Proposed Text
The following words and terms when used in any of the agency's regulations shall have the same meanings as defined in this chapter unless the context clearly indicates otherwise:
"Agency" means the Virginia Lottery created by Virginia Lottery Law (Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia).
"Altered ticket" means a lottery ticket or wager that has been forged, counterfeited, or tampered with in any manner.
"Board" means the Virginia Lottery Board established by the Virginia Lottery Law (Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia).
"Breakage" means the money accumulated from the rounding down of the pari-mutuel prize levels to the next lowest whole dollar amount.
"Cashing retailer" means an agency-licensed retailer that sells lottery products and is authorized to pay prizes.
"Computer gaming system" means any computer system owned, operated, or contracted by the agency that supports the sale, redemption, or validation of lottery tickets or wagers.
"Computer-generated game" means a game that is dependent upon the use of a terminal in direct communication with a game mainframe computer.
"Computer-generated ticket" means an electronically-produced ticket issued through the computer gaming system by a retailer to a player as a receipt for the number, numbers, or items or combination of numbers or items, the player has selected.
"Coupon" is a device, whether paper, or otherwise, that is approved by the agency for redemption.
"Director" means the Executive Director of the Virginia Lottery or his designee.
"Drawing" means a formal process of randomly selecting numbers, names, or items in accordance with the specific game or promotion rules for games or promotions requiring the random selection of numbers, names, or items.
"Entry" means a method, whether in electronic or paper form, by which a person enters a drawing or promotion.
"Game" means any individual or particular type of lottery authorized by the board.
"Instant Game" means a digital lottery game with self-contained play areas, legends, symbols, numbers, or codes that, when played, immediately reveals or informs the player of the game outcome.
"Instant Terminal Game" means an immediate print-and-play game designed to provide players with instant terminal-generated game play results which are printed from a Lottery terminal.
"Instant Ticket Game" or “Instant Ticket Contest” means a game of chance played on a paper ticket or card where (i) a person may receive gifts, prizes, or gratuities, and (ii) winners are determined by preprinted concealed letters, numbers, or symbols which, when exposed, reveal immediately whether the player has won a prize or entry into a prize drawing, but shall not include any "instant ticket" game or contest licensed by the Department of Agriculture and Consumer Services pursuant to Article 1.1:1 (§18.2-340.15 et seq.) of Title 18.2. The fact that no purchase is required in order to participate shall not exclude such game or contest from the provisions of this section; however, nothing in this section shall prohibit any retail establishment from using a Virginia lottery ticket to promote or further the sale of any products except those having both a federal and state excise tax placed on them. Any person convicted of a violation of this section shall be guilty of a Class 3 misdemeanor.
"Lottery gaming system" means any system owned, operated, or contracted by the agency that supports the sale, redemption, or validation of lottery tickets or wagers.
"Misprinted ticket" means a lottery ticket or play that contains a manufacturing, programming, or printing defect that causes the game to no longer play as defined in game rules or does not properly validate against the game's validation files.
"Natural person" means a human being, and not a corporation, company, partnership, association, trust, or other entity.
"Play" means one wager for a chance to win a prize. There may be multiple plays on a single ticket.
"Prize" means any cash or noncash award to a holder of a winning entry or play.
"Prize structure" means the number, value, and odds of winning prizes for a game and the prize tiers within a game and the chances of winning a prize in each tier in an individual game as determined by the agency and as specified in the game rules.
"Probability game" means a game in which all of the tickets sold are potentially winning tickets and the outcome of the game depends entirely upon the player's choice or choices during game play.
"Promotion" means an "added value" offer to consumers or licensed retailers sanctioned by the director or approved by the board when required.
"Roll stock" or "ticket stock" means the paper roll issued or approved for use by the agency from which a unique lottery ticket is generated displaying the selected items or numbers play.
"Scratcher" means a ticket with a coating over the play area that, when scratched off, reveals instant game play results.
"Scratch game" means a game that, when played, reveals or informs the player immediately whether he has won (i) a prize, (ii) entry into a prize drawing, (iii) prize points, or (iv) any combination thereof as specified in game rules.
"Share" means a percentage of ownership in a winning ticket, play, or subscription plan.
"Terminal" means a device that is authorized by the agency to function in an interactive mode with located at a Lottery-authorized retail location and connected to the agency's computer gaming system or systems for the purpose of issuing tickets, plays, or an electronic facsimile thereof, and entering, receiving, and processing game-related transactions.
