This website publishes administrative rules on their effective dates, as designated by the adopting state agencies, colleges, and
universities.
| Rule |
Rule 3770-4-02 | Issuance of licenses, products and equipment.
Effective:
March 22, 2021
(A) Authorization of sales agent. Each
license issued to a sales agent authorizes that sales agent to conduct business
at the address on the face of the license. A sales agent is not to conduct
lottery sales at other locations unless authorized by the director. A separate
license is required for each location at which a sales agent is authorized to
sell games. Games cannot be sold at locations outside the state of
Ohio. (B) Licenses nontransferable. No license
will be transferred to another person or entity. If the ownership of a sales
agent location changes, any new owner wishing to conduct lottery sales should
apply to the director for a new license pursuant to the rules and regulations
set forth herein. (C) Change of sales agent's
location. If a sales agent moves from one location to another, games cannot be
sold at the new location until authorized to do so. The director may authorize
transfer of an existing sales agent's license to a new location, so long
as ownership does not change, and after considering all information concerning
the sales agent's new location, as required when making an initial
application for a license. (D) Temporary and renewal of licenses.
The director will establish procedures for temporary licenses and renewal of
licenses. Temporary licenses may be issued to existing sales agents in good
standing for the purpose of conducting lottery sales at a location or event
having an address not listed on the face of their license. Any temporary
license will expire on the expiration date shown on its face, which will not be
more than one year from the date of the temporary license is
issued. (E) Issuance of products and equipment.
The director may issue products and equipment to sales agents through assigned
sales representatives, courier or delivery services, or any other methods as
determined by the director.
Last updated April 8, 2021 at 12:08 PM
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Rule 3770-4-03 | Sale of lottery games.
Effective:
February 19, 2015
(A) Manner of sale. Games may be sold only by the sales agent or through the sales agent's employees. The sales agent must participate in the range of lottery games assigned to the sales agent, and agrees to use best efforts to sell those assigned lottery games. The director may prohibit sales agents from participating in or conducting any other schemes of chance or lottery games other than those games or promotions established by commission rule and provided for or encouraged by the director, or for which the sales agent is specially licensed by the state of Ohio. The director may prohibit sales agents from engaging in certain lottery promotions deemed by the director to be inappropriate. The director may set game sales quotas for each license. The director may initiate marketing and promotional programs and may provide sales agents with such materials as deemed appropriate. (B) Game and equipment allocations. The quantity and types of games and equipment allocated to each sales agent will be determined by the director and may be based upon the license issued to that sales agent. If a sales agent sells out the allocation, additional games, if available, may be issued to the sales agent as approved by the director or an authorized representative of the director. The director may order that lottery games and equipment not be issued to a sales agent who has failed to clear an account of outstanding lottery games. (C) Accessibility of lottery games. Each sales agent shall use best efforts to make lottery games easily accessible to the public and to encourage lottery sales. (D) Prohibitions. Each sales agent shall always serve any customer in line before accepting any large block orders for lottery games. In this regard, sales agents may not accept mail orders, phone orders or bulk delivery of orders.
Last updated May 6, 2024 at 9:50 AM
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Rule 3770-4-04 | Ticket issuance and sale by director.
Effective:
February 13, 2004
(A) Sales. The director or an authorized representative may sell games.
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Rule 3770-4-05 | Sales representatives.
Effective:
February 20, 2021
(A) Sales representative duties. Sales
representatives will periodically appear at their assigned retail locations at
a frequency determined by the director. Sales representatives are responsible
for delivery of paper products, point of purchase materials and any other items
designated by the director, as well as the occasional movement of tickets.
Sales representatives are also responsible for taking inventory of games and
completing an instant inventory summary at each retail location. They are
further responsible for retrieving unsold tickets, and for obtaining an
accounting for stolen or destroyed tickets in the manner prescribed by the
director. (B) Obligations of sales
representatives. Each sales representative will maintain records
of custodial and safekeeping activities in a manner prescribed by the director,
and will make the same available for inspection at any time at the request of
inspectors authorized by the director. (C) Detailed procedures. Consistent with
these rules, the director will establish detailed operating procedures for
sales representatives.
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Rule 3770-4-06 | Return and settlement of tickets and collection of lottery sales revenues.
