Oregon State Lottery, Chapter 177
Rule Caption: Establishes maximum payout with multiple winning tickets; selling bonus calculation; claiming prize at Lottery.
Adm. Order No.: LOTT 4-2012(Temp)
Filed with Sec. of State: 6-29-2012
Certified to be Effective: 6-29-12 thru 12-21-12
Notice Publication Date:
Rules Amended: 177-094-0080, 177-094-0085
Subject: The Oregon Lottery® has initiated permanent rulemaking to establish the maximum annual payout when there are more than three winning tickets for the Win for LifeSM $1,000 a week top prize in a single drawing, the calculation of the retailer selling bonus under such circumstances, and to require in-person presentation of a winning ticket for the Win for LifeSM top prize of $1,000 a week for life at Lottery Headquarters in Salem, Oregon.
Rules Coordinator: Mark W. Hohlt—(503) 540-1417
(1) General: Prizes for a winning ticket are determined by matching each horizontal set in the ticket’s game play with the winning numbers from the relevant drawing. [Table not included. See ED. NOTE.]
(2) Prize Percentage Payout: The number of prizes for the Win for LifeSM game is not predetermined by the Lottery. The overall prize percentage payout for the Win for LifeSM game is estimated at approximately 65% over time, but the actual prize payout may vary from day-to-day and year-to-year due to factors that include, but are not limited to, the numbers of players participating each day and the number of winning wagers.
(3) Disputes: In the event of a dispute over the value of a prize or whether a ticket contains winning numbers, the Director’s determination is controlling.
(4) Multiple Prizes:
(a) Subject to the validation requirements in OAR 177-094-0060, for each drawing, a player may receive multiple prizes on each ticket for which a ticket containing a winning game play is eligible.
(b) Only the top-prize associated with each set of numbers within the Win for LifeSM, $50,000, $20,000, and $10,000 prize categories shall be paid.
(5) Claiming a Prize: Prize payments must be claimed, and shall be made, in accordance with the provisions of OAR 177-070-0025. Notwithstanding OAR 177-070-0025(2) and subject to section (7) of this rule, a person who claims a winning ticket for the Win for LifeSM top prize of $1,000 a week for life must present the winning ticket and completed claim form in person, at Lottery Headquarters in Salem, Oregon.
(6) Payment of Prizes: Upon validation of a winning ticket, a prize resulting from that winning ticket shall be paid in one lump-sum except for the Win for LifeSM prize of $1,000 per week for life.
(7) Win for LifeSM Top Prize:
(a) General: Only one natural person may claim a winning ticket of the Win for LifeSM top prize of $1,000 per week for life and receive payment of the top prize. A Win for LifeSM top prize cannot be shared by multiple owners of a single winning ticket. In the event a single winning ticket is owned by more than one natural person, the individual owners with an ownership interest in the ticket must identify the natural person who will claim the ticket and receive the top prize on a form provided by the Lottery.
(b) Payment Options: The Win for LifeSM top prize is $1,000 per week for life and shall be paid, based upon a selection made by the winner, either as:
(A) Weekly: A prize payment of $1000 each week beginning on the date prize payment is initiated upon validation of the winning ticket and thereafter on the same day each week, or if such day falls on a non-business day, then the next business day; or
(B) Annually: A payment of $52,000 paid annually beginning on the date prize payment is initiated upon validation of the winning ticket and thereafter on the anniversary date of the first payment, or if such date falls on a non-business day, then the first business day following the anniversary date of the first payment.
(c) Payments to Cease upon Winner’s Death: The Win for LifeSM top prize of $1,000 per week for life will be paid to the winning player until such time as the winning player dies at which time all further prize payments shall cease.
(d) Five-Year Guaranteed Payment: Notwithstanding subsection (c) of this section, if the prize winner dies within five years of the date of prize validation, the Lottery shall pay any remaining prize payments the prize winner would have received within the first five years after prize validation in one lump sum to the individual designated on a beneficiary designation form or to the prize winner’s estate.
