Effective Date January 22, 2014
Chapter 100 — General
Chapter 200 — Practice and Procedure
Chapter 300 — Procurement
Chapter 400 — Lottery Game Retailer
Chapter 500 — Lottery Games
Chapter 600 — Lottery Prizes
Chapter 700 — POWERBALL®
Chapter 800 — NEBRASKA PICK 5®
Chapter 900 — DAILY MILLIONS®
Chapter 1000 — WILD CARD®
Chapter 1100 — CASH 4 LIFE®
Chapter 1200 — ROLLDOWN®
Chapter 1300 — 2by2®
Chapter 1400 — NEBRASKA PICK 3
Chapter 1500 — MyDaY
Chapter 1600 — Mega Millions
101.01 The following definitions shall be used for the Lottery Regulations, unless the context clearly requires otherwise.
101.02 Act shall mean the State Lottery Act.
101.03 Advertising shall mean the budgeted
process by which specific messages are placed with
commercial media organizations. Such message placement includes, but is not necessarily limited to, billboards, radio, or television.
101.04 Applicant shall mean the person applying for a contract from the Division. Applicant includes all partners, corporate officers, shareholders owning ten percent (10%) or more, and the governing officers of political subdivisions or other organizations making an application.
101.05 Bid or proposal security shall mean security to ensure that the vendor will honor the terms of its bid or proposal or that the vendor will negotiate a contract in good faith.
101.06 Computer quick pick, computer-pick, or quick pick shall mean the random selection of numbers by the computer system which appear on a ticket and are played by a player in the game
101.07 Department shall mean the Department of Revenue.
101.08 Director shall mean the Director of the Lottery Division.
101.09 Dishonesty shall mean a crime involving fraud, or deceit. It includes, but is not limited to, embezzlement, misappropriation or misapplication of funds, fraud, forgery, false swearing, perjury, theft by deception, theft of services, or obtaining money under false pretenses.
101.10 Dispensing or vending device shall mean any device that dispenses instant tickets directly to a participant and shall include all coin or currency operated devices.
101.11 Display unit shall mean a device able to securely store, display, and provide access to full packs of instant tickets to Lottery Game Retailers.
101.12 Division shall mean the Lottery Division of the Department of Revenue.
101.13 Drawing in a lottery game shall mean any formal process based on chance and authorized by the Director of selecting winners, prizes, winning numbers, characters, symbols and / or the number of winners for each prize level of the game. A drawing may consist of initial, preliminary, or sub-drawings leading to a final drawing.
101. 14 Finance & Audit Committee shall mean the committee established by the Multi-State Lottery Association Agreement.
101.15 Frivolous litigation shall mean any litigation that is dismissed for lack of prosecution, a demurrer is sustained, or a summary judgment is granted to the defendant.
101.16 Game play areas or play areas shall mean that area of the play slip which contains sets of numbered squares to be marked by the player.
101.17 Incentives shall mean a mechanism by which to reward or reinforce participation by players or lottery game retailers in a lottery effort or program. Incentives may include lottery merchandise offered as promotional prizes to players, and as door prizes to lottery game retailers.
101.18 In-kind Contributions by Media Outlets shall mean value-added opportunities for exposure for the lottery and its beneficiaries such as broadcast air time and event tickets provided by media outlets for use as retailer incentives or as contest prizes for players.
101.19 Key personnel or key employee shall include any executive, employee or agent whose position affects or could affect the fairness, security, honesty or integrity of the operations of the Nebraska Lottery.
101.20 Litigation security shall mean security to discourage unwarranted or frivolous litigation by any vendor.
101.21 Lottery Contractor shall mean a Lottery Vendor with whom the Division has contracted for the purpose of providing goods or services for the Nebraska Lottery.
101.22 Lottery game shall mean any variation of the following types of games;
101.22A An instant-win game in which disposable tickets contain certain preprinted winners which are determined by rubbing or scraping an area or areas on the tickets to match numbers, letters, symbols, or configurations, or any combination thereof, as provided by the rules of the game. An instant-win game may also provide for preliminary and grand prize drawings conducted pursuant to the rules of the game. An instant-win game shall not include the use of any pickle card as defined in section 9-315, Nebraska Revised Statutes. Instant-win games are commonly referred to by the Lottery Division as “scratch ticket” games;
101.22B An on-line lottery game in which Lottery Game Retailer terminals are hooked up to a central computer via a telecommunications system through which:
101.22B(1) A player selects a specified group of numbers or symbols out of a predetermined range of numbers or symbols and purchases a ticket bearing the player selected numbers or symbols for eligibility in a drawing regularly scheduled in accordance with game rules; or
101.22B(2) A player purchases a ticket bearing randomly selected numbers for eligibility in a drawing regularly scheduled in accordance with game rules;
101.22B(3) On-line lottery games are commonly referred to by the Lottery Division as “lotto games”; and
101.22C Lottery game shall not be construed to mean any video lottery game.
