Section R19-3-217. Unaccounted for and Stolen Instant Scratch Tickets

A.      All Lottery tickets issued to a retailer holding a full product license shall be the property of the retailer until their return is acknowledged by the Lottery. The Lottery is not responsible for lost tickets.

B.       A retailer holding a full product license shall report stolen Lot- tery tickets to the local law enforcement agency and the Lot- tery Investigations unit within one hour from the time the theft occurs or the theft first could have been discovered. The retailer shall:

1.        Provide a copy of the written police report to the Lottery,

2.        Cooperate in any investigation and prosecution of the theft,

3.        Sign an affidavit providing the details as known by the retailer, and

4.        Maintain and report current game, pack, and ticket inven- tory.

C.      If a retailer holding a full product license sustains a loss from stolen tickets, the retailer’s insurance is the loss payee.

D.      If a retailer holding a full product license has insufficient insurance to pay for the retailer’s loss and the retailer complies with subsection (B), the Lottery will credit the retailer’s account for stolen instant tickets as follows:

1.        The Lottery shall credit all charges against the account of the retailer for the stolen tickets if the Lottery determines the theft was from a source not associated with the retailer or by an unknown party.

2.        The Lottery shall credit 50% of the charges against the account of the retailer for the stolen tickets if the Lottery determines the theft was from an employee, manager, officer, director, or a relative with access to Lottery tick- ets.

3.        Each retailer is limited to no more than two stolen ticket credit requests within any 12-month period.

E.       The Lottery shall not issue a credit for stolen tickets if the Lot- tery finds a retailer holding a full product license was negli- gent or did not enforce reasonable loss-prevention procedures to protect tickets, ticket processing, and ticket accounting.

F.       If a prize claim is made against a ticket that has been reported as stolen or a ticket unaccounted for by the retailer holding a full product license, the Lottery shall hold the prize money in trust pending the findings of an investigation by an appropriate law enforcement agency.

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).