Section R19-3-205. Lottery-issued Equipment

A.      Retailers holding a charitable organization license or instant tab license shall not be issued Lottery equipment to sell or val- idate Lottery products, but may use an authorized Lottery product vending machine in accordance with subsection (C).

B.       Retailers holding a full product license shall only sell or vali- date Lottery products using authorized Lottery-issued equip- ment.

1.        A retailer shall locate the equipment at a site approved by the Lottery and shall not move the equipment from that site without prior approval from the Lottery.

2.        A retailer shall ensure electrical service to the equipment location is installed according to the specifications estab- lished by the Lottery. The cost of electrical service shall be the responsibility of the retailer.

3.        A retailer shall cooperate with the Lottery to the extent reasonable and practicable to accomplish any modifica- tions to the equipment or systems in a timely and eco- nomical fashion.

4.        The Lottery shall not be liable for damages of any kind due to interruption or failure of any Lottery-issued or authorized equipment.

5.        A retailer shall operate the Lottery-issued equipment and accessories only in the ordinary course of its Lottery busi- ness and only according to the requirements established by the Lottery.

6.        A retailer shall exercise diligence and care to prevent damage to the Lottery-issued equipment and other prop- erty of the Lottery, or property of Lottery contractors.

7.        A retailer shall maintain the Lottery-issued equipment and accessories in a clean and orderly condition.

8.        A retailer shall minimize equipment downtime by notify- ing the Lottery or its contractor immediately of any equipment failure, malfunction, damage, or accident.

9.        A retailer shall make the equipment available for repair, adjustment, or replacement at all times during the retailer’s regular business hours.

10.     A retailer shall order and use equipment supplies exclu- sively from the Lottery or its designated contractor. The Lottery shall furnish equipment supplies, at no cost, to the retailer.

11.     A retailer shall install and use only approved Lottery paper stock specifically assigned to the retailer.

C.      Retailers may sell tickets using an authorized Lottery product vending machine in accordance with the Act and this Chapter.

1.        A retailer shall establish loss prevention policies to ensure Lottery product vending machines are not oper- ated by persons under 21 years of age to purchase Lottery tickets.

2.        The Lottery product vending machine shall remain opera- tional during the retailer’s regular business hours and be placed in an area visible to retail personnel and easily accessible to players.

3.        A retailer shall maintain an adequate supply of instant scratch or instant tab tickets for the Lottery product vend- ing machine.

Historical Note

Adopted as an emergency effective May 26, 1981, pursu- ant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81- 3). New Sections R4-37-205 adopted effective August  17, 1981 (Supp. 81-4). Amended effective September 12, 1989 (Supp. 89-3). R19-3-205 recodified from R4-37- 205 (Supp. 95-1). Section R19-3-205 renumbered to R19- 3-204; new Section R19-3-205 renumbered from R19-3- 206 and amended effective October 9, 1998 (Supp. 98-4).

Amended by final rulemaking at 10 A.A.R. 3073, effec- tive September 11, 2004 (Supp. 04-3). Amended by final

rulemaking at 13 A.A.R. 2639, effective September 8,

2007 (Supp. 07-3). Amended by final rulemaking at 16

A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effec-

tive August 7, 2012 (Supp. 12-2).