Vermont Code of Rules, Agency 01 — Governor

Subagency 090 GOVERNOR'S COMMISSION ON WOMEN

Chapter 001 SPOUSE ABUSE PROGRAM GRANTS

01-001 Code Vt. R. 01-090-001-X SPOUSE ABUSE PROGRAM GRANTS

Section 1 Introduction

These procedures apply to the Governor's Commission on the Status of Women's responsibility for administering awards to spouse abuse programs, 3 V.S.A. § 18.

Section 2 Procedures for Application

(A) Who may apply

Any local agency or organization established for the purpose of providing shelter, protection or other support to battered or abused spouses, and who meet the following criteria:

1. is governed by a board of directors

2. has a designated fiscal officer

3. is capable of and is willing to comply with such reporting requirements on the use of grantfunds as the Governor's Commission on the Status of Women may require.

(B) When to apply

Applications must be filed in accordance with the times and places established by the Governor's Commission on the Status of Women. Grant applications shall be considered at least annually on the basis of applications filed by May 1 of each year unless otherwise stipulated by the Commission. For fiscal year 1983, applications for interim funding will be accepted by the Commission on or before June 1, 1982 and for regular funding (appropriation, Act 123) on or before August 1, 1982.

(C) Application format

Application for funds must be made on forms provided by the Governor's Commission on the Status of Women.

Section 3 Criteria for Consideration

(A) Geographical location;

(B) Regional availability of services;

(C) Evidence of funding from one or more local, municipal or county source, public or private. In kind contributions will be evaluated and may be counted as part of these requirements;

(D) The extent to which services to victims of spouse abuse constitute a major focus of the applicant;

(E) Broad-based community support as evidenced by the composition of the service provider's board of directors;

(F) Fiscal responsibility; and

(G) Applicant's long-term stability.

Section 4 General Consideration

Applications for grant awards submitted at times not stated above may be considered by the Governor's Commission on the Status of Women in its discretion subject to the availability of funds for the purposes stated.

History

• Effective Date: July 1, 1982 (Secretary of State Rule Log #82-33)

Subagency 130 STATE LOTTERY COMMISSION

Chapter 002 POWERBALL RULES

01-002 Code Vt. R. 01-130-002-X POWERBALL RULES

Part I ADMINISTRATION

Section 1.0 Purpose

These rules establish the procedures and requirements for operating and playing Powerball, a lotto game run by the Multi-State Lottery Association (hereinafter referred to as "MUSL"), of which the Vermont State Lottery is a member. Generally, the Powerball game shall be operated in accordance with any agreement between the State of Vermont and MUSL, the Constitution, the By-Laws of the Multi-State Lottery Association, the Multi-State Lottery Association Rules and applicable Vermont law.

Part II POWERBALL GAME RULES

Section 2.0 Definitions

The following definitions apply unless the context requires a different meaning or is otherwise inconsistent with the intention of the rules adopted by the Product Group.

2.1 "Advertised Grand Prize" shall mean the estimated annuitized Grand Prize amount as determined by the MUSL Central Office by use of the MUSL Annuity Factor and communicated through the Selling Lotteries prior to the Grand Prize Drawing. The "Advertised Grand Prize" is not a guaranteed prize amount and the actual Grand Prize amount may vary from the advertised amount, except in circumstances where there is a guaranteed Grand Prize amount as described in Rule 6. 5

2.2 "Agent" or "retailer" means a person or entity licensed by the Lottery to sell lottery plays.

2.3 A "Drawing" refers collectively to the formal draw event for randomly selecting the winning indicia which determine the number of winners for each prize level of the Powerball game and the Power Play multiplier. Winning indicia include the Winning Numbers for the Powerball game, and the Power Play multiplier.

2.4 "Computer pick" means the random selection of indicia by the computer that appear on a ticket or ticketless transaction and are played by a player in the game. Computer pick has the same meaning as "easy pick", which is used in the Tri-State game rules.

2.5 "Game board" or "boards" means that area of the Play Slip, also known as a "panel" which contains sets of numbered squares to be marked by the player. Game board has the same meaning as "panel" as used in other Lottery materials.

2.6 "Game ticket" or "ticket" means an acceptable evidence of play, which is a ticket produced in a manner that meets the specifications defined in the rules of the Lottery and Section 7.0 (Ticket Validation) and is a physical representation of the play or plays sold to the player or is a properly and validly registered ticketless transaction play.

2.7 "Grand Prize" shall refer to the top prize in the Powerball game.

2.8 "Licensee Lottery" shall mean a state lottery or lottery of a governmental unit, political subdivision, or entity thereof that is not a Party Lottery but has agreed to comply with all applicable MUSL and Product Group requirements and has been authorized by the MUSL and by the Powerball Product Group to sell the Powerball game.

2.9 "MUSL" means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the Party Lotteries.

2.10 "MUSL Annuity Factor" shall mean the annuity factor as determined by the MUSL central office through a method approved by the MUSL Finance and Audit Committee and which is used as described in these Rules.

2.11 "MUSL Board" means the governing body of the MUSL which is comprised of the chief executive officer of each Party Lottery.

2.12 "MUSL Finance and Audit Committee" shall mean the committee of that name established by the MUSL Board.

2.13 "On-Line Lottery Game" means a lottery game wherein a player selects numbers out of a larger predetermined set or sets of numbers.

2.14 "Party Lottery" or "Member Lottery" means a state lottery or lottery of a political subdivision or entity that has joined the MUSL and, in the context of the Product Group Rules, which has joined in selling the Powerball game. Unless otherwise indicated, "Party Lottery" or "Member Lottery" does not include "Licensee Lotteries".

2.15 "Play" or "Bet" means the six (6) numbers, the first five (5) from a field of sixty-nine (69) numbers and the last one (1) from a field of twenty-six (26) numbers, that appear on a ticket or communicated in a ticketless transaction as a single lettered selection and are to be played by a player in the Powerball game.

2.16 "Product Group" means a group of lotteries which has joined together to offer a product pursuant to the terms of the Multi-State Lottery Agreement and the Product Group's own rules.

2.17 "Play Slip" or "Bet Slip" means a card used in marking a player's game plays and containing one or more boards.

2.18 "Selling Lottery" or "Participating Lottery" shall mean a lottery authorized by the Product Group to sell Powerball plays, including Party Lotteries and Licensee Lotteries.

2.19 "Set Prize" means all other prizes except the Grand Prize and, except in instances outlined in these rules, will be equal to the prize amount established by the Product Group for the prize level.

2.20 "Terminal" means a device authorized by the Lottery to function in an on-line, interactive mode with the gaming computer system for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including making purchases, validating tickets, and transmitting reports.

2.21 "Ticketless Transaction" shall include plays sold through subscription, internet, or non-standard terminals.

2.22 "Winning Numbers" means the, indicia randomly selected, during a Drawing event which shall be used to determine winning plays for the Powerball game contained on a game ticket or ticketless transaction.

2.23 "Lottery", or "the Lottery" means the Vermont State Lottery.

2.24 "Executive Director" means the Executive Director of the Vermont State Lottery appointed by the Vermont Lottery Commission.

2.25 "Subscription" means a Powerball bet recorded on the Lottery's central computer system, under the name and address of a subscriber, for a specified range of draw dates.

2.26 Reserved

Section 3.0 Powerball Game Description

3.1 Powerball is a five (5) out of sixty-nine (69) plus one (1) out of twenty-six (26) on-line lottery game, drawn every Wednesday and Saturday as part of the Powerball drawing event, which pays the Grand Prize, at the election of the player made in accordance with these rules or by a default election made in accordance with these rules, either on an annuitized pari-mutuel basis or as a cash lump sum payment of the total cash held for this prize pool on a pari-mutuel basis. Except as provided in these rules, all other prizes are paid on a set cash basis. Powerball Winning Numbers applicable to determine Powerball prizes will be determined in the Powerball Drawing event. To play Powerball, a player shall select (or computer pick) five (5) different numbers, from one (1) through sixty-nine (69) and one (1) additional number from one (1) through twenty-six (26). The additional number may be the same as one of the first five numbers selected by the player.

Plays can be purchased for two dollars (U.S. $ 2.00), including any specific statutorily-mandated tax of a Selling Lottery to be included in the price of a play. Playscan be purchased from a Selling Lottery's approved sales outlet in a manner as approved by the Selling Lottery and in accordance with MUSL Rules. The Drawing Procedures shall include procedures for randomly selecting the Powerball game Winning Numbers and the Power Play multiplier.

3.2 Claims. A ticket (subject to the validation requirements set forth in Section 7.0 (Ticket Validation)) or properly registered ticketless transaction shall be the only proof of a game Play or Plays and the submission of a winning ticket to the issuing Selling Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A Play Slip has no pecuniary or prize value and shall not constitute evidence of play purchase or of numbers selected. A terminal-produced paper receipt has no pecuniary or prize value and shall not constitute evidence of play purchase or numbers selected.

3.3 Cancellations Prohibited. A play may not be voided or canceled by returning the ticket or ticketless transaction to the selling agent or to the lottery, including tickets that are printed in error. A Selling Lottery may develop an approved method of compensating retailers for plays that are not transferred to a player for a reason acceptable to the Selling Lottery. No play that is eligible for a prize can be returned to the lottery for credit. Plays accepted by retailers as returned plays and that cannot be re-sold shall be deemed owned by the bearer thereof.

3.4 Player Responsibility. It shall be the sole responsibility of the player to verify the accuracy of the game Play or Plays and other data printed on the ticket or contained in a ticketless transaction. The placing of Plays is done at the player's own risk through the on-line agent who is acting on behalf of the player in entering the Play or Plays. The purchaser of a Play or Plays through a ticketless transaction has the sole responsibility for verifying the accuracy and condition of the data at the time of purchase.

3.5 Entry of Plays. Plays may only be entered manually using the lottery terminal keypad or touch screen or by means of a Play Slip provided by the Selling Lottery and hand-marked by the player or by such other means approved by the Selling Lottery. Retailers shall not permit the use of facsimiles of Play Slips, copies of Play Slips, or other materials that are inserted into the terminal's Play Slip reader that are not printed or approved by the Selling Lottery. Retailers shall not permit any device to be connected to a lottery terminal to enter plays, except as approved by the Selling Lottery.

3.6 Registration of Plays. Ticketless transaction plays may be registered by the Selling Lottery at a lottery processing site which meets the requirements established by the Product Group and the MUSL Board.

Section 4.0 Powerball Prize Pool

4.1 Powerball Prize Pool. The prize pool for all prize categories shall consist of fifty percent (50%) of each drawing period's sales, inclusive of any specific statutorily-mandated tax of a Selling Lottery to be included in the price of a play, after the prize pool accounts and prize reserve accounts are funded to the amounts set by the Product Group. Any amount remaining in the prize pool at the end of this game shall be returned to all lotteries participating in the prize pool after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game or expended in a manner as directed by the Members of the Product Group in accordance with jurisdiction statute.

4.2

(a) Powerball Prize Pool Accounts and Prize Reserve Accounts. An amount equal to up to five percent (5%) of a Party Lottery's sales, including any specific statutorily-mandated tax of a Party Lottery to be included in the price of a play, shall be deducted from a Party Lottery's Grand Prize Pool and placed in trust in one or more Powerball prize pool accounts and prize reserve accounts until the prize pool accounts and Party Lottery's share of the prize reserve account(s) reaches the amounts designated by the Product Group.

The Product Group has established the following prize reserve accounts for the Powerball game: The Powerball Prize Reserve Account (PRA), which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason; and the Powerball Set Prize Reserve Account (SPRA), which is used to fund deficiencies in low-tier Powerball prize payments (subject to the limitations of these rules).

The Product Group has established the following prize pool accounts for the Powerball game: the Grand Prize pool, which is used to fund the immediate Grand Prize; the Powerball Set-Aside Account, which is used to guarantee payment of the minimum or starting Grand Prize. Power Play Prize Pool and Power Play Pool Account are described in Part III of these rules. The Set Prize Pool holds the temporary balances that may result from having fewer than expected winners in the Powerball set prize (aka low-tier prize) categories and the source of the Set Prize Pool is the Party Lottery's weekly prize contributions less actual Powerball Set Prize liability.

Once the Powerball prize pool accounts and the Party Lottery's share of the Powerball prize reserve accounts exceed the designated amounts, the excess shall become part of the Grand Prize Pool. The Product Group, with approval of the Finance & Audit Committee may establish a maximum balance for the Powerball prize pool accounts and prize reserve accounts.

The Product Group may determine to expend all or a portion of the funds in the Powerball prize pool accounts (except the Grand Prize pool account) and the prize reserve accounts, (1) for the purpose of indemnifying the Party Lotteries and Licensee Lotteries in the payment of prizes to be made by the Selling Lotteries, subject to the approval of the Board; and (2) for the payment of prizes or special prizes in the game, subject to the approval of the Finance and Audit Committee. The prize reserve shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and shares of the Party Lotteries.

A Party Lottery may contribute to its share of prize reserve accounts over time, but in the event of a draw down from a prize reserve account, a Party Lottery is responsible for its full percentage share of the prize reserve account, whether or not it has been paid in full.

Any amount remaining in the Powerball prize pool accounts or prize reserve accounts at the end of this game shall be returned to all lotteries participating in the accounts after the end of all claim periods of all Selling Lotteries, carried forward to a replacement prize reserve account or expended in a manner as directed by the Members of the Product Group in accordance with jurisdiction statute.

(b) Licensee Lotteries. Licensee Lotteries shall adhere to PB Rule 4.2(a) unless a different process is approved by the Product Group.

4.3 Expected Powerball Prize Payout Percentages.

(1) The Grand Prize payout shall be determined on a pari-mutuel basis. Except as otherwise mandated by jurisdiction statute or judicial requirements, or provided for in these rules, all other prizes awarded shall be paid as set cash prizes with the following expected prize payout percentages:

(a) The prize money allocated to the Grand Prize category shall be divided equally by the number of plays winning the Grand Prize.

(b) Powerball Set Prize Pool Carried Forward. For Party Lotteries, the Powerball Set Prize pool (for cash prizes of one million dollars ($ 1,000,000) or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the Powerball Set Prizes awarded in the current draw.

(c) Pari-Mutuel Powerball Prize Determinations. Except as provided for in 4.3(1)(c)(1)(c), for Party Lotteries:

(1)

(a) If the total of the Powerball Set Prizes (as multiplied by the respective Power Play multiplier if applicable) awarded in a drawing exceeds the percentage of the prize pool allocated to the Powerball Set Prizes, then the amount needed to fund the Powerball Set Prizes, including Power Play prizes, awarded shall be drawn from the following sources, in the following order:

(i) the amount available in the SPP and the Power Play Prize Pool, if any;

(ii) an amount from the SPRA, if available, not to exceed forty million dollars ($ 40,000,000) per drawing; and

(iii) other amounts as agreed to by the Product Group in their sole discretion

(1)

(b) If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes awarded, including Power Play prizes, then the highest Set Prize shall become a pari-mutuel prize. If the amount of the highest Set Prize, when paid on a pari-mutuel basis, drops to or below the next highest Set Prize and there are still not sufficient funds to pay the remaining Set Prizes awarded, then the next highest Set Prize, including Power Play prizes, shall become a pari-mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become pari-mutuel prize levels.

(1)

(c) By agreement with the Licensee Lotteries, the Licensee Lotteries shall independently calculate their Set Prize pari-mutuel prize amounts. The Party Lotteries and the Licensee Lotteries shall then agree to set the pari-mutuel prize amounts for all lotteries selling the game at the lesser of the independently-calculated prize amounts.

(2) Licensee Lotteries. Licensee Lotteries shall adhere to PB Rule 4.3(1)(c)(1)(a) and (b) unless a different process is approved by the Product Group.

Section 5.0 Probability of Winning Powerball Prizes

The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Powerball. The Set Prize Amount shall be the prizes set for all Selling Lotteries unless prohibited or limited by a jurisdiction's statute or judicial requirements.

Section 6.0 Powerball Prize Payment

6.1 Grand Prizes. Grand Prizes shall be paid, at the election of the player made no later than sixty (60) days after the player becomes entitled to the prize, with either a per winner annuity or cash payment. If the payment election is not made at the time of purchase and is not made by the player within sixty (60) days after the player becomes entitled to the prize, then the prize shall be paid as an annuity prize. An election for an annuity payment made by a player before ticket purchase or by system default or design may be changed to a cash payment at the election of the player until the expiration of sixty (60) days after the player becomes entitled to the prize. The election to take the cash payment may be made at the time of the prize claim or within sixty (60) days after the player becomes entitled to the prize. An election made after the winner becomes entitled to the prize is final and cannot be revoked, withdrawn or otherwise changed.

Shares of the Grand Prize shall be determined by dividing the cash available in the Grand Prize pool equally among all winning plays of the Grand Prize. Winner(s) who elect a cash payment shall be paid their share(s) in a single cash payment. The annuitized option prize shall be determined by multiplying a winner's share of the Grand Prize pool by a process as approved by the MUSL Board.. Neither MUSL nor the Selling Lotteries shall be responsible or liable for changes in the advertised or estimated annuity prize amount and the actual amount purchased after the prize payment method is actually known to MUSL.

In certain instances, announced by the Product Group, the Grand Prize shall be a guaranteed amount and shall be determined pursuant to Section 6.5.

If individual shares of the cash held to fund an annuity is less than $ 250,000, the Product Group, in its sole discretion, may elect to pay the winners their share of the cash held in the Grand Prize pool.

All annuitized prizes shall be paid annually in thirty (30) payments with the initial payment being made in cash, to be followed by twenty-nine (29) payments funded by the annuity. Except as may be controlled by a Selling Lottery's governing statute, all annuitized prizes shall be paid annually in thirty (30) graduated payments (increasing each year) by a rate as determined by the Product Group. Prize payments may be rounded down to the nearest one thousand dollars ($ 1,000). Annual payments after the initial payment shall be made by the lottery on the anniversary date or if such date falls on a non-business day, then the first business day following the anniversary date of the selection of the Grand Prize Winning Numbers.

Funds for the initial payment of an annuitized prize or the lump sum cash prize shall be made available by MUSL for payment by the Selling Lottery no earlier than the fifteenth calendar day (or the next banking day if the fifteenth day is a holiday) following the drawing. If necessary, when the due date for the payment of a prize occurs before the receipt of funds in the prize pool trust sufficient to pay the prize, the transfer of funds for the payment of the full lump sum cash amount may be delayed pending receipt of funds from the Selling Lotteries. A paying lottery may elect to make the initial payment from its own funds after validation, with notice to MUSL.

