)

A description of the possible sanctions; and

(3)

The requirement for the retailer to submit a corrective action plan to the Director within a time frame established by the Director.

Regulation .10 Sanctions and Agency Actions on a License.Link Copy Citation

The Director may impose sanctions on a retailer or take action on a license for:

(1)

Violating or failing to fulfill the retailer’s responsibilities or a condition of a license under this subtitle;

(2)

Violating:

(a)

A provision of the lottery law or other applicable law;

(b)

A regulation adopted under the lottery law; or

(c)

An order or directive of the Agency;

(3)

Providing the Agency with false or misleading information;

(4)

Failing to cooperate with the Agency;

(5)

Failing to remit, or failing to make timely remittance of, funds owed to the Agency;

(6)

Failing to meet the retailers sales requirements as set by the Agency;

(7)

Failing to display lottery point of sale material and equipment as directed by the Agency;

(8)

Failing to make tickets available for sale as directed by the Agency;

(9)

Taking tickets, vouchers, or coupons intended for players;

(10)

Failing to provide a player their voucher, coupon, cash or other item of value;

(11)

Discounting lottery prizes;

(12)

Selling lottery tickets by phone or other electronic means;

(13)

Selling lottery tickets over the Internet;

(14)

Selling lottery tickets at a price higher than the price established by the Director;

(15)

Extending credit for the purchase of lottery tickets;

(16)

Facilitating a person other than the owner of the lottery ticket under COMAR 36.02.06.02 to claim a prize;

(17)

Conducting or permitting any illegal activity on the premises;

(18)

Allowing an individual who is not a retailer employee to operate lottery equipment;

(19)

Improperly managing customer data;

(20)

Damaging or altering, or allowing another person to damage or alter, materials or equipment provided to the retailer by the Agency or a contractor of the Agency;

(21)

Interfering with a lottery game;

(22)

Failing to prepare, submit, or implement an adequate corrective plan under Regulation .09 of this chapter;

(23)

Changing ownership of the retailer’s business without prior notice to the Agency;

(24)

Closing the retailer’s operations without prior notice to the Agency;

(25)

Engaging in conduct, or permitting an employee to engage in conduct, that impairs the reputation of the lottery, or would otherwise bring the State into disrepute;

(26)

Being the subject of administrative or judicial charges related to the conduct of:

(a)

Illegal gaming;

(b)

Failing to pay taxes;

(c)

Defrauding the government, a government program, or government services; or

(d)

Any other fraudulent activity;

(27)

Possessing an illegal gaming device;

(28)

Possessing materials or equipment indicating involvement by the retailer or the retailer’s employees in the conduct of illegal gaming;

(29)

Having a history of thefts or other forms of losses of Lottery tickets or revenue; or

(30)

Other activities or actions deemed by the Director to require the imposition of a sanction.

Types of Sanctions and Agency Actions.

(1)

Sanctions or Agency actions may include:

(a)

The Agency temporarily disabling a retailer’s terminal;

(b)

The Agency disabling specific game sales on a retailer’s terminal;

(c)

Emergency suspension of a retailer’s license;

(d)

Suspension of a retailer’s license;

(e)

Termination of a retailer’s probationary or special license;

(f)

Revocation of a retailer’s license; or

(g)

Placing a limitation of the license of a retailer.

(2)

Limitations on a license may include:

(a)

Ineligibility for or removal from the Expanded Cashing Authority Program under COMAR 36.02.03.08; and

(b)

Placement of conditions on the retailer’s operations.

Disabling a Retailer’s Terminal.

(1)

If a retailer fails to timely remit funds or if the required funds are not available for withdrawal, the Agency shall disable the retailer’s terminal.

(2)

If the retailer pays the Agency for any outstanding amount owed, including bank charges, the Agency may re-enable the retailer’s terminal.

Suspension, Revocation, and Limitation.

(1)

Except as set forth in §E of this regulation, the Director shall give the retailer notice of the intended suspension or revocation at least 15 days before the imposition of the intended sanction.

(2)

A retailer may appeal the Directors imposition of a sanction before the date the sanction is imposed by submitting a request for a hearing before the Commission.

(3)

The Commissions final action on a sanction is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.

Emergency Suspension.

(1)

Notwithstanding any other requirement of this chapter, if the Director determines that immediate action is necessary to protect against an imminent, serious threat by a retailer to the security, financial stability, reputation, or integrity of the lottery, the Director may suspend the license of a retailer without prior notice.

(2)

If the Director emergently suspends a retailer’s license, the Director shall provide the retailer with written notice that includes:

(a)

A statement of the authority upon which the suspension is based;

(b)

The nature of the violation;

(c)

The duration of suspension;

(d)

Information about the retailer’s obligation to submit to the Agency a corrective plan; and

(e)

A statement of the retailers right to request a Commission hearing.

(3)

A hearing on an emergency suspension of a retailer license shall be conducted in accordance with the hearing requirements in COMAR 36.01.02.06.

(4)

If after a license is emergently suspended, the retailer does not submit a timely written request for a Commission hearing, the Director may move to revoke the retailers license by giving the retailer notice under §C(1) of this regulation.

Agency Action. After the Director terminates a probationary or special license or imposes an emergency suspension or sanction on a retailer with a regular license, the Agency may:

(1)

Disable the retailer’s terminal;

(2)

Require the retailer to surrender, or direct the Lottery Central System contractor to remove, any materials or equipment that were provided to the retailer by the Agency or the Lottery Central System contractor;

(3)

Direct the retailer to immediately:

(a)

Cease selling or displaying lottery products;

(b)

Render a final accounting to the Agency in a manner specified by the Director; and

(c)

Pay all funds owed the Agency;

(d)

Return all unsold lottery tickets;

(e)

Remove or cover any signage advertising lottery products or services; and

(4)

Take any other action necessary to protect the security, financial stability, reputation, or integrity of the Agency.

Reapplication. A person may not reapply to be a retailer or be included in the application of another person for 1 year after the later of:

(1)

The final action on a sanction; or

(2)

If judicial review of the final action on a sanction is taken, the date an adverse decision is entered against the retailer by the highest court to which an appeal is taken.

Chapter 03. Retailer Requirements

Regulation .01 General Responsibilities.Link Copy Citation

Lottery Laws and Regulations. A retailer shall:

Comply with all lottery laws and regulations of the Agency;

Be aware of all lottery laws and regulations pertaining to the duties and responsibilities of a retailer; and

Inform the Director of an act or omission that the retailer knows or should know constitutes a violation of lottery laws and regulations.

(2)

Assume the cost of any repairs to the retailer’s location arising from the removal of the Agency’s equipment.

Regulation .02 Retailer Obligations.Link Copy Citation

Services. A retailer shall:

(1)

Provide specified services for the Agency, including the sale, cashing, and issuance of lottery tickets and coupons or vouchers, as directed by the Agency;

(2)

Sell a ticket for cash only;

(3)

Sell a ticket only at the location specified on the retailer’s license.

(4)

Sell a ticket only during the hours listed in the application, or as modified after notifying the Commission, unless otherwise approved in advance by the Agency;

(5)

Exercise courteous and fair treatment to lottery players;

(6)

Sell all lottery games as directed by the Agency;

(7)

Except for those requiring submission of a claim form to the Agency, pay every winning ticket upon validation under COMAR 36.02.06;

(8)

Report to the Agency, as required by the Internal Revenue Service or the Agency, income tax information relating to a holder of a winning ticket;

(9)

Charge no fee for the issuance or cashing of checks for lottery winnings;

(10)

Display the retailer’s license in a prominent location;

(11)

Keep playslips in stock and available to players;

(12)

Not sell any ticket or lottery-style ticket other than those made available for sale by the Agency;

(13)

Except for advertising already located on the retailer’s premises, obtain prior Agency approval for permanent or semi-permanent lottery advertising such as signs and billboards;

(14)

Prominently post point-of-sale and other promotional or player-related materials supplied by the Agency;

(15)

Free of charge, provide the latest winning game data;

(16)

Properly manage customer data; and

(17)

Except as permitted in Regulation .12 of this chapter, not have on its premises an illegal gaming device or a slot machine as defined in Criminal Law Article, §12-301, Annotated Code of Maryland.

Care of Terminals. A retailer shall:

(1)

Place terminals within the retailer’s premises only on a site approved by the Agency;

(2)

Provide sufficient space for the proper operation of the terminal;

(3)

Before installation of the terminal, provide electrical requirements as prescribed in the Lottery Central System contractor pre-site form;

(4)

Participate in training approved by the Agency;

(5)

Replace ticket stock when necessary;

(6)

Provide reasonable care and security for ticket stock, tickets, and supplies;

(7)

As specified in the operating manual and help screens for the terminal and lottery equipment, exercise due diligence in the operation, security, and care of the terminal and lottery equipment;

(8)

Except as directed by the Agency or the Lottery Central System operator, not perform mechanical or electrical maintenance on the terminal or lottery equipment;

(9)

As directed by the Agency, immediately notify the Lottery Central System contractor’s technical support operations center in the event of a terminal malfunction;

(10)

As directed by the Agency, make the terminal available for the sale and cashing of tickets;

(11)

Except for materials that are provided by the Agency and are specifically authorized to be placed on a terminal, keep the surfaces of the terminal free and clear;

(12)

Pay the electrical utility charges in connection with the operation of the terminal; and

(13)

Assume the cost of the repairs to the terminal, other lottery equipment, or the retailer’s property related to:

(a)

Unauthorized attempts to modify or repair the terminal or other lottery equipment;

(b)

Unauthorized attempts to move the terminal or other lottery equipment; and

(c)

Other damage to the terminal, lottery equipment or the retailer’s property including:

(i)

Intentional damage;

(ii)

Defacement of the property; and

(iii)

Negligence resulting in damage to the property.

Hold Harmless. A retailer shall hold the Agency and the State of Maryland and their officials and employees, harmless from any liability arising in connection with operating and conducting ticket sales.

