Various changes to the state lottery. (FE)

Under current law, funds are appropriated to DOR to pay vendors for certain procurements related to “on-line and instant ticket services and supplies,” which together include “on-line” (or “lotto”) game and instant game lottery products and their associated services, including technologies necessary to maximize the state lottery revenues and minimize the state lottery’s total operating costs. The bill directs that DOR may use the appropriated funds for services and supplies related to instant games, break open games, and lotto games, including tickets for those games and technologies necessary to maximize the state lottery revenues related to those games and minimize the state lottery’s total operating costs related to those games.

Under current law, DOR must pay to a lottery retailer basic compensation ranging from 5.5 to 6.25 percent of the retail price of state lottery tickets sold by the retailer, and DOR can pay an additional amount to a retailer that meets certain performance goals identified by DOR. The bill requires DOR to pay lottery retailers a basic compensation of 5.5 percent of the retail price of sold lotto game tickets, 6.25 percent of the retail price of sold instant game tickets, and 15 percent of the retail price of sold break open game tickets. The bill also increases the additional amount that DOR can pay to retailers that meet certain performance goals for the sale of break open game tickets.

Also under current law, contracts between DOR and lottery retailers generally must be for a period of three years. The bill increases that period to five years. Also under current law, no lottery retailer contract may be entered into with a person that has been adjudged delinquent in the payment of certain taxes or that owes certain employment payments. The bill exempts from this prohibition lottery retailers who, through an approved payment plan, are paying off the amount owed.

Under current law, the administrator of the Lottery Division is responsible for meeting statutory requirements for the payment of lottery ticket winnings. The bill creates a requirement that, unless otherwise directed and paid in a manner approved by the administrator, retailers are responsible for the payment of break open game winnings and that break open game winnings must be requested and paid to the winner on the date and at the location where the break open game ticket was purchased.