If a Party Lottery purchases or holds the prize payment annuity for a prize won in that jurisdiction, that Party Lottery's game rules, and any prize payment agreement with the prize winner, shall indicate that the prize winner has no recourse on the MUSL or any other Party Lottery for payment of that prize.

In the event of the death of a lottery winner during the annuity payment period, unless prohibited by jurisdictional law, the MUSL Finance & Audit Committee, in its sole discretion excepting a discretionary review by the Product Group, upon the petition of the estate of the lottery winner (the "Estate") to the lottery of the jurisdiction in which the deceased lottery winner purchased the winning play, and subject to federal, state, or district, or territorial applicable laws, may accelerate the payment of all of the remaining lottery proceeds to the Estate. If such a determination is made, then securities and/or cash held to fund the deceased lottery winner's annuitized prize may be distributed to the Estate. The identification of the securities to fund the annuitized prize shall be at the sole discretion of the Finance & Audit Committee or the Product Group.

6.2 Powerball Low-Tier Cash Prize Payments. All low-tier cash prizes (all prizes except the Grand Prize) shall be paid in cash or warrants through the Selling Lottery that sold the winning play(s). A Selling Lottery may begin paying low-tier cash prizes after receiving authorization to pay from the MUSL central office. If a Selling Lottery, due to jurisdictional law requirements, separately determines its low-tier cash prize amounts, it shall be solely responsible for its low-tier cash prize liability, and may begin paying low-tier cash prizes after a drawing when it determines appropriate to do so.

6.3 Powerball Prizes Rounded. Annuitized payments of the Grand Prize or a share of the Grand Prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized Grand Prize win shall be added to the first cash payment to the winner or winners. Prizes other than the Grand Prize, which, under these rules, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Except with regards to low-tier cash prizes paid by a Selling Lottery which separately determines its low-tier cash prize amounts pursuant to Rule 6.2, breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

6.4 Powerball Prize Rollover. If the Grand Prize is not won in a drawing, the prize money allocated for the Grand Prize shall roll over and be added to the Grand Prize pool for the following drawing.

6.5 Funding of Guaranteed Powerball Prizes. The Product Group may offer guaranteed minimum Grand Prize amounts or minimum increases in the Grand Prize amount between drawings or make other changes in the allocation of prize money where the Product Group finds that it would be in the best interest of the game. If a minimum Grand Prize amount or a minimum increase in the Grand Prize amount between drawings is offered by the Product Group, then the Grand Prize shares shall be determined as follows: If there are multiple Grand Prize winners during a single drawing, each selecting the annuitized option prize, then a winner's share of the guaranteed annuitized Grand Prize shall be determined by dividing the guaranteed annuitized Grand Prize by the number of winning plays. If there are multiple Grand Prize winners during a single drawing and at least one (1) of the Grand Prize winners has elected the annuitized option prize, then the MUSL Annuity Factor shall be utilized to determine the cash pool. The cost of the annuitized prize(s) will be determined at the time the annuity is purchased through a process as approved by the MUSL Board; If no winner of the Grand Prize during a single drawing has elected the annuitized option prize, then the amount of cash in the Grand Prize pool shall be an amount equal to the guaranteed annuitized amount divided by the MUSL Annuity Factor. Minimum guaranteed prizes or increases may be waived if the alternate funding mechanism set out in Section 4.3(b) becomes necessary. Approval of the Group is required to change the guaranteed minimum Grand Prize amounts or minimum increases in the Grand Prize amount. Any reduction in the guaranteed minimum Grand Prize amount or reduction in the minimum increases to the Grand Prize amount shall not become effective until after a Grand Prize win following the action taken by the Group.

6.6 Limited to Highest Powerball Prize Won. The holder of a winning play may win only one (1) prize per play in connection with the Winning Numbers drawn, and shall be entitled only to the prize won by those numbers in the highest matching prize category. All liabilities for a Powerball prize are discharged upon payment of a prize claim.

6.7 Powerball Prize Claim Period. Prize claims shall be submitted within the period set by the Selling Lottery selling the play, which in Vermont is one year from the prize eligibility date. The prize eligibility date is the date of the winning draw.

6.9 Prize Assignment. Payment of a prize may be made to a person other than the winner pursuant to Vermont Statutes Annotated, Title 31, Section 658(c), which adopts the payment provisions of Title 31, Section 674L.1.1A-I.

Section 7.0 Ticket Validation

7.1 General Requirements for Validation. To be a valid play and eligible to receive a prize, a play's ticket or ticketless transaction shall satisfy all the requirements established by a Selling Lottery for validation of winning plays sold through its on-line system and any other validation requirements adopted by the Product Group, the MUSL Board, and published as the Confidential MUSL Minimum Game Security Standards. The MUSL and the Selling Lotteries shall not be responsible for tickets or ticketless transactions that are altered in any manner.

7.2 Specific Requirements for Validation of Tickets Sold in Vermont

(a) To be a valid ticket and eligible to receive a prize, all the following requirements must be satisfied:

(1) The ticket must have been issued by the Lottery through a licensed agent, via a terminal, in an authorized manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner.

(2) The ticket date must have been recorded in the Lottery's central computer system at least sixty (60) minutes prior to the drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the drawing (regardless of when the drawing is held) is void.

(3) The information appearing on the ticket must correspond precisely with the Selling Lottery's computer record.

(4) The system assigned validation number must appear in its entirety, and correspond, using a computer validation file, to the winning game play or plays printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records.

(5) The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective.

(6) All information appearing on an apparent winning ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid.

(7) The ticket must be intact, fully legible, complete and not miscut, correspond to the data on file at the Lottery in every respect.

(8) The ticket must pass all other security criteria determined by the Commission and MUSL.

(9) The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof.

(10) An apparent winning ticket shall be void unless the ticpaper stock roll which was in use at the time of the bet by, and validly issued to, the agent from whom the ticket was purchased.

(b) In the event that a ticket fails to pass all the criteria set forth in subpart (a) of this rule, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the executive director shall be final and binding. If the executive director determines that the ticket is not eligible to receive a prize, then the executive director may, at the executive director's option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant's sole and exclusive remedy.

Section 8.0 Ticket Responsibility

8.1 Signature. Until such time as a subscription play is properly and validly registered with the lottery, or until such time as a signature, or printed name is placed upon a ticket in the area designated for signature, or name, a ticket shall be owned by the bearer of the ticket. When a subscription play is validly and properly registered with the lottery, or when a signature, or name is placed on the ticket in the place designated, the person who has registered the ticket, or if not registered, whose signature, or name appears in such area shall be the owner of the ticket and shall be entitled (subject to the validation requirements in Section 7.0 (Ticket Validation) and state or district law) to any prize attributable thereto.

8.2 Multiple Signatures. The manner of payment of prizes for valid winning tickets bearing multiple signatures, or names shall be determined by the Law of the State of Vermont.

8.3 Stolen Tickets. The Product Group, the MUSL and the Party Lotteries shall not be responsible for lost or stolen tickets.

8.4 Ticketless Transactions. A receipt for a ticketless transaction play has no value and is not evidence of a play. A ticketless transaction play is valid when registered with the Lottery in accordance with these rules and the person or persons registering the play shall be the owner of the ticketless transaction play.

Section 9.0 Ineligible Players

9.1 A play or share for a MUSL game issued by the MUSL or any of its Party Lotteries shall not be purchased by, and a prize won by any such play or share shall not be paid to:

(a) a MUSL employee, officer, or director,

(b) a contractor or consultant under agreement with the MUSL to review the MUSL audit and security procedures,

(c) an employee of an independent accounting firm under contract with MUSL to observe drawings or site operations and actually assigned to the MUSL account and all partners, shareholders, or owners in the local office of the firm, or

(d) an immediate family member (parent, stepparent, child, stepchild, spouse, or sibling) of an individual described in subsections (a), (b), and (c) and residing in the same household.

9.2 No tickets or ticketless transactions may be sold to, or purchased by, individuals who have not attained the age of majority. However, tickets or subscriptions may be given as gifts to minors or any other individuals except as prohibited by Vermont law.

9.3 No member of the commission or employee of the commission, or members of their immediate household, may claim or receive prize money in any lottery operated by the Vermont Lottery Commission, including but not limited to Powerball.

Section 10.0 Applicable Law

In purchasing a play in Vermont, or attempting to claim a prize, purchasers and prize claimants agrees to comply with and abide by all applicable Vermont laws, rules, regulations, procedures, and decisions of the Lottery, and by directives and determinations of the director of that Party Lottery.

A prize claimant agrees, as its sole and exclusive remedy that claims arising out of a Powerball Play can only be pursued against the Selling Lottery which issued the Play. Litigation, if any, shall only be maintained within the jurisdiction in which the Powerball Play was purchased and only against the Selling Lottery that issued the play. No claim shall be made against any other Participating Lottery or against MUSL.

Nothing in these Rules shall be constructed as a waiver of any defense or claim the Selling Lottery which issued the Play, any other Participating Lottery or MUSL may have in any litigation, including in the event a player or prize claimant pursues litigation against the Selling Lottery, any other Participating Lottery or MUSL, or their respective officers, directors or employees.

All decisions made by a Selling Lottery, including the declaration of prizes and the payment thereof and the interpretation of Powerball Rules, shall be final and binding on all Play purchasers and on every person making a prize claim in respect thereof, but only in the jurisdiction where the Powerball Play was issued.

Unless the laws, rules, regulations, procedures, and decisions of the Lottery which issued the Play provide otherwise, no prize shall be paid upon a Play purchased, claimed or sold in violation of these Rules or the laws, rules, regulations, procedures, and decisions of that Selling Lottery; any such prize claimed but unpaid shall constitute an unclaimed prize under these Rules and the laws, rules, regulations, procedures, and decisions of that Selling Lottery.

Part III SPECIAL GAME RULES: POWERBALL POWER PLAY

Section 11.0 Power Play Description

The Powerball Power Play promotion is a limited extension of the Powerball game and is conducted in accordance with the Powerball game rules and other lottery rules applicable to the Powerball game except as may be amended herein. The Powerball Power Play promotion will run concurrently with Powerball and will continue until discontinued by the lottery. The promotion will offer to the owners of a qualifying play a chance to increase the amount of any of the eight (8) lump sum Set Prizes (the lump sum prizes normally paying $ 4 to $ 1,000,000) won in a drawing held during the promotion. The Grand Prize is not a Set Prize and will not be increased.

Section 12.0 Qualifying Play

A qualifying play is any single Powerball play for which the player pays an extra dollar ($ 1.00) for the Power Play option play and that is recorded at the Selling Lottery's central computer as a qualifying play.

Section 13.0 Prizes to be Increased

Except as provided in these rules, a qualifying play which wins one of the seven lowest lump sum Set Prizes (excluding the Match 5+0 prize) will be multiplied by the number selected, either two, three, four, five or 10 (2, 3, 4, 5, or 10), in a separate random Power Play drawing announced during the official Powerball drawing show; The Group may announce prior to a drawing that the "ten" multiplier will be available for drawings in which the advertised Grand Prize amount is above a specified amount, but the "ten" multiplier shall at a minimum be available for all drawings in which the advertised annuitized Grand Prize amount is one hundred fifty million dollars ($ 150,000,000.00) or less. The announced Match 5+0 prize, for players selecting the Power Play option, shall be two million dollars ($ 2,000,000.00) unless a higher limited promotional dollar amount is announced by the Group.

Section 14.0 Power Play Draws

MUSL will conduct a separate random "Power Play" drawing and announce results during each of the regular Powerball drawings held during the promotion. During each Powerball drawing a single number (2, 3, 4, 5 or 10) shall be drawn; The Group may announce prior to a drawing that the "ten" multiplier will not be available for drawings in which the advertised Grand Prize amount is above a specified amount, but the "ten" multiplier shall at a minimum be available for all drawings in which the advertised Grand Prize amount is one hundred fifty million dollars. ($ 150,000,000.00) or less. The Powerball Group may modify the multiplier features for special promotions from time to time.

Section 15.0 Prize Pool

15.1 Power Play Prize Pool.

(a) The Power Play Prize Pool (PPP) is hereby created, which is used to fund Power Play prizes. The PPP shall hold temporary balances that may result from having fewer than expected winners in the Power Play. The source of the PPP is the Party Lottery's weekly prize contributions less actual Power Play Prize liability.

(b) As per Rule E(2), fifty percent (50%) of each draw's sales shall be collected and placed in the PPP for the payment of prizes.

(1) In drawings where the "ten" (10) multiplier is available, the expected payout for all prize categories shall consist of up to forty-nine and nine hundred sixty-nine thousandths percent (49.969%) of each drawing period's sales, including any specific statutorily-mandated tax of a Selling Lottery to be included in the price of a lottery ticket. In drawings where the "10" (10)" multiplier is not available, the expected payout for all prize categories shall consist of up to forty-five and nine hundred thirty-four thousandths percent (45.934%).

(2) In drawings where the ten (10X) multiplier is available, an additional thirty-one thousandths percent (0.031%) of each drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the PPP, for the purpose of paying Power Play prizes. In drawings where the ten (10X) multiplier is not available, an additional four and sixty-six thousandths percent (4.066%) of each drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the PPP, for the purpose of paying Power Play prizes.

(c) The prize payout percentage per draw may vary. The PPP shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the Power Play prizes awarded in the current draw and held in the PPP.

15.2 Power Play Pool Account. In drawings where the "ten (10)" multiplier is available, an additional thirty-one thousandths percent (0.031%) of sales, including any specific statutorily-mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the Power Play Pool account, for the purpose of paying Power Play Prizes. In drawings where the "ten (10)" multiplier is not available, four and sixty-six thousandths percent (4.066%) of sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the Power Play pool account, for the purpose of paying Power Play prizes. Any amount remaining in the Power Play pool account at the end of this game shall be returned to all lotteries participating in the account after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game, or expended in a manner as directed by the Members of the Product Group in accordance with jurisdictional statute.

15.3 Licensee Lotteries. Licensee Lotteries shall adhere to PB Rule 15.2 unless a different process is approved by the Product Group.

15.4 Expected Prize Payout. Except as provided in these rules, all prizes awarded shall be paid as lump sum set prizes. Instead of the Powerball set prize amounts, qualifying Power Play plays will pay the amounts shown in PB Rule 13.

In certain rare instances, the Powerball set prize amount may be less than the amount shown. In such case, the eight (8) lowest Power Play prizes will be changed to an amount, announced after the draw. For example, if the Match 4+1 Powerball set prize amount of $ 50,000 becomes $ 25,000 under the rules of the Powerball game and a 5x Power Play multiplier is selected, then a, then a Power Play player winning that prize amount would win $ 125,000.

Section 16.0 Probability of Winning

The following table sets forth the probability of the various Power Play numbers being drawn during a single Powerball drawing, except that the Power Play amount for the Match 5+0 prize will be two million dollars ($ 2,000,000.00). The Group may elect to run limited promotions that may modify the multiplier features.

Section 17.0 Limitations On Payment Of Power Play Prizes

17. 1 Prize Pool Carried Forward. For Party Lotteries, the prize pool percentage allocated to the Power Play set prizes shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.

17.2 Pari-Mutuel Prizes--All Prize Amounts. Except as provided for in Rule 17.2(c), for Party Lotteries:

(a)

(1) If the total of the original Powerball set prizes and the Power Play prizes awarded in a drawing exceeds the percentage of the prize pools allocated to the set prizes, then the amount needed to fund the set prizes (including the Power Play prize amounts) awarded shall be drawn from the following sources, in the following order:

(i) the amount available in the SPP and PPP, if any;

(ii) an amount from the Powerball Set-Prize Reserve Account, if available in the account, not to exceed forty million dollars ($ 40,000,000) per drawing.

(iii) other amounts agreed to by the Product Group in their sole discretion.

(a)

(2) If, after these sources are depleted, there are not sufficient funds to pay the set prizes awarded (including Power Play prize amounts), then the highest set prize (including the Power Play prize amounts) shall become a pari-mutuel prize. If the amount of the highest set prize, when paid on a pari-mutuel basis, drops to or below the next highest set prize and there are still not sufficient funds to pay the remaining set prizes awarded, then the next highest set prize, including the Power Play prize amount, shall become a pari-mutuel prize. This procedure shall continue down through all set prizes levels, if necessary, until all set prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning plays in proportion to their respective prize percentages. Powerball and Power Play prizes will be reduced by the same percentage.

(b) Licensee Lotteries. Licensee Lotteries shall adhere to PB Rule 17.2(a) unless a different process is approved by the Product Group.

(c) By agreement with the Licensee Lotteries, the Licensee Lotteries shall independently calculate their set pari-mutuel prize amounts, including the Power Play prize amounts. The Party Lotteries and the Licensee Lotteries shall then agree to set the pari-mutuel prize amounts for all lotteries selling the game at the lesser of the independently-calculated prize amounts.

Section 18.0 Prize Payment

18.1 Prize Payments. All Power Play prizes shall be paid in one lump sum through the Selling Lottery that sold the winning ticket(s). A Selling Lottery may begin paying Power Play prizes after receiving authorization to pay from the MUSL central office.

18.2 Prizes Rounded. Prizes, that, under these rules, may become pari-mutuel prizes, may be rounded down so that prizes can be paid in whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

Part IV AGENTS

Section 19.0 Agents

19.1 Agents selling Powerball and Power Play tickets shall comply with all applicable Vermont laws, rules, regulations, procedures, and decisions of the Lottery and with all applicable MUSL rules, regulations and requirements.

19.2 Each agent shall receive 6.00 percent (6%) of gross receipts for Powerball and Power Play tickets sold by that agent as a commission. The 6.00 percent (6%) commission applies to Powerball and Power Play sales only.

Part V SUBSCRIPTIONS

Section 20.0 Subscriptions

20.1 Specific information required for a subscription

(a) To play by subscription a player shall provide the lottery with the following information:

(1) 5 different 2-digit numbers between one (01) and a designated number and one additional 2-digit number between one (01) and a designated number;

(2) Name;

(3) A Vermont mailing address;

(4) Home telephone number;

(5) Work telephone number, if applicable;

(6) A gift message, if applicable;

(7) The number of draws the subscription shall be valid;

(8) Indicate Powerplay Option (Yes or No)

(9) Affirmation of age eligibility; and

(10) Payment method.

