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Oregon Bulletin

January 1, 2011

 

Oregon State Lottery
Chapter 177

Rule Caption: Changes Match 5 Play® prize to set amount of $1,000,000.

Adm. Order No.: LOTT 10-2010

Filed with Sec. of State: 11-19-2010

Certified to be Effective: 12-12-10

Notice Publication Date: 11-1-2010

Rules Amended: 177-085-0065

Subject: The Oregon Lottery has amended the above referenced Powerball® game rule to change the way the prize amount is determined for the Match 5 Power Play® option. This change was necessary to implement changes to the Powerball® game rules made by the national organization that administers the multi-state Powerball® game.

Rules Coordinator: Mark W. Hohlt—(503) 540-1417

177-085-0065

Power Play

(1) General: Power Play® is an optional, limited extension of the Powerball® Game described in OAR Division 85. The Lottery Director, in the Lottery Director’s sole discretion and based on agrments with MUSL, is authorized to initiate and terminate the Power Play® option.

(2) Set Prizes Only: Power Play® multiplies or increases the amount of any of the cash Set Prizes (the cash prizes normally paying $3 to $200,000) won in a drawing. The Grand Prize jackpot is not a Set Prize and will not be multiplied or increased. Match 5 Bonus Prizes are awarded independent of the Power Play® option and are not multiplied by the Power Play® multiplier.

(3) Power Play® Purchase: A qualifying Power Play® option play is any single Powerball® Play for which the player selects the Power Play® option on either the Play Slip or by selecting the Power Play® option through a clerk-activated or player-activated terminal, pays one extra dollar for the Power Play® option play, and which is recorded at the Party Lottery’s central computer as a qualifying play.

(4) Qualifying Play: A qualifying play which wins one of the seven lowest lump sum Set Prizes (excluding the Match 5 prize) will be multiplied by the number selected (either 2, 3, 4, or 5), in a separate random Power Play® drawing announced during the official Powerball® drawing show. The announced Match 5 prize, for players selecting the Power Play® option, shall be $1,000,000 unless a higher limited promotional dollar amount is announced by the Product Group.

(5) Selection of Multiplier: MUSL will conduct a separate random Power Play® drawing and announce results during each of the regular Powerball® drawings held during the promotion. During each Power Play® drawing, a single number (2, 3, 4, or 5) shall be drawn. The Product Group may change one or more of these multiplier numbers and/or the Match 5 Power Play® prize amount for special promotions from time to time.

(6) Power Play® Prize Pool: The prize pool for all prize categories shall consists of up to 49.5 percent of each drawing period’s sales, including any specific statutorily mandated tax on a Party Lottery to be included in the price of a lottery ticket, after the Powerball® prize reserve accounts are funded to the amounts set by the Product Group. Any amount remaining in the prize pool at the end of the Powerball® game shall be carried forward to a replacement game or expended in a manner as directed by the Product Group in accordance with state law.

(7) Power Play® Prize Reserve Accounts: An additional one-half percent of sales, including any specific statutorily mandated tax on a Party Lottery to be included in the price of a lottery ticket, may be collected and placed in the rollover account or in trust in one or more prize reserve accounts until the prize reserve accounts reach the amounts designated by the Product Group.

(8) Power Play® Payout: Except as provided in these rules, all prizes awarded shall be paid as lump sum set prizes. Instead of the Powerball® set prize amounts, qualifying Power Play® option plays will pay the amounts shown below when matched with the Power Play® number drawn. Match 5 prizes shall be paid $1,000,000 regardless of the Power Play® number selected, unless a higher limited promotional dollar amount is announced by the Product Group. [Table not included. See ED. NOTE.]

(9) Probability of Prize Increase: The following table sets forth the probability of the various Power Play® numbers being drawn during a single Powerball® drawing, except that the Power Play® amount for the Match 5 prize will be $1,000,000. The Product Group may elect to run limited promotions that may increase the multiplier numbers or Match 5 Power Play® prize amount. [Table not included. See ED. NOTE.]

(10) Prize Pool Carried Forward: The prize pool percentage allocated to the Power Play® set prizes shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.