Effective:
December 25, 2014
(A) Ticket settlement cycles. The sales agent is solely responsible for the safety and security of all tickets issued to the agent. The sales agent must account for such tickets and transfer the proceeds from their sale, less authorized deductions, to the lottery by means of procedures established by the director for the deposits of proceeds from game sales. Upon the closing of a game, unsold full books of lottery tickets, may be returned to the lottery for the purpose of settlement, on the dates and in the manner set out in these regulations or in the management regulations and directives of the director. Any tickets that are not returned or properly accounted for on the specified date will be deemed to have been sold by the sales agent. The director may decide not to issue subsequent books of tickets to a sales agent who has not fully accounted for tickets previously issued. (B) Management directives. The director will, in management regulations or directives, prescribe the forms for sales agents to use in all lottery transactions. (C) Consignment property. Lottery games are issued to a sales agent on a consignment basis and remain the property of the state of Ohio. All equipment and supplies provided to a sales agent by the lottery remain the property of the state of Ohio. (D) Director's authority to collect lottery sales revenues. (1) The director shall collect the revenues received from the sale of games by sales agents at intervals established by the director. The director shall designate a day or days during any interval time period on which sales agents shall be required to deposit to the credit of the lottery fund, in accounts which are recommended to be used exclusively for lottery-related transactions at lawfully designated banking institutions, all moneys due the lottery by such sales agents from the sale of games, less an amount retained as compensation for sale of such games. The director may further order that sales agents deduct the amounts they pay in authorized prize payments and any commissions or bonuses to which agents are entitled from the amounts received in gross game sales prior to their deposit in accounts. (2) The director may arrange for any banking institution to perform the functions and services necessary to collect the revenues received from the sales of lottery games by sales agents, and may arrange the compensation for such performance as deemed necessary and advisable. The director may also rely on the treasurer of state to perform this function. The director shall establish detailed record keeping and operating procedures to be followed by such banking institutions to carry out the purposes of the Lottery Act and lottery rules. (E) Penalties for non-transfer of funds. The director may impose penalties for the failure of a sales agent to transfer funds to the lottery in a timely manner. Penalties may include, but are not limited to; monetary penalties, modification of license, immediate suspension, or revocation. The director may adopt internal management regulations elaborating on any terms regarding the collection of sales revenues from the sales agents.
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Rule 3770-4-07 | Stolen and destroyed tickets.
Effective:
March 28, 2019
A sales agent is financially responsible for all
tickets consigned to that sales agent's location. If tickets are stolen or
destroyed, the sales agent shall report that fact to the director within the
time set forth in any internal management regulations established by the
director. In the case of stolen tickets, the sales agent is also required to
file a report with the local or state police, or in the case of tickets
destroyed by fire, a report must be filed with the local fire department. Upon
such notification to the director, and provided that the sales agent files a
notarized affidavit with the commission stating the facts of the case, the
director shall provide the sales agent with a supplementary delivery of tickets
in the manner set forth in these regulations or in internal management
regulations and directives of the director. The sales agent is subsequently
required to file any official police or fire report for stolen or destroyed
tickets with the director within the time set forth in any internal management
regulations established by the director. The sales agent shall not be required
to pay for the stolen or destroyed tickets until so notified by the director,
but shall remain liable to pay the sale price less any authorized deductions
for such tickets unless, upon investigation by the director, the director
determines and notifies the sales agent that the sales agent shall be relieved
of the obligation to pay for some or all of such tickets. The director may
adopt internal management regulations elaborating the stolen or destroyed
ticket policy, and the circumstances under which credit will be given, or under
which the sales agent will be relieved of the obligation to pay for stolen or
destroyed tickets.
Last updated April 15, 2024 at 1:20 PM
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Rule 3770-4-09 | Compensation and reimbursement of expenses to be paid licensed lottery sales agents.
Effective:
August 3, 2024
(A) Commission. Except as otherwise
provided in paragraph (B) of this rule, each sales agent will receive a
commission based upon the sales agent's gross game sales at the rate
specified by the director for each license. The director will establish
procedures for the prompt payment to each sales agent of their sales commission
and cashing bonus. In addition, the director may from time to time establish
incentive and bonus awards for sales agents for promotional purposes. Incentive
and bonus awards may include increased sales commissions, cash awards, trips,
merchandise or any other award at the discretion of the director. (B) For sales of all "EZPlay
Tap" games offered on the "Coronis Multi-Purpose Next
Generation" terminal, each sales agent will receive a commission based
upon net game sales. Net game sales as used herein means sales after deduction
of applicable vendor fees and winner pay outs at the rate specified by the
director. (C) Reimbursement of expense. The director will establish
procedures for the prompt reimbursement of all expenses properly incurred by a
sales agent as authorized by the director.
Last updated August 5, 2024 at 7:26 AM
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Rule 3770-4-10 | Records and audits.
Effective:
February 13, 2004
(A) The auditor of state and the director or an authorized representative may periodically examine all records, files and other documents of the sales agent as they pertain to the sales agent's activities for purposes of conducting authorized audits. Each sales agent shall maintain such records complete and up to date. (B) A sales agent shall allow inspections of the licensed premises at any time upon the request of inspectors authorized by the director. The inspection may be made without prior notice to the sales agent.
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