101.23 Lottery Game Retailer shall mean a person or entity who contracts with or seeks to contract with the Division to sell tickets in lottery games to the public.
101.24 Lottery Vendor shall mean any person who submits a bid, proposal, or offer as a part of a major procurement or ITB.
101.25 Major procurement shall mean any procurement or contract for the purchase or lease of goods or services unique to or used primarily for the operation of the Nebraska Lottery in excess of twenty-five thousand dollars ($25,000) for the printing of tickets used in any lottery game, security services, consulting services, advertising services, any goods or services involving the receiving or recording of number selections in any lottery game, or any goods or services involving the determination of winners in any lottery game. Major procurement shall include production of instant-win tickets, procurement of on-line gaming systems and drawing equipment, or retaining the services of a consultant who will have access to any goods or services involving the receiving or recording of number selections or determination of winners in any lottery game.
101.26 Marketing shall mean the process of integrating messages and efforts associated with lottery products and beneficiaries in various mediums, including press releases, printed material, broadcast media, internet, and live events.
101.27 Moral turpitude shall mean any crime contrary to justice, honesty, or good morals. It shall include, but is not limited to, dishonesty, abuse of a person, or possessing illegal drugs with intent to deliver or sell.
101.28 MUSL shall mean the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the party lotteries.
101.29 MUSL Board shall mean the governing body of the MUSL which is comprised of the chief executive officer of each party lottery.
101.30 MUSL Product Group, MUSL POWERBALL® Product Group, or Product Group shall mean a group of lotteries which has joined together to offer an on-line product pursuant to the terms of the Multi-State Lottery Agreement and the Product Group’s own rules.
101.31 Natural person shall mean a living human being and shall not include legal or fictional entities or constructs such as, but not limited to, limited liability companies, limited liability partnerships, trusts, corporations, partnerships, associations or voluntary organizations. As used in these regulations, the words define the term of a prize and are not a limitation on the entities eligible to play lottery games.
101.32 NEBRASKA PICK 5® play or bet shall mean the five (5) numbers that appear on a ticket as a single lettered selection and are to be played by a player in the game.
101.33 NEBRASKA PICK 5® set prize shall mean a prize that is advertised to be paid by a single cash payment or as a free NEBRASKA PICK 5® ticket.
101.34 NEBRASKA PICK 5® ticket shall mean a ticket produced by an on-line terminal which meets the specifications defined in these regulations.
101.35 On-line terminal shall mean a device that functions in an on-line, interactive mode with the Nebraska Lottery's computer system for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including purchases, validating tickets, and transmitting reports.
101.36 Party lottery or member lottery shall mean a state lottery or lottery of a political subdivision or entity which has joined the MUSL and a MUSL Product Group. Unless otherwise indicated, party lottery or member lottery does not include licensee lotteries.
101.37 Performance bond shall mean a bond to guarantee the faithful performance of the Lottery Vendor or Lottery Contractor for the duration of the contract.
101.38 Person with a substantial interest shall mean any sole proprietor, partner in a partnership, officer of a corporation, shareholder owning in the aggregate ten percent (10%) or more of the stock in a corporation, member of a limited liability company, or governing officer of an organization or other entity.
101.39 Play slip or bet slip shall mean a card used in marking a player's game plays and containing one or more game play areas.
101.40 Player Express Terminals are devices used in conjunction with on-line terminals and are operated by selected on-line retailers. Player Express Terminals face players in retailer checkout lanes and require player and retailer interaction in the purchase of on-line tickets.
101.41 POWERBALL® play or bet shall mean the six (6) numbers, the first five(5) from a field of fifty-nine (59) numbers and the last one (1) from a field of thirty-five (35) numbers, that appear on a ticket as a single lettered selection and are to be played by a player in the game.
101.42 Powerball Power Play shall mean an option on a Powerball play or bet in which the player has the opportunity to increase their potential set prize winning(s). Powerball Power Play shall mean an option on a Powerball play or bet in which the player has the opportunity to multiply their potential set prize winning(s) by a factor of 1, 2, 3, 4 or 5.