(11) Pari-Mutuel Prizes —All Prize Amounts: If the total of the original Powerball® set prizes and the Power Play® prizes awarded in a drawing exceeds the percentage of the prize pools allocated to the set prizes, then the amount needed to fund the set prizes (including the Power Play® prize amounts) awarded shall be drawn from the following sources, in the following order:

(a) The amount allocated to the set prizes and carried forward from previous draws, if any;

(b) An amount from the Powerball® Set-Prize Reserve Account, if available in the account, not to exceed twenty-five million dollars ($25,000,000) per drawing; and

(c) If, after these sources are depleted, there are not sufficient funds to pay the set prizes awarded (including Power Play® prize amounts), then the highest set prize (including the Power Play® prize amounts) shall become a pari-mutuel prize. If the amount of the highest set prize, when paid on a pari-mutuel basis, drops to or below the next highest set prize and there are still not sufficient funds to pay the remaining set prizes awarded, then the next highest set prize, including the Power Play® prize amount, shall become a pari-mutuel prize. This procedure shall continue down through all set prizes levels, if necessary, until all set prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning plays in proportion to their respective prize percentages. In rare instances, where the Powerball® set prize amount may be funded but the money available to pay the full Power Play® prize amount may not be available due to an unanticipated number of winners, the Product Group may announce pari-mutuel shares of the available pool for the Power Play® payment only.

(12) Prize Payment: All Power Play® prizes shall be paid in one lump sum. The Lottery may begin paying Power Play® prizes after receiving authorization to pay from the MUSL central office.

(13) Prizes Rounded: Prizes, which under these rules may become pari-mutuel prizes, may be rounded down so that prizes can be paid in whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461

Stats. Implemented: ORS 461

Hist.: LOTT 3-2001(Temp), f. 3-1-01, cert. ef 3-2-01 thru 8-29-01; LOTT 10-2001, f. 5-25-01, cert. ef. 5-29-01; LOTT 9-2002(Temp), f. 9-4-02, cert. ef. 10-6-02 thru 3-31-03; LOTT 1-2003, f. & cert. ef. 2-3-03; LOTT 7-2005(Temp), f. 8-8-05, cert. ef. 8-28-05 thru 2-23-06; LOTT 23-2005, f. 12-21-05, cert. ef. 12-31-05; LOTT 11-2008, f. 11-21-08, cert. ef. 1-4-09; LOTT 10-2010, f. 11-19-10, cert. ef. 12-12-10

 

Rule Caption: Clarify payment and set maximum guaranteed amount for Win for LifeSM top prize; housekeeping changes.

Adm. Order No.: LOTT 11-2010

Filed with Sec. of State: 11-19-2010

Certified to be Effective: 12-1-10

Notice Publication Date: 11-1-2010

Rules Amended: 177-094-0080

Subject: The amendments to the above rule clarify the amount a winner is paid for the top prize and set a maximum guaranteed top prize amount in the Win for LifeSM game. Other amendments include housekeeping changes.

Rules Coordinator: Mark W. Hohlt—(503) 540-1417

177-094-0080

Prizes

(1) Prizes for a winning ticket are determined by matching each horizontal set in the ticket’s game play with the winning numbers from the relevant drawing. [Table not included. See ED. NOTE.]

(2) Prize Percentage Payout: The number of prizes for the Win for LifeSM game is not predetermined by the Lottery. The overall prize percentage payout for the Win for LifeSM game is estimated at approximately 65% over time, but the actual prize payout may vary from day-to-day and year-to-year due to factors that include, but are not limited to, the numbers of players participating each day and the number of winning wagers.

(3) Disputes: In the event of a dispute over the value of a prize or whether a ticket contains winning numbers, the Director’s determination is controlling.

(4) Multiple Prizes:

(a) Subject to the validation requirements in OAR 177-094-0060, for each drawing, a player may receive multiple prizes on each ticket for which a ticket containing a winning game play is eligible.

(b) Only the top-prize associated with each set of numbers within the Win for LifeSM, $50,000, $20,000, and $10,000 prize categories shall be paid.

(5) Claiming a Prize: Prize payments must be claimed, and shall be made, in accordance with the provisions of OAR 177-070-0025.

(6) Payment of Prizes: All prizes resulting from a ticket shall be paid in one lump-sum except for the Win for LifeSM prize of $1,000 per week for life.

(7) Win for LifeSM Top Prize:

(a) General: Only one natural person may claim and receive payment of the Win for LifeSM top prize of $1,000 per week for life per winning ticket. A Win for LifeSM top prize cannot be shared by multiple owners of a single winning ticket. In the event a single winning ticket is owned by more than one natural person, the individual owners with an ownership interest in the ticket must identify the natural person who will receive the top prize on a form provided by the Lottery.

(b) Payment Options: The Win for LifeSM top prize is $1,000 per week for life and shall be paid, based upon a selection made by the winner, either as:

(A) Weekly: A prize payment of $1000 each week beginning on the date prize payment is initiated upon validation of the winning ticket and thereafter on the same day each week, or if such day falls on a non-business day, then the next business day; or

(B) Annually: A payment of $52,000 paid annually beginning on the date prize payment is initiated upon validation of the winning ticket and thereafter on the anniversary date of the first payment, or if such date falls on a non-business day, then the first business day following the anniversary date of the first payment.