"Terminal-generated game" means a game that is dependent upon the use of a terminal in direct communication with a lottery gaming system.
"Terminal-generated ticket" means a printed paper ticket or digital wager for a drawing issued through a lottery gaming system to a player as a receipt for the number, numbers, or items or combination of numbers or items, the player has selected.
"Ticket number" means the preassigned unique number or combination of letters and numbers or barcode that identifies that particular ticket as one within a particular game or drawing.
"Validation" means the process of reviewing and certifying a lottery ticket to determine whether it is a winning ticket.
"Validation barcode" means the unique number or number-and-letter code or barcode used to determine whether a lottery ticket is a winning ticket.
"Winning ticket," "winning wager," or "winning play" means the ticket, wager, or play that meets the criteria and specific rules for winning prizes as published for each game by the director.
A. Drawings shall be conducted at times and places designated by the director and publicly announced by the agency.
B. Retailers may sell tickets from new scratch games upon receipt of the tickets from the agency, but shall not sell tickets for a scratch an instant ticket game after the announced end of that game.
C. Retailers may sell computer-generated tickets up to a designated time prior to the drawing as specified in the computer-generated game rules. That time will be designated by the director.
Prior to awarding a prize, the retailer or agency shall validate the ticket or play as set out in this chapter and in any other manner that the director may prescribe in the specific rules for the lottery game, which shall include but not be limited to the following:
1. If the game rules specify that the physical ticket must be presented for validation then:
a. The original ticket must be presented for validation;
b. The ticket shall not be mutilated, altered, or tampered with in any manner. If a ticket is partially mutilated or if the ticket is not intact and cannot be validated through normal procedures but can still be validated by other validation tests, the director may pay the prize for that ticket;
c. The ticket may not be misregistered or defectively printed to an extent that it cannot be processed by the department agency;
d. The ticket shall pass all other confidential security checks of the agency;
e. The ticket validation number shall be present in its entirety; and
f. The ticket shall not be counterfeited, forged, fraudulently made, or a duplicate of another winning ticket.
2. Where a winning ticket or play has been issued by a terminal:
a. The ticket or play shall have been issued by the agency or by a licensed lottery retailer in an authorized manner;
b. The terminal ticket or play shall not have been canceled or previously paid;
c. The terminal ticket or play shall be validated in accordance with procedures for claiming and paying prizes as set out in the game rules; and
d. The terminal ticket or play data shall have been recorded in the computer gaming system before the drawing or the instant game ticket sale, and the ticket data shall match this computer record in every respect.
3. If the game rules specify that a physical ticket, play, or record of play is not required for validation there may be other lottery requirements, as defined by the director, for winners to collect prizes.
Winners may claim game prizes as specified in this chapter or in the game rules, including:
1. At agency headquarters;
2. At an agency customer service center;
3. From a cashing retailer;
4. By mail; or
5. At any other location specifically authorized by the agency. Via valottery.com or the Virginia Lottery app; or
6. In any other manner specifically authorized by the agency.
A. The agency will pay prizes in any of the following circumstances:
1. If a retailer cannot validate a claim that the retailer otherwise would pay, the ticket holder shall present the original signed ticket to any agency office including the agency's headquarters or mail the signed ticket to the agency's headquarters;
2. If a ticket holder is unable to return to any retailer to claim a prize that the retailer otherwise would pay, the ticket holder may present the original signed ticket at any agency office or mail the signed ticket to the agency's headquarters;
3. If the prize amount is more than $600, the ticket holder may present the original signed ticket at any agency office or mail the signed ticket to the agency headquarters; or
4. Where an electronic entry or an electronic record of a ticket is permitted, a presentation of a physical ticket may not be required to claim a prize.
B. The agency may require a claim form.
C. A player shall bear all risk of loss or damage by sending the ticket through the mail.
A. The agency shall validate the winning ticket claim according to procedures contained in this chapter.
B. If the claim cannot be validated, the agency will promptly notify the ticket holder.
C. If the a claim is mailed presented to the agency and the agency validates the claim, a check for the prize amount, merchandise, and/or experiential prizes will be presented or mailed to the winner fulfilled, as applicable, via check, debit card, wire payment, withdrawal voucher, credit to the winner's account, or by any combination of these or similar methods.