(b) If the subscriber selects payment for subscription by check, the check shall be payable to the Vermont Lottery Commission and attached to the subscription application form.

(c) Reserved for future use.

(d) The completed subscription form shall be forwarded to the lottery headquarters for processing.

(e) Upon receipt of the subscription application, the lottery shall enter the subscribers' information into a lottery approved subscription database program.

(f) The database program will assign the next available effective draw date for the subscription, as determined by MUSL.

(g) The database program will assign the following identification numbers to the subscription:

(1) Subscriber number; and

(2) Subscription number.

(h) The lottery will assign the following identification numbers to the subscription:

(1) Batch number; and

(2) Sequence or certificate number.

(i) The lottery shall print a subscription confirmation card which shall list the following information:

(1) Subscriber name;

(2) Subscriber address;

(3) 5, 2-digit numbers and 1, additional 2-digit number;

(4) Powerplay Option (Yes or No)

(5) Day, month and year the subscription is effective;

(6) Day, month and year the subscription expires;

(7) A gift message, if applicable;

(8) Subscription number;

(9) Batch number; and

(10) Sequence or certificate number.

(j) The lottery shall forward a subscription confirmation card to the subscriber.

(k) It shall be the sole responsibility of the player to verify the following are correct:

(1) Subscriber name;

(2) Subscriber address;

(3) Subscriber chosen 5, 2-digit numbers and one additional 2-digit number;

(4) Powerplay Option (Yes or No)

(5) Subscription play length; and

(6) Effective and expiration dates.

(l) It shall be the sole responsibility of the subscriber to notify the Selling Lottery of incorrect data on the confirmation card prior to the effective date of the subscription.

(m) A subscription application form has no pecuniary or prize value and shall not constitute evidence of ticket purchase or of numbers selected.

(n) Once a subscription play is registered with the lottery, the registration shall constitute the only acceptable evidence of play for the subscriber.

(o) A subscription does not become effective until the effective date listed on the confirmation card, which shall match the effective date listed in the Selling Lottery's subscription database.

(p) Any changes to a subscriber's name or address shall be requested in writing by the subscriber and include the previous name and address. Name and address changes shall require a notarized letter from the subscriber.

(q) There shall be no changes to the subscriber's numbers during the effective dates of the subscription unless authorized by MUSL.

(r) Prizes shall be paid, by check or by expiration date extensions, as determined by MUSL.

(s) Prize checks shall be made payable to the subscription name(s) as recorded in the lottery's central computer system;

(t) Subscriptions, once in effect, cannot be cancelled in whole or in part except as determined by MUSL.

(u) Subscription renewal forms shall be forwarded to the subscriber by the lottery within a time period prior to the subscription's expiration date as determined by MUSL.

(v) The subscription renewal form shall contain the following information:

(1) Subscriber's name;

(2) Subscriber's address;

(3) 5-2 digit numbers and one additional 2-digit number;

(4) Powerplay Option (Yes or No)

(5) Subscriber number;

(6) Subscription number; and

(7) Expiration date including free play extensions, if any.

(w) If the subscriber elects to continue a subscription, the subscriber shall provide the lottery with the following information:

(1) Subscription play length;

(2) Powerplay Option (Yes or No)

(3) Change of address, if applicable;

(4) Payment method; and

(5) A change of numbers of 5-2 digit numbers and 1 additional 2-digit number, if applicable.

(x) Reserved for future use.

(y) If the subscriber selects payment for subscription by check, the check shall be payable to the Vermont Lottery Commission and attached to the subscription renewal form.

(z) The completed subscription renewal form shall be forwarded to the lottery headquarters for processing.

(aa) Upon receipt of the subscription renewal form, the lottery shall enter the subscriber's information into a lottery approved subscription database program.

(ab) The database program will assign the next available effective draw date for the subscription, as determined by MUSL.

(ac) The database program will assign a unique subscription number to the subscription:

(ad) The lottery will assign the following identification numbers to the subscription:

(1) Batch number; and

(2) Sequence or certificate number.

(ae) The Selling Lottery shall print a subscription confirmation card which shall list the following information:

(1) Subscriber name;

(2) Subscriber address;

(3) 5, 2-digit numbers and 1, additional 2-digit number;

(4) Powerplay Option (Yes or No)

(5) Day, month and year the subscription is effective;

(6) Day, month and year the subscription expires;

(7) A gift message, if applicable;

(8) Subscription number;

(9) Batch number; and

(10) Sequence or certificate number.

(af) The Selling Lottery shall forward a subscription confirmation card to the subscriber.

History

• STATUTORY AUTHORITY: 31 V.S.A. § 654a
• EFFECTIVE DATE: October 23, 2003 Secretary of State Rule Log #03-41
• AMENDED: August 28, 2005 Secretary of State Rule Log #05-25; January 4, 2009 Secretary of State Rule Log #08-052; January 15, 2012 Secretary of State Rule Log #11-053; January 22, 2014 Secretary of State Rule Log #13-045; October 28, 2015 Secretary of State Rule Log #15-046; November 29, 2016 Secretary of State Rule Log #16-050

Chapter 003 HOT LOTTO RULES

01-003 Code Vt. R. 01-130-003-X HOT LOTTO RULES

Part I ADMINISTRATION

Section 1.0 Introduction

These rules establish the procedures and requirements for operating and playing Hot Lotto, a lotto game run by the Multi-State Lottery Association (hereinafter referred to as "MUSL"), of which the Vermont Lottery is a member. Generally, the Hot Lotto game shall be operated in accordance with any agreement between the State of Vermont and MUSL, the Constitution, the By-Laws of the Multi-State Lottery Association, the Multi-State Lottery Association Rules and applicable Vermont law.

Part II HOT LOTTO GAME RULES

Section 2.0 Definitions

The following definitions apply unless the context requires a different meaning or is otherwise inconsistent with the intention of the rules adopted by the Product Group.

2.1 "Advertised Grand Prize". The Advertised Grand Prize amount shall be the amount determined and publicly announced by the Product Group to be the Grand Prize for the drawing. The "Advertised Grand Prize" amount is not the Gross Grand Prize Value. The Advertised Grand Prize amount shall be the minimum cash amount that would be paid as a "Withholding Taxes Paid" prize to the Grand Prizewinner(s), on a pari-mutuel basis, after calculating the potential federal and jurisdictional withholding taxes, if any, applicable to resident United States citizens with a valid Social Security Number, to the Gross Grand Prize Value. If a Member Lottery advertises an "Estimated Grand Prize", that shall have the same meaning as an "Advertised Grand Prize".

2.2 "Agent" or "retailer" means a person or entity licensed by the Lottery to sell lottery tickets.

2.3 "Drawing" means the formal process of selecting winning numbers that determine the number of winners for each prize level of the game.

2.4 "Computer pick" means the random selection of two-digit numbers by the computer system that appear on a ticket and are played by a player in the game. Computer pick has the same meaning as "easy pick", which is used in other Lottery materials.

2.5 "Executive Director" means the Executive Director of the Vermont Lottery appointed by the Vermont Lottery Commission.

2.6 "Game board" or "boards" means that area of the play slip that contains two (2) sets of numbered squares to be marked by the player, the first set containing forty-seven (47) squares, numbers one (1) through forty-seven (47) and the second set containing nineteen (19) squares, numbers one (1) through nineteen (19). Game board has the same meaning as "panel" as used in other Lottery materials.

2.7 "Game ticket" or "ticket" means a lottery ticket produced by a terminal that meets the specifications defined in the rules of the Lottery and Section 7.0 (Ticket Validation) or is a properly and validly registered subscription play.

2.8 "Gross Prize Value" shall mean the prize value prior to deductions for any applicable withholding taxes due the federal or jurisdictional governments.

2.9 "Guaranteed Grand Prize" as used in these Rules refers to the guarantee by the Product Group as to the "Gross Grand Prize Value" amount; the "Advertised Grand Prize" amount is not a guaranteed prize amount.

2.10 "Lottery" or "the Lottery" means the Vermont Lottery.

2.11 "MUSL" means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the Party Lotteries.

2.12 "MUSL Board" means the governing body of the MUSL that is comprised of the chief executive officer of each Party Lottery.

2.13 "On-Line Lottery Game" means a lottery game wherein a player selects numbers out of a larger predetermined set or sets of numbers.

2.14 "Party Lottery" or "Member Lottery" means a state lottery or lottery of a political subdivision or entity that has joined the MUSL and, in the context of these Hot Lotto Rules, that has joined in selling the Hot Lotto game.

2.15 "Play" or "bet" means the six (6) numbers, the first five (5) from a field of forty-seven (47) numbers and the last one (1) from a field of nineteen (19) numbers, that appear on a ticket as a single lettered selection and are to be played by a player in the game.

2.16 "Product Group" means a group of lotteries that have joined together to offer a common product pursuant to the terms of the Multi-State Lottery Agreement and the Product Group's own rules.

2.17 "Play slip" or "bet slip" means a card used in marking a player's game plays and containing one or more boards.

2.18 "Set Prize" means all other prizes except the Grand Prize that are advertised to be paid by a single cash payment and, except in instances outlined in these rules, will be equal to the prize amount established by the MUSL Board for the prize level.

2.19 "Subscription" means a Hot Lotto bet recorded on the Lottery's central computer system, under the name and address of a subscriber, for a specified range of draw dates.

2.20 "Terminal" means a device authorized by the Lottery to function in an on-line, interactive mode with the Lottery's computer system for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including making purchases, validating tickets, and transmitting reports.

2.21 "Winning numbers" means the six (6) numbers, the first five (5) from a field of forty-seven (47) numbers and the last one (1) from a field of nineteen (19) numbers, randomly selected at each drawing, that shall be used to determine winning plays contained on a game ticket.

2.22 "Withholding Taxes Paid Prizes" shall mean prizes where the Lottery pays the prize winner a net prize amount, that consists of the Lottery withholding and depositing on behalf of the prize winner the required federal and jurisdictional withholding taxes (if any) on the "gross prize value" and the residual amount paid to the prize winner.

Section 3.0 Game Description

3.1 Hot Lotto is a five (5) out of forty-seven (47) plus one (1) out of nineteen (19) on-line lottery game that pays Grand Prize payments as a cash lump sum payment on a pari-mutuel basis. All prizes are paid on a cash basis. To play Hot Lotto, a player shall select five (5) different numbers, between one (1) and forty-seven (47) and one (1) additional number between one (1) and nineteen (19), for input into a terminal. The additional number may be the same as one of the first five numbers selected by the player. Tickets can be purchased for one dollar ($ 1.00), including sales tax where mandated, either from a terminal operated by an agent (i.e., a clerk-activated terminal) or from a terminal operated by the player (i.e., a player-activated terminal). If purchased from an agent, the player may select a set of five (5) numbers and one (1) additional number by communicating the six (6) numbers to the agent, or by marking six (6) numbered squares in any one game board on a play slip and submitting the play slip to the agent or by requesting "computer pick" from the agent. The agent will then issue a ticket, via the terminal, containing the selected set or sets of numbers, each of which constitutes a game play. Tickets can be purchased from a player-activated terminal by use of a touch screen or by inserting a play slip into the machine. Tickets may also be purchased through a lottery subscription system as provided in Rule 3.6.

3.2 Claims. A ticket (subject to the validation requirements set forth in Rule 7.0 (Ticket Validation)) shall be the only proof of a game play or plays and the submission of a winning ticket to the issuing Party Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A play slip has no pecuniary or prize value and shall not constitute evidence of ticket purchase or of numbers selected.

3.3 Cancellations Prohibited. A ticket may not be voided or canceled by returning the ticket to the selling agent or to the Lottery, including tickets that are printed in error. No ticket that can be used to claim a prize shall be returned to the Lottery for credit. Tickets accepted by retailers as returned tickets and that cannot be re-sold shall be deemed owned by the bearer thereof.

3.4 Player Responsibility. It shall be the sole responsibility of the player to verify the accuracy of the game play or plays and other data printed on the ticket. The placing of plays is done at the player's own risk through the on-line agent who is acting on behalf of the player in entering the play or plays.

3.5 Entry of Plays. Plays may only be entered manually using the lottery terminal keypad or touch screen or by means of a play slip provided by the Party Lottery and hand-marked by the player or by such other means approved by the Party Lottery. Retailers shall not permit the use of facsimiles of play slips, copies of play slips, or other materials that are inserted into the terminal's play slip reader that are not printed or approved by the Party Lottery. Retailers shall not permit any device to be connected to a lottery terminal to enter plays, except as approved by the Party Lottery.

3.6 Registration of Plays. Subscription plays may be registered by the Lottery at a lottery processing site that meets the requirements established by the Product Group and the MUSL Security and Integrity Committee.

3.7 Future Plays. No Party Lottery shall offer advance plays or multi-draw plays that extend more than 180 days beyond the sale date unless the Party Lottery has a process in place to allow players to make changes to their plays in the event of a game change. Proceeds from advance sales may be held by the Party Lottery until the draw date for which the ticket applies.

3.8 Drawings. Drawings shall be held at the times and places established by the Product Group and the results shall be subsequently announced to the public.

(a) The Member Lottery Director shall determine the time for the end of sales prior to the drawings, which shall not be later than the time established by the Product Group. On-line terminals shall not process on-line tickets for that drawing after the time established by the Member Lottery Director.

(b) The Product Group shall designate the type of drawing equipment to be used and shall establish drawing procedures to randomly select the winning combination and to ensure the integrity of the drawing process.

3.9 Withholding Taxes Paid Prizes. A Grand Prize winner shall receive a "Withholding Taxes Paid Prize". "Withholding Taxes Paid Prizes" mean prizes where the Party Lottery pays the prize winner a net prize amount, that consists of the Party Lottery reducing the "gross prize value" by the required federal and jurisdictional withholding taxes (if any), and withholding and depositing on behalf of the prize winner the required federal and jurisdictional withholding taxes (if any) on the "gross prize value" and the Party Lottery paying the prizewinner the residual amount (subject to any setoff requirements). Grand Prize winners will receive a Withholding Taxes Paid prize determined after deducting all applicable withholding taxes regardless of the "Advertised Grand Prize Amount", and which may be higher or lower than the "Advertised Grand Prize" amount.

Federal and jurisdictional withholding tax rates are subject to change and will be determined at the time the prize is awarded.

The "Withholding Taxes Paid" prize amount reported to the federal and jurisdictional revenue authorities by the Party Lottery as subject to income taxation shall reflect the amount paid to the prize winner and also the amount remitted as withholding taxes to the federal and jurisdictional authorities (if any) on behalf of the prize winner.

The Party Lottery and MUSL are not responsible for additional income or other taxes applicable in excess of the amount withheld and remitted by the Party Lottery that may be due when the prizewinner files all tax returns for the year the prize is claimed; Prizewinners should verify personal tax liability with a financial advisor.

For example, if a single Grand Prize winner wins the "Advertised Grand Prize" of $ 2,000,000.00 that has a gross prize value of $ 3,050,000.00, and the federal withholding tax rate is 25% and the jurisdictional tax rate is 6%, the Party Lottery will withhold and remit $ 762,500.00 in federal tax withholding, $ 183,000.00 in jurisdictional tax withholding and pay the prize winner $ 2,104,500.00 in a single cash prize payment (subject to any setoff requirements); at the end of the tax year the Party Lottery will communicate to the prizewinner a W-2G Form showing prize won of $ 3,050,000.00.

Section 4.0 Prize Pool

4.1 Prize Pool. The prize pool for all prize categories shall consist of fifty percent (50%) of each drawing period's sales, including tax, after the prize reserve accounts are funded to the amounts set by the Product Group. Any amount remaining in the prize pool at the end of this game shall be carried forward to a replacement game or expended in a manner as directed by the Product Group in accordance with state law.

4.2 Prize Reserve Accounts. An amount equal to up to one percent (1%) of a Party Lottery's sales, including tax, shall be deducted from a Party Lottery's Grand Prize Pool and placed in trust in one or more prize reserve accounts when the Grand Prize exceeds $ 2,000,000.00. An additional two percent (2%) of a Party Lottery's sales, including tax, shall be deducted from a Party Lottery's Grand Prize Pool and placed in trust in one (1) or more prize reserve accounts when the Grand Prize exceeds $ 5,000,000.00 until the Party Lottery's share of the prize reserve account(s) reach(es) the amounts designated by the Product Group.

The Product Group has established the following prize reserve accounts for the Hot Lotto game: the Prize Reserve Account (PRA), which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason, and to fund deficiencies in low-tier prize payments (subject to the limitations of these rules); the Set-Aside Account, which is used to guarantee payment of the minimum or starting Grand Prize; the Hot Lotto Sizzler Rollover Account, which is described in Part III of these rules; and the Lower Tier Prize Pool, which holds the temporary balances that may result from having fewer than expected winners in the low-tier set prize categories. The source of the Lower Tier Prize Pool funds is the Party Lottery's weekly prize contribution less actual set prize liability.

Once the Party Lottery's share of the prize reserve accounts exceeds the designated amounts, the excess shall become part of the Grand Prize pool. The Product Group, with approval of the MUSL Finance & Audit Committee, may establish a maximum balance for the prize reserve account(s). The Product Group may determine to expend all or a portion of the funds in the reserve accounts for the purpose of indemnifying the Party Lotteries in the payment of prizes to be made by the participating lotteries, subject to the approval of the Board. The shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and shares of the Party Lotteries. Any amount remaining in a prize reserve account at the end of this game shall be carried forward to a replacement prize reserve account or expended in a manner as directed by the Product Group in accordance with state law.

4.3 Expected Prize Payout Percentages. Grand Prize payment amounts shall be determined on a pari-mutuel basis. Except as provided in these rules, all other prizes awarded shall be paid as set cash prizes with the following expected prize payout percentages:

• The above reflects the Gross Grand Prize Value; the "Advertised Grand Prize" is described elsewhere in these Rules. The Gross Grand Prize Value amount will be reduced by federal and jurisdictional withholding taxes (if any) that will be remitted by the Party Lottery on behalf of the prizewinner with the prizewinner receiving the residual amount as their Grand Prize payment (subject to offsets). The prize amount reported to the federal and jurisdictional revenue authorities by the Party Lottery as subject to income taxation shall reflect the amount paid to the prize winner (including any offsets) and also the amount remitted as withholding taxes to the federal and jurisdictional authorities (if any) on behalf of the prize winner.