(c) Payments to Cease upon Winner’s Death: The Win for LifeSM top prize of $1,000 per week for life will be paid to the winning player until such time as the winning player dies at which time all further prize payments shall cease.

(d) Five-Year Guaranteed Payment: Notwithstanding subsection (c) of this section, if the prize winner dies within five years of the date of prize validation, the Lottery shall pay any remaining prize payments the prize winner would have received within the first five years after prize validation in one lump sum to the individual designated on a beneficiary designation form or to the prize winner’s estate.

(e) Maximum Five-Year Guaranteed Payment: Notwithstanding subsections (c) and (d) of this section, for Win for LifeSM tickets purchased on or after December 1, 2010, if the prize winner dies within five years of the date of prize validation, the Lottery shall pay any remaining prize payment the prize winner would have received within the first five years after prize validation in one lump sum, up to a maximum of $260,000, to the individual designated on a beneficiary designation form or to the prize winner’s estate.

(f) Election of Payment Schedule:

(A) Limitations of Election: At the time of the validation of a winning Win for LifeSM ticket for the top prize of $1000 per week for life, the winner of that prize must elect either the weekly or annual prize payment schedule described in subsection (b) of this section. A winner who elects the annual payment schedule cannot subsequently convert to the weekly payment schedule. The election of the annual payment schedule is irrevocable. A winner who elected the weekly payment schedule may convert to the annual payment schedule at any time, and the Lottery will issue payment to the winner for the sum of the remaining weekly payments from that date to the next anniversary date. Subsequent annual payments will be made on the anniversary date.

(B) Election When Child Support Owed: Notwithstanding subsection (A) of this subsection and subsection (g) of this section, when a search of delinquent child support obligors performed pursuant to ORS 461.715 and OAR 177-010-0090 Child Support Validation Check results in a positive match with the prize winner and the Division of Child Support of the Department of Justice (DOJ) or its successor initiates garnishment proceedings, the winner of the Win for LifeSM top prize of $1,000 per week for life has no payment options from which to select and will be placed on the annual payment schedule as described in subsection (7)(b)(B) of this section. This placement on the annual payment schedule is irrevocable.

(C) Conversion to Annual Payment Schedule upon Garnishment from Department of Justice: Upon receipt of garnishment proceedings from DOJ directed to the Lottery for monies due or to become due to a winner receiving weekly payments under the Win for LifeSM top prize, the Lottery will place that winner on the annual payment schedule as described in subsection (7)(b)(B) of this section. Conversion of the winner’s payment schedule from weekly to annual under this section of the rule is irrevocable. The Lottery shall make payments to such a winner as follows:

(i) Payment Less Garnishment Amounts: Within a reasonable time after the disposition of the garnishment proceeding, the Lottery shall pay the winner the sum of the winner’s weekly payments from the date the Lottery placed the winner’s payments on hold to the winner’s next anniversary date less any amounts withheld pursuant to the garnishment proceedings and applicable tax laws.

(ii) Subsequent Payments: The Lottery shall make any subsequent annual payments, less any amounts withheld pursuant to the garnishment proceedings and applicable tax laws, on the anniversary date of the validation of the prize.

(g) Limitation on Prize Amount for Multiple Top Prize Winners:

(A) More Than Three Winners: Notwithstanding the $1,000 per week amount referred to in this rule, if there are more than three individual winners of a Win for LifeSM top prize of $1,000 per week for life in a single drawing, the top prize payment per individual winner shall be limited to an amount equal to three times the top prize award divided by the number of actual top prize winners in that drawing.

(B) Example: For example, if there are four top prize winners in a single drawing and the prize payment year contains 52 weeks, then 52 weeks x $1,000 x 3 = $156,000 divided by 4 winners = $39,000 annual prize payment per each winner. If a winner has selected the weekly payment schedule, then the calculated annual prize payment shall be divided by the number of weeks in that prize payment year to arrive at the winner’s weekly payment amount. In the above example, the $39,000 annual prize amount shall be divided by 52 weeks for a weekly payment of $750 to a winner on the weekly payment schedule less applicable taxes.

(C) Effect of Subsequent Events: Subsequent events, including, but not limited to, the death of one of the prize winners, shall not alter the other winners’ original pro rata share of the calculated prize amount.

(h) Initiation of Payment: Prize payment is initiated upon validation of the winning ticket and will continue to be paid weekly or annually in accordance with the payment provisions contained in subsection (e) of this rule.