(e) Maximum Five-Year Guaranteed Payment: Notwithstanding subsections (c) and (d) of this section, for Win for LifeSM tickets purchased on or after December 1, 2010, if the prize winner dies within five years of the date of prize validation, the Lottery shall pay any remaining prize payment the prize winner would have received within the first five years after prize validation in one lump sum, up to a maximum of $260,000, to the individual designated on a beneficiary designation form or to the prize winner’s estate.
(f) Election of Payment Schedule:
(A) Limitations of Election: At the time of the validation of a winning Win for LifeSM ticket for the top prize of $1000 per week for life, the winner of that prize must elect either the weekly or annual prize payment schedule described in subsection (b) of this section. A winner who elects the annual payment schedule cannot subsequently convert to the weekly payment schedule. The election of the annual payment schedule is irrevocable. A winner who elected the weekly payment schedule may convert to the annual payment schedule at any time, and the Lottery will issue payment to the winner for the sum of the remaining weekly payments from that date to the next anniversary date. Subsequent annual payments will be made on the anniversary date.
(B) Election When Child Support Owed: Notwithstanding subsection (A) of this subsection and subsection (g) of this section, when a search of delinquent child support obligors performed pursuant to ORS 461.715 and OAR 177-010-0090 Child Support Validation Check results in a positive match with the prize winner and the Division of Child Support of the Department of Justice (DOJ) or its successor initiates garnishment proceedings, the winner of the Win for LifeSM top prize of $1,000 per week for life has no payment options from which to select and will be placed on the annual payment schedule as described in subsection (7)(b)(B) of this section. This placement on the annual payment schedule is irrevocable.
(C) Conversion to Annual Payment Schedule upon Garnishment from Department of Justice: Upon receipt of garnishment proceedings from DOJ directed to the Lottery for monies due or to become due to a winner receiving weekly payments under the Win for LifeSM top prize, the Lottery will place that winner on the annual payment schedule as described in subsection (7)(b)(B) of this section. Conversion of the winner’s payment schedule from weekly to annual under this section of the rule is irrevocable. The Lottery shall make payments to such a winner as follows:
(i) Payment Less Garnishment Amounts: Within a reasonable time after the disposition of the garnishment proceeding, the Lottery shall pay the winner the sum of the winner’s weekly payments from the date the Lottery placed the winner’s payments on hold to the winner’s next anniversary date less any amounts withheld pursuant to the garnishment proceedings and applicable tax laws.
(ii) Subsequent Payments: The Lottery shall make any subsequent annual payments, less any amounts withheld pursuant to the garnishment proceedings and applicable tax laws, on the anniversary date of the validation of the prize.
(g) Limitation on Prize Amount for Multiple Top Prize Winning Tickets: Where there are more than three winning tickets in a single Win for LifeSM drawing, the maximum combined annual top prize payout for a single Win for LifeSM drawing is $156,000.
(A) More Than Three Winning Tickets: Notwithstanding the $1,000 per week amount referred to in this rule, if there are more than three winning tickets of a Win for LifeSM top prize of $1,000 per week for life in a single drawing, the annual top prize payment per winning ticket shall be limited to $156,000 divided by the number of individual winning tickets for the Win for LifeSM top prize in that drawing.
(B) Example: For example, if there are four Win for LifeSM top prize winning tickets in a single drawing, the annual top prize amount is calculated by dividing 4 into $156,000 which equals $39,000 as the annual prize payment amount per each winning ticket.
(C) Payment: Notwithstanding subsection (f) of this section, the prize winner will be paid on an annual prize payment schedule. This placement on the annual payment schedule is irrevocable.
(D) Effect of Subsequent Events: Subsequent events, including, but not limited to, the death of one of the prize winners, shall not alter the other winners’ original pro rata share of the calculated prize amount.
(h) Initiation of Payment: Prize payment is initiated upon validation of the winning ticket.
(i) Electronic Fund Transfer: After the initial prize payment issued to a Win for LifeSM top prizewinner, the Lottery shall pay both weekly and annualized Win for LifeSM prize installments via electronic funds transfer in the usual course of Lottery business.
