Notice of Emergency Rule

DEPARTMENT OF THE LOTTERY
RULE NO: RULE TITLE
53ER08-88: FLORIDA LOTTO™
SUMMARY: This emergency rule sets forth the provisions for the conduct of FLORIDA LOTTO™ and replaces Emergency Rule 53ER08-12.
THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS: Faith L. Schneider, Legal Analyst, Department of the Lottery, 250 Marriott Drive, Tallahassee, Florida 32399-4011

THE FULL TEXT OF THE EMERGENCY RULE IS:

53ER08-88 FLORIDA LOTTO™.

(1) How to Play FLORIDA LOTTO™.

(a) FLORIDA LOTTO is a lottery on-line game in which players select six (6) numbers from a field of one (1) to fifty-three (53).

(b) Players may make their FLORIDA LOTTO ticket selections by marking a play slip or by telling the retailer their desired selections. There are ten (10) panels on a play slip. Players may mark their desired numbers on the play slip by selecting six (6) numbers from each panel played, or may mark the “Quick Pick” box located at the bottom of each panel for the terminal to randomly select one (1) or more of the six (6) numbers. A “Void” box is also located at the bottom of each panel and should be marked by the player if an error was made in his or her selections in a panel.

(c) Each panel can be played for $1.00, $2.00 or $3.00. A player choosing to play for $1.00 will play for the base jackpot described in paragraph (3)(b) below. A player choosing to play for $2.00 will play for the base jackpot plus an additional $10 million. A player choosing to play for $3.00 will play for the base jackpot plus $10 million in the $2.00 jackpot prize pool plus $15 million in the $3.00 jackpot prize pool, for a total additional prize of $25 million.

(d) Players may receive one (1) ticket with either five (5) or ten (10) sets of six (6) numbers randomly selected by the terminal for the next FLORIDA LOTTO drawing by marking the desired purchase amount under the number 5 or 10, respectively, in the “Quick Picks” box. Players may mark Quick Picks in addition to panel plays. Players must use only blue or black ink or pencil for making selections. Play slips must be processed by a retailer in order to obtain a ticket. Retailers are authorized to manually enter numbers selected by a player.

(e) Players may play up to fifty-two (52) consecutive FLORIDA LOTTO drawings by using the “advance play” feature. To use the advance play feature, players may either mark the number of drawings desired in the Advance Play section of a play slip or tell the retailer their desired number of consecutive advance drawings. The number of consecutive advance drawings selected shall apply to each panel (A-J) played. The purchase price selected per panel shall apply to all drawings. Advance play does not apply to Grouper®.

(f) Players may receive six (6) quick pick tickets for $5.00, consisting of one (1) ticket each of CASH 3™, PLAY 4™, FANTASY 5®, MEGA MONEY™ and FLORIDA LOTTO™ plus one (1) free ticket automatically generated by the terminal of either FANTASY 5, MEGA MONEY or FLORIDA LOTTO, by telling the retailer they wish to play “Grouper®”. Tickets in Grouper play cannot be player-selected and cannot be cancelled. Free tickets will be generated in the following percentages: FANTASY 5 – 47%; MEGA MONEY – 47%; FLORIDA LOTTO – 6%.

(2) FLORIDA LOTTO Drawings.

(a) FLORIDA LOTTO drawings shall be conducted twice per week, on Wednesday and Saturday.

(b) FLORIDA LOTTO drawings shall be public and witnessed by an accountant employed by an independent certified public accounting firm (“Accountant”) who shall certify to the integrity, security and fairness of each drawing.

(c) The equipment (ball set and drawing machine) used in a FLORIDA LOTTO drawing shall be determined by random selection and shall be inspected by an employee of the Florida Lottery’s Security Division (“Draw Manager”) and the Accountant before and after each drawing.

(d) The equipment shall be configured so that six (6) balls are drawn from one (1) set of balls numbered one (1) through fifty-three (53).

(e) Once the ball set has been selected and inspected, the selected drawing machine shall be loaded by the Draw Manager and the ball set mixed by the action of an air blower.

(f) Six (6) balls shall be drawn by vacuum action into the display devices. The numbers shown on the six (6) balls, after certification by the Draw Manager and the Accountant, are the official winning numbers for the drawing.

(g) In the event a malfunction in the drawing procedures occurs, or the drawing equipment malfunctions, the Florida Lottery shall use such substitute procedures as are fair and effective to perform the drawing. Such substitute procedures shall be determined in consultation with the Accountant referred to in paragraph (b). In using such substitute procedures the Florida Lottery shall strive to maintain the highest level of public confidence, security and integrity.

