Section R19-3-214. Payments to Lottery

A.      Money collected from the sale of Lottery tickets by retailers holding a full product license are trust monies required to be collected for the benefit of the state and shall be paid to the Lottery according to subsection (B).

B.       A retailer holding a full product license shall pay for ticket sales in the following manner:

1.        Pay to the Lottery each Friday, by an electronic funds transfer, the amount due from the sale of its Lottery tick- ets for the seven-day period ending at the close of busi- ness on the previous Saturday.

2.        The amount due for on-line tickets means the retailer’s gross on-line sales revenue, minus any promotional tick- ets, prize winnings paid out by the retailer, the retailer’s sales commission, and plus or minus any accounting or prize adjustments.

3.        The amount due for instant scratch tickets is based on billing for instant ticket packs issued to a retailer with billing occurring 45 days after a pack is activated, or after 85% of winning tickets in the pack are validated, which- ever occurs first, minus any promotional tickets, returned tickets, prize winnings paid out by the retailer, the retailer’s sales commission, and plus or minus any accounting or prize adjustments.

4.        The retailer shall deposit funds in a timely manner into a bank account from which the electronic funds transfer will be made to the Lottery.

a.         The retailer shall provide the Lottery with an elec- tronic funds transfer authorization showing a valid bank account number from which the amounts due the Lottery will be transferred, and

b.        The retailer shall notify the Lottery of any bank account changes a minimum of 10 business days before the effective date of the change.

5.        If a retailer’s payment is returned to the Lottery for any reason, the retailer shall deliver a certified check, cashier’s check, or money order, or make a direct deposit for the amount due to the Lottery’s bank account within

24 hours of notification. Additionally, if the retailer’s payment is returned to the Lottery:

a.         The Director may require that the retailer’s Lottery- issued equipment be disabled;

b.        The Director may revoke, suspend, or deny renewal of the retailer’s license according to R19-3-204;

c.         The Director may require payment for instant scratch tickets upon activating the pack for sale; and

d.        The Director may require the return of the retailer’s current inventory of instant scratch tickets and sus- pend further delivery of instant scratch tickets.

C.      A retailer holding a charitable organization license or instant tab license shall pay the Lottery’s authorized representative for instant tab tickets.

Historical Note

New Section made 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, effec- tive November 16, 2010 (Supp. 10-4). Amended by final

rulemaking at 18 A.A.R. 1471, effective August 7, 2012

(Supp. 12-2).