(i) Electronic Fund Transfer: After the initial prize payment issued to a Win for LifeSM top prizewinner, the Lottery shall pay both weekly and annualized Win for LifeSM prize installments via electronic funds transfer in the usual course of Lottery business.

(j) Annual Affidavit Required:

(A) General: Once each year and no earlier than thirty days prior to the anniversary of the original validation date, a winner of a Win for LifeSM top prize of $1,000 per week for life shall provide the Lottery with an affidavit on a form provided by the Lottery, signed by the winner, bearing the seal of a notary public, verifying the winner is living, containing the winner’s current address, and a bank account number to which the prize shall be paid.

(B) Termination of Prize: If a winner of a Win for LifeSM prize of $1,000 per week for life does not provide the Lottery with the affidavit described in subsection (i)(A) of this section, then the Lottery shall not make further prize payments to the winner. If the failure of a winner to provide the affidavit continues to the next anniversary of the validation date, the remainder of the prize shall be terminated.

(C) Exception: Notwithstanding subsection (i)(B) of this section, when it is reasonable and prudent to do so based on the facts underlying a winner’s failure to provide an annual affidavit, the Director may authorize prize payment even though an affidavit has not been provided or is not timely provided. No interest shall be paid by the Lottery on the value of the prize during the period a prize remained unclaimed.

(k) Death During a Payment Year: If a winner of a Win for LifeSM prize of $1,000 per week for life dies after five years have elapsed from the date of validation and if a sequence of weekly prize payments are paid over the course of the year in which the prize winner dies or if a single annual prize payment has been paid prospectively to the winning player for that year, the prize could be overpaid. It is the policy of the Lottery that the difference between the prize that should have been paid based on the date of the death of the prize winner relative to the anniversary date of validation of the prize and the prize amount that was actually paid during the year in which the winner died will not be subject to reimbursement by the Lottery. Any prize payment paid after the year in which the winner dies relative to the anniversary date of validation of the prize shall be subject to reimbursement to the Lottery.

(l) Non-Assignability: A Win for LifeSM top prize of $1,000 per week for life is based on the unknown duration of the life of the prizewinner and is therefore a prize of unspecified value and uncertain periodicity. Consequently, a Win for LifeSM top prize of $1,000 per week for life is not a future periodic prize payment as described in ORS 461.253(1) and cannot be assigned, gifted, sold, or transferred in any manner from the winner to another person or entity except under the circumstances as described in subsection (d) of this rule.

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461

Stats. Implemented: ORS 461

Hist.: LOTT 11-2000, f. & cert. ef. 12-1-00; LOTT 1-2001(Temp), f. & cert. ef. 1-22-01 thru 7-21-01; LOTT 7-2001, f. 4-25-01, cert. ef. 4-26-01; LOTT 8-2002(Temp), f. & cert. ef. 7-15-02 thru 1-3-03; LOTT 20-2002, f. & cert. ef. 9-30-02; LOTT 11-2010, f. 11-19-10, cert. ef. 12-1-10

 

Rule Caption: Eliminates guaranteed estimated annuity jackpot; changes Match 5 Megapiler® prize to set amount of $1,000,000.

Adm. Order No.: LOTT 12-2010

Filed with Sec. of State: 11-19-2010

Certified to be Effective: 12-12-10

Notice Publication Date: 11-1-2010

Rules Amended: 177-098-0010, 177-098-0040, 177-098-0060, 177-098-0110

Subject: The Oregon State Lottery has amended four Megapiler® game rules to eliminate a guaranteed annuity jackpot prize and to change the way the prize amount is determined for the Match 5 Megapiler® option. This change is necessary to implement changes to the Mega Millions® game rules made by the national organization that administers the multi-state Mega Millions® game.

Rules Coordinator: Mark W. Hohlt—(503) 540-1417

177-098-0010

Definitions

The following definitions apply unless the context requires a different meaning:

(1) “Drawing” means the formal process of selecting winning numbers which determine the number of winners for each prize level of the game.

(2) “Draw game terminal” or “Terminal” has the meaning set forth in OAR 177-070-0005(4).

(3) “Finance & Audit Committee” means the committee established by the Multi-State Lottery Association Agreement.

(4) “Game board” or “Boards” means that area of the play slip which contains two sets of numbered squares to be marked by the player, the first set containing fifty-six squares, numbered one through fifty-six and the second set containing forty-six squares, numbered one through forty-six.

(5) “Game ticket” or “Ticket” means a ticket produced by a terminal which contains the caption Mega Millions®, one or more lettered game plays followed by the drawing date, the price of the ticket, whether or not the player has purchased the Megaplier® option, the number of draws, the drawing dates if more than one drawing was purchased, a six digit retailer number, and a serial number that is compatible with the Lottery’s central computer system.