(h) The Florida Lottery shall not be responsible for incorrect circulation, publication or broadcast of the official winning numbers.

(3) FLORIDA LOTTO Prize Divisions.

(a) FLORIDA LOTTO is a pari-mutuel game, except for the $2.00 and $3.00 Jackpots, which are set prize pools. For each draw, 50 percent (50%) of the net sales after cancels and promotional plays from the sale of the base $1 FLORIDA LOTTO tickets and the first dollar from the sale of $2.00 and $3.00 FLORIDA LOTTO tickets in the corresponding FLORIDA LOTTO sales period shall be allocated as the winning pool for the payment of prizes as provided below.

(b) The base Jackpot prize pool shall consist of 63.5 percent (63.5%) of the winning pool for the drawing plus any base Jackpot money carried forward from the previous draws. The base Jackpot prize shall be divided equally among the players matching all six official winning numbers. If there is no Jackpot winner in a drawing, the base Jackpot pool shall be carried over and added to the base Jackpot pool of the next FLORIDA LOTTO drawing.

(c) The second prize pool shall consist of 12.3 percent (12.3%) of the winning pool for the drawing. The second prize pool shall be divided equally among the players matching five (5) of the six (6) official winning numbers. If there is no winner in the second prize category for a drawing, the second prize pool shall be carried over and added to the base Jackpot prize pool of the next FLORIDA LOTTO drawing.

(d) The third prize pool shall consist of 10 percent (10%) of the winning pool for the drawing. The third prize pool shall be divided equally among the players matching four (4) of the six (6) official winning numbers. If there is no winner in the third prize category for a drawing, the third prize pool shall be carried over and added to the base Jackpot prize pool of the next FLORIDA LOTTO drawing.

(e) The fourth prize pool shall consist of 14.2 percent (14.2%) of the winning pool for the drawing. The fourth prize pool shall be divided equally among the players matching three (3) of the six (6) official winning numbers. If there is no winner in the fourth prize category for a drawing, the fourth prize pool shall be carried over and added to the base Jackpot prize pool of the next FLORIDA LOTTO drawing.

(f) The base Jackpot prize will pay the exact guaranteed dollar amount. The second, third and fourth prizes will be rounded down to the nearest fifty cents ($.50); provided, however, that the fourth prize shall be no less than $3.50. All rounding differences in the second, third and fourth prizes shall be used to fund the restricted prize pool described in paragraph (4)(a) below.

(4) FLORIDA LOTTO $2.00 and $3.00 Jackpots.

(a) For each draw, approximately 56 percent (56%) of the net sales after cancels and promotional plays of the second and third dollars from the sale of $2 and $3 FLORIDA LOTTO tickets in the corresponding FLORIDA LOTTO sales period shall be allocated as the winning pool for the payment of prizes as provided below (the “restricted prize pool”). The Lottery will use a model developed to forecast the amount of money required to be maintained in the restricted prize pool to support payments to winners – based on future probabilities. The restricted prize pool will be analyzed and any excess balance in the pool will be transferred to the educational enhancement trust fund.

(b) The $2.00 Jackpot prize is $10 million paid to a single winner in thirty (30) annual payments. The $10 million in the $2.00 Jackpot prize pool shall be divided equally among the players matching all six official winning numbers who played for $2.00 or $3.00. If there is no $2.00 or $3.00 Jackpot winner in a drawing, the $2.00 Jackpot prize shall not be carried forward to the next drawing.

(c) The $3.00 Jackpot prize is $10 million from the $2.00 Jackpot plus $15 million, for a total of $25 million, paid to a single winner in thirty (30) annual payments. The $15 million in the $3.00 Jackpot prize pool shall be divided equally among the players matching all six official winning numbers who played for $3.00. If there is no $3.00 Jackpot winner in a drawing, the $3.00 Jackpot prize shall not be carried forward to the next drawing.

(5) Determination of Prize Winners.

In order for a ticket to be a winning ticket, numbers appearing in a single horizontal row on the ticket (A, B, C, D, E, F, G, H, I, or J) must match the official winning FLORIDA LOTTO numbers in any order for the draw date for which the ticket was purchased. The prizes are set forth as follows:

(a) Jackpot Prize(s): Six of six official winning numbers.

(b) Second Prize: Five of six official winning numbers.

(c) Third Prize: Four of six official winning numbers.

(d) Fourth Prize: Three of six official winning numbers.

(6) FLORIDA LOTTO Odds of Winning.

The odds of winning the prizes described in subsection (5) are as follows:

(a) Jackpot Prize(s) – 1:22,957,480.

(b) Second Prize – 1:81,409.50.