(a) The prize money allocated to the Gross Grand Prize Value category shall be divided equally by the number of Plays winning the Grand Prize; see infra.

(b) The prize pool percentage allocated to the set prizes (the cash prizes of $ 30,000.00 or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw. If the total of the set prizes awarded in a drawing exceeds the percentage of the prize pool allocated to the set prizes, then the amount needed to fund the set prizes awarded shall be drawn from the following sources, in the following order:

(i) the amount allocated to the set prizes and carried forward from previous draws, if any;

(ii) an amount from the PRA, if available, and

(iii) an amount from the set-aside account, if available, not to exceed the balance of that account. If, after these sources are depleted, there are not sufficient funds to pay the set prizes awarded, then the highest set prize shall become a pari-mutuel prize. If the amount of the highest set prize, when paid on a pari-mutuel basis, drops to or below the next highest set prize and there are still not sufficient funds to pay the remaining set prizes awarded, then the next highest set prize shall become a pari-mutuel prize. This procedure shall continue down through all set prize levels, if necessary, until all set prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning plays in proportion to their respective prize percentages.

Section 5.0 Probability of Winning

The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Hot Lotto.

Section 6.0 Prize Payment

6.1 Grand Prizes. Grand Prizewinner(s) shall be paid, with a single cash payment. The Gross Grand Prize Value shall be a guaranteed amount and Grand Prize winner share(s) shall be determined pursuant to Section 6.5 (Funding of Guaranteed Prizes).

For past Hot Lotto Grand Prize winners who had elected an annuity payout of their Grand Prize, in the event of the death of a lottery winner during the annuity payment period, the Product Group, in its sole discretion, upon the petition of the estate of the lottery winner (the "Estate") to the state lottery of the state in which the deceased lottery winner purchased the winning ticket, and subject to federal, state, or district applicable laws, may accelerate the payment of all of the remaining lottery proceeds to the Estate. If the Product Group makes such a determination, then securities and/or cash held to fund the deceased lottery winner's annuitized prize may be distributed to the Estate. The identification of the securities to fund the annuitized prize shall be at the sole discretion of the Product Group.

6.2 Low-Tier Cash Prize Payments. All low-tier cash prizes (all prizes except the Grand Prize) shall be paid in cash or warrants through the Party Lottery that sold the winning ticket(s). A Party Lottery may begin paying low-tier cash prizes after receiving authorization to pay from the MUSL central office.

6.3 Prizes Rounded. Prizes that, under these rules, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

6.4 Rollover. If the Grand Prize is not won in a drawing, the prize money allocated for the Grand Prize shall roll over and be added to the Grand Prize pool for the following drawing.

6.5 Funding of Guaranteed Prizes. Prior to a drawing the Product Group shall determine and publicly announce the "Advertised Grand Prize" amount for that drawing.

The Gross Grand Prize Value amount, that is used to determine the Advertised Grand Prize amount, shall be a guaranteed amount, and the Product Group may offer guaranteed minimum Gross Grand Prize Value amounts or minimum increases in the Gross Grand Prize Value amount between drawings or make other changes in the allocation of prize money where the Product Group finds that it would be in the best interest of the game. Guaranteed Gross Grand Prize Value amounts shall be funded as determined by the Product Group.

Grand Prizewinner shares shall be determined as follows: If there are multiple Grand Prize winners during a single drawing, then a winner's share of the Grand Prize shall be determined by dividing the Gross Grand Prize Value by the number of winners. Each Grand Prizewinner's share shall be paid as a "Withholding Taxes paid" prize with applicable federal and jurisdictional withholding amounts reducing the amount of cash paid to the prize winner(s); see Section 3.7 (Withholding Taxes Paid Prizes) and infra. Minimum guaranteed prizes or increases may be waived if the alternate funding mechanism set out in Section 4.3(b) (Expected Prize Payout Percentages) becomes necessary.

6.6 Limited to Highest Prize Won. The holder of a winning ticket may win only one (1) prize per Play in connection with the winning numbers drawn, and shall be entitled only to the prize won by those numbers in the highest matching prize category.

6.7 Prize Claim Period. Prize claims shall be submitted within the period set by the Party Lottery selling the ticket, which in Vermont is one year from the prize eligibility date. The prize eligibility date is the date of the winning draw.

6.8 Prize Assignment. Payment of a prize may be made to a person other than the winner pursuant to Vermont Statutes Annotated, Title 31, Section 654a(c), which adopts the payment provisions of Title 31, Section 674L.1.1A-I.

Section 7.0 Ticket Validation

7.1 General Requirements for Validation. To be a valid ticket and eligible to receive a prize, a ticket shall satisfy all the requirements established by a Party Lottery for validation of winning tickets sold through its on-line system and any other validation requirements adopted by the Product Group, the MUSL Board, and published as the Confidential MUSL Minimum Game Security Standards. The MUSL and the Party Lotteries shall not be responsible for tickets that are altered in any manner.

7.2 Specific Requirements for Validation of Tickets Sold in Vermont

(a) To be a valid ticket and eligible to receive a prize, all the following requirements must be satisfied:

(1) The ticket must have been issued by the Lottery through a licensed agent, via a terminal, in an authorized manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner.

(2) The ticket date must have been recorded in the Lottery's central computer system before draw-break and at least sixty (60) minutes prior to the scheduled drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the drawing (regardless of when the drawing is held) is void.

(3) The information appearing on the ticket must correspond precisely with the party Lottery's computer record.

(4) The system assigned validation number must appear in its entirety, and correspond, using a computer validation file, to the winning game play or plays printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records.

(5) The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective.

(6) All information appearing on an apparent winning ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid.

(7) The ticket must be intact, fully legible, complete and not miscut, correspond to the data on file at the Lottery in every respect.

(8) The ticket must pass all other security criteria determined by the Vermont Lottery Commission and MUSL.

(9) The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof.

(10) An apparent winning ticket shall be void unless the ticpaper stock roll which was in use at the time of the bet by, and validly issued to, the agent from whom the ticket was purchased.

(b) In the event that a ticket fails to pass all the criteria set forth in subpart (a) of this rule, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the Executive Director shall be final and binding. If the Executive Director determines that the ticket is not eligible to receive a prize, then the Executive Director may, at the Executive Director's option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant's sole and exclusive remedy.

Section 8.0 Ticket Responsibility

8.1 Signature. Until such time as a subscription play is properly and validly registered with the Member Lottery, or until such time as a signature or, if permitted by state or district law, a mark or printed name is placed upon a ticket in the area designated for signature, mark or name, a ticket shall be owned by the bearer of the ticket. When a subscription play is validly and properly registered with the Lottery, or when a signature, mark, or name is placed on the ticket in the place designated, the person who has registered the ticket, or if not registered, whose signature, mark, or name appears in such area shall be the owner of the ticket and shall be entitled (subject to the validation requirements in Section 7.0 (Ticket Validation) and state, district or jurisdiction law) to any prize attributable thereto.

8.2 Multiple Signatures. The manner of payment of prizes for valid winning tickets bearing multiple signatures, marks, or names shall be determined by the Law of the State of Vermont.

8.3 Stolen Tickets. The Product Group, the MUSL and the Party Lotteries shall not be responsible for lost or stolen tickets.

8.4 Subscription Plays. A receipt for a subscription play has no value and is not evidence of a play. A subscription play is valid when registered with the lottery in accordance with lottery rules and the person or, if permitted by the lottery rules, the persons registering the play shall be the owner of the subscription play.

Section 9.0 Ineligible Player

9.1 A ticket or share for a game issued by the MUSL or any of its Party Lotteries shall not be purchased by, and a prize won by any such ticket or share shall not be paid to:

(a) A MUSL employee, officer, or director;

(b) A contractor or consultant under agreement with the MUSL to review the MUSL audit and security procedures;

(c) An employee of an independent accounting firm under contract with the MUSL to observe drawings or site operations and actually assigned to the MUSL account and all partners, shareholders, or owners in the local office of the firm; or

(d) An immediate family member (parent, stepparent, child, stepchild, spouse, or sibling) of an individual described in subsections (a), (b), and (c) and residing in the same household.

9.2 No tickets or subscription may be sold to, or purchased by, individuals who have not attained the age of majority. However, tickets or subscriptions may be given as gifts to minors or any other individuals except as prohibited by Vermont law.

9.3 No member of the Vermont Lottery Commission or employee of the Vermont Lottery, or members of their immediate household, may claim or receive prize money in any lottery operated by the Vermont Lottery Commission, including but not limited to Hot Lotto.

Section 10.0 Applicable Law

In purchasing a ticket, the purchaser agrees to comply with and abide by all applicable Vermont laws, rules, regulations, procedures, and decisions by the Lottery.

Part III SPECIAL GAME RULES: HOT LOTTO SIZZLER PROMOTION

Section 11.0 Promotion Description

The Hot Lotto Sizzler promotion is a limited extension of the Hot Lotto game and is conducted in accordance with the Hot Lotto Game Rules and other lottery rules applicable to the Hot Lotto Game except as may be amended herein. The promotion will begin at a time announced by the Lottery and will continue until discontinued by the Lottery. The promotion will offer to the owners of a qualifying play a chance to multiply the amount of any of the eight lump sum Set Prizes (the lump sum prizes normally paying $ 2.00 to $ 30,000.00) won in a drawing held during the promotion. The Grand Prize jackpot is not a Set Prize and will not be multiplied.

Section 12.0 Qualifying Play

A qualifying play is any single Hot Lotto play for which the player pays an extra dollar for the Sizzler option play and that is recorded at the Lottery's central computer as a qualifying play.

Section 13.0 Prizes to Be Multiplied

A qualifying play that wins one (1) of the eight (8) lump sum Set Prizes will be multiplied by three (3). The Hot Lotto Group may change this multiplier number for special promotions from time to time

Section 14.0 Reserved

Section 15.0 Sizzler Prize Pool

15.1 Sizzler Prize Pool. The Sizzler Prize Pool for all prize categories shall consist of approximately forty-seven and eight thousand eight hundred thirteen ten thousandths percent (47.8813%) of each drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket. Any amount remaining in the prize pool at the end of this game shall be carried forward to a replacement game or expended in a manner as directed by the Product Group in accordance with state law.

15.2 Prize Reserve Funding. Two and one thousand one hundred eighty seven ten thousandths percent (2.1187%) of sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the Sizzler Prize Pool or in one or more prize reserve accounts until the prize reserve accounts reach the amounts designated by the Product Group.

15.3 Expected Prize Payout. Except as provided in these rules, all prizes awarded shall be paid as lump sum set prizes. Instead of the Hot Lotto set prize amounts, qualifying Sizzler plays will pay the amounts shown:

In certain rare instances, the Hot Lotto set prize amount may be less than the amount shown. In such case, the Sizzler prizes will be a multiple of the new Hot Lotto prize amount. For example, if the Match 5 of the first set and none of the second set Hot Lotto set prize amount of $ 30,000.00 becomes $ 27,000.00 under the rules of the Hot Lotto game, then a Sizzler player winning that prize would win $ 81,000.00 ($ 27,000.00 x 3).

Section 16.0 Reserved

Section 17.0 Limitations on Payment of Sizzler Prizes

17.1 Sizzler Prize Pool Carried Forward. The Sizzler prize pool percentage allocated to the Sizzler set prizes shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.

17.2 Pari-Mutuel Prizes - All Prize Amounts. If the total of the original Hot Lotto set prizes and the multiplied Sizzler set prizes awarded in a drawing exceeds the percentage of the prize pools allocated to the set prizes and Sizzler prizes, then the amount needed to fund the set prizes (including the multiplied set prizes) awarded shall be drawn from the following sources, in the following order:

(i) the amount allocated to the set prizes (including the multiplied set prizes) and carried forward from previous draws, if any;

(ii) an amount from the Hot Lotto Prize Reserve Account, if available in the account, not to exceed one million dollars ($ 1,000,000.00) per drawing. If, after these sources are depleted, there are not sufficient funds to pay the set prizes awarded (including multiplied prizes), then the highest set prize (including the multiplied prizes) shall become a pari-mutuel prize. If the amount of the highest set prize, including the multiplied set prizes, when paid on a pari-mutuel basis, drops to or below the next highest set prize and there are still not sufficient funds to pay the remaining set prizes awarded, then the next highest set prize, including the multiplied prize, shall become a pari-mutuel prize. This procedure shall continue down through all set prizes levels, if necessary, until all set prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning plays in proportion to their respective prize percentages.

Section 18 Prize Payment

18.1 Prize Payments. All Sizzler prizes shall be paid in one lump sum through the Member Lottery that sold the winning ticket(s). A Member Lottery may begin paying Sizzler prizes after receiving authorization to pay from the MUSL central office.

18.2 Prizes Rounded. Prizes, that, under these rules, may become pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the Sizzler prize pool for the next drawing.

Part IV AGENTS

Section 19.0 Agents

19.1 Agents selling Hot Lotto and Sizzler tickets shall comply with all applicable Vermont laws, rules, regulations, procedures, and decisions of the Lottery and with all applicable MUSL rules, regulations and requirements.

19.2 Each agent shall receive 6.00 percent (6%) of gross receipts for Hot Lotto and Sizzler tickets sold by that agent as a commission. The 6.00 percent (6%) commission applies to Hot Lotto and Sizzler sales only.

Part V SUBSCRIPTIONS

Section 20.0 Subscriptions

20.1 Specific information required for a subscription

(a) To play by subscription a player shall provide the Lottery with the following information:

(1) 5 different 2-digit numbers between one (01) and a designated number and one additional 2-digit number between one (01) and a designated number;

(2) Name;

(3) A Vermont mailing address;

(4) Home telephone number;

(5) Work telephone number, if applicable;

(6) A gift message, if applicable;

(7) The number of draws the subscription shall be valid;

(8) Indicate Sizzler Option (Yes or No)

(9) Affirmation of age eligibility; and

(10) Payment method.

(b) If the subscriber selects payment for subscription by check, the check shall be payable to the Vermont Lottery Commission and attached to the subscription application form.

(c) [Reserved]

(d) The completed subscription form shall be forwarded to the Lottery headquarters for processing.

(e) Upon receipt of the subscription application, the Lottery shall enter the subscribers' information into a Lottery approved subscription database program.

(f) The database program will assign the next available effective draw date for the subscription, as determined by MUSL.

(g) The database program will assign the following identification numbers to the subscription:

(1) Subscriber number; and

(2) Subscription number.

(h) The Lottery will assign the following identification numbers to the subscription:

(1) Batch number; and

(2) Sequence or certificate number.

(i) The Lottery shall print a subscription confirmation card which shall list the following information:

(1) Subscriber name;

(2) Subscriber address;

(3) 5, 2-digit numbers and 1, additional 2-digit number;

(4) Sizzler Option (Yes or No)

(5) Day, month and year the subscription is effective;

(6) Day, month and year the subscription expires;

(7) A gift message, if applicable;

(8) Subscription number;

(9) Batch number; and

(10) Sequence or certificate number.

(j) The Lottery shall forward a subscription confirmation card to the subscriber.

(k) it shall be the sole responsibility of the player to verify the following are correct:

(1) Subscriber name;

(2) Subscriber address;

(3) Subscriber chosen 5, 2-digit numbers and one additional 2-digit number;

(4) Sizzler Option (Yes or No)

(5) Subscription play length; and

(6) Effective and expiration dates.

(l) It shall be the sole responsibility of the subscriber to notify the Lottery of incorrect data on the confirmation card prior to the effective date of the subscription.

(m) A subscription application form has no pecuniary or prize value and shall not constitute evidence of ticket purchase or of numbers selected.

(n) Once a subscription play is registered with the Lottery, the registration shall constitute the only acceptable evidence of play for the subscriber.

(o) A subscription does not become effective until the effective date listed on the confirmation card, which shall match the effective date listed in the Lottery's subscription database.

(p) Any changes to a subscriber's name or address shall be requested in writing by the subscriber and include the previous name and address. Name and address changes shall require a notarized letter from the subscriber.

(q) There shall be no changes to the subscriber's numbers during the effective dates of the subscription unless authorized by MUSL.

(r) Prizes shall be paid, by check or by expiration date extensions, as determined by MUSL.

(s) Prize checks shall be made payable to the subscription name(s) as recorded in the Lottery's central computer system;

(t) Subscriptions, once in effect, cannot be cancelled in whole or in part except as determined by MUSL.

(u) Subscription renewal forms shall be forwarded to the subscriber by the Lottery within a time period prior to the subscription's expiration date as determined by MUSL.

(v) The subscription renewal form shall contain the following information:

(1) Subscriber's name;

(2) Subscriber's address;

(3) 5 2-digit numbers and one additional 2-digit number;

(4) Sizzler Option (Yes or No)

(5) Subscriber number;

(6) Subscription number; and

(7) Expiration date including free play extensions, if any.

(w) If the subscriber elects to continue a subscription, the subscriber shall provide the Lottery with the following information:

(1) Subscription play length;

(2) Sizzler Option (Yes or No)

(3) Change of address, if applicable;

(4) Payment method; and

(5) A change of numbers of 5 2-digit numbers and 1 additional 2-digit number, if applicable.

(x) [Reserved]

(y) If the subscriber selects payment for subscription by check, the check shall be payable to the Vermont Lottery Commission and attached to the subscription renewal form.

(z) The completed subscription renewal form shall be forwarded to the Lottery headquarters for processing.

(aa) Upon receipt of the subscription renewal form, the Lottery shall enter the subscriber's information into a Lottery approved subscription database program.

(ab) The database program will assign the next available effective draw date for the subscription, as determined by MUSL.

(ac) The database program will assign a unique subscription number to the subscription:

(ad) The Lottery will assign the following identification numbers to the subscription:

(1) Batch number; and

(2) Sequence or certificate number.

(ae) The Lottery shall print a subscription confirmation card which shall list the following information:

(1) Subscriber name;

(2) Subscriber address;

(3) 5, 2-digit numbers and 1, additional 2-digit number;

(4) Sizzler Option (Yes or No)

(5) Day, month and year the subscription is effective;

(6) Day, month and year the subscription expires;

(7) A gift message, if applicable;

(8) Subscription number;

(9) Batch number; and

(10) Sequence or certificate number.

(af) The Lottery shall forward a subscription confirmation card to the subscriber.