Regulation .03 Prohibited Acts.Link Copy Citation

A retailer may not:

(1)

Sell a ticket at any price higher than that established by the Director;

(2)

Sell to or cash a ticket for an individual younger than 18 years old;

(3)

Allow an employee younger than 18 years old to sell or cash a ticket or operate lottery equipment;

(4)

Extend credit in any manner for the sale of a ticket;

(5)

Offer customers alcoholic beverages or cannabis to induce them to purchase or redeem a ticket;

(6)

Charge a player a fee for any lottery related service or convenience;

(7)

Sell an instant ticket prior to activation;

(8)

Fail to secure ticket stock, tickets, or lottery equipment;

(9)

Resell a ticket;

(10)

Exchange terminal game ticket stock with another retailer;

(11)

Misuse terminal game ticket stock;

(12)

Sell any ticket or lottery-style ticket other than those made available for sale by the Agency; or

(13)

Offer a game of chance on the retailer’s premises, unless the retailer is:

(a)

A video lottery facility;

(b)

A special licensee for instant ticket lottery machines;

(c)

A legal operator of an electronic gaming device that is licensed as an amusement game in Baltimore City or Baltimore County under Criminal Law Article, §12-301.1, Annotated Code of Maryland;

(d)

An operator of a device that is subject to regulation by the Comptroller under Criminal Law Article, §12-304, Annotated Code of Maryland;

(e)

A legal operator of instant bingo under Criminal Law Article, §12-308, Annotated Code of Maryland; or

(f)

Authorized to offer paper tip jar gaming under Criminal Law Article, Title 13, Annotated Code of Maryland.

Canceled Ticket. Except as otherwise provided in these regulations or with the approval of the Director, a retailer may not cancel or accept a ticket return for a draw game.

Void Ticket.

(1)

A ticket may not be sold for a drawing after that drawing has occurred.

(2)

A ticket sold for a drawing after that drawing has occurred is void.

Regulation .04 Lottery Sale—General.Link Copy Citation

Nothing prevents a person from giving a ticket as a gift.

Only a licensed retailer or the retailer’s employee may sell a ticket.

The Agency may sell a ticket or a lottery subscription.

A retailer shall require that a person pay for a ticket at the time of purchase.

Regulation .05 Cessation of Operations.Link Copy Citation

A retailer shall notify the Agency at least 10 work days before the retailer temporarily or permanently ceases the operation of the retailer’s business.

If a person ceases to be a retailer, the person shall:

(1)

Surrender, or allow the Lottery Central System contractor to remove, materials, supplies, unsold tickets, and equipment that were provided by the Agency or the Lottery Central System contractor;

(2)

Be financially liable for the repair or replacement of Agency equipment lost or damaged; and

(3)

Assume the cost of repairs to the retailer’s location arising from the removal of the equipment in §B(1) of this regulation.

Regulation .06 Sale of Tickets — Instant Ticket Procedure.Link Copy Citation

Retailers shall activate an instant ticket pack before selling an instant ticket from that pack.

Instant tickets that a retailer activates before a tickets announced end of game may be sold by the retailer after the tickets announced end of game and until the last date to claim a prize for that game.

Regulation .07 Sale of Lottery Tickets — Draw Game Ticket Procedure.Link Copy Citation

Playslip or ePlayslip Purchase Procedure. If a player wishes to purchase a ticket using a playslip or an ePlayslip:

(1)

A player shall complete a playslip and give it to the retailer; and

(2)

The retailer shall:

(a)

Process the playslip or ePlayslip using the terminal; and

(b)

Issue to the player the specified draw game ticket for the game being played.

Vocalized Purchase Procedure.

(1)

Randomly Selected Game Data.

(a)

If a player wishes to have playable game data randomly generated for a draw game ticket, a retailer shall enter the game type and the dollar amount the player wants to play.

(b)

The retailer shall deliver to the player the ticket issued by the terminal with the randomly generated game data for the game printed on the ticket.

(2)

Player Selected Game Data.

(a)

If the player wishes to provide playable game data, a retailer may allow a player to vocalize the game data.

(b)

The retailer shall enter the information provided by the player, including:

(i)

The game type;

(ii)

The dollar amount the player wants to play;

(iii)

The game data the player selects;

(iv)

The number of games the player wishes to play; and

(v)

Any other information required by the Agency.

Player Activated Terminal. If a player wishes to purchase a ticket using a PAT, the player may purchase the ticket using any method offered on the PAT.

Regulation .08 Sale of Tickets — Fast Play Game Ticket Procedure.Link Copy Citation

Retailer Assisted Purchase Procedure.

(1)

If a player wants to purchase a Fast Play game ticket, the player shall indicate to the retailer the name of the Fast Play game the player wants.

(2)

The retailer shall make the selection of the ticket through the terminal and after the player pays for the ticket, give it to the player.

Player-Activated Terminal.

(1)

If a player wants to purchase a ticket using a PAT, the player may purchase the ticket by selecting the icon for the desired Fast Play game on the terminal screen.

(2)

The PAT shall generate and dispense the ticket.

Regulation .09 Lost, Stolen, or Missing Tickets.Link Copy Citation

If a ticket is lost, stolen, or missing from a retailer, the Director may offset an amount due from the retailer for the ticket.

The Director may require the party responsible for a lost, stolen, or missing ticket to reimburse the Agency.

The Agency is not liable to a retailer or player for a lost or stolen ticket.

A ticket is void if it:

(1)

Is mutilated;

(2)

Is altered;

(3)

Is irregular;

(4)

Is expired;

(5)

Fails to meet validation standards; or

(6)

Fails to meet security requirements.

If a retailer is reimbursed for a lost, stolen, or missing ticket, the retailer shall:

(1)

Hold the Agency harmless; and

(2)

Provide the Director with as much information considered necessary to process the claim.

A retailer may not seek indemnification from another source if reimbursed by the Director for a lost, stolen, or missing ticket.

Regulation .10 Posting of Winning Game Data.Link Copy Citation

As soon as practical after each drawing, a retailer may:

(1)

Post in a prominent and conspicuous location within the retailer’s business location the winning game data; and

(2)

Keep the winning game data posted until the next drawing.

A retailer shall display active winning game data as requested by the Agency.

The Agency is not responsible for a retailer’s failure to post or properly post current official winning game data.

Regulation .11 Payment of Prizes.Link Copy Citation

A retailer shall pay the holder of a valid winning lottery ticket up to $600.

A retailer shall pay the holder of a valid winning ticket regardless of whether the retailer sold the ticket.

Unless the retailer is a participant in the Expanded Cashing Authority Program under Regulation .08 of this chapter, if the valid winning ticket entitles the holder to a prize that is more than $600, the retailer shall instruct the ticket holder to seek payment from the Agency or a retailer participating in the Expanded Cashing Authority Program.

Validated and Paid Tickets. Unless a ticket is cashed at a PAT, after a ticket is validated and paid, the retailer:

(1)

May not return the ticket to the winner; and

(2)

Shall secure the ticket.

Cashing Period. A retailer or Agency claim center may not cash or otherwise process a winning ticket more than 182 days after the:

(1)

Drawing date;

(2)

Date of sale of a Fast Play game ticket; or

(3)

Announced end of game for an instant game.

Unusual Claims.

(1)

The Agency shall use an analytics tool to identify an unusual claim.

(2)

If the Agency identifies an unusual claim, the Agency may:

(a)

Require the claimant to claim a prize at the Agency’s headquarters;

(b)

Delay payment of the prize;

(c)

Investigate the circumstances surrounding the purchase of the ticket and claiming of

(i)

Interviewing the claimant; and

(ii)

Interviewing the retailer that sold the ticket; and

(d)

Require future claims made by the same claimant to be reviewed as an unusual claim.

Regulation .12 Expanded Cashing Authority Program.Link Copy Citation

Establishment.

(1)

The Director may establish an Expanded Cashing Authority Program.

(2)

Retailers selected by the Director may pay cash prizes up to $5,000.

Participation. Before authorizing a retailer to participate in the Expanded Cashing Authority Program, the Director may consider:

(1)

The length of time the retailer has been licensed;

(2)

The financial record and responsibility of the retailer;

(3)

The retailer’s compliance with the requirements of this subtitle;

(4)

The need for expanded cashing authority within a specific geographical location;

(5)

The number of existing retailers with expanded cashing authority;

(6)

The overall performance of the retailer since the license was issued; and

(7)

Any other factor deemed relevant by the Director.

Retailer Requirements. A retailer in the Expanded Cashing Authority Program shall:

(1)

Maintain a separate bank account solely for lottery monies to the credit of the State Lottery Fund;

(2)

Ensure the confidential handling of personal information from players and winners by not disclosing any personal information to anyone other than the Agency or as required by law;

(3)

Collect income tax information relating to a holder of a winning ticket to the Agency as required by the Internal Revenue Service or the Agency;

(4)

For prizes over $600, utilize the terminal to determine, whether a holder of a winning ticket:

(a)

Owes a State obligation; or

(b)

Is on the Commission’s Voluntary Exclusion List described in COMAR 36.01.03; and

(5)

If the Agency has notified the retailer that the holder may not be paid, the retailer shall deny payment of a prize to the holder of a winning lottery ticket if the Agency has notified the retailer that the holder may not be paid.

Recertification for the Program. The Director may establish a periodic recertification process for retailers in the Expanded Cashing Authority Program.

Removal from the Program.

(1)

A retailer participating in the Expanded Cashing Authority Program may be removed from the Program at any time by the Director.

(2)

Removal from the program does not automatically otherwise terminate a retailer’s license.

(3)

The Director's decision to remove a retailer from the program is final and not subject to appeal.