(j) Annual Affidavit Required:
(A) General: Once each year and no earlier than thirty days prior to the anniversary of the original validation date, a winner of a Win for LifeSM top prize of $1,000 per week for life shall provide the Lottery with an affidavit on a form provided by the Lottery, signed by the winner, bearing the seal of a notary public, verifying the winner is living, containing the winner’s current address, and a bank account number to which the prize shall be paid.
(B) Termination of Prize: If a winner of a Win for LifeSM prize of $1,000 per week for life does not provide the Lottery with the affidavit described in subsection (i)(A) of this section, then the Lottery shall not make further prize payments to the winner. If the failure of a winner to provide the affidavit continues to the next anniversary of the validation date, the remainder of the prize shall be terminated.
(C) Exception: Notwithstanding paragraph (B) of this subsection, when it is reasonable and prudent to do so based on the facts underlying a winner’s failure to provide an annual affidavit, the Director may authorize prize payment even though an affidavit has not been provided or is not timely provided. No interest shall be paid by the Lottery on the value of the prize during the period a prize remained unclaimed.
(k) Death During a Payment Year: If a winner of a Win for LifeSM prize of $1,000 per week for life dies after five years have elapsed from the date of validation and if a sequence of weekly prize payments are paid over the course of the year in which the prize winner dies or if a single annual prize payment has been paid prospectively to the winning player for that year, the prize could be overpaid. It is the policy of the Lottery that the difference between the prize that should have been paid based on the date of the death of the prize winner relative to the anniversary date of validation of the prize and the prize amount that was actually paid during the year in which the winner died will not be subject to reimbursement by the Lottery. Any prize payment paid after the year in which the winner dies relative to the anniversary date of validation of the prize shall be subject to reimbursement to the Lottery.
(l) Non-Assignability: A Win for LifeSM top prize of $1,000 per week for life is based on the unknown duration of the life of the prizewinner and is therefore a prize of unspecified value and uncertain periodicity. Consequently, a Win for LifeSM top prize of $1,000 per week for life is not a future periodic prize payment as described in ORS 461.253(1) and cannot be assigned, gifted, sold, or transferred in any manner from the winner to another person or entity except under the circumstances as described in subsection (d) of this rule.
[ED. NOTE: Tables referenced are available from the agency.]
Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 461
Hist.: LOTT 11-2000, f. & cert. ef. 12-1-00; LOTT 1-2001(Temp), f. & cert. ef. 1-22-01 thru 7-21-01; LOTT 7-2001, f. 4-25-01, cert. ef. 4-26-01; LOTT 8-2002(Temp), f. & cert. ef. 7-15-02 thru 1-3-03; LOTT 20-2002, f. & cert. ef. 9-30-02; LOTT 11-2010, f. 11-19-10, cert. ef. 12-1-10; LOTT 4-2012(Temp), f. & cert. ef. 6-29-12 thru 12-21-12
Retailer Selling Bonus
(1) General: For the purposes of OAR 177-040-0025(2)(a), a retailer who sells any winning and validated Win for LifeSM top prize of $1,000 per week for life shall receive a bonus of $13,000 which is based on one percent (1%) of an estimated prize value of $52,000 per year paid over a period of 25 years ($52,000 x 25 = $1,300,000 x .01 = $13,000).
(2) Multiple Top Prize Winning Tickets: Notwithstanding section (1) of this rule, if the Win for LifeSM top prize of $1,000 per week for life is reduced in accordance with OAR 177-094-0080(7)(g), the selling retailer shall receive a bonus based on one percent of the actual prize amount paid over a period of 25 years for a validated winning ticket sold by the retailer.
For example, if the prize value paid is $31,200 per year, the bonus shall be $31,200 x 25 = $78,000 x .01 = $7,800.
OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 461
Hist.: LOTT 11-2000, f. & cert. ef. 12-1-00; LOTT 18-2002(Temp), f. 9-6-02, cert. ef. 9-9-02 thru 3-6-03; LOTT 29-2002, f. & cert. ef. 11-25-02; LOTT 4-2012(Temp), f. & cert. ef. 6-29-12 thru 12-21-12