Prize Payment Rule Reminder

January 31, 2022

illustration of a hand holding money“As a Lottery retailer, it is your responsibility for payment of prizes and options for payment,” said Retail Contracts Senior Manager Tessa Hergenreter. “Except for those Video Lottery cash slips over $1,250 and Lottery Product (formerly known as Traditional) prizes over $600, Lottery retailers are required to validate and pay cash slips immediately during all business hours of operation.”

In accordance with Administrative Rule 177-040-0051, a retailer must immediately pay prizes in cash or by check, or any combination thereof, when a winning Lottery ticket or share meeting the requirements of these rules is presented for payment, including a Video Lottery cash slip. Video Lottery cash slips over $1,250 and Lottery Product prizes over $600 are excluded.

“A Video Lottery retailer must redeem any Video Lottery cash slip presented for payment that wasillustration of two hands exchanging money for a Video Lottery gameslip issued at that retailer’s location,” said Tessa. “A Lottery Products retailer must validate all Lottery Product tickets (including Keno), despite where the winning ticket was purchased. Once a Lottery retailer validates a winning ticket or share, including a Video Lottery cash slip, the retailer must immediately pay the prize. The Lottery’s terminal will not validate a cash slip issued for a jackpot prize.”

Another aspect of the rule points out that a retailer must not pay prizes in tokens, chips, or merchandise or charge a fee for paying a prize or for issuing payment. It is violation of the Retailer contract if you do not provide the full payment of prize to the customer. Additionally, Lottery retailers shall not “round” up or down on a payment to make an even dollar amount. All prizes must be paid in full.

If you have any further questions regarding prize payments, please contact your Lottery Field Sales Representative.