Regulation .13 Payments to Agency.Link Copy Citation

A retailer shall:

(1)

Be financially responsible to the Agency for all:

(a)

Revenues derived from the sale of tickets based on the ticket price established by the Director;

(b)

Tickets in the possession of the retailer; and

(c)

Except for tickets cashed through a PAT, tickets that the retailer cashed or canceled which are later submitted to the Agency for payment;

(2)

Make regular weekly settlement and payment in the manner, in the place, and on the day of the week specified by the Agency;

(3)

Make more frequent settlement and payment remittances when required by the Director;

(4)

Pay a service charge to the Agency for any dishonored check or electronic transfer;

(5)

Promptly pay a bonding fee in such amount as the Director determines, when required; and

(6)

Promptly pay any fees under this subtitle.

Any payment due to the Agency not made within 10 days after the due date shall be charged interest until paid.

The Agency may refer delinquent accounts to the Central Collection Unit of the Department of Budget and Management.

Delinquent accounts shall be increased by any additional fees authorized by State Finance and Procurement Article, §3-304(a)(2), Annotated Code of Maryland.

Regulation .14 Americans with Disabilities Act.Link Copy Citation

Definitions. In this regulation, the following terms have the meanings indicated.

Terms Defined.

(1)

ADA means the certain law commonly known as the Americans with Disabilities Act of 1990, as amended.

(2)

“ADA retailer compliance form” means a form prepared by the Agency and used to inspect a retailer’s location in connection with this regulation to ensure player accessibility to a retailer.

(3)

“Applicant” means a person that applies for a new retailer license or a change of ownership of a retailer.

(4)

“Corrective Action Plan” means a plan that an applicant is required to submit to the Agency describing how the applicant will modify its premises to comply with applicable State and federal law regarding accessible business establishments.

(5)

“Disability” has the meaning stated in the ADA.

Compliance.

(1)

The Agency shall:

(a)

Inspect the site of an applicant for compliance with the ADA for player accessibility;

(b)

If necessary, require an applicant whose business establishment is not accessible to submit a proposed Corrective Action Plan before the Director issues a retailer license; and

(c)

Require a new retailer or change of ownership to certify in the retailer application that their business establishment at issue in the application is accessible to individuals with disabilities who use wheelchairs.

(2)

The Agency may impose a sanction or take an action on a license for failing to comply with this regulation.

Waivers.

(1)

A retailer that is unable to comply with §C of this regulation, shall obtain an official waiver from the State to maintain a non-accessible business establishment; or

(2)

If the State no longer provides official waivers under §D(1) of this regulation, a retailer may obtain an official waiver from its local jurisdiction.

Regulation .15 Changes in Ownership.Link Copy Citation

General.

(1)

A retailer license may not be transferred.

(2)

A change in ownership of a retailer’s business:

(a)

Automatically voids the existing retailer license; and

(b)

Requires an application for a new license.

(3)

A change of ownership includes:

(a)

A transfer of ownership of the retailer’s business;

(b)

The addition of an owner that was not on the original license application; or

(c)

Except as provided in §A(4) of this regulation, a change to the retailer’s business

(4)

A change of ownership does not include a voluntary or involuntary transfer of an interest in the retailer’s business to a person identified as an owner on the license.

Retailer Responsibilities.

(1)

A retailer that transfers ownership:

(a)

Is responsible for all tickets, lottery equipment, and receipts from lottery sales; and

(b)

Remains responsible for fulfilling all obligations to the Agency until the change of ownership is approved and the Agency issues a new license.

(2)

A new owner of the business may apply for a license under COMAR 36.02.02 or relinquish lottery equipment remaining on the premises.

Chapter 04. Common Provisions for All Lottery Games

Regulation .01 Governing Law and Rules.Link Copy Citation

By purchasing a ticket, a player agrees to comply with and abide by all:

(1)

Applicable laws and regulations;

(2)

Procedures implemented by the Director for conducting a lottery game;

(3)

Rules for that lottery game; and

(4)

Decisions of the Director.

A multi-jurisdictional game shall be governed by:

(1)

Applicable law and regulations;

(2)

The rules, procedures, and other documents concerning that game as agreed to by the jurisdictions offering that game; and

(3)

Agency provisions regarding the purchase and claiming of a ticket.

All decisions made by the Director shall be final and binding on players and on persons making claims.

Regulation .02 Ticket Purchaser Responsibilities.Link Copy Citation

At the time of purchase and if applicable, the purchaser of a ticket is responsible for verifying that the information printed on the ticket accurately reflects:

(1)

The game data that the purchaser wants to play if the purchaser selects their own game data; and

(2)

The drawing date and time, if applicable.

The sole remedy for an inaccurate ticket shall be cancellation of that ticket, if permitted, as set forth in Regulation .04 of this chapter.

To receive a prize, a person holding a winning ticket shall submit to an authorized claiming location the ticket and all necessary documentation for claiming within 182 days after the drawing date, the date of sale of a Fast Play game ticket, or the announced end of game.

Regulation .03 Methods of Purchase.Link Copy Citation

This regulation does not apply to instant ticket lottery machines under COMAR 36.02.09.

Playslips and ePlayslips.

(1)

Playslips and ePlayslips are not valid as a receipt to claim a prize or proof of purchase of a ticket.

(2)

If a playslip or an ePlayslip may be used to play a draw game, the playslip or ePlayslip shall be available at no cost to the purchaser and may be used by the purchaser for selection of game data.

(3)

A playslip shall include instructions on how to complete the playslip.

(4)

If game play by playslip or ePlayslip is authorized and a playslip or an ePlayslip is unavailable, the retailer may manually enter into the terminal the game data selected by the player.

(5)

The Agency or a retailer may seize and destroy an invalid playslip.

Purchase by Playslip Through Retailer.

(1)

If the player chooses to play by playslip, the player shall present a completed playslip to the retailer.

(2)

A player may play as many panels or play areas as are available on the playslip.

(3)

A player shall mark all necessary areas on the playslip.

(4)

If a player does not mark all necessary areas, the retailer shall return the playslip to the player or the terminal may select game data necessary to complete the playslip.

(5)

A playslip shall be manually marked and may not be marked by an electromechanical, electronic printing, or automated device.

(6)

A playslip marked by a method other than a method authorized by this section shall be invalid.

(7)

A ticket produced by an invalid playslip is invalid.

Purchase by ePlayslip Through Retailer.

(1)

If the player chooses to play by ePlayslip, the player shall present a completed ePlayslip to the retailer.

(2)

A player may play as many panels or play areas as are available on the ePlayslip.

(3)

A player shall select all necessary areas on the ePlayslip.

Purchase Using a Player-activated Terminal. If a game may be played using a player-activated terminal, the player shall:

(1)

Enter selections from the choices provided on the player-activated terminal screen; or

(2)

Insert a playslip or scan an ePlayslip.

Purchase by Subscription.

(1)

Subscription Plans.

(a)

The Lottery may offer subscription plans.

(b)

The Director shall determine the price of a subscription plan.

(c)

The Director may reduce the price of a subscription plan for a specified number of drawings.

(d)

The Director may cancel a subscription and issue a refund for the subscription based on:

(i)

Game changes; or

(ii)

Ineligibility of a purchaser.

(2)

Application for a Subscription.

(a)

A player that wants to purchase a Lottery subscription shall be a resident of Maryland or have a Maryland address subscription.

(b)

If a game may be purchased by subscription, a subscription application shall:

(i)

Identify the game being played; and

(ii)

Require the purchaser to supply identifying information as determined by the Agency.

(c)

A subscription application shall allow the purchaser to designate:

(i)

The number of drawings or games to be played, or the length of the subscription; and

(ii)

If a game allows a player to select game data, the player’s decision to supply particular game data or to allow the system to select random game data.

(d)

A subscription application may require the player to provide any other information the Agency requires.

(3)

Group Subscription Applications.

(a)

An application for a subscription in the name of more than one person:

(i)

Is a group subscription;

(ii)

Shall designate a single group member to be the group manager;

(b)

The group manager shall be:

(i)

A Maryland resident or have a Maryland mailing address; and

(ii)

Authorized to be the sole recipient of prizes up to an amount determined by the Director.

(c)

An application for a group subscription shall include identifying information for each group member, as determined by the Agency.

(d)

The application for a group will only be accepted if the application is fully completed and all required information is provided about each group member.

(4)

Confirmation of Subscription. The Agency shall provide a subscription purchaser or, if a group purchaser, the group’s representative, a subscription confirmation email.

(5)

Subscription Play and Winning.

(a)

A subscription player shall be automatically entered in each drawing or game during the period when the subscription is active.

(b)

The Agency shall pay subscription prizes as provided for in COMAR 36.02.06.

(6)

The Agency may allow a subscription to be renewed.

Regulation .04 Cancellation of Tickets.Link Copy Citation

Draw Games.

(1)

Except as provided in §A(2) of this regulation, a draw game ticket may be canceled.

(2)

A draw game ticket may not be canceled in:

(a)

A multi-jurisdictional game;

(b)

Cash Pop; and

(c)

Multi-Match.

(3)

A ticket purchased at a player-activated terminal may not be canceled at the PAT, but an eligible ticket may be canceled at a non-PAT terminal at the retailer where the ticket was purchased.

(4)

The Director may determine during certain promotions that tickets may not be canceled.

(5)

A draw game ticket may be cancelled only:

(a)

By the same retailer from which the ticket was purchased;

(b)

On the day of purchase;

(c)

Before the designated cutoff time for the first drawing on the ticket; and

(d)

If allowed by the game rules.

(6)

Canceling a draw game ticket:

(a)

Voids the ticket;

(b)

Removes the ticket from the pool of tickets eligible for the drawing;

(c)

Renders the ticket ineligible for entry into a loyalty platform or program; and

(d)

Results in the ticket being invalid and not eligible to win a prize.

(7)

A retailer presented with a draw game ticket for cancellation shall cancel the ticket as authorized by this regulation.

(8)

When a retailer cancels a draw game ticket in accordance with this regulation, the retailer shall:

(a)

Ensure that the terminal issues a refund receipt in the amount of the purchase price of the ticket;

(b)

Keep the refund slip;

(c)

Keep the ticket; and

(d)

Pay the player a refund equal to the purchase price of the ticket.

