<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".05" citation="COMAR 36.02.04.05" title_num="36" subtitle_num="02" chapter_num="04" heading="Liability Limits.">
  <paragraph num="A.">
    <text>Scope.</text>
    <paragraph num="(1)">
      <text>This regulation applies to a lottery game.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>This regulation does not apply to:</text>
      <paragraph num="(a)">
        <text>An instant ticket lottery machine game; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A promotion.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Definitions.</text>
    <paragraph num="(1)">
      <text>In this regulation, the following terms have the meanings indicated.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Terms Defined.</text>
      <paragraph num="(a)">
        <text>“Pick Game” means a Pick 3, Pick 4, and Pick 5 game.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>“Prize cap” means an upper limit of prize liability beyond which fixed prizes are recalculated on a pari-mutuel basis.</text>
      </paragraph>
      <paragraph num="(c)">
        <text>“Promotional prize limit” means the maximum payout for a single play during a sales promotion</text>
      </paragraph>
      <paragraph num="(d)">
        <text>“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.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Pick Games.</text>
    <paragraph num="(1)">
      <text>There is a liability limit for a Pick Game.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>When the liability limit is reached for a number combination in a drawing, sales on the number combination are no longer permitted.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Draw Games Other Than a Pick Game.</text>
    <paragraph num="(1)">
      <text>If the fixed prize amount multiplied by the number of winners exceeds the prize cap, prizes shall be calculated on a pari-mutuel basis.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A jackpot prize is determined on a pari-mutual basis.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Except for a multi-jurisdictional game, the Director may establish or modify for each drawing of a game a:</text>
    <paragraph num="(1)">
      <text>Promotional prize limit;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Prize cap; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Sales limit.</text>
    </paragraph>
  </paragraph>
</regulation>