101.43 Powerball Power Play ticket shall mean a Powerball ticket on which the Powerball Power Play was selected and otherwise meets the requirements in these regulations.
101.44 POWERBALL® set prize shall mean 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 regulations, will be equal to the prize amount established by the MUSL POWERBALL® Product Group for the prize level.
101.45 POWERBALL® ticket shall mean a ticket produced by an on-line terminal which meets the specifications defined in these regulations.
101.46 Promotions shall mean contests, events, or other mechanisms by which existing players are rewarded by offering something of additional value beyond a lottery game prize, or a second chance to win something of additional value in return for making a qualifying purchase.
101.47 Product Group Rules means the rules promulgated by a Product Group for a particular online cross-jurisdictional lottery game offered by the Product Group member lotteries, including any subsequent amendments thereto, which, among other topics, describe game play, prize pools, expected prize payout percentages, probabilities of winning, the method of prize payments, ticket validations, ticket responsibility, and ineligible players.
101.48 Public Relations shall mean the process of identifying various and complementary audiences including the public, players, retailers, and beneficiaries, and providing them with information of interest and receiving valuable feedback in return. Public relations includes sponsoring events with co-promoters.
101.49 Ticket or lottery ticket shall mean any tangible evidence authorized by the Division to prove participation in a lottery game.
101.50 Winning NEBRASKA PICK 5® numbers shall mean the five (5) numbers, randomly selected at each official drawing conducted by the Division which shall be used to determine winning plays contained on a game ticket.
101.51 Winning POWERBALL® numbers shall mean the six (6) numbers, the first five (5) from a field of fifty-nine(59) numbers and the last one (1) from a field of thirty-five (35) numbers, randomly selected at each official drawing conducted by the Product Group, which shall be used to determine winning plays contained on a game ticket.
101.52 Powerball game rules or rules of the Powerball game means the set of rules adopted by the MUSL POWERBALL® Product Group.
101.53 Licensee lottery shall mean a state lottery of or regulated by government unite, political subdivision or entity thereof which 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.
(Neb. Rev. Stat. Sections 9-801, 9-803, 9-819, and 9-823)
201.01 These regulations govern the practice and procedure before the Nebraska Department of Revenue or the Division of the Nebraska Department of Revenue arising from and as required by the State Lottery Act, and constitute a separate practice and procedure system from that governing other revenue and gaming laws administered by the Nebraska Department of Revenue.
(Sections 9-819, and 9-823, R.S.Supp., 1993, May 28, 1993.)
202.01 Representation. Representation before the State Tax Commissioner is governed by the applicable statutes and decisions of the Nebraska Supreme Court. These rules shall not, however, prohibit anyone from representing themselves or transacting his or her own affairs.
202.01A Power of Attorney. Any person appearing on behalf of a Lottery Game Retailer, Lottery Vendor, or Lottery Contractor, or any other person, as his or her duly authorized representative with regard to matters pertaining to the Act must have on file with the Division, a Power of Attorney. Once a Power of Attorney has been given for a hearing, the State Tax Commissioner will presume that it is valid until notice of its revocation is filed with the Division.
202.02 Notice. All notices required under these practice and procedure regulations, other than notices scheduling informal conferences, shall be mailed certified mail, return receipt requested, to the last known address of the party, his or her representative, or served personally.
202.03 Filing Date. A petition, other than a petition regarding a procurement action, is considered filed with the State Tax Commissioner on the date that it is received by the State Tax Commissioner, or if delivered by United States mail after the due date, the petition is considered filed with the State Tax Commissioner on the date of the postmark of the United States Post Office stamped on the envelope. Postmarks made by other than the United States Post Office will not be accepted as conclusive evidence of the filing date of any petition received after the due date.
202.03A When the last date for filing falls on a Saturday, Sunday, or an approved federal or state holiday, the filing will be considered timely if received on the next succeeding day which is not a Saturday, Sunday, or an approved federal or state holiday.
202.03B Petitions received by facsimile will not be accepted.
202.04 Filing date for procurement actions. Any petition regarding a procurement action must be filed within seventy-two (72) hours of the release of the Request for Proposal or the Invitation to Bid, or twenty-four hours prior to the submission date and time, whichever is earlier, or within seventy-two (72) hours of receipt of a notice of a rejection of a bid or proposal or notice of a contract award. For a petition on a procurement action, the petition must be physically received by the State Tax Commissioner within the appropriate time period.