(6) “Jackpot” means the top prize of the Mega Millions® game. The annuity Jackpot Prize is an amount that would be paid in twenty-six annual installments.

(7) “Mega Millions® Finance Committee” means a committee of the Mega Millions® Lotteries which determines the Jackpot Prize amount (cash and annuity).

(8) “Mega Millions® Lottery or Lotteries” means those lotteries which have joined under the Mega Millions® Lottery Agreement and through a Cross-Selling Agreement with MUSL, to operate and sell the Mega Millions® game.

(9) “Megaplier®” means Mega Millions® game feature, known as “Megaplier®”, by which a player, for an additional wager of $1 per play, can increase the guaranteed prize amount or pari-mutuel prize amount, as applicable, excluding the Jackpot Prize by a factor of two, three, or four times depending upon the multiplier number that is drawn prior to the Mega Millions® game drawing.

(10) “MUSL” means the Multi-State Lottery Association.

(11) “MUSL Board” means the governing body of MUSL which is comprised of the chief executive officer of each Party Lottery.

(12) “Participating Lottery” or “Selling Lottery” means a state lottery or lottery of a political subdivision or entity which is participating in selling the Mega Millions® game and which may be a member of either group.

(13) “Party Lottery” means a state lottery or lottery of a political subdivision or entity which has joined the MUSL and, in the context of these Product Group Rules, which has joined in selling the games offered by the MUSL Mega Millions® Product Group.

(14) “Play” means the six numbers, the first five from a field of fifty-six numbers and the last one from a field of forty-six numbers, that appear on a ticket as a single lettered selection and are to be played by a player in the game.

(15) “Play Slip” means a card used in marking a player’s game plays and containing one or more boards.

(16) “Product Group” means the group of lotteries which has joined together to offer the Mega Millions® lottery game product pursuant to the terms of a Cross-Selling Agreement with the Mega Millions® Lotteries, the Multi-State Lottery Agreement and the Group’s own rules.

(17) “Quick Pick” means the random selection by the computer system of two-digit numbers that appear on a ticket and are played by a player in the game.

(18) “Retailer” means a person or entity authorized by a Party Lottery to sell lottery tickets.

(19) “Set Prize” means all other prizes except the Jackpot Prize that are advertised to be paid by a single lump sum payment and, except in instances outlined in these rules, will be equal to the prize amount established by the MUSL Board for the prize level.

(20) “Winning numbers” means the six numbers, the first five from a field of fifty-six numbers and the last one from a field of forty-six numbers, randomly selected at each drawing, which shall be used to determine winning plays contained on a game ticket.

Stat. Auth.: ORS 190, 461, OR Const. Art. XV, Sec. 4(4) &

Stats. Implemented: ORS 461

Hist.: LOTT 6-2010, f. 3-18-10, cert. ef. 3-21-10; LOTT 12-2010, f. 11-19-10, cert. ef. 12-12-10

177-098-0040

Prize Pool

(1) Prize Pool: The prize pool for all prize categories shall consist of up to fifty-five percent of each drawing period’s sales, including any specific statutorily-mandated tax of a Party Lottery to be included in the price of a lottery ticket, after the prize reserve accounts are funded to the amounts set by the Product Group. The prize pool may be higher or lower than fifty-five percent based upon the number of winners at each prize level, as well as the funding required to meet a guaranteed Annuity Jackpot Prize as may be required by OAR 177-098-0060(5). Any amount remaining in the prize pool at the end of the Mega Millions® game shall be carried forward to a replacement game or expended in a manner as directed by the Product Group in accordance with the law of the state or jurisdiction.

(2) Prize Reserve Accounts: An amount up to five percent of a Party Lottery’s sales, including any specific statutorily-mandated tax of a Party Lottery to be included in the price of a lottery ticket, shall be added to a Party Lottery’s Jackpot Prize Pool contribution and placed in trust in one or more prize reserve accounts held by the Product Group at any time that the Party Lottery’s share of the prize reserve account(s) is below the amounts designated by the Product Group. The Product Group, with approval of the Finance & Audit Committee, may establish a maximum balance for the prize reserve account(s). The Product Group may determine to expend all or a portion of the funds in the accounts for the payment of prizes or special prizes in the game; subject to the approval of the Finance and Audit Committee. The shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and shares of the Party Lotteries. Any amount remaining in a prize reserve account at the end of the Mega Millions® game shall be carried forward to a replacement prize reserve account or expended in a manner as directed by the Product Group in accordance with the law of the state or jurisdiction.