(9)

The Agency is not obligated to pay a prize to the holder of a canceled ticket, even if the ticket was canceled in error.

Instant Ticket Games. Unless the Director determines otherwise, an instant game ticket may not be canceled.

Fast Play Games. A Fast Play game ticket may not be canceled.

Regulation .05 Liability Limits.Link Copy Citation

Scope.

(1)

This regulation applies to a lottery game.

(2)

This regulation does not apply to:

(a)

An instant ticket lottery machine game; or

(b)

A promotion.

Definitions.

(1)

In this regulation, the following terms have the meanings indicated.

(2)

Terms Defined.

(a)

“Pick Game” means a Pick 3, Pick 4, and Pick 5 game.

(b)

“Prize cap” means an upper limit of prize liability beyond which fixed prizes are recalculated on a pari-mutuel basis.

(c)

“Promotional prize limit” means the maximum payout for a single play during a sales promotion

(d)

“Sales limit” means the dollar amount established by the Director at which winning tickets, if paid, would not be in the Agency’s best interests.

Pick Games.

(1)

There is a liability limit for a Pick Game.

(2)

When the liability limit is reached for a number combination in a drawing, sales on the number combination are no longer permitted.

Draw Games Other Than a Pick Game.

(1)

If the fixed prize amount multiplied by the number of winners exceeds the prize cap, prizes shall be calculated on a pari-mutuel basis.

(2)

A jackpot prize is determined on a pari-mutual basis.

Except for a multi-jurisdictional game, the Director may establish or modify for each drawing of a game a:

(1)

Promotional prize limit;

(2)

Prize cap; or

(3)

Sales limit.

Regulation .06 Agency Not Liable.Link Copy Citation

The Agency is not responsible or liable for:

A ticket or entry that is lost, stolen, damaged, or destroyed;

A ticket redeemed by a retailer in error;

A winning number repeated, reported, or displayed in error, including by television, media, or by any other form of communication;

An outdated or incorrect playslip, ePlayslip, or consumer game information;

A claim, liability, injury, or property loss of any kind arising out of a player’s, winner’s, guest’s, traveler’s, or any other person’s participation in:

(1)

A lottery game;

(2)

A promotion;

(3)

A drawing or a related event or occurrence; or

(4)

The award, receipt, possession, use, misuse, or acceptance of a prize;

Negligence or breach of obligation of a person other than the Agency, its employees, officials, or members; or

Payment of a ticket not in accordance with this subtitle.

Regulation .07 No Endorsement.Link Copy Citation

By providing a prize or a portion of a prize from a company or other person, the Agency has not endorsed the company or other person.

Chapter 05. Specific Game Provisions

Regulation .01 Draw Games.Link Copy Citation

Drawings.

(1)

Except for a raffle, drawings shall occur at least once a week.

(2)

Winning game data may be drawn by:

(a)

Mechanical drawing equipment;

(b)

A random number generator; or

(c)

Another random method or device approved by the Director.

(3)

The game data selected during a drawing shall be the winning game data for that drawing.

Draw Game Tickets.

(1)

A draw game ticket shall be generated through the use of a terminal or a subscription purchase.

(2)

The draw game ticket shall include the:

(a)

Game data played;

(b)

Amount played;

(c)

Ticket serial number;

(d)

Additional ticket security codes;

(e)

Barcode with an encoded serial number and data to permit scanning of the ticket; and

(f)

Drawing date or, if the ticket is for multiple drawings, the range of drawing dates or numerical designation for a drawing.

Monitor Games.

(1)

The results of a monitor game drawing may be displayed on the games monitor.

(2)

A retailer may require use of a playslip or an ePlayslip for monitor games.

Consumer Game Information.

(1)

The Agency shall provide information about:

(a)

Draw games; and

(b)

Multi-jurisdictional games with draw game tickets.

(2)

As determined by the Agency, consumer game information shall explain the:

(a)

Game;

(b)

Game play; and

(c)

Play of optional features.

(3)

The Agency may provide consumer game information on its website, mobile app, or in any other location, as determined by the Agency.

To determine if a draw game ticket is a winning ticket, a player may present the ticket to a retailer, a PAT, the Agency, or an application or platform provided by the Agency.

Regulation .02 Fast Play Games.Link Copy Citation

Fast Play Game Tickets.

(1)

A Fast Play game ticket shall be generated through the use of a terminal.

(2)

The Fast Play game ticket shall include the:

(a)

Graphic rendering of game data that allows for visual inspection to determine if the ticket is a winning ticket;

(b)

Amount played;

(c)

Ticket serial number;

(d)

Additional ticket security codes;

(e)

Barcode with an encoded serial number and data to permit scanning of the ticket; and

(f)

Date and time of sale.

Consumer Game Information.

(1)

The Agency shall provide information about Fast Play games.

(2)

As determined by the Agency, consumer game information shall explain the:

(a)

Game;

(b)

Game play; and

(c)

Game’s optional features.

(3)

The Agency may provide consumer game information on its website, mobile app, or in any other location.

To determine if a Fast Play game ticket is a winning ticket, a player may present the ticket to a retailer, a PAT, the Agency, or an application or platform provided by the Agency.

Regulation .03 Instant Ticket Games.Link Copy Citation

An instant game ticket shall have one or more areas that conceal:

(1)

The playing area or a portion of the playing area;

(2)

The prize or prizes;

(3)

Other information as determined by the Director; or

(4)

Any of the above.

To determine if an instant ticket is a winning ticket, a player may:

(1)

Expose the concealed area or areas in accordance with the game instructions on the instant ticket; or

(2)

Present the ticket to a retailer, PAT, the Agency, or an application or platform provided by the Agency.

Regulation .04 Bonus and Promotional Games.Link Copy Citation

The Agency may offer bonus games, promotional games, or both.

A bonus game may be:

(1)

A lottery game;

(2)

A promotional game; or

(3)

Both.

A promotional game may be a bonus game.

Chapter 06. Claims Procedures

Regulation .01 Definitions.Link Copy Citation

In this chapter, the following terms have the meanings indicated.

Terms Defined.

(1)

“Agency claim center” means the Agency headquarters or a designated Agency customer resource center where the holder of a winning ticket may submit a claim for a prize.

(2)

“Authorized claiming location” means:

(a)

A retailer; and

(b)

An Agency claim center.

(3)

“Claim” means a request for payment of a prize.

(4)

“Claimant” means a person who submits a winning ticket for payment of a prize.

(5)

“Perfect” means to take all steps needed to complete a valid claim for an Agency prize.

Regulation .02 Ownership of Lottery Tickets.Link Copy Citation

The Agency owns a ticket that is unsold, cancelled, or validated.

A validly purchased lottery ticket is:

(1)

Owned by the person who signed the ticket in the area designated for winner’s signature; or

(2)

If the ticket is unsigned:

(a)

A bearer instrument; and

(b)

Owned by the person having physical possession of the ticket.

When one or more names are placed on the back of the ticket in the area designated for winner’s signature, each person whose name appears in that area shall:

(1)

Own the ticket; and

(2)

If each person satisfies the requirements of Regulation .05 of this chapter, be entitled to a portion of a prize attributable to the ticket.

Regulation .03 Official Winning Numbers.Link Copy Citation

The Agency is the only source for the official winning numbers for a lottery game.

For a drawing, the only official winning numbers shall be the numbers randomly selected by the Agency or, for a multi-jurisdictional game, by the procedure set out in that game’s rules.

The Agency shall issue a statement of the winning number or numbers as soon as practicable after each drawing.

Regulation .04 Prize Claiming Locations.Link Copy Citation

A holder of a winning ticket may claim a prize for a winning ticket:

(1)

For a prize up to and including $600 at:

(a)

A retailer, including its PAT; or

(b)

An Agency claim center;

(2)

For a prize up to and including $5,000, at:

(a)

A participating retailer under the Expanded Cashing Authority Program under COMAR 36.02.03.06; or

(b)

An Agency claim center;

(3)

For a prize over $5,000 up to and including $25,000, at an Agency claim center; and

(4)

For a prize over $25,000, at Agency headquarters.

Subscription Winner.

(1)

The Agency may require a claim form to be submitted prior to issuing a check to a subscription winner.

(2)

The claim form may be sent by mail or e-mail, as determined by the Agency.

(3)

A payment for a subscription winner may be made by mail or at Agency headquarters.

Regulation .05 Documents Required for Prize Payment.Link Copy Citation

To perfect a claim and receive payment of an Agency prize, a winner shall meet all requirements in this subtitle for claiming.

To claim a prize, a winner shall submit:

(1)

For other than subscription winners, the actual original ticket, which shall:

(a)

Meet the validation requirements of this subtitle; and

(b)

If requested, be signed by all winners; and

(2)

If requested, photo identification proof that the winner is at least 18 years old.

For a prize claimed at an Agency claim center and for any prize over $600 claimed at a retailer, in addition to the documents required under §B of this regulation, a winner shall:

(1)

Sign the original ticket;

(2)

Provide necessary information to the retailer to produce a terminal-generated claim form;

(3)

Submit a fully completed and signed claim form; and

(4)

Provide sufficient information to identify the claimant, such as:

(a)

The winner’s Social Security number;

(b)

Proof of the winner’s Social Security number; and

(c)

Photo identification proof that the winner is at least 18 years old.

If a prize is to be split among multiple winners, each claimant shall provide the documents and information required in §§B and C of this regulation.

Regulation .06 Procedure for Authorized Claiming Locations.Link Copy Citation

An authorized claiming location shall provide, free of charge:

(1)

The most current winning numbers; and

(2)

A claim form.

An Agency claim center shall also provide winning numbers for prior weeks.

When a claim is submitted, an authorized claiming location shall review and verify:

(1)

The ticket submitted for prize payment;

(2)

The documents required for prize payment under Regulation .05 of this chapter;

(3)

If a claim form is required, the claim form; and

(4)

If the authorized claiming location is a participating retailer under the expanded cashing authority program or an Agency claim center, the lottery terminal screen will indicate whether the winner owes a State obligation or whether the winner is prohibited by COMAR 36.01.01.05D.