202.04A A postmark date will not be sufficient to make a petition timely if the petition is not physically received by the appropriate time.
202.04B Petitions received by facsimile will not be accepted.
202.05 The period fixed by statute or regulation within which to file a petition cannot be extended. If a petition is not filed within the statutory or regulatory period, it will not be considered by the State Tax Commissioner, but will be returned certified mail, return receipt requested.
(Sections 9-819, and 9-823, R.S.Supp, 1993. August 19, 1993.)
203.01 These rules shall be followed by any person filing a petition under the State Lottery Act with the State Tax Commissioner. A petition may be filed to request a declaratory ruling or the promulgation, amendment, or repeal of any regulation, ruling, or form published by the Division. A petition may also be filed on procurement actions, such as to request a modification of a Request of Proposal or Invitation to Bid, or to seek a review of a rejection of a bid or proposal or review of a contract award.
203.02 Petition content. The following information shall be supplied by the petitioner when filing a request with the State Tax Commissioner. The petition shall:
203.02A Identify the petitioner;
203.02B Set forth sufficient facts so as to identify the item under consideration;
203.02C Set forth sufficient reason for believing the item under consideration should be promulgated, reviewed, amended, or repealed so as to acquaint the State Tax Commissioner with the exact basis thereof;
203.02D Demand the relief the petitioner is seeking. If filed for the promulgation or amendment of a published item, a copy of the petitioner's proposed language must be included;
203.02E Be in writing; and
203.02F Be signed by the petitioner or a person authorized by the petitioner.
203.03 Request for oral hearing. All petitions filed, except petitions regarding procurement actions, shall be presumed to be a request for an oral hearing.
203.03A A petition regarding a procurement action shall not be presumed to be a request for an oral hearing. The State Tax Commissioner shall grant a petitioner, or his or her authorized representative, an opportunity for an oral hearing if the petitioner so requests in the written petition.
203.03B If the petitioner for a petition regarding a procurement action wants the District Court Rules of Evidence to be used in a hearing, the petitioner shall include the request in the written petition.
203.04 Amendment of petition. A petitioner may, at any time before or during the hearing, amend the petition. The request to prepare or the receipt of an amended petition shall be considered good cause for a continuance and the hearing officer, on his or her own motion or on the motion of any of the parties, may continue the hearing.(Sections 9-819, and 9-823, R.S.Supp, 1993. August 19, 1993.)
204.01 The Division may deny an application for a Lottery Game Retailer's Contract, suspend or terminate such contract, or impose an administrative fine against a Lottery Game Retailer pursuant to the provisions of the Act.
204.02 Violations of the Act and any rule or regulation promulgated pursuant to that Act and breach of any provisions of the contract, if applicable, shall constitute grounds to deny a Lottery Game Retailer's application, or suspend or terminate such contract or to levy an administrative fine against the Lottery Game Retailer.
204.03 Notice of intended denial, suspension or termination. The Division shall give notice to the applicant or contractor of its intention to take administrative action. Notice shall be given by certified mail, return receipt requested, and shall:
204.03A Identify the party and action to be taken;
204.03B Set forth each ground justifying the action to be taken in a manner sufficient to acquaint the party with the basis thereof;
204.03C Be in writing;
204.03D Inform the party that a written petition may be filed with the State Tax Commissioner on or before the tenth (10) day following the mailing date of the Division’s notice of its intended administrative action, requesting a redetermination of such intended action through an administrative hearing.
204.04 Administrative fines. The Division may institute proceedings to levy administrative fines against a Lottery Game Retailer for violations of the Act or regulations promulgated under the Act. Such proceedings shall be held in accordance with the provisions for notice and the conduct of administrative hearings contained in these practice and procedure regulations.
204.04A Administrative fines imposed by the State Tax Commissioner may be up to one thousand dollars ($1,000) per violation. Each violation on the part of the Lottery Game Retailer may be the subject of a fine. In imposing such administrative fines, the State Tax Commissioner shall take the following factor into account;
204.04A(1) The severity of the violation; and
204.04A(2) The financial gain derived by the Lottery Game Retailer as a result of the violation.
204.04B Any administrative fines imposed under the Act and these regulations shall be subject to all collection measures available to the Nebraska Department of Revenue on behalf of the State of Nebraska.
204.05 Denial of Application. The Division may institute proceedings to deny an application pursuant to Lottery Regulations 401, 402 and 403.
204.06 Suspension or termination of contract. The Division may institute proceedings to suspend or terminate a Lottery Game Retailer contract or addendum thereto in a