(3) Expected Prize Payout Percentages: The Jackpot Prize shall be determined on a pari-mutuel basis. Except as provided in these rules and except for winning prizes sold by the California Lottery, all other prizes awarded shall be paid as set cash prizes with the following expected prize payout percentages, which does not include an additional amount held in prize reserves:[Table not included. See ED. NOTE.]

(a) Division of Jackpot Prize Among Winners: The Jackpot Prize amount shall be divided equally by the number of game tickets winning the Jackpot Prize.

(b) Set Prizes: The prize pool percentage allocated to the set prizes (the single lump sum prizes of $250,000 or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.

(c) Liability Cap: Should total prize liability for all lotteries selling the Mega Millions® game (exclusive of Jackpot Prize carry forward) exceed 300 percent of draw sales or 50 percent of draw sales plus $50,000,000 (fifty million dollars), whichever is less, (both hereinafter referred to as the “Liability Cap”), prize levels two through five ($250,000, $10,000, $150, and $150 set prize levels) shall be paid on a pari-mutuel basis, provided, however, that in no event shall the pari-mutuel prize be greater than the official advertised prize. The amount to be used for the allocation of such pari-mutuel prizes (prize levels two through five) shall be the liability cap less the amount paid for the Jackpot Prize and the prizes paid for levels six through nine ($10, $7, $3 and $2 set prize levels). To fund their portion of the Liability Cap, the Party Lotteries may utilize:

(i) the amount allocated to the set prizes in levels two through nine and carried forward from previous draws, if any, and

(ii) an amount from the prize reserve account described in section (2) of this rule.

(d) Prize Payments when Liability Cap Met: In the event the Liability Cap is met, the amount to fund the Jackpot Prize together with the amounts to fund the prize levels six through nine shall be first paid from the Liability Cap amount. The balance of the Liability Cap, after deducting the Jackpot Prize and payment for set prize levels six through nine (hereinafter referred to as the “Liability Cap Balance”), shall be applied to the second through fifth level set prize payments on a pari-mutuel basis in accordance with the following formula:

(A) Prize Level two (normally $250,000) shall be an amount equal to 64.53% of the Liability Cap Balance divided by the number of winning game tickets in Prize Level two;

(B) Prize Level three (normally $10,000) shall be an amount equal to 14.63% of the Liability Cap Balance divided by the number of winning game tickets in Prize Level three; and

(C) Prize Levels four and five (normally $150) shall be an amount equal to 20.84% of the Liability Cap Balance divided by the number of combined winning game tickets in Prize Levels four and five.

(4) Advertised Jackpot Prize Annuity Amount: Except as required by OAR 177-098-0060 the official advertised Jackpot Prize annuity amount is subject to change based on sales forecasts and/or actual sales.

(5) Changes to Prize Categories: The number of prize categories and the allocation of the prize fund among the prize categories may be changed at the discretion of the Mega Millions® Lotteries, for promotional purposes. Such change shall be announced by the Lottery prior to the drawing to which the change applies.

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: ORS 190, 461, OR Const. Art. XV, Sec. 4(4) &

Stats. Implemented: ORS 461

Hist.: LOTT 6-2010, f. 3-18-10, cert. ef. 3-21-10; LOTT 12-2010, f. 11-19-10, cert. ef. 12-12-10

177-098-0060

Prize Payment

(1) Selection of Payment Type: Jackpot Prizes shall be paid, at the election of the player made no later than 60 days after validation of the prize, with either a per winner annuity or single lump sum payment. If the payment election is not made by the player within 60 days after validation, then the prize shall be paid as an annuity prize. The election to take the single lump sum payment may be made at the time of validation of the prize claim or within 60 days thereafter. An election made after validation is final and cannot be revoked, withdrawn, or otherwise changed.

(2) Share of the Jackpot Prize: Shares of the Jackpot Prize shall be determined by dividing the amount available in the Jackpot Prize pool equally among all winners of the Jackpot Prize. The prize money allocated from the current Mega Millions® prize pool for the Jackpot Prize, plus any previous portions of prize money allocated to the Jackpot Prize category in which no matching tickets were sold will be divided equally among all Jackpot Prize winners in all participating lotteries.

(3) Lump Sum Payment: Jackpot Prize winner(s) who elect a lump sum payment (cash value option) shall be paid their share(s) in a single lump sum payment. The lump sum payment amount shall be determined by the Product Group. The lump sum payment shall be paid upon completion of all internal validation procedures. Prize payments may be rounded down to the nearest $1,000.