If the winner owes a State obligation:

(1)

A retailer shall tell the winner to go to an Agency claim center to complete the validation process;

(2)

For a cash prize, if all other requirements of this subtitle are satisfied, an Agency claim center shall:

(a)

Withhold an amount equal to all State obligations from the cash prize and apply it to the State obligations; and

(b)

Pay any remaining amount of the prize to the winner as provided in §F(3) of this regulation; and

(3)

For a merchandise or experiential prize, if all other requirements of this subtitle are satisfied, an Agency claim center shall:

(a)

Require the winner to pay all State obligations before the prize may be awarded;

(b)

Apply to the State obligations any cash portion of a prize awarded to the winner; and

(c)

If the winner does not pay all State obligations within 5 work days of claiming the prize, disqualify the winner and deem the claim invalidated.

An authorized claiming location shall determine whether the winning ticket and, if required, the claim form, are:

(1)

In proper form;

(2)

Fully filled out;

(3)

Submitted within the appropriate period; and

(4)

Signed by the proper claimant.

An authorized claiming location may pay a prize or a portion of a prize after it determines that:

(1)

The winner, ticket, and any required claim form meet the requirements of this chapter;

(2)

All required documents have been properly completed and submitted; and

(3)

No State obligation is due or unpaid.

An authorized claiming location shall:

(1)

Retain the original of any required claim form submitted;

(2)

Give a copy of the claim form to the claimant as a receipt;

(3)

Collect from the winner the ticket being claimed; and

(4)

Submit the claim form to the Agency within 10 workdays of paying the prize.

An authorized claiming location shall:

(1)

Provide prize payment consistent with this section;

(2)

If a retailer, pay the winner by coin, currency, or check the amount of a prize up to the amount authorized, as determined by the Agency; and

(3)

If an Agency claim center:

(a)

Pay the winner, by check, the amount of a prize up to the amount authorized, as determined by the Agency; or

(b)

Provide for payment by the Comptroller of Maryland or other appropriate office.

If an individual who submits a winning ticket is included on the voluntary exclusion list maintained under COMAR 36.01.03.04, the Agency shall:

(1)

Use any prize winnings to pay any State obligation; and

(2)

Pay the remainder of the prize to the unclaimed prize fund under COMAR 36.02 07.

Regulation .07 Ticket Validation — All Tickets.Link Copy Citation

For a winning ticket submitted to any authorized claiming location to be validated, all of the conditions of this regulation shall be met.

The player shall abide by and follow all regulations in this subtitle pertaining to game tickets.

The ticket:

(1)

Shall be intact;

(2)

Shall be properly registered and printed clearly so the Agency can effectively process the game ticket;

(3)

Shall be signed by the owner of the ticket;

(4)

May not have been previously paid or cancelled;

(5)

May not have been previously submitted for cashing or claiming, unless the previous submission:

(a)

Used the same Social Security number;

(b)

Was at a retailer location; and

(c)

Resulted in a terminal message directing that the ticket be submitted at an Agency claim center;

(6)

Shall contain no:

(a)

Mutilation;

(b)

Alteration;

(c)

Reconstruction;

(d)

Counterfeiting;

(e)

Duplication; or

(f)

Tampering in any manner; and

(7)

Shall pass all other confidential security checks of the Agency.

Regulation .08 Ticket Validation — Draw Tickets.Link Copy Citation

In addition to the requirements of Regulation .07 of this chapter, for a winning draw ticket submitted to the Agency to be validated, the draw ticket shall satisfy all of the conditions of this regulation.

A draw game ticket with that exact date and ticket data may not have been previously paid.

The draw ticket shall have been:

(1)

Sold for the specific drawing;

(2)

Sold in the designated period prior to the specific drawing; and

(3)

Generated:

(a)

From an Agency ticket terminal or PAT; and

(b)

By the Agency through a licensed retailer or as a subscription entry.

The draw ticket validation number shall:

(1)

Be submitted in its entirety; and

(2)

Correspond, using the computer validation file, to the:

(a)

Selected playable symbols or numbers; and

(b)

Date or date range printed on the game ticket.

The ticket data on the draw ticket shall:

(1)

Be recorded in the Agency’s central computer system before the drawing; and

(2)

Match the computer record in every respect.

The official file of winning draw tickets shall match the information that appears on the winning draw ticket, including the:

(1)

Playable symbols or numbers;

(2)

Validation number data; and

(3)

Date of the drawing.

Regulation .09 Ticket Validation — Fast Play Game Tickets.Link Copy Citation

In addition to the requirements of Regulation .07 of this chapter, for a winning Fast Play game ticket submitted to the Agency to be validated, the Fast Play game ticket shall satisfy all of the conditions of this regulation.

The Fast Play game ticket purchased with that exact date and time and ticket data may not have been previously paid.

The Fast Play game ticket shall have been generated:

(1)

From an Agency ticket terminal or PAT; and

(2)

By the Agency through a licensed retailer.

The Fast Play game ticket validation number shall:

(1)

Be submitted in its entirety; and

(2)

Correspond, using the computer validation file, to the:

(a)

Printed symbols or numbers on the ticket; and

(b)

Date and time printed on the game ticket.

The ticket data on the Fast Play game ticket shall:

(1)

Be recorded in the Agency’s central computer system; and

(2)

Match the computer record in every respect.

The ticket validation number and date of sale shall match in their entirety and correspond to the information stored on the Agency’s central computer system.

Regulation .10 Ticket Validation — Instant Tickets.Link Copy Citation

In addition to the requirements of Regulation .07 of this chapter, for a winning instant ticket submitted to the Agency to be validated, the instant ticket's validation number shall match in its entirety and shall correspond to the information stored on magnetic tape or disk in the Agency's host computer system.

Regulation .11 Invalid or Defective Game Tickets.Link Copy Citation

A game ticket that does not pass the validation requirements of this chapter is void and the prize may not be paid.

If a ticket cannot be validated:

(1)

The claim shall be denied;

(2)

The prize may not be paid; and

(3)

The Agency shall promptly notify the claimant.

If a player purchased a defective game ticket and the Director decides to make an adjustment, the sole remedy shall be replacement of the defective game ticket with a current game ticket of equivalent sales price from the same game type.

Regulation .12 Payment of a Lottery Prize.Link Copy Citation

All Tickets and Subscriptions.

(1)

A player shall abide by and follow all regulations pertaining to a game and a ticket.

(2)

If all requirements of this subtitle are met, upon successful completion of the ticket validation process and the claiming and perfecting process, the winner shall be paid the prize.

(3)

Person to Be Paid.

(a)

As long as the requirements of all other regulations in this subtitle are met, regardless of the name submitted on a claim form, the Agency shall pay the name appearing in the designated space on the back of the ticket or the name in which a subscription is held or, in the case of a group subscription, the Agency may pay the group manager.

(b)

The Agency may require that a claim form be submitted by and in the name of the person appearing on the back of the ticket or in which the subscription is held.

(4)

If there is a conflict between the information on the claim form and information on any other document, the Agency may rely on the claim form after the ticket or subscription for which the claim form was submitted to the Agency has been validated as a winning ticket or subscription.

Draw Game Ticket. The owner of a winning draw game ticket:

(1)

Shall win as specified in the consumer game information for that game; and

(2)

Shall be paid the appropriate amount won.

Instant Game Ticket. The owner of a winning instant game ticket:

(1)

Shall win as specified in the game rules printed on the instant ticket; and

(2)

Shall be paid the appropriate amount won.

Subscription Prizes.

(1)

As determined by the Agency for subscription prize winnings, the Agency may:

(a)

Accumulate the prize winnings up to an amount determined by the Director and pay them within a reasonable time after such amount is accumulated or the end of the subscription period after all claims on the subscription are validated;

(b)

Send certain prize amounts without requiring the winner to submit a claim form;

(c)

Require certain documentation to pay a prize;

(d)

Send certain prize amounts only after the winner submits a claim form and certain documentation; and

(e)

Pay a prize under a minimal amount by check or in another manner.

(2)

For a subscription prize payment that is sent to a winner, the Agency or the Comptroller of Maryland shall send payment within a reasonable time after:

(a)

A claim on the subscription is validated; or

(b)

All claims on the subscription are validated.

(3)

Jackpot Prize Winner on a Subscription.

(a)

A player who wins a jackpot on a subscription shall complete a claim form at the Agency’s Headquarters and complete the claiming process as required by the Agency.

(b)

The Agency shall forward a payment to the Comptroller of Maryland for payment.

(4)

Any member of the Group who is not eligible to purchase a lottery ticket from the Agency forfeits the right to any portion of the prize won by the group, and the ineligible group member’s portion of that prize shall be paid to the unclaimed prize fund.

Fast Play Game Ticket. The owner of a winning Fast Play game ticket shall:

(1)

Win as specified in the consumer game information for that game; and

(2)

Be paid the appropriate amount won.

Regulation .13 Prizes.Link Copy Citation

Pari-Mutuel Prizes.

(1)

As determined by the Director, a prize may be paid on a pari-mutuel basis if certain levels of prize liability are reached.

(2)

As determined by the Director, a prize may be paid on a pari-mutuel basis within one prize level, or across designated prize levels.

Jackpot Draw Game Prizes.

(1)

In a jackpot draw game drawing, if no winning game ticket qualifies for the first prize category, the amount, portion, or percentage allocated for the first prize that is to be added to the next jackpot shall be determined by the Director.

(2)

Prize money allocated to a jackpot game’s first prize category shall be divided equally by the number of purchased game plays winning a first prize.

(3)

Prize money allocated to, or prize amounts determined for, all other prize categories shall be determined by the Director.

The probability or odds of winning governs the determination of when a prize is won and a prize is paid.

Progressive Jackpot Games. The Agency may offer progressive jackpot Fast Play games.

Regulation .14 Discharge of Agency upon Payment.Link Copy Citation

Definition.