History

• STATUTORY AUTHORITY: 31 V.S.A. § 654a
• EFFECTIVE DATE: July 5, 2009 Secretary of State Rule Log #09-020
• AMENDED: May 12, 2013 Secretary of State Rule Log #13-011

Chapter 004 MEGA MILLIONS

01-004 Code Vt. R. 01-130-004-X MEGA MILLIONS

Part I ADMINISTRATION

Section 1.0 Purpose

These rules establish the procedures and requirements for operating and playing Mega Millions, a lotto game run by the Mega Millions Lotteries including the Multi- State Lottery Association (hereinafter referred to as "MUSL"), of which the Vermont State Lottery is a member. Generally, the Mega Millions game shall be operated in accordance with any agreement between the State of Vermont and MUSL, the Constitution, the By-Laws of the Multi-State Lottery Association, the Multi- State Lottery Association Rules and applicable Vermont law.

Part II MEGA MILLIONS GAME RULES

Section 2.0 Definitions

The following definitions apply unless the context requires a different meaning or is otherwise inconsistent with the intention of the rules adopted by the Product Group.

2.1 "Advertised Grand Prize". "Advertised Grand Prize" shall mean the estimated annuitized Grand Prize amount as determined by the Mega Millions Finance Committee and communicated through the Selling Lotteries prior to the Grand Prize drawing. The "Advertised Grand Prize" is not a guaranteed prize amount and the actual Grand Prize amount may vary from the advertised amount, except in circumstances where there is a guaranteed Grand Prize amount as described in Rule 30.1 (a).

2.2 "Agent" or "retailer" means a person or entity licensed by the Lottery to sell lottery Plays.

2.3 "Computer pick" means the random selection of indicia by the computer, which appear on a ticket or ticketless transaction and are played by a player in the game. Computer pick has the same meaning as "quick pick" or "easy pick", which is used in the Tri-State game rules.

2.4 "Drawing" refers collectively the formal draw event for randomly selecting the winning indicia which determine the number of winners for each prize level of the Mega Millions game. Winning indicia include the Winning Numbers for the Mega Millions game.

2.5 "Executive Director" means the Executive Director of the Vermont State Lottery appointed by the Vermont Lottery Commission.

2.6 "Finance & Audit Committee" shall mean the committee established by the Multi-State Lottery Association Agreement.

2.7 "Game ticket" or "ticket" means a lottery ticket produced by a lottery terminal in a manner which meets the specifications defined in the rules of the Lottery and Section 7.0 (Play Validation) and is a physical representation of the Play or Plays sold to the player or is a properly and validly registered ticketless transaction Play.

2.8 "Jackpot" or "Grand Prize" shall refer to the top prize in the Mega Millions game.

2.9 "Lottery" or "the Lottery" means the Vermont State Lottery.

2.10 "Mega Millions Finance Committee" means a Committee of the Mega Millions Lotteries which determines the Grand Prize amount and the cash value option rate.

2.11 "Mega Millions Lottery or Lotteries" means those lotteries which have joined under the Mega Millions Lottery Agreement; the group of lotteries that has reached a Cross-Selling Agreement with the MUSL Product Group for the selling of the Mega Millions Game.

2.12 "MUSL" means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the Party Lotteries.

2.13 "MUSL Board" means the governing body of the MUSL which is comprised of the chief executive officer of each Party Lottery.

2.14 "On-Line Lottery Game" means a lottery game wherein a player selects numbers out of a larger predetermined set or sets of numbers.

2.15 "Party lottery" or "Member Lottery" means a state lottery or lottery of a political subdivision or entity which has joined the MUSL and, in the context of the Product Group Rules, which has joined in selling the Mega Millions game.

2.16 "Play" or "bet" means the six (6) numbers, the first five (5) from a field of seventy-five (75) numbers and the last one (1) from a field of fifteen (15) numbers, that appear on a ticket or ticketless transaction as a single lettered selection and are to be played by a player in the game.

2.17 "Product Group" means the group of lotteries which has joined together to offer the Mega Millions lottery game product pursuant to the terms of its Cross-Selling Agreement with the Mega Millions Lotteries, the Multi- State Lottery Agreement and the Group's own rules.

2.18 "Play Slip" or "Bet Slip" means a card used in marking a player's game Plays and containing one or more boards.

2.19 "Set Prize" means all other prizes except the Grand Prize and, except in instances outlined in these rules, will be equal to the prize amount established by the MUSL Board for the prize level.

2.20 "Subscription" means a Mega Millions bet recorded on the Lottery's central computer system, under the name and address of a subscriber, for a specified range of draw dates.

2.21 "Terminal" means a device authorized by the Lottery to function in an on-line, interactive mode with the Lottery's computer gaming system for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including purchases, validating tickets, and transmitting reports.

2.22 "Ticketless Transaction" shall include Plays sold through subscription, internet, or nonstandard terminals.

2.23 "Winning numbers" means the indicia randomly selected during a drawing event which shall be used to determine winning Plays for the Mega Millions game contained on a game ticket or ticketless transaction.

2.24 "Pari-mutuel" means a system of gaming in which wagered funds are pooled and then paid, in equal shares.

Section 3.0 Game Description

3.1

(a) Mega Millions is a five (5) out of seventy (70) plus one (1) out of twenty-five (25) online lottery game, drawn on the day(s), time(s) and location(s) as determined by the Mega Millions Lotteries, and which pays the Grand Prize, at the election of the player made in accordance with these rules or by a default election made in accordance with these rules, either on a graduated annuitized annual pari-mutuel basis or as a cash value option using a rate determined by the Mega Millions Finance Committee on a pari-mutuel basis. Mega Millions winning numbers applicable to determine Mega Millions prizes will be determined on the day(s), time(s) and location(s) as determined by the Mega Millions consortium of lotteries. Except as provided in these rules, all other prizes are paid on a set cash basis.

(b) Mega Millions winning numbers applicable to determine Mega Millions prizes will be determined on the day(s), time(s) and location(s) as determined by the Mega Millions Lotteries. During the drawing event, five (5) numbers shall be drawn from the first set of seventy (70) numbers, and one (1) number shall be drawn from the second set of twenty-five (25) numbers, which shall constitute the Winning Numbers.

(c) To play Mega Millions, a player shall select (or computer pick) five (5) different numbers, from one (1) through seventy (70) and one (1) additional number from one (1) through twenty-five (25). The additional number may be the same as one of the first five numbers selected by the player.

(d) Mega Millions Plays can be purchased for two dollars (U.S. $ 2.00), including any specific statutorily-mandated tax on a Party Lottery to be included in the price of a lottery Play.

(e) Plays may be purchased from a Party Lottery approved sales outlet in a manner as approved by the Party Lottery and in accordance with MUSL Rules.

3.2 Claims. A ticket (subject to the validation requirements set forth in Section 7.0 (Play Validation)) or properly registered ticketless transaction, shall be the only proof of a game Play or Plays and the submission of a winning ticket to the issuing Party Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A Play Slip has no pecuniary or prize value and shall not constitute evidence of Play purchase or of numbers selected. A terminal produced paper receipt has no pecuniary or prize value and shall not constitute evidence of Play purchase or of numbers selected.

3.3 Cancellations Prohibited. A Play may not be voided or canceled by returning the Play to the selling agent or to the lottery, including tickets that are printed in error. A Selling Lottery may develop an approved method of compensating retailers for Plays that are not transferred to a player for a reason acceptable to the Selling Lottery. No Play which can be used to claim a prize shall be returned to the Lottery for credit. Plays accepted by retailers as returned Plays and which cannot be re-sold shall be deemed owned by the bearer thereof

3.4 Player Responsibility. It shall be the sole responsibility of the player to verify the accuracy of the game Play or Plays and other data printed on the ticket or contained in a ticketless transaction. The placing of Plays is done at the player's own risk through the on-line agent who is acting on behalf of the player in entering the Play or Plays. The purchaser of a Play or Plays through a ticketless transaction has the sole responsibility for verifying the accuracy and condition of the data at the time of purchase.

3.5 Entry of Plays. Plays may only be entered manually using the lottery terminal keypad or touch screen or by means of a Play Slip as approved by the Lottery or by such other means as approved by the Lottery. Retailers shall not permit the use of Play Slips, that are not approved by the Lottery. Retailers shall not permit any device to be physically or wirelessly connected to a lottery terminal to enter Plays, except as approved by the Lottery.

3.6 Registration of Plays. Ticketless transaction Plays may be registered by the Lottery at a lottery processing site which meets the requirements established by the Product Group and the MUSL Board.

3.7 Maximum Purchase. Except for a subscription Play purchase when the Party Lottery has a process in place to allow players to make changes to their Play purchases in the event of a game change, the maximum number of consecutive drawings on a single Play purchase is twenty-six (26). The maximum number encompassed by a subscription Play purchase is one hundred four (104).

3.8 In the event of a matrix change, the Party Lottery that issued the subscription will determine the option(s) available to subscription purchasers from that Party Lottery for the balance of Plays remaining on their subscription effective as of the date of the matrix change.

Section 4.0 Mega Millions Prize Pool

4.1 Mega Millions Prize Pool. The prize pool for all prize categories offered by the Party Lotteries shall consist of up to fifty-five percent (55%) of each drawing period's sales, inclusive of any specific statutorily-mandated tax on a Party Lottery to be included in the price of a lottery Mega Millions Play, and inclusive of contributions to the prize pool accounts and prize reserve accounts, but may be higher or lower based upon the number of winners at each prize level, as well as the funding required to meet a guaranteed Annuity Grand Prize as may be required by Rule 6.1.

4.2 Mega Millions Prize Pool Accounts and Prize Reserve Accounts.

The Product Group shall set the contribution rates to the prize pool and prize reserve accounts established by this rule.

(i) The following prize reserve accounts for the Mega Millions game are hereby established:

a. The Prize Reserve Account (PRA) which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason, to fund deficiencies in the Set-Aside Pool, and to fund pari-mutuel prize deficiencies as defined and limited in Rules 4.3(c)(1)(a) and 17.2(a)(1).

(ii) The following prize pool accounts for the Mega Millions game are hereby established:

a. The Grand Prize Pool (GPP), which is used to fund the current Grand Prize;

b. The Set Prize Pool (SPP), which is used to fund the Set Prizes. The SPP shall hold the temporary balances that may result from having fewer than expected winners in the Set Prize (aka low-tier prize) categories. The Source of the SPP is the Party Lottery's weekly prize contributions less actual Set Prize liability; and

c. The Set-Aside Pool (SAP) which is used to fund the payment of the awarded minimum starting annuity Grand Prizes and the minimum annuity Grand Prize increase, if necessary (subject to the limitations in these rules), as may be set by the Product Group. The source of the SAP funding shall accumulate from the difference between the amount in the Grand Prize Pool at the time of a Grand Prize win and the amount needed to fund Grand Prize payments as determined by the Mega Millions lotteries.

(iii) The above prize reserve accounts shall have maximum balance amounts or balance limiter triggers that are set by the Product Group and are detailed in the Comments to this Rule.

The maximum balance amounts and balance limit triggers are subject to review by the MUSL Board Finance and Audit Committee. The Finance and Audit Committee shall have two weeks to state objections, if any, to the approved maximum balance amounts or balance limiter triggers. Approved maximum balance amounts or balance limiter triggers shall become effective no sooner than two weeks after notice is given to the Finance and Audit Committee and no objection is stated or sooner if the Committee affirmatively approves the maximum balance amounts or balance limiter triggers. The Group may appeal the Committee's objections to the full Board. Group approved changes in the maximum balance amounts or balance limiter triggers set by the Product Group shall be effective only after the next Grand Prize win.

(iv) The contribution rate to the GPP from the Mega Millions Plays shall be 37.6509% of sales.

An amount of up to five percent (5%) of a Party Lottery's sales, including any specific statutorily mandated tax of a Party Lottery to be included in the price of a lottery Play, shall be added to a Party Lottery's Mega Millions Prize Pool contribution and placed in trust in one or more prize pool and prize reserve accounts held by the Product Group at any time that the Party Lottery's share of the PRA is below the amounts designated by the Product Group. Details shall be noted in the Comments to this Rule.

(v) The Product Group may determine to expend all or a portion of the funds in the prize pools (except the GPP) and the prize reserve accounts:

a. for the purpose of indemnifying the Party Lotteries in the payment of prizes to be made by the Selling Lotteries; and

b. for the payment of prizes or special prizes in the game, limited to prize pool and prize reserve contributions from lotteries participating in the special prize promotion, subject to the approval of the Board's Finance & Audit Committee or the Committee's failure to object after given two weeks' notice of the planned action, which actions may be appealed to the full Board by the Product Group.

(vi) The prize reserve shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and sales percentage shares of the Party Lotteries.

(vii) A Party Lottery may contribute to its sales percentage share of prize reserve accounts over time, but in the event of a draw down from a reserve account, a Party Lottery is responsible for its full sales percentage share of the prize reserve account, whether or not it has been paid in full.

(viii) Any amount remaining in the Mega Millions prize pool accounts or prize reserve accounts when the Product Group declares the end of the game shall be returned to the lotteries participating in the prize pool and prize reserve accounts after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game, or otherwise expended in a manner at the election of the individual Members of the Product Group in accordance with jurisdiction statute.

4.3 Expected Prize Payout Percentages. The Grand Prize payout shall be determined on a pari-mutuel basis. Except as otherwise provided in these rules, all other prizes awarded by Party Lotteries shall be paid as set cash prizes. All prize payouts are made with the following expected prize payout percentages, which does not include any additional amount contributed to or held in prize reserves, although the prize payout percentages per draw may vary:

(a) The Grand Prize amount shall be divided equally by the number Plays winning the Grand Prize.

(b) The SPP (for payment of cash prizes of one million dollars ($ 1,000,000.00) or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.

(c) Pari-mutuel Prize Determinations.

(c)

(1) Except as otherwise provided for in Section 4.3(c)(2):

(c)

(1)

(a) If the total of the Mega Millions Set Prizes (as multiplied by the respective Megaplier multiplier if applicable) awarded in a drawing exceeds the percentage of the prize pool allocated to the Mega Millions Set Prizes, then the amount needed to fund the Mega Millions Set Prizes, including Megaplier prizes, awarded shall be drawn from the following sources, in the following order:

(i) the amount available in the SPP and the Megaplier Prize Pool, if any;

(ii) an amount from the PRA, if available, not to exceed forty million dollars ($ 40,000,000.00) per drawing.

(c)

(1)

(b) If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes, including Megaplier prizes, then the highest Set Prize shall become a pari-mutuel prize. If the amount of the highest Set Prize, when paid on a pari-mutuel basis, drops to or below the next highest Set Prize and there are still not sufficient funds to pay the remaining Set Prizes awarded, then the next highest Set Prize shall become a pari-mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become pari-mutuel prize levels.

(c)

(2) By agreement with the Mega Millions Lotteries, the Mega Millions Lotteries shall independently calculate their set pari-mutuel prize amounts. The Party Lotteries and the Mega Millions Lotteries shall then agree to set the pari-mutuel prize amount for all lotteries selling the game at the lesser of the independently-calculated prize amounts.

(d) Except as may be required by Rule 6.1, the official advertised Grand Prize annuity amount is subject to change based on sales forecasts and/or actual sales.

(e) Subject to the laws and rules governing each Party Lottery, the number of prize categories and the allocation of the prize fund among the prize categories may be changed at the discretion of the Mega Millions Lotteries, for promotional purposes. Such change shall be announced by Mega Millions Lotteries.

Section 5.0 Probability of Winning Mega Millions Prizes

The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Mega Millions.

Section 6.0 Prize Payment

6.1 Grand Prize.

(a) The prize money allocated from the current Mega Millions prize pool for the Grand Prize, plus any previous portions of prize money allocated to the Grand Prize category in which no matching Plays were sold will be divided equally among all Grand Prize winning Plays in all Participating Lotteries. The annuity Grand Prize amount will be paid in thirty (30) graduated annual installments. Grand Prizes won shall be funded by the Selling Lotteries in accordance with the formula set by the Mega Millions lotteries. The Mega Millions lotteries may set a minimum guaranteed annuity Grand Prize amount that shall be advertised by the selling lotteries as the starting guaranteed annuity Grand Prize amount.

(b) Rollover. If in any Mega Millions drawing there are no Mega Millions Plays which qualify for the Grand Prize category, the portion of the prize fund allocated to such Grand Prize category shall remain in the Grand Prize category and be added to the amount allocated for the Grand Prize category in the next consecutive Mega Millions drawing.

(c) Unless there is a different Party Lottery rule, Grand Prizes shall be paid, at the election of the player made no later than sixty (60) days after the player becomes entitled to the prize, with either a per winner annuity or cash payment. If the payment election is not made by the player within sixty (60) days after the player becomes entitled to the prize, then the prize shall be paid as an annuity prize. The election to take the cash payment may be made within sixty (60) days after the player becomes entitled to the prize. An election made after the winner becomes entitled to the prize is final and cannot be revoked, withdrawn or otherwise changed.

(d) In the event of a prize winner who selects the cash value option, the prize winner's share will be paid in a single payment upon completion of internal validation procedures. The cash option amount shall be determined by the Mega Millions Lotteries.

(e) Graduated annual payment option Grand Prize prizes shall be paid in thirty (30) graduated annual installments upon completion of internal validation procedures. The initial payment shall be paid upon completion of internal validation procedures. The subsequent twenty-nine (29) payments shall be paid graduated annually to coincide with the month of the Federal auction date at which the bonds were purchased to fund the annuity, with graduated annual installments defined in the Mega Millions Lotteries' Finance and Operations Procedures. Payments shall escalate by a factor of 5% annually, and annual payments shall be rounded to the nearest even one thousand-dollar ($ 1,000.00) increment. All such payments shall be made within seven (7) days of the anniversary of the annual auction date.

(f) If individual shares of the cash held to fund an annuity is less than two hundred fifty thousand dollars ($ 250,000.00), the Product Group, in its sole discretion, may elect to pay the winners their share of the cash held in the Grand Prize pool. All annuitized prizes shall be paid graduated annually in thirty (30) payments with the initial payment being made in cash, to be followed by twenty-nine (29) payments funded by the annuity. Prize payments may be rounded down to the nearest one thousand dollars ($ 1,000.00).