(4) Initial and Annual Annuitized Payments: The annuity Jackpot Prize amount will be paid in twenty-six annual installments. The initial payment shall be paid upon completion of all internal validation procedures. The subsequent twenty-five payments shall be paid annually to coincide with the month of the Federal auction date at which the bonds were purchased to fund the annuity. All such payments shall be made within seven days of the anniversary of the annual auction date. All annuitized prizes shall be paid annually in twenty-six payments with the initial payment being made in cash, to be followed by twenty-five payments funded by the annuity. Prize payments may be rounded down to the nearest $1,000.

(5) Jackpot Prizes and Increases: The Mega Millions® lotteries may set a minimum guaranteed annuity Jackpot Prize amount, which shall be advertised by the selling lotteries as the starting guaranteed annuity Jackpot Prize amount.

(6) Roll Over of Jackpot Prize: If in any Mega Millions® drawing there are no Mega Millions® plays which qualify for the Jackpot Prize category, the portion of the prize fund allocated to such Jackpot Prize category shall remain in the Jackpot Prize category and be added to the amount allocated for the Jackpot Prize category in the next consecutive Mega Millions® drawing.

(7) Funding the Annuity: Funds for the initial payment of an annuitized prize or the lump sum cash prize shall be made available by MUSL for payment by the Party Lottery on a schedule approved by the Product Group. If individual shares of the cash held to fund an annuity is less than $250,000, the Product Group, in its sole discretion, may elect to pay the winners their share of the cash held in the Jackpot Prize pool. All annuitized prizes shall be paid annually in twenty-six payments with the initial payment being made in cash, to be followed by twenty-five payments funded by the annuity. Prize payments may be rounded down to the nearest one thousand dollars. Neither MUSL nor the party lotteries shall be responsible or liable for changes in the advertised or estimated annuity prize amount and the actual amount purchased after the prize payment method is actually known to MUSL.

(8) Lack of Available Funds: If necessary, when the due date for the payment of a prize occurs before the receipt of funds in the prize pool trust sufficient to pay the prize, the transfer of funds for the payment of the full lump sum cash amount may be delayed pending receipt of funds from the Party Lotteries or other lotteries participating in the Mega Millions® Game. A Party Lottery may elect to make the initial payment from its own funds after validation, with notice to MUSL.

(9) Death of Winner: In the event of the death of a lottery winner sold by a Party Lottery during the annuity payment period, the MUSL Finance & Audit Committee, in its sole discretion excepting a discretionary review by the Product Group, upon the petition of the estate of the lottery winner (the “Estate”) to the lottery of the jurisdiction in which the deceased lottery winner purchased the winning ticket, and subject to federal, state, district or territorial applicable laws, may accelerate the payment of all of the remaining lottery proceeds to the Estate. If such a determination is made, then securities and/or cash held to fund the deceased lottery winner’s annuitized prize may be distributed to the Estate. The identification of the securities to fund the annuitized prize shall be at the sole discretion of the Finance & Audit Committee or the Product Group.

(10) Low-Tier Cash Prize Payments: All low-tier cash prizes (all prizes except the Jackpot Prize) shall be paid in cash through the Party Lottery which sold the winning ticket(s). A Party Lottery may begin paying low-tier cash prizes after receiving authorization to pay from the MUSL central office.

(11) Rounding of Prize Payments: Annuitized payments of the Jackpot Prize or a share of the Jackpot Prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized Jackpot Prize win shall be added to the first payment to the winner or winners. Prizes other than the Jackpot Prize which, under these rules, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

(12) Roll Over of Jackpot Prize: If the Jackpot Prize is not won in a drawing, the prize money allocated for the Jackpot Prize shall roll over and be added to the Jackpot Prize pool for the following drawing.

(13) One Prize per Board: The holder of a winning ticket may win only one prize per board in connection with the winning numbers drawn, and shall be entitled only to the prize won by those numbers in the highest matching prize category.

(14) Claim Expires in One Year: Claims for all prize categories, including the Jackpot Prize, shall be submitted within one year after the date of the drawing in accordance with these rules and OAR 177-070-0025(3).

Stat. Auth.: ORS 190, 461, OR Const. Art. XV, Sec. 4(4) &

Stats. Implemented: ORS 461

Hist.: LOTT 6-2010, f. 3-18-10, cert. ef. 3-21-10; LOTT 12-2010, f. 11-19-10, cert. ef. 12-12-10

177-098-0110

Megaplier®

(1) General: Megaplier® is an optional, limited extension promotion of the Mega Millions® Game described in OAR Division 98. The Lottery Director, in the Lottery Director’s sole discretion and based on agreements with MUSL, is authorized to initiate and terminate the Megaplier® option.

(2) Set Prizes Only: Megaplier® multiplies or increases the amount of any of the cash Set Prizes (the cash prizes normally paying $2 to $250,000) won in a drawing held during the promotion. The Jackpot Prize is not a Set Prize and will not be multiplied or increased by means of the Megaplier® promotion.