D. If an individual presents a claim to the agency in person and the agency validates the claim, a check for the prize amount, merchandise, or experiential prizes will be presented to the winner.
A. When paying any prize in excess of $600, the agency shall:
1. File the appropriate income reporting forms with the Virginia Department of Taxation and the federal Internal Revenue Service; and
2. Withhold federal and state taxes from any winning ticket in accordance with the tax regulation in effect at the time.
B. Additionally, when paying any cash prize of $100 or more greater than $100, the agency shall withhold any moneys due for delinquent debts as provided by the Commonwealth's Setoff Debt Collection Act, Article 21 (§ 58.1-520 et seq.) of Chapter 3 of Title 58.1 of the Code of Virginia.
A ticket that has been legally issued by a licensed lottery retailer is a bearer instrument until the ticket has been signed. The person who signs the ticket or enters through an electronic validation process is considered the owner of the ticket.
11VAC5-41-200. Ticket Paper ticket is bearer instrument.
A paper ticket that has been legally issued by a licensed lottery retailer is a bearer instrument until the ticket has been signed. The person who signs the ticket or enters through an electronic validation process is considered the owner of the ticket.
A prize claim shall be entered in the name of a natural person as prescribed by § 58.1-4019 B of the Code of Virginia. In all cases, the identity and social security number of all natural persons who receive a prize or share of a prize greater than $100 from a winning ticket redeemed at any agency office shall be provided.
1. A nonresident alien shall furnish his Immigration and Naturalization Service (INS) Number.
2. Two or more natural persons claiming a single prize may file IRS Form 5754, "Statement by Person(s) Receiving Gambling Winnings," with the agency. This form designates to whom winnings are to be paid and the person or persons to whom winnings are taxable.
3. Two or more natural persons wishing to divide a jackpot prize shall complete an "Agreement to Share Ownership and Proceeds of Lottery Ticket" "Player Affidavit of Multiple Ownership" form. The filing of this form is an irrevocable election that may only be changed by an appropriate judicial order.
A. Except for a free ticket prize, a claim for a lottery game winning ticket must be mailed in an envelope bearing a postmark of the United States Postal Service or another sovereign nation or received for payment as prescribed in this chapter within either 180 days after the date of the drawing for which the ticket was purchased, or of the event that caused the ticket to be a winning entry, or, in the case of a scratcher, within 180 days after the announced end of the game. If the claim cannot be postmarked in accordance with this section A because In the event that the 180th day falls on a Saturday, Sunday, or legal holiday, the winning ticket will be accepted for validation prize claimant may bring the winning ticket in person to a lottery office on the next business day only at a lottery office.
B. Any lottery cash prize that remains unclaimed after either 180 days following the drawing that determined the prize or 180 days after the announced end of the scratch game instant ticket game shall revert to Virginia's Literary Fund. Cash prizes do not include free ticket prizes or other noncash prizes such as merchandise, vacations, admission to events and the like.
C. All claims for computer-generated game winning tickets for which the prize is a free ticket must be mailed in an envelope bearing a postmark of the United States Postal Service or another sovereign nation or received for redemption as prescribed in this chapter within 180 days after the date of the drawing for which the ticket was purchased. In the event the 180th day falls on a Saturday, Sunday, or legal holiday, a claimant may only redeem his winning ticket for a free ticket at a cashing retailer on or before the 180th day.
Except for claims for free ticket prizes mailed to lottery headquarters and postmarked on or before the 180th day, claims for such prizes will not be accepted at any lottery office after the 60th day. This section does not apply to the redemption of free tickets awarded through the subscription program.
D. Any scratch game instant ticket game winning ticket of $25 or less that has been purchased but not claimed within 180 days after the announced end of the scratch game instant ticket game shall revert to the Virginia Lottery Fund.
E. In case of a prize payable over time, if such prize is shared by two or more winning tickets, one or more of which is not presented to the agency for payment within the prize redemption period as established by the game rules, the agency will transfer that portion of the prize to Virginia's Literary Fund in accordance with procedures approved by the State Treasurer.
F. In accordance with the provisions of the Servicemembers Civil Relief Act of 1940 (50 USC App § 526), any person while in active military service may claim exemption from the 180-day ticket redemption requirement. Such person, however, must claim his winning ticket or share as soon as practicable, and in no event later than 180 days after discharge from active military service.
Split Ownership/Proceeds Verification Form (rev. 2/10).