Payment of Prizes by Retailers

DEPARTMENT OF THE LOTTERY

RULE NO.: RULE TITLE:
53ER12-11: Payment of Prizes by Retailers

SUMMARY: This emergency rule sets forth the provisions for payment of prizes by retailers and replaces Emergency Rule 53ER05-20, F.A.C.

THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS: Diane D. Schmidt, Legal Analyst, Department of the Lottery, 250 Marriott Drive, Tallahassee, Florida 32399-4011

 

THE FULL TEXT OF THE EMERGENCY RULE IS:

53ER12-11 Payment of Prizes by Retailers.

(1) A retailer shall pay all winning lottery tickets valued at less than $600 that are validated through the retailer’s terminal.

(2) A retailer shall ensure that sufficient funds are available by cash, check, or money order before validating any ticket to pay a prize.

(3) A player who submits a ticket valued at less than $600 to the Florida Lottery for payment that has been validated by a retailer will be instructed to return to the same retailer to receive payment. In such case, the Lottery will return the validated ticket to the player.

(4) A retailer shall pay any winning ticket of $50 or less in cash unless:

(a) It is impossible or impracticable to do so due to a company or store policy that for safety or security reasons, limits the amount of cash available to the clerk; or

(b) It is impossible or impracticable to do so due to an applicable local government ordinance that limits the amount of cash available to the clerk.

In such event, the retailer shall pay as much in cash as is possible and the remainder by check or money order.

(5) A retailer shall pay any winning ticket exceeding $50 but less than $600 by cash, check, or money order.

(6) If a retailer validates a ticket valued at $600 or more, the retailer shall provide the player with the original ticket, the continuation ticket, if one was issued, and the player claim instructions ticket produced by the retailer terminal. The retailer shall instruct the claimant to submit a claim to the Florida Lottery for prizes of $600 or more or when any dispute arises regarding the amount or validity of an apparent winning ticket or when an apparent winning ticket will not validate using the terminal.

(7) A retailer shall be held responsible for and will not receive credit for any prize paid for a ticket that was not a winner or that was recorded in the gaming system as paid by another retailer.

(8) A retailer shall not pay any winning ticket of $600 or more. A retailer who violates this subsection and fails to furnish to the Lottery the complete name, address and tax identification number of the player to whom payment was made so that the Lottery can file a Form W-2G, shall be charged backup withholding pursuant to Internal Revenue Service (IRS) regulations, as well as a non-refundable $50 service charge to offset any penalties and interest imposed by the IRS. If the IRS imposes penalties and interest in excess of $50, the retailer's account will be adjusted in the amount of any excess. The Lottery is authorized to reimburse the retailer only upon receipt of documentation establishing that the ticket was paid in full and a determination that no fraud or other violation has been committed.

(9) A retailer shall not charge players a fee for the service of redeeming winning lottery tickets. This prohibition includes charging a fee for payment of a prize by money order when that is the only method of prize payment made available by the retailer.

(10) If a retailer violates any provision of this rule, the retailer shall be subject to suspension or termination in accordance with rules of the Florida Lottery governing suspension and termination of retailer contracts. A copy of the current rule can be obtained from the Florida Lottery, Office of the General Counsel, 250 Marriott Drive, Tallahassee, Florida 32399-4011.

(11) This emergency rule replaces Emergency Rule 53ER05-20, F.A.C.

Rulemaking Authority 24.105(9)(e), 24.109(1), 24.112(1), 24.115(1) FS. Law Implemented 24.112(1), 24.115 FS. History–New 1-23-12, Replaces 53ER05-20.

 

THIS RULE TAKES EFFECT UPON BEING FILED WITH THE DEPARTMENT OF STATE UNLESS A LATER TIME AND DATE IS SPECIFIED IN THE RULE.

EFFECTIVE DATE: January 23, 2012