(3) Qualifying Play: A qualifying Megaplier® option play is any single Mega Millions® Play for which the player selects the Megaplier® option on either the Play Slip or by selecting the Megaplier® option through a clerk-activated or player-activated terminal, pays one extra dollar for the Megaplier® option play, and which is recorded at the Party Lottery’s central computer as a qualifying play.

(4) Prizes to be Multiplied or Increased:

(a) Set Prizes: A qualifying play which wins one of the seven lowest lump sum Set Prizes will be multiplied by the number selected (either 2, 3, or 4), in a separate random Megaplier® drawing announced in a manner determined by the Product Group.

(b) Match 5+0 Prize: The Match 5+0 prize, for players selecting the Megaplier® option, shall be $1,000,000 unless a higher limited promotional dollar amount is announced by the Product Group or unless a lower dollar amount is announced by the Product Group under section (8) of this rule.

(5) Selection of Multiplier®: MUSL will either itself conduct, or authorize a U.S. Lottery to conduct on its behalf, a separate random “Megaplier®” drawing. Before each Mega Millions® drawing a single number (2, 3 or 4) shall be drawn. The Mega Millions® Product Group may change one or more of these multiplier numbers and/or the Match 5+0 Megaplier® prize amount for special promotions from time to time.

(6) Megaplier® Prize Pool: The prize pool for all prize categories offered by the Party Lotteries shall consist of up to fifty-five percent (55%) of each drawing period’s sales, as determined by the Product Group, including any specific statutorily-mandated tax of a Party Lottery to be included in the price of a lottery ticket, after the Mega Millions® prize reserve accounts are funded to the amounts set by the Product Group. Any amount remaining in the prize pool at the end of the Mega Millions® game shall be carried forward to a replacement game or expended in a manner as directed by the Product Group in accordance with state or jurisdiction law.

(7) Megaplier® Prize Rollover or Reserve Accounts: Any amount not used to pay for multiplied prizes may be collected and placed in the rollover account or in trust in one or more prize reserve accounts until the prize reserve accounts reach the amounts designated by the Product Group.

(8) Expected Prize Payout: Except as provided in these rules, all prizes awarded shall be paid as lump sum set prizes. Instead of the Mega Millions® set prize amounts, qualifying Megaplier® plays will pay the amounts shown below when matched with the Megaplier® number drawn: [Table not included. See ED. NOTE.]

(9) Probability of Winning: The following table sets forth the probability of the various Megaplier® numbers being drawn during a single Mega Millions® drawing. The Product Group may elect to run limited promotions that may increase the multiplier numbers. [Table not included. See ED. NOTE.]

(10) Prize Pool Carried Forward: The prize pool percentage allocated to the Megaplier® set prizes shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw or may be held in a prize reserve account.

(11) Pari-Mutuel Prizes —All Prize Amounts: If the total of the original Mega Millions® set prizes and the Megaplier® prize amounts awarded in a drawing exceeds the percentage of the prize pools allocated to the set prizes, then the amount needed to fund the set prizes (including the Megaplier® prize amounts) awarded shall be drawn from the following sources, in the following order:

(a) The amount allocated to the set prizes and carried forward from previous draws, if any.

(b) An amount from the Mega Millions® reserve accounts not to exceed the lesser of 300% of draw sales or 50% of draw sales plus $50 million.

(c) If, after these sources are depleted, there are not sufficient funds to pay the set prizes awarded (including Megaplier® prize amounts), then the prize levels two through five shall become a pari-mutuel prize, as set out in OAR 177-098-0040. The Mega Millions® and Megaplier® prize pools shall be combined in the rare instance when the set prizes, pursuant to the rules, are paid on a pari-mutuel basis, so that the multipliers, as provided for in the rules, will remain in effect for all applicable prize levels. The Match 5+0 prizes may be reduced as announced by the Product Group.

(12) Prize Payment: All Megaplier® prizes shall be paid in one lump sum. The Lottery may begin paying Megaplier® prizes after receiving authorization to pay from the MUSL central office.

(13) Prizes Rounded: Prizes, which under these rules may become pari-mutuel prizes, may be rounded down so that prizes can be paid in whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: ORS 190, 461, OR Const. Art. XV, Sec. 4(4) &

Stats. Implemented: ORS 461

Hist.: LOTT 6-2010, f. 3-18-10, cert. ef. 3-21-10; LOTT 12-2010, f. 11-19-10, cert. ef. 12-12-10

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.

2.) Copyright 2011 Oregon Secretary of State: Terms and Conditions of Use

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Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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