(g) Funds for the initial payment of an annuitized prize or the lump sum cash prize shall be made available by MUSL for payment by the Party Lottery on a schedule approved by the Product Group. If necessary, when the due date for the payment of a prize occurs before the receipt of funds in the prize pool trust sufficient to pay the prize, the transfer of funds for the payment of the full lump sum cash amount may be delayed pending receipt of funds from the Party Lotteries or other lotteries participating in the Mega Millions Game. A Party Lottery may elect to make the initial payment from its own funds after validation, with notice to MUSL.

(h) In the event of the death of a lottery winner sold by a Party Lottery during the annuity payment period, unless prohibited by jurisdictional law, the MUSL Finance & Audit Committee, in its sole discretion excepting a discretionary review by the Product Group, upon the petition of the estate of the lottery winner (the "Estate") to the lottery of the jurisdiction in which the deceased lottery winner purchased the winning Play, and subject to federal, state, district or territorial applicable laws, may accelerate the payment of all of the remaining lottery proceeds to the Estate. If such a determination is made, then securities and/or cash held to fund the deceased lottery winner's annuitized prize may be distributed to the Estate. The identification of the securities to fund the annuitized prize shall be at the sole discretion of the Finance & Audit Committee or the Product Group.

(i) If a Party Lottery purchases or holds the prize payment annuity for a prize won in that jurisdiction, that Party Lottery's game rules, and any prize payment agreement with the prize winner, shall indicate that the prize winner has no recourse on the MUSL or any other Party Lottery for payment of that prize.

6.2 Low-Tier Cash Prize Payments. All low-tier cash prizes (all prizes except the Grand Prize) shall be paid in cash through the Party Lottery which sold the winning Play(s). A Party Lottery may begin paying low-tier cash prizes after receiving authorization to pay from the MUSL central office.

6.3 Prizes Rounded. Annuitized payments of the Grand Prize or a share of the Grand Prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized Grand Prize win shall be added to the first cash payment to the winner or winners. Prizes other than the Grand Prize, which, under these rules, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

6.4 Reserved

6.5 Reserved

6.6 Limited to Highest Prize Won. The holder of a winning Play may win only one prize per Play in connection with the winning numbers drawn, and shall be entitled only to the prize won by those numbers in the highest matching prize category. All liability for a Mega Millions prize are discharged upon payment of a prize claim.

6.7 Prize Claim Period. Prize claims shall be submitted within the period set by the Party Lottery selling the Play, which in Vermont is one year from the prize eligibility date. The prize eligibility date is the date of the winning draw.

6.8 Prize Assignment. Payment of a prize may be made to a person other than the winner pursuant to Vermont Statutes Annotated, Title 31, Section 654a(c), which adopts the payment provisions of Title 31, Section 674L.1.1A-I.

Section 7.0 Play Validation

7.1 General Requirements for Validation. To be a valid Play and eligible to receive a prize, a Play's ticket or ticketless transaction shall satisfy all the requirements established by a Party Lottery for validation of winning Plays sold through its on-line system and any other validation requirements adopted by the Product Group and the MUSL Board and published as the Confidential MUSL Minimum Game Security Standards. The MUSL and the Party Lotteries shall not be responsible for Plays which are altered in any manner.

7.2 Specific Requirements for Validation of Tickets Sold in Vermont

(a) Under no circumstances will a claim be paid for either the Grand Prize or the Second prize without an official Mega Millions ticket (or subscription) matching all game Play, serial number and other validation data residing in the Lottery's gaming system computer and such ticket (or subscription) shall be the only valid proof of the wager placed and the only valid receipt for claiming or redeeming such prize.

(b) To be a valid Play and eligible to receive a prize, all the following requirements must be satisfied:

(1) The Play must have been issued by the Lottery through a licensed agent, via a terminal, in an authorized manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner.

(2) The Play data must have been recorded in the Lottery's central computer system at least sixty (60) minutes prior to the drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the drawing (regardless of when the drawing is held) is void.

(3) The information appearing on the ticket must correspond precisely with the party Lottery's computer record. In the event of a contradiction between information as printed on the ticket and as accepted by the Lottery's central computer system, the wager accepted by the Lottery's central computer system shall be the valid wager.

(4) The validation data must appear in its entirety, and correspond, using a computer validation file, to the winning game Play or Plays printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records.

(5) The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective. The ticket must not be an exact duplicate of another winning ticket.

(6) All information appearing on an apparent winning Play must correspond to the Lottery's records of winning Play, and another Play with identical data shall not have been paid.

(7) The ticket must be intact, fully legible, complete and not miscut, and correspond to the data on file at the Lottery in every respect.

(8) The Play must pass all other security criteria as determined by the Mega Millions Finance and Operations Procedures Section 15, the Lottery and MUSL.

(9) The Play must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof

(10) An apparent winning ticket shall be void unless the ticpaper stock roll which was in use at the time of the bet by, and validly issued to, the agent from whom the ticket was purchased.

(c) In the event that a Play fails to pass all the criteria set forth in subpart (b) of this rule, the Play shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the executive director shall be final and binding. If the executive director determines that the Play is not eligible to receive a prize, then the executive director may, at the executive director's option, replace an invalid, defective or otherwise erroneous Play with a Play of equivalent sales price from any current lottery game. Replacement of the Play shall be the bearer or claimant's sole and exclusive remedy.

Section 8.0 Play Responsibility

8.1 Signature. Until such time as a subscription Play is properly and validly registered with the lottery, or until such time as a signature, or printed name is placed upon a ticket in the area designated for signature, or name, a ticket shall be owned by the bearer of the ticket. When a subscription Play is validly and properly registered with the lottery, or when a signature, or name is placed on the ticket in the place designated, the person who has registered the ticket, or if not registered, whose signature, or name appears in such area shall be the owner of the ticket and shall be entitled (subject to the validation requirements in Section 7.0 (Ticket Validation) and state or district law) to any prize attributable thereto.

8.2 Multiple Signatures. The manner of payment of prizes for valid winning Plays bearing multiple signatures, or names shall be determined by the Law of the State of Vermont.

8.3 Stolen Plays. The Product Group, the MUSL and the Party Lotteries shall not be responsible for lost or stolen Plays.

8.4 Subscription Plays. A receipt for a ticketless transaction Play has no value and is not evidence of a Play. A ticketless transaction Play is valid when registered with the Lottery in accordance with these rules and the person or persons registering the Play shall be the owner of the ticketless transaction Play.

8.5 The Party Lotteries shall not be responsible to a prize claimant for Plays redeemed in error by a selling agent, or retailer.

8.6 Winners are determined by the numbers drawn and certified by the independent auditor responsible for auditing the Mega Millions draw. MUSL and the Party Lotteries are not responsible for Mega Millions winning numbers reported in error.

Section 9.0 Ineligible Players

9.1 A Play or share for a MUSL game issued by the MUSL or any of its Party Lotteries shall not be purchased by, and a prize won by any such Play or share shall not be paid to:

(a) a MUSL employee, officer, or director,

(b) a contractor or consultant under agreement with the MUSL to review the MUSL audit and security procedures,

(c) an employee of an independent accounting firm under contract with MUSL to observe drawings or site operations and actually assigned to the MUSL account and all partners, shareholders, or owners in the local office of the firm, or

(d) an immediate family member (parent, stepparent, child, stepchild, spouse, or sibling) of an individual described in subsections (a), (b), and (c) and residing in the same household.

9.2 No tickets or subscription may be sold to, or purchased by, individuals who have not attained the age of majority. However, Plays or subscriptions may be given as gifts to minors or any other individuals except as prohibited by Vermont law.

9.3 A Play or share of the Mega Millions game may not be purchased in any lottery jurisdiction by any Party Lottery board member; commissioner; officer; employee; or spouse, child brother, sister or parent residing as a member of the same household in the principle place of residence of any such person. Prizes shall not be paid to any persons prohibited from playing Mega Millions in a particular jurisdiction by rules, governing law, or any contract executed by the Selling Lottery.

Section 10.0 Applicable Law

In purchasing a Play, or attempting to claim a prize in Vermont, purchasers and prize claimants agree to comply with and abide by all applicable Vermont laws, rules, regulations, procedures, and decisions of the Lottery, and by directives and determinations of the director of the Vermont Lottery. Additionally, the player shall be bound to all applicable provisions in the Mega Millions Finance and Operations Procedures. A prize claimant agrees, as its sole and exclusive remedy that claims arising out of a Play can only be pursued against the Party Lottery which issued the Play. Litigation, if any, shall only be maintained within the jurisdiction in which the Play was purchased and only against the Party Lottery that issued the Play. No claim shall be made against any other Party Lottery or against MUSL. Nothing in these Rules shall be construed as a waiver of any defense or claim the Party Lottery which issued the Play, any other Party Lottery, or MUSL may have in any litigation, including in the event a player or prize claimant pursues litigation against a Party Lottery or MUSL, or their respective officers, directors or employees. All decisions made by a Party Lottery, including the declaration of prizes and the payment thereof and the interpretation of Mega Millions Rules, shall be final and binding on all Play purchasers and on every person making a prize claim in respect thereof, but only in the jurisdiction where the Play was issued. Unless the laws, rules, regulations, procedures, and decisions of the Party Lottery which issued the Play provide otherwise, no prize shall be paid upon a Play purchased, claimed or sold in violation of these Rules or the laws, rules, regulations, procedures, and decisions of that Party Lottery; any such prize claimed but unpaid shall constitute an unclaimed prize under these Rules and the laws, rules, regulations, procedures, and decisions of that Party Lottery.

Part III SPECIAL GAME RULES: MEGA MILLIONS(R) MEGAPLIER(R)

Section 11.0 Megaplier Description

The Mega Millions Megaplier feature is a limited extension of the Mega Millions game and is conducted in accordance with the Mega Millions game rules and other lottery rules applicable to the Mega Millions game except as may be amended herein. The Megaplier feature will run concurrently with Mega Millions and will continue until discontinued by the Lottery. The feature will offer to the owners of a qualifying Megaplier Play a chance to multiply or increase the amount of any of the lump sum Set Prizes (the lump sum prizes normally paying two dollars ($ 2.00) to one million dollars ($ 1,000,000.00) won in a drawing held during the promotion. The Grand Prize jackpot is not a Set Prize and will not be multiplied or increased by means of the Megaplier feature.

Section 12.0 Qualifying Play

A qualifying Megaplier Play is any single Mega Millions Play for which the player pays an extra one dollar ($ 1.00) for the Megaplier option and which is recorded on the Party Lottery's computer gaming system as a qualifying Megaplier Play.

Section 13.0 Prizes to be Increased

Except as provided in these rules, a qualifying Megaplier Play which wins one the lump sum Set Prizes will be multiplied by the number drawn, either two, three, four or five (2, 3, 4 or 5), in a separate random Megaplier drawing announced in a manner approved by the Product Group.

Section 14.0 Megaplier Draws

MUSL will either itself conduct, or authorize a U.S. Lottery to conduct on its behalf, a separate random "Megaplier" drawing. Before each Mega Millions drawing a single number (2, 3, 4 or 5) shall be drawn. The Mega Millions Group may change one or more of the multiplier numbers for special promotions from time to time. In the event the multiplier drawing does not occur prior to the Mega Millions drawing, the multiplier number will be a five (5), which shall solely be determined by the lottery authorized to conduct the "Megaplier" drawing.

Section 15.0 Prize Pool

15.1 Prize Pool.

(a) The Megaplier Prize Pool (MPP) is hereby created, and shall be used to fund Megaplier prizes. The MPP shall hold the temporary balances that may result from having fewer than expected winning Megaplier Plays. The source of the MPP is the Party Lottery's weekly prize contributions less actual Megaplier Prize liability.

(b) Up to fifty-five percent (55%) of each drawing period's sales, as determined by the Game Group, including any specific statutorily-mandated tax on a Party Lottery to be included in the price of a lottery ticket, shall be collected for the payment of Megaplier prizes.

(c) Prize payout percentages per draw may vary. The MPP shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the Megaplier prizes awarded in the current draw and held in the MPP.

15.2 End of Game. Any amount remaining in the MPP at the end of this game shall be carried forward to a replacement game or expended in a manner as directed by the Members of the Product Group in accordance with jurisdiction law.

15.3 Expected Prize Payout. Except as provided in these rules, all prizes awarded shall be paid as lump sum set prizes. Instead of the Mega Millions set prize amounts, qualifying Megaplier Plays will pay the amounts shown below when matched with the Megaplier number drawn:

In certain rare instances, the Mega Millions set prize amount may be less than the amount shown. In such case, Megaplier prizes will be a multiple of the changed Mega Millions prize amount, announced after the draw. For example, if the Match 4+1 Mega Millions set prize amount of ten thousand dollars ($ 10,000) becomes two thousand dollars ($ 2,000) under the rules of the Mega Millions game, then a Megaplier player winning that prize amount with a 4X multiplier would win eight thousand dollars ($ 8,000) ($ 2,000 x 4).

Section 16.0 Probability of Winning

The following table sets forth the probability of the various Megaplier numbers being drawn during a single Mega Millions drawing. The Group may elect to run limited promotions that may modify the multiplier features.

Section 17.0 Limitations on Payment of Megaplier Prizes

17.1 Prize Pool Carried Forward. The prize pool percentage allocated to the Megaplier set prizes shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw or may be held in a prize reserve account.

17.2 Pari-Mutuel Prizes--All Prize Amounts. Except as otherwise provided for in 17.2 (b).

(a)

(1) If the total of the original Mega Millions set prizes and the Megaplier prize amounts awarded in a drawing exceeds the percentage of the prize pools allocated to the set prizes, then the amount needed to fund the Set Prizes (including the Megaplier prize amounts) awarded shall be drawn from the following sources, in the following order:

(i) the amount available in the SPP and the MPP, if any;

(ii) an amount from the PRA, if available in the account, not to exceed forty million dollars ($ 40,000,000) per drawing.

(a)

(2) If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes awarded (including Megaplier prize amounts), then the highest Set Prize (including the Megaplier prize amounts) shall become a pari-mutuel prize. If the amount of the highest Set Prize, when paid on a pari-mutuel basis, drops to or below the next highest Set Prize and there are still not sufficient funds to pay the remaining Set Prizes awarded, then the next highest Set Prize, including the Megaplier prize amount, shall become a pari-mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning Plays in proportion to their respective prize percentages. Mega Millions and Megaplier prizes will be reduced by the same percentage.

(b) By agreement with the Mega Millions Lotteries, the Mega Millions Lotteries shall independently calculate their set pari-mutuel prize amounts, including the Megaplier prize amounts. The Party Lotteries and the Mega Millions Lotteries shall then agree to set the pari-mutuel prize amounts for all lotteries selling the game at the lesser of the independently-calculated prize amounts.

Section 18.0 Prize Payment

18.1 Prize Payments. All Megaplier prizes shall be paid in one lump sum through the Party Lottery that sold the winning Play(s). A Party Lottery may begin paying Megaplier prizes after receiving authorization to pay from the MUSL central office.

18.2 Prizes Rounded. Prizes, which, under these rules, may become pari-mutuel prizes, may be rounded down so that prizes can be paid in whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the MPP for the next drawing.

Part IV AGENTS

Section 19.0 Agents

19.1 Agents selling Mega Millions and Megaplier tickets shall comply with all applicable Vermont laws, rules, regulations, procedures, and decisions of the Lottery and with all applicable MUSL rules, regulations and requirements.

19.2 Each agent shall receive 6.00 percent (6%) of gross receipts for Mega Millions and Megaplier tickets sold by that agent as a commission. The 6.00 percent (6%) commission applies to Mega Millions and Megaplier sales only.

Part V SUBSCRIPTIONS

Section 20.0 Subscriptions

20.1 Specific information required for a subscription

(a) To play by subscription a player shall provide the lottery with the following information:

(1) 5 different 2-digit numbers between one (01) and a designated number and one additional 2-digit number between one (01) and a designated number;

(2) Name;

(3) A Vermont mailing address;

(4) Home telephone number;

(5) Work telephone number, if applicable;

(6) A gift message, if applicable;

(7) The number of draws the subscription shall be valid;

(8) Indicate Megaplier Option (Yes or No)

(9) Affirmation of age eligibility; and

(10) Payment method.

(b) If the subscriber selects payment for subscription by check, the check shall be payable to the Vermont Lottery Commission and attached to the subscription application form.

(c) [Reserved]

(d) The completed subscription form shall be forwarded to the lottery headquarters for processing.

(e) Upon receipt of the subscription application, the lottery shall enter the subscribers' information into a lottery approved subscription database program.

(f) The database program will assign the next available effective draw date for the subscription, as determined by MUSL.

(g) The database program will assign the following identification numbers to the subscription:

(1) Subscriber number; and

(2) Subscription number.

(h) The lottery will assign the following identification numbers to the subscription:

(1) Batch number; and

(2) Sequence or certificate number.

(i) The lottery shall print a subscription confirmation card which shall list the following information:

(1) Subscriber name;

(2) Subscriber address;

(3) 5, 2-digit numbers and 1, additional 2-digit number;

(4) Megaplier Option (Yes or No)

(5) Day, month and year the subscription is effective;

(6) Day, month and year the subscription expires;

(7) A gift message, if applicable;

(8) Subscription number;

(9) Batch number; and

(10) Sequence or certificate number.

(j) The lottery shall forward a subscription confirmation card to the subscriber.

(k) It shall be the sole responsibility of the player to verify the following are correct:

(1) Subscriber name;

(2) Subscriber address;

(3) Subscriber chosen 5, 2-digit numbers and one additional 2-digit number;

(4) Megaplier Option (Yes or No)

(5) Subscription Play length; and

(6) Effective and expiration dates.

(l) It shall be the sole responsibility of the subscriber to notify the party lottery of incorrect data on the confirmation card prior to the effective date of the subscription.

(m) A subscription application form has no pecuniary or prize value and shall not constitute evidence of ticket purchase or of numbers selected.

(n) Once a subscription Play is registered with the lottery, the registration shall constitute the only acceptable evidence of Play for the subscriber.

(o) A subscription does not become effective until the effective date listed on the confirmation card, which shall match the effective date listed in the party lottery's subscription database.

(p) Any changes to a subscriber's name or address shall be requested in writing by the subscriber and include the previous name and address. Name and address changes shall require a notarized letter from the subscriber.

(q) There shall be no changes to the subscriber's numbers during the effective dates of the subscription unless authorized by MUSL.

(r) Prizes shall be paid, by check or by expiration date extensions, as determined by MUSL.