(1)

In this regulation, the following term has the meaning indicated.

(2)

Term Defined. “The State” means the State of Maryland, the Agency, and the Commission and their agents, officers, officials, employees, and representatives.

The State shall be discharged from all liability, including all liability for the payment of a prize, and any further liability for payment of the prize, upon payment of a prize or any installment of the prize, including payment to a winner who is a minor, a disabled person, or deceased.

The discharge of liability under this regulation applies to the holder of a winning lottery ticket or subscription paid in accordance with:

(1)

The information set forth on the ticket or subscription’s claim form;

(2)

An order from a court of competent jurisdiction; or

(3)

This chapter.

Regulation .15 Time of Payment.Link Copy Citation

The Director may delay payment of a prize if a question arises regarding a purchaser, claimant, claim, ticket, prize, any other matter, or a change of circumstances regarding any of them.

The Director may petition a court of competent jurisdiction for instructions and resolution of such a controversy.

Unless the Director delays payment of a prize under §A of this regulation, the Agency shall pay a prize within a reasonable time after the claim is submitted, validated, and perfected.

If a prize requires annual installment payments:

(1)

The date of the first installment payment shall be within a reasonable time after:

(a)

The prize is determined; and

(b)

The claim is submitted to the Agency, validated, and perfected; and

(2)

Subsequent annual installments shall be made approximately on the date the Agency assigns to the winner in accordance with the type of prize awarded.

All delayed payments shall:

(1)

Be brought up to date immediately upon the Director's confirmation of the validity of the claim; and

(2)

If an annuity, continue to be paid on each original anniversary date and thereafter for the annuity period.

Regulation .16 Claims on Behalf of a Minor.Link Copy Citation

Definitions.

(1)

In this regulation, the following terms have the meanings indicated.

(2)

Terms Defined.

(a)

“Adult” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.

(b)

“Conservator” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.

(c)

“Financial institution” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.

(d)

“Guardian” has the meaning stated in Estates and Trusts Article, §13-101, Annotated Code of Maryland.

(e)

“Member of the minor's family” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.

(f)

“Minor” has the meaning stated in Estates and Trusts Article, §13-101, Annotated Code of Maryland.

Claims Submitted.

(1)

If a winning ticket owner is a minor, a guardian, conservator, parent, adult member of the minor’s family, or other proper representative shall complete the claim form for the minor.

(2)

If the Director determines that the person who completed the claim form on behalf of the minor who is a winner is not the proper person to claim the prize on the minor’s behalf, the Director may:

(a)

Require a person who the Director determines is a proper person to claim the minor’s prize on the minor’s behalf to complete a new claim form; and

(b)

Determine the appropriate information to be included on the claim form to protect the Agency and the public interest.

(3)

If the individual entitled to a prize is a minor and the prize is $5,000 or less, the Director may pay the prize by a check or draft made payable to the order of the minor and delivered to:

(a)

An adult member of the minor's family; or

(b)

A conservator or guardian of the minor's property.

(4)

If the individual entitled to a prize is a minor and the prize is more than $5,000, the Director may pay the prize by depositing the amount of the prize in any financial institution to the credit of either of the following as custodian for the minor:

(a)

An adult member of the minor's family; or

(b)

A conservator or guardian of the minor's property.

(5)

The Director may petition a court of competent jurisdiction to request a determination for the payment of any prize that is, or may become, due to a minor.

(6)

If a court of competent jurisdiction orders that payments due and to become due from the Agency to a minor be paid directly to a specified person, the Agency shall pay the prize according to the order of that court.

Regulation .17 Claims on Behalf of an Entity.Link Copy Citation

This regulation applies where a prize is won by an entity other than an individual or group of individuals.

When the name of an entity is entered on a ticket back as the prize winner, for the entity to be paid the prize, the provisions of this regulation shall apply.

If the entity is formed in Maryland and is a type of entity required to file documents with the Maryland State Department of Assessments and Taxation, the entity shall be in good standing with that Department.

As part of the documents to be submitted to the Agency at claiming, the entity shall submit a valid copy of all formation documents, even if they are not required to be filed with the Maryland State Department of Assessments and Taxation.

Required formation documents include articles of incorporation, trust terms, partnership agreement, completed IRS Form SS-4 and other documents providing the EIN number, certificates issued by the Secretary of State, and authority given to an individual acting on behalf of the entity.

The name of the entity shall be identical to the name of the entity as noted in the legal documents, including terms such as “the”, “and”, and “&”.

The name and signature of the authorized representative shall be identical to the name noted in the legal documents.

The entity shall submit to the Agency a copy of all documents indicating that the individual completing the claim form has the authority to collect the prize on behalf of and as the representative of the entity, including:

(1)

Minutes of a corporation authorizing a named individual to submit the ticket and collect the prize on behalf of the corporation; or

(2)

Authority or affidavit of the trust.

The name and signature of the authorized representative shall be identical to the name noted in the legal documents.

The individual who submits the documentation shall submit proof that the individual is the individual authorized by the entity to collect the prize on behalf of the entity.

The signature of an entity shall consist of the name of the entity followed by the name of the individual authorized representative, and the representative’s capacity, which shall be similar to the way it is set out in the authority provision in the legal documents.

The individual who signs on behalf of an entity shall submit an affidavit that each owner and each beneficiary of the entity is not a person prohibited by COMAR 36.01.01.05 from being paid a prize.

If the Director determines that the individual who completed the claim form on behalf of the entity that is a winner is not the proper individual to claim the prize on the entity’s behalf, the Director may:

(1)

Require an individual who the Director determines is a proper individual to claim the entity’s prize on the entity’s behalf to complete a new claim form; and

(2)

Determine the appropriate information to be included on the claim form to protect the Agency and the public interest.

The Director may rely wholly on:

(1)

A certified copy submitted to the Agency of a court of competent jurisdiction's appointment of an individual representative for the entity; or

(2)

Any other evidence that an individual is entitled to the payment of prize on behalf of the entity.

The Director may petition a court of competent jurisdiction to request a determination about the payment of any prize which is or may become due to an entity.

If a court of competent jurisdiction orders that a prize due and to become due from the Agency to an entity be paid directly to a specified individual, the Agency shall pay the prize according to the order of the court.

The entity shall be taxed at the highest withholding tax rate allowable.

The Agency shall put into its system the entity’s taxpayer identification number to determine if the entity owes any State obligation.

If the entity owes a State obligation, the amount of the State obligation shall be withheld from the prize.

For prizes over $25,000 the Agency shall submit all documentation to the Comptroller of Maryland for processing.

Documents Submitted to the Agency.

(1)

The Agency shall retain a copy of all documents submitted to the Agency by the entity and the entity’s representative.

(2)

A document submitted by the entity or the entity’s representative is considered a public record.

Regulation .18 Payments to Disabled Persons.Link Copy Citation

Definitions.

(1)

In this regulation, the following terms have the meanings indicated.

(2)

Terms Defined.

(a)

“Conservator” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.

(b)

“Disabled person” has the meaning stated in Estates and Trusts Article, §13-101, Annotated Code of Maryland.

(c)

“Guardian” has the meaning stated in Estates and Trusts Article, §13-101, Annotated Code of Maryland.

If a prize winner is a disabled person, a guardian, conservator, parent, adult member of the person’s household, or other proper representative shall complete the claim form for the disabled person.

If the Director determines that the individual who completed the claim form on behalf of the disabled person is not the proper person to claim the prize on the disabled person’s behalf, the Director may:

(1)

Require a new claim form to be completed by a person the Director determines is a proper person to claim the disabled person’s prize on the disabled person’s behalf; and

(2)

Determine the appropriate information to be included on the claim form to protect the Agency and the public interest.

The Director may require the individual who signs the claim form on behalf of a disabled person to submit an affidavit that the disabled person is not a person prohibited by COMAR 36.01.01.05 from being paid a prize.

The Director may rely wholly on:

(1)

A certified copy submitted to the Agency of a court of competent jurisdiction's appointment of a guardian or conservator of the disabled person; or

(2)

Any other evidence that a person is entitled to the payment of a prize on behalf of the disabled person.

The Director may petition a court of competent jurisdiction to request a determination for the payment of any prize which is, or may become, due to a winner who is a disabled person.

If a court of competent jurisdiction orders that payments due or to become due to a winner who is a disabled person be paid to a specified person, the Agency shall pay the prize according to the order of the court.

Unless permitted by federal law and authorized by the Director, the Agency may not accelerate the payment of a prize beyond its normal dates of payment to a winner who is a disabled person.

Regulation .19 Prizes Payable After Owner’s Death.Link Copy Citation

This regulation applies when a prize or portion of a prize is payable after a prize winner has died.

A prize or a portion of a prize which remains unpaid at the time of a prize winner's death shall be payable to:

(1)

The beneficiary designated on the deceased winner's claim form; or

(2)

If no beneficiary was designated on the deceased winner’s claim form, the winner’s estate or the duly qualified personal representative of the winner's estate.

The Director may rely wholly on:

(1)

A certified copy submitted to the Agency of a court of competent jurisdiction's appointment of a personal representative for the deceased winner’s estate; or

(2)

Any other evidence that a person is entitled to the payment of a prize on behalf of the deceased person.

The Director may require the individual who signs on behalf of a deceased winner to submit an affidavit that the deceased prize winner was not prohibited by COMAR 36.01.01.05 from being paid a prize.

The Director may petition a court of competent jurisdiction to request a determination for the payment of any prize which is or may become due to a deceased winner.

If a court of competent jurisdiction directs that a prize due and to become due from the Agency to a deceased winner be paid directly to a specified person, the Agency shall pay the prize according to the order of the court.

Unless permitted by federal law and authorized by the Director, the Agency may not accelerate the payment of a prize beyond its normal dates of payment after a winner’s death.

The person to receive payment on behalf of the deceased person shall submit to the Agency a complete and notarized change of beneficiary form and sufficient information to identify the claimant, such as:

(1)

The person’s Social Security number; and

(2)

Proof of the Social Security number.