(c) Third Prize – 1:1,415.82.

(d) Fourth Prize – 1:70.79.

(e) The overall odds of winning a prize in a FLORIDA LOTTO drawing are 1:67.36.

(7) FLORIDA LOTTO Guaranteed Base Jackpot.

(a) For each drawing the Lottery will announce a guaranteed deferred payment value of the base Jackpot that can be won by a single player, based upon the estimated cash value of the Jackpot pool determined by projected and historical sales figures, current interest rates, and funds from rollovers, if any.

(b) For prizes to be paid in annual installments, if the cash available in the base Jackpot pool is insufficient at the time the ticket is claimed to yield the announced guaranteed base Jackpot value over the designated deferred payment period, the Lottery shall add prize money rendered unclaimable by Section 24.115, Florida Statutes, to the base Jackpot pool to render it sufficient to yield the announced guaranteed base Jackpot.

(c) For prizes to be paid in annual installments, if the cash available in the base Jackpot pool is more than sufficient at the time the ticket is claimed to yield the announced guaranteed base Jackpot value over the designated deferred payment period, the Lottery shall deposit the excess funds into the restricted prize pool.

(d) The guaranteed cash option value of the base Jackpot will be the amount required on the day of the drawing or, if the drawing is held on a Saturday or holiday, the business day prior to the drawing, to purchase securities to fund the announced guaranteed deferred payment value of the base Jackpot. This day shall be referred to as the “prize determination day.”

(e) For prizes to be paid in a single cash payment, if the cash available in the base Jackpot pool is insufficient on the prize determination day to yield the announced guaranteed base Jackpot value over the designated deferred payment period, the Lottery shall add prize money rendered unclaimable by Section 24.115, Florida Statutes, to the base Jackpot pool to render it sufficient to yield the announced guaranteed base Jackpot.

(f) For prizes to be paid in a single cash payment, if the cash available in the base Jackpot pool is more than sufficient on the prize determination day to yield the announced guaranteed base Jackpot value over the designated deferred payment period, the Lottery shall deposit the excess funds into the restricted prize pool.

(8) FLORIDA LOTTO $2.00 Jackpot.

The winner of a Florida Lotto $2.00 Jackpot shall win the base Jackpot plus an additional $10 million. If there are multiple winners of the base Jackpot, the winner of the $2.00 Jackpot shall be entitled to his or her share of the base Jackpot plus $10 million. If there are multiple winners of the $2.00 Jackpot, each winner shall be entitled to his or her share of the base Jackpot plus his or her share of the $2.00 Jackpot. Example of a shared jackpot with 3 winners, one of which played $1.00 and two of which played $2.00: Each winner will receive 1/3 of the base Jackpot prize and the two $2.00 players will each receive 1/2 of the $2.00 Jackpot prize. If the base Jackpot is $3 million, the $1.00 player will win $1 million and the two $2.00 players will each win $6 million.

(9) FLORIDA LOTTO $3.00 Jackpot.

The winner of a Florida Lotto $3.00 Jackpot shall win the base Jackpot plus an additional $10 million in the $2.00 Jackpot plus an additional $15 million. If there are multiple winners of the base Jackpot or the $2.00 Jackpot, the winner of the $3.00 Jackpot shall be entitled to his or her share of the base Jackpot plus his or her share of the $10 million in the $2.00 Jackpot plus $15 million. If there are multiple winners of the $3.00 Jackpot, each winner shall be entitled to his or her share of the base Jackpot plus his or her share of the $2.00 Jackpot plus his or her share of the $3.00 Jackpot. Example of a shared jackpot with 3 winners, one of which played $1.00, one which played $2.00 and one which played $3.00: Each winner will receive 1/3 of the base jackpot prize; the $2.00 and $3.00 players will each receive ½ of the $2.00 prize pool; and the $3.00 player will receive the entire $3.00 prize pool. If the base jackpot is $3 million, the $1.00 player will win $1 million, the $2.00 player will win $6 million and the $3.00 player will win $21 million.

(10) FLORIDA LOTTO Payment Options.

(a) Players have a choice of two payment options for receiving their portion of the FLORIDA LOTTO Jackpot prizes. Payment options are “Cash Option” and “Annual Payment.” Winners of $2.00 and $3.00 FLORIDA LOTTO Jackpot prizes may choose a different payment option for the base Jackpot amount and the $2.00 and $3.00 Jackpot amounts. The $2.00 and $3.00 Jackpot prizes must be paid using the same payment option.