(s) Prize checks shall be made payable to the subscription name(s) as recorded in the lottery's central computer system;

(t) Subscriptions, once in effect, cannot be cancelled in whole or in part except as determined by MUSL.

(u) Subscription renewal forms shall be forwarded to the subscriber by the lottery within a time period prior to the subscription's expiration date as determined by MUSL.

(v) The subscription renewal form shall contain the following information:

(1) Subscriber's name;

(2) Subscriber's address;

(3) 5-2 digit numbers and one additional 2-digit number;

(4) Megaplier Option (Yes or No)

(5) Subscriber number;

(6) Subscription number; and

(7) Expiration date including free Play extensions, if any.

(w) If the subscriber elects to continue a subscription, the subscriber shall provide the lottery with the following information:

(1) Subscription Play length;

(2) Megaplier Option (Yes or No)

(3) Change of address, if applicable;

(4) Payment method; and

(5) A change of numbers of 5-2 digit numbers and 1 additional 2-digit number, if applicable.

(x) [Reserved]

(y) If the subscriber selects payment for subscription by check, the check shall be payable to the Vermont Lottery Commission and attached to the subscription renewal form.

(z) The completed subscription renewal form shall be forwarded to the lottery headquarters for processing.

(aa) Upon receipt of the subscription renewal form, the lottery shall enter the subscriber's information into a lottery approved subscription database program.

(ab) The database program will assign the next available effective draw date for the subscription, as determined by MUSL.

(ac) The database program will assign a unique subscription number to the subscription:

(ad) The lottery will assign the following identification numbers to the subscription:

(1) Batch number; and

(2) Sequence or certificate number.

(ae) The party lottery shall print a subscription confirmation card which shall list the following information:

(1) Subscriber name;

(2) Subscriber address;

(3) 5, 2-digit numbers and 1, additional 2-digit number;

(4) Megaplier Option (Yes or No)

(5) Day, month and year the subscription is effective;

(6) Day, month and year the subscription expires;

(7) A gift message, if applicable;

(8) Subscription number;

(9) Batch number; and

(10) Sequence or certificate number.

(af) The party lottery shall forward a subscription confirmation card to the subscriber.

History

• EFFECTIVE DATE: June 1, 2010 Secretary of State Rule Log #10-013
• AMENDED: July 17, 2011 Secretary of State Rule Log #11-031; October 19, 2013 Secretary of State Rule Log #13-032; November 29, 2016 Secretary of State Rule Log #16-051; December 6, 2017 Secretary of State Rule Log #17-066

Chapter 005 LUCKY FOR LIFE RULES

01-005 Code Vt. R. 01-130-005-X LUCKY FOR LIFE RULES

Part I ADMINISTRATION

Section 1.0 Purpose

These rules establish the procedures and requirements for operating and playing Lucky for Life, a New England regional lotto game offered by the Connecticut Lottery Corporation, the Maine State Liquor & Lottery Commission, the Massachusetts State Lottery Commission, the New Hampshire Lottery Commission, the Rhode Island Division of State Lottery and the Vermont Lottery Commission (hereinafter "Lottery"; hereinafter with the other above described lotteries, "Party Lotteries"). The Party Lotteries have formally agreed to jointly establish and operate the Lucky for Life game pursuant to the Lucky for Life Regional Game Agreement and such other related procedures agreed to by the Party Lotteries. The Lucky for Life game shall be established and operated in Vermont pursuant to these Rules and in a manner consistent with Vermont law

Part II LUCKY FOR LIFE GAME RULES

Section 2.0 Definitions

The following definitions apply unless the context requires a different meaning or is otherwise inconsistent with the intention of the rules adopted by the Party Lotteries.

2.1 "Advance Action" or "Multi Draw" shall mean the type of betting in which Wagers may be placed for future Drawings, as available in each Party Lottery jurisdiction.

2.2 "Annuitized Payment Option" shall mean the manner in which the Game's Top Prize or second prize (also referred to as "Prize Level #2") may be paid in equal payments or installments. The Annuitized Payment Option shall be calculated on an annual basis. The schedule of payments shall be at each Party Lottery's discretion.

2.3

(a) "Cash Option" shall mean the manner in which the Game's Top Prize or second prize may be paid upon the Winner's request in one single cash payment as an alternative to the Annuitized Payment Option.

(b) "Lump Sum Cash Payment" shall mean the manner in which the Game's Top Prize or second prize is required to be paid in one single cash payment when the liability limit is exceeded and no Annuitized Payment Option is available, as set forth more fully in Section 5 Paragraph A of these Official Game Rules.

2.4 "Claimant" or "Winner" shall mean any natural person or legal entity submitting a winning Game Ticket within the required prize claim period. A Claimant may be the Purchaser, the natural person or legal entity named on the back of a signed Game Ticket, the bearer of an unsigned Game Ticket, or any other natural person or legal entity who may seek entitlement to a prize payment in accordance with each Party Lottery's jurisdictional laws. No Claimant may assert rights different from the rights acquired by the original Purchaser at the time of purchase.

2.5 "Clearinghouse Lottery" shall refer to the Party Lottery or other duly authorized entity who is responsible for collecting and transferring prize payouts on behalf of all Party Lotteries.

2.6 "Drawing" shall mean the formal process of selecting Winning Numbers that conclusively determines the number of Winners for each prize level of the Game.

2.7 "Game Play(s)" shall mean that area of the Playslip, also known as a "board" or "panel", which contains two sets of numbered squares to be marked by the Player: the first set (Matrix 1) contains forty-eight 48) squares, numbered one (1) through forty-eight 48) inclusive; the second set (Matrix 2) contains eighteen 18) squares, numbered one (1) through eighteen 18) inclusive.

2.8 "Game Ticket" or "Ticket" shall mean acceptable evidence of Game Play that represents a Wager accepted by a Party Lottery's Terminal Gaming System meeting the specifications defined in these Official Game Rules.

2.9 "Liability Limit" shall mean a pre-established threshold, as determined in advance by the New England Lottery Directors, for playing Top Prize, second prize and third prize claims, as set forth more fully in Section 5.2 of these Official Game Rules.

2.10 "Lucky Ball" shall mean the number selected from the second set of numbers (Matrix 2) in each Drawing.

2.11 "Minor" shall have the meaning given to it in each Party Lottery's jurisdictional laws.

2.12 "Play" "Bet" or "Wager" shall mean the six (6) numbers (the first five (5) from a field of forty-eight (48) numbers inclusive and one (1) Lucky Ball number from a field of eighteen (18) numbers inclusive) that appear on a Game Ticket as a single-lettered Play, board or panel, and are played by a Player in the Game.

2.13 "Playslip, "Selection Slip", "Bet Slip" or any other similar term utilized by a Party Lottery shall mean a card used in marking a Player's Game Plays or Wagers.

2.14 "Player" or "Purchaser" shall mean a natural person(s) or legal entity who buys Game Tickets in accordance with these Official Game Rules and jurisdictional laws.

2.15 "Quick Pick", or any other similar term utilized by a Party Lottery shall mean the random selection of six (6) numbers resulting in a Wager accepted by a Party Lottery's Terminal Gaming System

2.16 "Sales Retailer" or "Sales Agent" shall mean a natural person or legal entity licensed and/or authorized by a Party Lottery to sell and redeem Game Tickets.

2.17 "Selling Lottery" shall mean the Party Lottery that sold a winning Game Ticket.

2.18 "Set Prize" shall mean a pre-determined prize payout that is paid in a single cash payment. Set Prizes shall apply to the lowest eight (8) prize levels. They may also apply, however, to the Top Prize and second prize under certain conditions, as set forth more fully in Section 5.2 of these Official Game Rules.

2.19 "Split Prize" shall mean a pre-determined Set Prize payout that is divided equally among the number of winning Game Tickets of a prize level. Split prizes shall only apply to the Game's Top Prize, the Prize Level #2 and Prize Level #3 Winners under certain conditions, as set forth more fully in Section 5.2 of these Official Game Rules.

2.20 "Subscription Ticket, "Season Ticket", or any other similar term utilized by a Party Lottery shall mean a Ticket sold with an extended, multi-draw purchase option wherein the same set(s) of numbers may be played for a specified number of consecutive Drawings. The Subscription Ticket shall be effective on a future date as prescribed by the Party Lottery's jurisdictional laws.

2.21 "Terminal" shall mean a device including, but not limited to Player Activated Terminals ("PATs"), Self-Service Terminals ("SSTs") and Ticket Vending Machines, authorized to function in an on-line, interactive mode with the On-Line Gaming System for the purpose of issuing and validating lottery transactions.

2.22 "Top Prize" shall mean the Game's first prize.

2.23 "Winning Numbers" shall mean the six (6) numbers (the first five (5) numbers from Matrix 1 and the one (1) Lucky Ball number from Matrix 2) that are randomly selected in each Drawing and used to determine the winning Plays contained on a Game Ticket.

Section 3.0 Drawing Procedures

The New England Lottery Directors shall establish the Drawing procedures for the Game Drawings, including a drawing problem resolution mechanism. All Drawings shall be open to the public and shall be witnessed by an Independent Certified Public Accounting Firm. Any equipment used in a Drawing shall be inspected at least annually. All Drawings, including pre and post test drawings shall be recorded.

Section 4.0 Game Description and Characteristics

4.1 Game Designation. For purposes of identification, the Game shall have a designated Game number in the Terminal Gaming System.

4.2 Game Design. The Game is a double matrix-style game, drawn each Monday and Thursday, in which Players select five (5) unique numbers in the Matrix 1 from one (1) to forty-eight 48) inclusive PLUS one (1) Lucky Ball number in the Matrix 2 from one (1) to eighteen 18) inclusive. The additional number may be the same as one (1) of the first five (5) numbers selected by the Player.

4.3 Game Purchases. Game Tickets must be purchased from a Terminal operated by a Sales Retailer, a PAT (if available) by using a touch screen or by inserting a Selection Slip, a lottery subscription system (if available), or other similar means as approved by a Party Lottery.

4.4 Ticket Format. Game Tickets shall include, but not be limited to, the Player's number selections, Game logo or Game name, Ticket cost, Terminal number, barcode, Quick Pick (if selected), replay (if selected), serial number and Drawing date. Advance Action Tickets shall visibly show the beginning and ending Drawing dates. Game Tickets may also include the selling date, time stamp and any information required by a Party Lottery's jurisdictional laws pertaining to the validation of Game Tickets.

4.5 Ticket Price.

a. Uniform Price. Each Game Ticket shall be sold at retail for the price set in these Official Game Rules.

b. Taxes. The Game Ticket price shall include all the applicable taxes that a Party Lottery may be required to collect.

c. Cost Per Play. Game Tickets may be purchased for two dollars ($ 2.00) per Play, or multiples thereof, in accordance with these Official Game Rules. The Player receives one (1) Play for each two-dollar ($ 2.00) Wager.

d. Promotions. A promotion shall mean marketing or advertising intended to increase sales of Game Tickets (excluding Subscription Tickets or Advance Action) through a discount or rebate. A Party Lottery may offer Game Tickets through promotions without approval of the other Party Lotteries for a period not to exceed ninety (90) days in any six-month period as long as advance notification of five (5) days is provided to all Party Lotteries of the terms and dates of the promotional offering.

e. Tickets as Prizes. A Party Lottery may offer Game Tickets as a prize in any other lottery game after advising all other Party Lotteries of the terms and dates of the action.

f. Contribution to Prize Pool. A Party Lottery may offer Game Tickets as a prize or as part of an authorized promotion provided that those Game Ticket sales are assessed and reported to the prize pool at the full gross sales amount.

4.6 Play Restrictions and Play Styles.

a. Ticket Sales to Minors Prohibited. Game Tickets may not be sold to or purchased by Minors under the age of eighteen (18) years. However, Game Tickets or Subscriptions Tickets may be given as gifts to minors or any other individuals except as prohibited by Vermont law.

b. Ticket cashing by Minors. Subject to each Party Lottery's jurisdictional laws, Game Tickets may or may not be cashed or redeemed by Minors. A Party Lottery's jurisdictional laws will determine whether or not a Minor can claim a Top Prize or second prize winning Ticket (either as a Lump Sum Cash Payment or Annuitized Payment Option). In no event shall a Minor's life be the measuring life for the Annuitized Payment Option for either the Top Prize or the second prize. Payment to a Minor for a Top Prize or second prize winning Ticket shall be for a period of twenty (20) years.

c. Ineligible Players. Game Tickets shall not be purchased, and a prize won by any such Game Ticket or share, either in whole or in part, shall not be paid to:

i. A Lottery employee, officer, director, board member or commissioner.

ii. Employees of a Party Lottery's Terminal Gaming System vendor(s), as each Party Lottery may designate.

iii. An employee of the Multi-State Lottery Association.

iv. An employee of a Party Lottery's instant ticket print vendors.

v. Other persons as each Party Lottery may designate.

vi. Those persons designated herein as ineligible to play the Game in one Party Lottery jurisdiction shall also be ineligible to play the Game in all other Party Lottery jurisdictions selling the Game.

d. Ticket Cancellations Prohibited. A Game Ticket may not be cancelled or voided by returning the Game Ticket to the Sales Retailer or to a Party Lottery. A Game Ticket accepted by the Sales Retailer as a returned ticket and that cannot be resold shall be deemed as owned by the bearer thereof. This prohibition also applies to a Game Ticket that may be printed in error by the Sales Retailer. No Game Ticket, or physical portion thereof, that may be used to claim a prize, shall be returned to any Party Lottery for credit.

e. Game Sell-Out Prohibited. A Party Lottery shall not directly and knowingly sell a Game Ticket or combination of Game Tickets to any natural person or legal entity that would guarantee that Purchaser a Top Prize or second prize win.

f. Claims. A Game Ticket, subject to the validation requirements as detailed Section 7.0 of these Official Game Rules, shall be the only proof of a Game Play (or Plays) and the submission of a winning Game Ticket to a Party Lottery or other Lucky for Life Authorized Claim Center shall be the sole method of claiming a prize or prizes. A Playslip has no pecuniary or prize value and shall not constitute evidence of a Game Ticket purchase or of numbers selected. Under no circumstances will a claim be paid for a Top Prize or second prize without a winning Game Ticket. Subject to Vermont law, lost or missing Game Tickets may not be honored or processed for payment or replacement. In connection with a claim for a Top Prize or second prize to be paid under the Annuitized Payment Option, each Party Lottery shall determine the date that a claim is complete such that payment commences.

g. Use of Playslips. Players may submit a completed Playslip to any Sales Retailer to have issued a Game Ticket. Playslips shall be available at no cost to the Purchaser and shall have no pecuniary or prize value, or constitute evidence of purchase or number selections. The use of facsimiles of Playslips, copies of Playslips, or other materials that are inserted into the Terminal's Playslip reader that are not printed or approved by the Party Lottery are not permitted. Sales Retailers shall not permit any device to be connected to a Terminal to enter Plays, except as approved by its Party Lottery.

h. Manual Entry. Players may convey their number selections to any Sales Retailer to obtain a Game Ticket. Number selections shall be manually entered into the Terminal by the Sales Retailer.

i. Quick Pick. Players may either request a Quick Pick Game Ticket from a Sales Retailer or may select the Quick Pick option on the Playslip and submit the completed Playslip to any Sales Retailer. Quick Pick shall be differentiated from Customer Select in that Quick Pick shall refer to the random selection of numbers made by the Terminal Gaming System rather than by the Player.

j. Customer Select. Players may select their own numbers by completing a Playslip or by conveying their number selections directly to any Sales Retailer. Customer Select shall be differentiated from Quick Pick in that Customer Select shall refer to number selections made by the Player rather than the Terminal Gaming System.

k. Replay Feature. If available, in a Party Lottery jurisdiction, Players may utilize the barcodes of already-purchased Game Tickets to duplicate another Game Ticket of the same price and with the same number selections and options. To replay, Players may either make the request of a Sales Retailer or may scan the barcode directly into a PAT or SST, if authorized.

l. Advance Action or Multi-Draw. Game Tickets may be purchased for multiple future Drawings, if authorized by the Lottery.

m. Subscriptions or Season Tickets. Game Tickets may be purchased by subscription, if available in a Party Lottery jurisdiction.

n. Limited to Highest Prize Won. In connection with the Winning Numbers drawn, the holder of a winning Game Ticket may win only one prize per Play, board or panel, and shall be entitled only to the prize won by those numbers in the highest matching prize category.

o. Prize Claim Period. The prize claim period shall be one year from the prize eligibility date. The prize eligibility date is the date of the winning draw.

p. Player Responsibility. It shall be the Player's sole responsibility to verify the accuracy of the Game Play (or Plays) and the other data printed on the Game Ticket. The placing of Wagers is done at the Player's own risk through the Sales Retailer.

q. Prize Payments. The Lottery shall not pay prizes that are less than or more than the prize amounts established in these Official Game Rules. The prize won cannot be indirectly increased by promotions or Retailer Activity.

r. Group Win of Top Prize or Second Prize. If more than one (1) natural person claims a single Top Prize or second prize Game Ticket, the claim shall only be paid in a single Lump Sum Cash Payment, No Annuitized Payment Option shall be available.

Section 5.0 Prize Pool and Prize Liability Limits

The following paragraphs and chart define the Game's prize liability limits, prize payouts, prize levels and pool percentages and chances of winning per prize level.

5.1 Prize Pool. The prize pool for all prize categories shall consist of fifty-nine and a half percent of each drawing period's sales, including any specific statutorily-mandated tax on the Lottery to be included in the price of a lottery ticket. Any amount remaining in the prize pool at the end of this game may be carried forward to a replacement game or expended in a manner as directed by the Lottery in accordance with Vermont law and the Lucky for Life Regional Game Agreement.