Payments due under this regulation shall begin once the Director is satisfied that the payment is lawful and proper.

Chapter 07. Unclaimed Lottery Prizes

Regulation .01 Prize Claiming Period.Link Copy Citation

Unclaimed Monetary Award.

(1)

The Director shall retain an unclaimed monetary award for 182 days after:

(a)

The drawing;

(b)

The date the Fast Play game ticket was sold; or

(c)

The announced end of game date for an instant ticket.

(2)

If no claim for a monetary award is made within 182 days, the Director shall transfer the monetary award to the Unclaimed Prize Fund.

Unclaimed Merchandise or Experiential Award.

(1)

The Director shall designate the time period for retaining unclaimed merchandise or an experiential award.

(2)

If no claim is made for merchandise or an experiential award within the time period designated by the Director, the Director shall designate how the Agency will handle the merchandise or experiential award consistent with any Agency contract or license agreement for the merchandise or experiential award.

(3)

If no time period has been designated by the Director for retaining unclaimed merchandise or an experiential award, the period for claiming the award may not exceed 182 days.

Unclaimed Prizes Held Other Than 182 Days. The Director may hold a prize in a game or drawing for a period of time other than 182 days if:

(1)

The game is not a weekly, daily, or multi jurisdictional lottery drawing;

(2)

The Director designated the game as a bonus game or drawing; and

(3)

The Director designates the claiming period to be a time other than 182 days.

Regulation .02 Unclaimed Prize Fund.Link Copy Citation

Prize money from a winning ticket that has not been claimed within the claiming period for that game shall accrue to the Unclaimed Prize Fund.

The Director may institute bonus prizes using funds from the Unclaimed Prize Fund.

Bonus Prizes.

(1)

The bonus prizes shall be determined by the Director.

(2)

The Director may change the number of bonus prize categories and the allocation of prize money among the prize categories.

(3)

The Agency shall announce any change to the number of bonus prize categories and to the allocation of prize money among the prize categories.

Chapter 08. Voluntary Assignment of Monetary Prizes

Regulation .01 Definitions.Link Copy Citation

In this chapter, the following terms have the meanings indicated.

Terms Defined.

(1)

“Assignee” means a person who:

(a)

Enters into a contract for voluntary assignment of a lottery prize payment;

(b)

Obtains a court order for voluntary assignment of the lottery prize winner’s lottery prize payment in whole or in part; and

(c)

Becomes a lottery prize winner.

(2)

“Assignee affidavit” means a sworn statement of an assignee.

(3)

“Assignment” means court-ordered payment of a lottery prize to an assignee or subsequent assignee and may include a divorce decree.

(4)

“Assignment Law” means State Government Article, §9-122(b), Annotated Code of Maryland, and this chapter.

(5)

“Assignor” means:

(a)

A lottery prize winner who makes the assignment of a lottery prize payment in whole or in part to an assignee or a subsequent assignee; or

(b)

An assignee or subsequent assignee who seeks a court order to reassign the same or related lottery prize payment that was previously assigned by court order.

(6)

“Assignor affidavit” means a sworn statement made under oath before a notary public by:

(a)

A lottery prize winner who seeks to assign the lottery prize payment; or

(b)

A person who was an assignee.

(7)

“Contract of assignment” means the written instrument that is used to execute an assignment of a lottery prize payment.

(8)

“Court” means the circuit court in the county where the Agency’s headquarters is located.

(9)

“Lottery prize payment” means a monetary prize that the Agency pays in installments over time that is an annuity.

(10)

“Lottery prize winner” means a person who wins a lottery prize payment.

(11)

“Petition" means a document filed in court requesting the assignment of a lottery prize payment.

Regulation .02 General.Link Copy Citation

An assignment of a lottery prize payment shall be conducted in accordance with the Assignment Law.

The Agency shall treat an assignee as a lottery prize winner.

Regulation .03 Petition for Assignment.Link Copy Citation

A person seeking to assign a lottery prize payment may file a petition with the court for voluntary assignment of all or part of a lottery prize payment under the Assignment Law.

Regulation .04 Required Submissions.Link Copy Citation

An assignor and assignee shall each file an affidavit with the court as required under the Assignment Law.

The assignor and assignee shall provide the Agency with the written notice required under the Assignment Law.

Death of Joint Owner. If an owner of a lottery annuity dies after winning the lottery prize, a surviving joint owner shall submit to the Agency:

(1)

A certified copy of the death certificate;

(2)

Written notice required under §B of this regulation.

Regulation .05 Fees.Link Copy Citation

An assignor, assignee or both shall pay an administrative fee of $2,000 to the Agency to process a request for a voluntary assignment.

An assignor, assignee or both shall pay the administrative fee required in §A of this regulation each time any portion of a lottery prize payment is voluntarily assigned or reassigned.

An assignor, assignee or both shall pay the fees due to the Agency by certified check or money order at the same time that the petition is submitted to the Agency.

The fees established by this regulation may not be waived.

The fees paid under this regulation are nonrefundable.

Regulation .06 Special Requirements.Link Copy Citation

An assignor and an assignee shall provide written documentation to the Agency and the court that the assignment does not include:

Child support payment;

Criminal restitution;

Bankruptcy; or

Any other debt, claim, or liability that may be owed to the State of Maryland.

Regulation .07 Requirements for Court Order.Link Copy Citation

Preparation of the Proposed Court Order. An assignee seeking assignment shall:

(1)

Prepare the proposed court order;

(2)

Ensure that the court order contains the information required in the Assignment Law;

(3)

Submit the proposed court order to the Agency; and

(4)

Follow the procedures set out in the Assignment Law.

Final Court Order.

(1)

Based upon the Agency’s lottery prize payment installment due dates, the assignor and assignee shall submit the final court order to the Agency:

(a)

For lottery prize payments due in August, the court order shall be received by the Agency by June 1 of that year;

(b)

For lottery prize payments due in November, the court order shall be received by the Agency by September 1 of that year;

(c)

For lottery prize payments due in February, the court order shall be received by the Agency by December 1 of the preceding year; and

(d)

For lottery prize payments due in May, the court order shall be received by the Agency by March 1 of that year.

(2)

The court orders specified in §B(1) of this regulation shall be certified.

Chapter 09. Instant Ticket Lottery Machines

Regulation .01 Scope.Link Copy Citation

This chapter applies to a retailer that is a veterans’ services organization and applies for and sells tickets from instant ticket lottery machines.

In addition to the requirements of this chapter, and State Government Article, §9-112, Annotated Code of Maryland, a veterans’ services organization licensed to sell tickets from an instant ticket lottery machine shall meet the requirements of this subtitle for a retailer licensed by the Agency.

Regulation .02 Definitions.Link Copy Citation

In this chapter, the following terms have the meanings indicated.

Terms Defined.

(1)

“Cashout voucher” means a printed slip of paper with a code indicating the amount of money payable to the individual who presents the ticket to an ITLM licensee.

(2)

“Contractor” or “Agency’s contractor” means a company selected by the Agency for the design, development, installation, implementation, operation, and maintenance of the Agency’s Instant Ticket Lottery Machine system.

(3)

“Instant ticket lottery machine” or “ITLM” means a machine or other device provided to a retailer through the Agency’s contractor as required under State Government Article § 9-112, Annotated Code of Maryland.

(4)

“ITLM Licensee” means the holder of a special license to operate instant ticket lottery machines.

(5)

“ITLM ticket” means a preprinted ticket purchased from an instant ticket lottery machine.

(6)

“Veterans’ facility” means the building where an ITLM licensee places instant ticket lottery machines.

(7)

“Veteran’s services organization” means an organization that is:

(a)

Tax exempt and organized as a veterans’ organization under 501(c)(19) or 501(c)(4) of the United States Internal Revenue Code; and

(b)

Located in:

(i)

Allegany County;

(ii)

Anne Arundel County;

(iii)

Baltimore City;

(iv)

Baltimore County;

(v)

Calvert County;

(vi)

Carroll County;

(vii)

Charles County;

(viii)

Frederick County;

(ix)

Garrett County;

(x)

Harford County;

(xi)

Howard County;

(xii)

Montgomery County;

(xiii)

Prince George’s County;

(xiv)

Saint Mary’s County; or

(xv)

Washington County.

Regulation .03 ITLM Licensee Requirements.Link Copy Citation

A veterans’ services organization may not operate instant ticket lottery machines without a special license.

A veterans’ services organization may apply for a special license to operate up to 5 instant ticket lottery machines.

An ITLM licensee shall locate the instant ticket lottery machines in the veterans’ facility within its principal meeting hall in the county in which the veterans’ organization is located.

The Agency may restrict the permissible location within a veterans’ facility.

An ITLM licensee shall enter into an agreement with the Agency that provides for the:

(1)

Reimbursement of rental or lease fees for the instant ticket lottery machines;

(2)

Power, utility, security, and HVAC needs of the instant ticket lottery machines; and

(3)

Operation, maintenance, ITLM ticket retention, record keeping, and reporting requirements of the instant ticket lottery machines.

Regulation .04 Instant Ticket Lottery Machine Play.Link Copy Citation

An ITLM licensee may allow an individual who is 18 years old or older to play an instant ticket lottery machine.

An ITLM licensee shall be:

(1)

Knowledgeable about the games available in the instant ticket lottery machine; and

(2)

Able to show players how to access help screens in the instant ticket lottery machine.

Regulation .05 Payment of Prizes.Link Copy Citation

A cashout voucher may be presented for payment only to:

(1)

The ITLM licensee where the voucher was printed; or

(2)

An Agency claim center as defined in COMAR 36.02.06.01B(1).

Only a player who is an individual may present a cashout voucher for payment.

The provisions of COMAR 36.02.06.15, COMAR 36.02.06.16, and COMAR 36.02.06.17 do not apply to claims for payment of a prize from an instant ticket lottery machine.