(b) Jackpot winners have sixty (60) days after the winning draw date to choose between the two (2) payment options. Once a Jackpot winner files a claim and exercises the winner's chosen option, the election of that option shall be final. In order to select the Cash Option, the Jackpot winner must submit his or her ticket for payment within sixty (60) days after the winning draw date. If the Jackpot winner does not elect the Cash Option within sixty (60) days after the winning draw date, the Annual Payment option will be applied, except as provided in paragraph (9)(f) below.

(c) A Jackpot winner who chooses the Cash Option will receive one (1) lump sum cash payment of the amount required on the prize determination day to purchase securities to fund the applicable Jackpot prize paid over thirty (30) years, less applicable withholding taxes. The amount of the Cash Option payment to multiple Jackpot winners will be their pro rata share of the amount required on the prize determination day to purchase securities to fund their pro rata share of the applicable Jackpot prize paid over thirty (30) years, less applicable withholding taxes.

(d) If a Jackpot prize winner elects the Annual Payment option, his or her portion of the applicable Jackpot prize will be paid in thirty (30) annual installments, each less applicable withholding taxes.

(e) If the prize amount per winner in a FLORIDA LOTTO drawing cannot be paid in increments of $1,000 in thirty (30) installments, the winner’s share of the prize pool will be invested in U.S. Treasury securities that will yield the maximum amount possible over thirty (30) years as can be reached in increments of $1,000. If the amount the investment will yield is less than the announced guaranteed Jackpot, the present value of the difference between the amount the investment will yield and the winner’s guaranteed prize amount over thirty (30) years will be paid to the winner in the first payment.

(f) If the number of winners of a Jackpot prize would result in each person’s prize being less than $1,000,000 if paid over thirty (30) years, the Lottery shall pay the Jackpot winner or winners in a single cash payment of their pro rata share of the amount required on the prize determination day to purchase securities the applicable Jackpot paid over thirty (30) years, less applicable withholding taxes.

(g) Federal income taxes shall be applied and withheld from the prize amount at the time payment is made, pursuant to applicable provisions of the Internal Revenue Code and Code of Federal Regulations.

(h) Any interest or earnings accrued on a FLORIDA LOTTO Jackpot prize prior to the prize payment, under either the Cash Option or the Annual Payment option, shall accrue to the State of Florida and not to the winner.

(11) FLORIDA LOTTO Rules and Prohibitions.

(a) By purchasing a FLORIDA LOTTO ticket, a player agrees to comply with and abide by all rules and regulations of the Florida Lottery.

(b) FLORIDA LOTTO prize payments shall be made in accordance with rules of the Florida Lottery governing payment of prizes. 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.

(c) Tickets shall not be purchased by or sold to persons under the age of eighteen (18).

(d) Subject to a retailer’s hours of operation and on-line system availability, FLORIDA LOTTO tickets are available for purchase daily between the hours of 6:00 a.m. and midnight Eastern Time (ET).

(e) The scheduled time for the Wednesday and Saturday FLORIDA LOTTO drawings is approximately 11:15 p.m., ET. Ticket sales for a specific FLORIDA LOTTO drawing will close at approximately 10:40 p.m., ET.

(f) Retailer cancellations of FLORIDA LOTTO tickets can only be performed by the retailer who sold the ticket, using the selling terminal’s optical mark reader, and within two (2) hours after printing, except that no FLORIDA LOTTO ticket shall be cancelled after game close for the related drawing. FLORIDA LOTTO tickets that produce cash prize coupons, entry vouchers or free FLORIDA LOTTO tickets in a promotion cannot be cancelled. The two (2) hour cancellation period may be reduced due to the selling retailer’s hours of business operation, the hours of on-line system availability, or the time of the related FLORIDA LOTTO close of game. Any ticket sold after the close of game will be printed with the next FLORIDA LOTTO draw date.

(g) It is the responsibility of the player to determine the accuracy of selected panels of numbers, wager amounts and draw date(s) on tickets. In the event that a ticket given to the player by the retailer contains selections that are not consistent with the player's selections, it shall be the responsibility of the player to immediately advise the retailer of that fact. In such event and upon request of the player within the time period specified herein, the retailer shall make a good faith effort to cancel the ticket. A retailer is not required to cancel a ticket produced upon request of the player by the “quick pick” method of number selection.

(12) This rule becomes effective January 7, 2009.

Specific Authority 24.105(9)(a), (b), (c), (d), (e), (f), (h), 24.109(1), 24.115(1) FS. Law Implemented 24.105 (9)(a), (b), (c), (d), (e), (f), (h), 24.115(1), 24.116(1), 24.117(2), 24.124(1) FS. History–New 1-7-09, Replaces 53ER08-12.

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 7, 2009