5.2 Prize Liability Limits. There are 10 prize levels in the Game.

a. Except as provided in these Official Game Rules, the Top Prize (Prize Level #1) shall be annuitized and based on a Top Prize liability that will be split equally among the number of winning Game Tickets. A Top Prize Winner may request the Cash Option, the amount of which is to be established by the New England Lotteries for a defined period of Drawings. Notice of the amount of and changes to the Cash Option shall be posted on the Game's website and/or published in each Party Lottery jurisdiction in a manner determined by that Party Lottery at least thirty (30) days prior to the first Drawing to which it is applicable (the "Published Notice"). Under certain circumstances, as detailed below, the Top Prize is required to be paid in a single Lump Sum Cash Payment and no Annuitized Payment Option is available.

i. One (1) Top Prize Winner. If there is one (1) Top Prize Winner, the annuitized prize value will be seven thousand dollars ($ 7,000.00) per week for life. As an alternative to the Annuitized Payment Option, the Top Prize Winner may request the Top Prize Cash Option in the amount set forth in the Published Notice.

ii. Two (2) to Fourteen (14) Top Prize Winners. If there are between two (2) and fourteen (14) Top Prize Winners, the Annuitized Payment Option, based on an annuitized prize value of seven thousand dollars ($ 7,000.00) per week, will be divided by the total number of Top Prize Winners. The minimum annuitized prize value for this category will be five hundred dollars ($ 500.00) a week for life. Any of these two (2) to fourteen (14) Top Prize Winners may choose the Cash Option as an alternative to the Annuitized Payment Option. The amount of the Cash Option for this category will be the amount of the Top Prize Cash Option set forth in the Published Notice divided by the total number of Top Prize Winners. The minimum Cash Option for this category will be the amount set forth in the Published Notice.

iii. Fifteen (15) or more Top Prize Winners. If there are fifteen (15) or more Top Prize Winners, the Top Prize liability shall be capped at seven million one hundred twenty-five thousand dollars ($ 7,125,000.00) and shall be split equally among all Top Prize winners and paid in one Lump Sum Cash Payment, without an Annuitized Payment Option. The minimum prize value for this category shall not be less than any lower tier prize paid in that respective Drawing.

iv. The Winner(s) of the Top Prize who do not request the Cash Option shall be paid their appropriate Top Prize share on a weekly basis, or according to any other schedule of payments set at the discretion of each Party Lottery as permitted in Section 2.3 of these Official Game Rules, for a minimum period of twenty (20) years. The first Top Prize payment will be made when the prize is claimed at the Selling Lottery's Headquarters. Each Party Lottery shall determine the date that a claim is complete such that payment commences.

v. Measuring Life. For a single Wager, the measuring life of a Top Prize Winner used to determine the duration over which the Top Prize is paid, shall be the natural life of the individual determined by the Selling Lottery to be the Top Prize Winner. A Party Lottery's jurisdictional laws will determine whether or not a Minor can claim a Top Prize winning Ticket (either as a Lump Sum Cash Payment or Annuitized Payment Option). In no event shall a Minor's life be the measuring life for the Annuitized Payment Option for the Top Prize. Payment to a Minor for a Top Prize winning Ticket shall be for a period of twenty (20) years.

vi. If paid in a Lump Sum Cash Payment, Top Prize amounts will be rounded to the nearest whole dollar.

b. Except as provided in these Official Game Rules, the second prize (Prize Level #2) Winner will be paid twenty-five thousand dollars ($ 25,000.00) a year for life. A second prize Winner may request the Cash Option, the amount of which is to be established by the New England Lotteries for a defined period of Drawings. Notice of the amount of and changes to the Cash Option shall be posted on the Game's website and/or by each Party Lottery's Published Notice. Under certain circumstances, as detailed below, the second prize is required to be paid in a single Lump Sum Cash Payment and no Annuitized Payment Option is available.

i. One (1) to Twenty (20) Second Prize Winners. If there are between one (1) and twenty (20) second prize Winner(s), the annuitized prize value will be twenty-five thousand dollars ($ 25,000.00) per year for life. Any of these one (1) to twenty (20) second prize Winner(s) may choose the second prize Cash Option as an alternative to the Annuitized Payment Option. The amount of the Cash Option for this category will be set forth in the Published Notice.

ii. Twenty-one (21) or more Second Prize Winners. If there are twenty-one (21) or more second prize Winners, the second prize liability shall be capped at nine million four hundred thousand dollars ($ 9,400,000.00), shall be split equally among all second prize Winners and shall be paid in a single Lump Sum Cash payment, without an Annuitized Payment Option. The minimum prize value for this category shall not be less than any lower tier prize paid in that respective Drawing.

iii. The Winner(s) of the second prize who do not request the Cash Option shall be paid their appropriate second prize share on an annual basis for a minimum period of twenty (20) years. The initial second prize payment will be made when the prize is claimed at the Selling Lottery's Headquarters; subsequent second prize payments will be made annually thereafter. Each Party Lottery shall determine the date that a claim is complete such that payment commences.

iv. Measuring Life. For a single Wager, the measuring life of a second prize Winner used to determine the duration over which the second prize is paid, shall be the natural life of the individual determined by the Selling Lottery to be the second prize Winner. If the second prize under a single Wager is being claimed by more than one natural person or by a legal entity the measuring life for that second prize Winner shall be twenty (20) years. A Party Lottery's jurisdictional laws will determine whether or not a Minor can claim a second prize winning Ticket (either as a Lump Sum Cash Payment or Annuitized Payment Option). In no event shall a Minor's life be the measuring life the Annuitized Payment Option for the second prize. Payment to a Minor for a second prize winning Ticket shall be for a period of twenty (20) years.

v. If paid in a Lump Sum Cash Payment, second prize amounts will be rounded to the nearest whole dollar.

c. Except as provided in these Official Game Rules, the third prize (Prize Level #3) will be paid as a five thousand dollar ($ 5,000.00 Set Prize. If there are more than one thousand (1,000) Winners of this prize level in a single Drawing, the total prize liability of five million dollars ($ 5,000,000.00 ($ 5,000.00 x 1,000) will be split equally among the Winners. Under no circumstances, however, will the value of the third prize fall below a minimum prize value of two hundred dollars ($ 200.00) per Winner regardless of the number of Winners. Third prizes will be rounded to the nearest whole dollar and paid in a single cash payment.

Section 6.0 Statistical Information

The following table details the Game's statistical information.

Odds of Winning, Prize Payouts and Prize Funding as a Percentage of Sales.

Display Table

Average Chance of Winning: 1 in 7.769

*Prize amounts may be split if there are multiple Winners, in accordance with the provisions established in Section 5.2 of these Official Game Rules. Split prizes may be lower than the published prize amounts.

Section 7.0 Prize Payment

7.1 Entitlement to Prizes by Winners. The holder of a winning Game Ticket shall be entitled only to the prize won by matching the Winning Numbers in the highest matching prize category.

7.2 Payment of Prizes. All winning Game Tickets, including the Top Prize and second prize Winning Tickets, shall be paid in accordance with these Official Game Rules and jurisdictional laws. Each Party Lottery shall withhold taxes and other required withholdings in accordance with applicable federal and jurisdictional laws. To be a valid Game Ticket and eligible to receive a prize, a winning Game Ticket shall satisfy all the requirements established for the validation of winning Game Tickets sold through each Party Lottery's Terminal Gaming System, and any other requirements adopted by the New England Lottery Directors. Party Lotteries shall not be responsible for Game Tickets that are altered in any manner.

a. Top Prize and Second Prize Payments. Except in the case of a Cash Option payment or a Lump Sum Cash Payment paid in accordance with these Official Game Rules, annuitized prize payments shall be made for the measuring life of the Top Prize or second prize Winner. All annuitized payments shall be made for a minimum of twenty (20) years. The measuring life as defined in Sections 5.2(a)(v) and 5.2(b)(v) of these Official Game Rules shall be determined at the time the Top Prize or second prize is claimed. In the event annuitized prize payments are assigned, if allowable under jurisdictional law, or assigned by a court order, the measuring life at the time the Top Prize or second prize was claimed shall not change and limit or extend the number of annuitized payments due any assignee, court-ordered or otherwise. In the event of the death of a Top Prize or second prize Winner during the annuity payment period, the Selling Lottery, with the approval of the New England Lotteries, upon petition of the estate of that Winner (the "Estate") to the Selling Lottery, and subject to Vermont law, may accelerate the payment of all the remaining lottery proceeds to the Estate.

i. If the annuitant dies during the annuity payment period but before the guaranteed prize amount has been paid, the Estate shall receive the remaining payments equal to the minimum guaranteed prize amount.

ii. If the annuitant dies during the annuity payment period but after the minimum guaranteed prize amount has been paid, all payments shall stop.

Low-Tier Set Prize Payments. All low-tier Set Prizes (all prizes except the Top Prize and second prize) shall be paid in one single cash payment through the Selling Lottery that sold the winning Game Ticket(s). Prizes shall be rounded to the nearest whole dollar. A Selling Lottery may begin paying low-tier cash prizes after receiving authorization to pay from the Clearinghouse Lottery.

7.3 Prize Assignment Distribution. Payment of a prize may be made to a person other than the winner pursuant to Vermont Statutes Annotated, Title 31, Section 654a(c), which adopts the payment provisions of Title 31, Section 674L.1.1A-I.

7.4 Disputes. In the event a dispute between the Lottery and a Game Ticket bearer occurs as to whether the Game Ticket is a winning ticket, and if the ticket prize is not paid, the Lottery may, solely at its option and direction, reimburse the Game Ticket bearer the purchase price of the ticket or, as provided in Section 8.2(b), may replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current Lottery game. This shall be the sole and exclusive remedy to the Game Ticket bearer.

Section 8.0 Ticket Validation

8.1 General Requirements for Validation. To be a valid ticket and eligible to receive a prize, a ticket shall satisfy all the requirements established by a Party Lottery for validation of winning tickets sold through its on-line system and any other validation requirements adopted by the Party Lotteries. The Party Lotteries shall not be responsible for tickets which are altered in any manner.

8.2 Specific Requirements for Validation of Tickets Sold in Vermont

a. To be a valid ticket and eligible to receive a prize, all the following requirements must be satisfied:

i. The ticket must have been issued by the Lottery through a licensed agent, via a terminal, in an authorized manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner.

ii. The ticket date must have been recorded in the Lottery's central computer system at least sixty (60) minutes prior to the drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the drawing (regardless of when the drawing is held) is void.

iii. The information appearing on the ticket must correspond precisely with the party Lottery's computer record.

iv. The system assigned validation number must appear in its entirety, and correspond, using a computer validation file, to the winning game play or plays printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records.

v. The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective.

vi. All information appearing on an apparent winning ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid.

vii. The ticket must be intact, fully legible, complete and not miscut, correspond to the data on file at the Lottery in every respect.

viii. The ticket must pass all other security criteria determined by the Lottery.

ix. The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof

x. An apparent winning ticket shall be void unless the tic paper stock roll which was in use at the time of the bet by, and validly issued to, the agent from whom the ticket was purchased.

b. In the event that a ticket fails to pass all the criteria set forth in subpart (a) of this rule, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the Lottery executive director shall be final and binding. If the executive director determines that the ticket is not eligible to receive a prize, then as an alternative to the reimbursement provided for in Section 7.4 above, the executive director may, at the executive director's option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current Lottery game. If such replacement occurs, it shall be the bearer or claimant's sole and exclusive remedy.

Section 9.0 Ticket Responsibility

9.1 Signature. Until such time as a subscription play is properly and validly registered with the lottery, or until such time as a signature, or printed name is placed upon a ticket in the area designated for signature, or name, a ticket shall be owned by the bearer of the ticket. When a subscription play is validly and properly registered with the lottery, or when a signature, or name is placed on the ticket in the place designated, the person who has registered the ticket, or if not registered, whose signature, or name appears in such area shall be the owner of the ticket and shall be entitled (subject to the validation requirements in Section 8.0 (Ticket Validation) and state or district law) to any prize attributable thereto.

9.2 Multiple Signatures/Names. The manner of payment of prizes for valid winning tickets bearing multiple signatures or names shall be determined by Vermont law.

9.3 Stolen Tickets. The Lottery shall not be responsible for lost or stolen tickets.

9.4 Subscription Plays. A receipt for a subscription play has no value and is not evidence of a play. A subscription play is valid when registered with the Lottery in accordance with these rules and the natural person or persons registering the play shall be the owner of the subscription play.

Section 10.0 Disputes

In the event a dispute between a Selling Lottery and a Game Ticket bearer occurs as to whether the Game Ticket is a winning Ticket, and if the Ticket prize is not paid, the Selling Lottery may, solely at its option and in its discretion, reimburse the Game Ticket bearer the purchase price of the Ticket. This shall be the Game Ticket bearer's sole and exclusive remedy.

Section 11.0 Applicable Law

In purchasing a Game Ticket, the following provisions apply:

a. The Purchaser agrees to comply with and abide by the Selling Lottery's jurisdictional laws and final decisions, as well as all rules established for the conduct of the Game.

b. Decisions made by the Selling Lottery Director, including the declaration of prizes, the payment thereof, and the interpretation of these Official Game Rules, shall be final and binding on all Purchasers and on every person making a claim in respect thereof, subject to Vermont law, which shall control in the event of any conflict.

c. Any claims or litigation relating to the Game Tickets and/or prizes:

(a) shall be subject to and resolved in accordance with the laws, rules and regulations of the Selling Lottery jurisdiction in which the Game Ticket was purchased;

(b) must be brought in and strictly limited to the courts located within the jurisdiction of the Selling Lottery in which the Game Ticket was purchased; and

(c) can only be brought against the Selling Lottery in the jurisdiction where such Game Ticket was purchased.

Part III AGENTS

Section 12.0 Agents

12.1 Agents selling Lucky for Life Game Tickets shall comply with all applicable Vermont laws, rules, regulations, procedures, and decisions of the Lottery and with all applicable Lucky for Life rules, regulations and requirements.

12.2 Each agent shall receive 6.00 percent (6%) of gross receipts for Lucky for Life Game Tickets sold by that agent as a commission. The 6.00 percent (6%) commission applies to Lucky for Life sales only.

Part IV SUBSCRIPTIONS

Section 13.0 Subscriptions

13.1 Specific information required for a subscription

a. To play by subscription a player shall provide the Lottery with the following information:

i. 5 different 2-digit numbers between one (01) and a designated number and one additional 2-digit number between one (01) and a designated number;

ii. Name;

iii. A Vermont mailing address;

iv. Home telephone number;

v. Work telephone number, if applicable;

vi. A gift message, if applicable;

vii. The number of draws the subscription shall be valid;

viii. Affirmation of age eligibility; and

ix. Payment method.

b. If the subscriber selects payment for subscription by check, the check shall be payable to the "Vermont Lottery Commission" and attached to the subscription application form.

c. [Reserved.]

d. The completed subscription form shall be forwarded to the Lottery headquarters for processing.

e. Upon receipt of the subscription application, the lottery shall enter the subscribers' information into a lottery approved subscription database program.

f. The database program will assign the next available effective draw date for the subscription, as determined by the Lottery.

g. The database program will assign the following identification numbers to the subscription:

i. Subscriber number; and

ii. Subscription number.

h. The Lottery will assign the following identification numbers to the subscription:

i. Batch number; and

ii. Sequence or certificate number.

i. The Lottery shall print a subscription confirmation card which shall list the following information:

i. Subscriber name;

ii. Subscriber address;

iii. 5, 2-digit numbers and 1, additional 2-digit number;

iv. Day, month and year the subscription is effective;

v. Day, month and year the subscription expires;

vi. A gift message, if applicable;

vii. Subscription number;

viii. Batch number; and

ix. Sequence or certificate number.

j. The Lottery shall forward a subscription confirmation card to the subscriber.

k. It shall be the sole responsibility of the subscriber to verify the following are correct:

i. Subscriber name;

ii. Subscriber address;

iii. Subscriber chosen 5, 2-digit numbers and one additional 2-digit number;

iv. Subscription play length; and

v. Effective and expiration dates.

l. It shall be the sole responsibility of the subscriber to notify the Lottery of incorrect data on the confirmation card prior to the effective date of the subscription.

m. A subscription application form has no pecuniary or prize value and shall not constitute evidence of ticket purchase or of numbers selected.

n. Once a subscription play is registered with the Lottery, the registration shall constitute the only acceptable evidence of play for the subscriber.

o. A subscription does not become effective until the effective date listed on the confirmation card, which shall match the effective date listed in the party lottery's subscription database.

p. Any changes to a subscriber's name or address shall be requested in writing by the subscriber and include the previous name and address. Name and address changes shall require a notarized letter from the subscriber.

q. There shall be no changes to the subscriber's numbers during the effective dates of the subscription unless authorized by the Party Lotteries.

r. Prizes shall be paid, by check or by expiration date extensions, as determined by the Party Lotteries.

s. Prize checks shall be made payable to the subscription name(s) as recorded in the lottery's central computer system;

t. Subscriptions, once in effect, cannot be cancelled in whole or in part except as determined by the Party Lotteries.

u. Subscription renewal forms shall be forwarded to the subscriber by the Lottery within a time period prior to the subscription's expiration date as determined by the Party Lotteries.

v. The subscription renewal form shall contain the following information:

i. Subscriber's name;

ii. Subscriber's address;

iii. 5-2 digit numbers and one additional 2-digit number;

iv. Subscriber number;

v. Subscription number; and

vi. Expiration date including free play extensions, if any.

w. If the subscriber elects to continue a subscription, the subscriber shall provide the Lottery with the following information:

i. Subscription play length;

ii. Change of address, if applicable;

iii. Payment method; and

iv. A change of numbers of 5-2 digit numbers and 1 additional 2-digit number, if applicable.

x. [Reserved.]

y. If the subscriber selects payment for subscription by check, the check shall be payable to the "Vermont Lottery Commission" and attached to the subscription renewal form.

z. The completed subscription renewal form shall be forwarded to the Lottery headquarters for processing.

aa. Upon receipt of the subscription renewal form, the Lottery shall enter the subscriber's information into a lottery approved subscription database program.

bb. The database program will assign the next available effective draw date for the subscription, as determined by the Party Lotteries.

cc. The database program will assign a unique subscription number to the subscription.

dd. The Lottery will assign the following identification numbers to the subscription:

i. Batch number; and

ii. Sequence or certificate number.

ee. The Lottery shall print a subscription confirmation card which shall list the following information:

i. Subscriber name;

ii. Subscriber address;

iii. 5, 2-digit numbers and 1, additional 2-digit number;

iv. Day, month and year the subscription is effective;

v. Day, month and year the subscription expires;

vi. A gift message, if applicable;

vii. Subscription number;

viii. Batch number; and

ix. Sequence or certificate number.

ff. The Lottery shall forward a subscription confirmation card to the subscriber.

History

• EFFECTIVE DATE: June 21, 2012 Secretary of State Rule Log #12-016
• AMENDED: September 19, 2013 Secretary of State Rule Log #13-028; January 25, 2015 Secretary of State Rule Log #14-043; December 1, 2017 Secretary of State Rule Log #17-065