Except as provided in §§A—C of this regulation, an ITLM licensee shall pay the individual holder of a cashout voucher in accordance with the claims procedures described in COMAR 36.02.06.

Title 36 — Subtitle 02. Lottery Provisions

Chapter 01. General

Regulation .01 Definitions.LinkCopy Citation

Regulation .02 Sponsorship Request.LinkCopy Citation

Chapter 02. Retailer Licensing

Regulation .01 Definitions.LinkCopy Citation

Regulation .02 License Required.LinkCopy Citation

Regulation .03 License Restrictions.LinkCopy Citation

Regulation .04 Application Process.LinkCopy Citation

Regulation .05 Security.LinkCopy Citation

Regulation .06 Probationary License.LinkCopy Citation

Regulation .07 Special License.LinkCopy Citation

Regulation .08 Denial of a License.LinkCopy Citation

Regulation .09 Corrective Action.LinkCopy Citation

Regulation .10 Sanctions and Agency Actions on a License.LinkCopy Citation

Chapter 03. Retailer Requirements

Regulation .01 General Responsibilities.LinkCopy Citation

Regulation .02 Retailer Obligations.LinkCopy Citation

Regulation .03 Prohibited Acts.LinkCopy Citation

Regulation .04 Lottery Sale—General.LinkCopy Citation

Regulation .05 Cessation of Operations.LinkCopy Citation

Regulation .06 Sale of Tickets — Instant Ticket Procedure.LinkCopy Citation

Regulation .07 Sale of Lottery Tickets — Draw Game Ticket Procedure.LinkCopy Citation

Regulation .08 Sale of Tickets — Fast Play Game Ticket Procedure.LinkCopy Citation

Regulation .09 Lost, Stolen, or Missing Tickets.LinkCopy Citation

Regulation .10 Posting of Winning Game Data.LinkCopy Citation

Regulation .11 Payment of Prizes.LinkCopy Citation

Regulation .12 Expanded Cashing Authority Program.LinkCopy Citation

Regulation .13 Payments to Agency.LinkCopy Citation

Regulation .14 Americans with Disabilities Act.LinkCopy Citation

Regulation .15 Changes in Ownership.LinkCopy Citation

Chapter 04. Common Provisions for All Lottery Games

Regulation .01 Governing Law and Rules.LinkCopy Citation

Regulation .02 Ticket Purchaser Responsibilities.LinkCopy Citation

Regulation .03 Methods of Purchase.LinkCopy Citation

Regulation .04 Cancellation of Tickets.LinkCopy Citation

Regulation .05 Liability Limits.LinkCopy Citation

Regulation .06 Agency Not Liable.LinkCopy Citation

Regulation .07 No Endorsement.LinkCopy Citation

Chapter 05. Specific Game Provisions

Regulation .01 Draw Games.LinkCopy Citation

Regulation .02 Fast Play Games.LinkCopy Citation

Regulation .03 Instant Ticket Games.LinkCopy Citation

Regulation .04 Bonus and Promotional Games.LinkCopy Citation

Chapter 06. Claims Procedures

Regulation .01 Definitions.LinkCopy Citation

Regulation .02 Ownership of Lottery Tickets.LinkCopy Citation

Regulation .03 Official Winning Numbers.LinkCopy Citation

Regulation .04 Prize Claiming Locations.LinkCopy Citation

Regulation .05 Documents Required for Prize Payment.LinkCopy Citation

Regulation .06 Procedure for Authorized Claiming Locations.LinkCopy Citation

Regulation .07 Ticket Validation — All Tickets.LinkCopy Citation

Regulation .08 Ticket Validation — Draw Tickets.LinkCopy Citation

Regulation .09 Ticket Validation — Fast Play Game Tickets.LinkCopy Citation

Regulation .10 Ticket Validation — Instant Tickets.LinkCopy Citation

Regulation .11 Invalid or Defective Game Tickets.LinkCopy Citation

Regulation .12 Payment of a Lottery Prize.LinkCopy Citation

Regulation .13 Prizes.LinkCopy Citation

Regulation .14 Discharge of Agency upon Payment.LinkCopy Citation

Regulation .15 Time of Payment.LinkCopy Citation

Regulation .16 Claims on Behalf of a Minor.LinkCopy Citation

Regulation .17 Claims on Behalf of an Entity.LinkCopy Citation

Regulation .18 Payments to Disabled Persons.LinkCopy Citation

Regulation .19 Prizes Payable After Owner’s Death.LinkCopy Citation

Chapter 07. Unclaimed Lottery Prizes

Regulation .01 Prize Claiming Period.LinkCopy Citation

Regulation .02 Unclaimed Prize Fund.LinkCopy Citation

Chapter 08. Voluntary Assignment of Monetary Prizes

Regulation .01 Definitions.LinkCopy Citation

Regulation .02 General.LinkCopy Citation

Regulation .03 Petition for Assignment.LinkCopy Citation

Regulation .04 Required Submissions.LinkCopy Citation

Regulation .05 Fees.LinkCopy Citation

Regulation .06 Special Requirements.LinkCopy Citation

Regulation .07 Requirements for Court Order.LinkCopy Citation

Chapter 09. Instant Ticket Lottery Machines

Regulation .01 Scope.LinkCopy Citation

Regulation .02 Definitions.LinkCopy Citation

Regulation .03 ITLM Licensee Requirements.LinkCopy Citation

Regulation .04 Instant Ticket Lottery Machine Play.LinkCopy Citation

Regulation .01 Definitions.Link Copy Citation

Regulation .02 Sponsorship Request.Link Copy Citation

Regulation .01 Definitions.Link Copy Citation

Regulation .02 License Required.Link Copy Citation

Regulation .03 License Restrictions.Link Copy Citation

Regulation .04 Application Process.Link Copy Citation

Regulation .05 Security.Link Copy Citation

Regulation .06 Probationary License.Link Copy Citation

Regulation .07 Special License.Link Copy Citation

Regulation .08 Denial of a License.Link Copy Citation

Regulation .09 Corrective Action.Link Copy Citation

Regulation .10 Sanctions and Agency Actions on a License.Link Copy Citation

Regulation .01 General Responsibilities.Link Copy Citation

Regulation .02 Retailer Obligations.Link Copy Citation

Regulation .03 Prohibited Acts.Link Copy Citation

Regulation .04 Lottery Sale—General.Link Copy Citation

Regulation .05 Cessation of Operations.Link Copy Citation

Regulation .06 Sale of Tickets — Instant Ticket Procedure.Link Copy Citation

Regulation .07 Sale of Lottery Tickets — Draw Game Ticket Procedure.Link Copy Citation

Regulation .08 Sale of Tickets — Fast Play Game Ticket Procedure.Link Copy Citation

Regulation .09 Lost, Stolen, or Missing Tickets.Link Copy Citation

Regulation .10 Posting of Winning Game Data.Link Copy Citation

Regulation .11 Payment of Prizes.Link Copy Citation

Regulation .12 Expanded Cashing Authority Program.Link Copy Citation

Regulation .13 Payments to Agency.Link Copy Citation

Regulation .14 Americans with Disabilities Act.Link Copy Citation

Regulation .15 Changes in Ownership.Link Copy Citation

Regulation .01 Governing Law and Rules.Link Copy Citation

Regulation .02 Ticket Purchaser Responsibilities.Link Copy Citation

Regulation .03 Methods of Purchase.Link Copy Citation

Regulation .04 Cancellation of Tickets.Link Copy Citation

Regulation .05 Liability Limits.Link Copy Citation

Regulation .06 Agency Not Liable.Link Copy Citation

Regulation .07 No Endorsement.Link Copy Citation

Regulation .01 Draw Games.Link Copy Citation

Regulation .02 Fast Play Games.Link Copy Citation

Regulation .03 Instant Ticket Games.Link Copy Citation

Regulation .04 Bonus and Promotional Games.Link Copy Citation

Regulation .01 Definitions.Link Copy Citation

Regulation .02 Ownership of Lottery Tickets.Link Copy Citation

Regulation .03 Official Winning Numbers.Link Copy Citation

Regulation .04 Prize Claiming Locations.Link Copy Citation

Regulation .05 Documents Required for Prize Payment.Link Copy Citation

Regulation .06 Procedure for Authorized Claiming Locations.Link Copy Citation

Regulation .07 Ticket Validation — All Tickets.Link Copy Citation

Regulation .08 Ticket Validation — Draw Tickets.Link Copy Citation

Regulation .09 Ticket Validation — Fast Play Game Tickets.Link Copy Citation

Regulation .10 Ticket Validation — Instant Tickets.Link Copy Citation

Regulation .11 Invalid or Defective Game Tickets.Link Copy Citation

Regulation .12 Payment of a Lottery Prize.Link Copy Citation

Regulation .13 Prizes.Link Copy Citation

Regulation .14 Discharge of Agency upon Payment.Link Copy Citation

Regulation .15 Time of Payment.Link Copy Citation

Regulation .16 Claims on Behalf of a Minor.Link Copy Citation

Regulation .17 Claims on Behalf of an Entity.Link Copy Citation

Regulation .18 Payments to Disabled Persons.Link Copy Citation

Regulation .19 Prizes Payable After Owner’s Death.Link Copy Citation

Regulation .01 Prize Claiming Period.Link Copy Citation

Regulation .02 Unclaimed Prize Fund.Link Copy Citation

Regulation .01 Definitions.Link Copy Citation

Regulation .02 General.Link Copy Citation

Regulation .03 Petition for Assignment.Link Copy Citation

Regulation .04 Required Submissions.Link Copy Citation

Regulation .05 Fees.Link Copy Citation

Regulation .06 Special Requirements.Link Copy Citation

Regulation .07 Requirements for Court Order.Link Copy Citation

Regulation .01 Scope.Link Copy Citation

Regulation .02 Definitions.Link Copy Citation

Regulation .03 ITLM Licensee Requirements.Link Copy Citation

Regulation .04 Instant Ticket Lottery Machine Play.Link Copy Citation

Regulation .05 Payment of Prizes.Link Copy Citation