EXTERNAL POLICY AND PROCEDURES NEW MEXICO LOTTERY AUTHORITY RULES FOR ONLINE TITLE: GAMES AUTHOR: EXECUTIVE EXECUTIVE STAFF: Karla Wilkinson DATE: June 8, 2016 CEO: David M. Barden DATE: June 8, 2016 BOARD CHAIR: Dan Salzwedel DATE: June 8, 2016 EFFECTIVE DATE: JULY 14, 2000 ORIGINAL: 22 REVISION: X # REVISION DATE: JUNE 8, 2016 Page 1 of 27 NEW MEXICO LOTTERY AUTHORITY RULES FOR ONLINE GAMES NEW MEXICO LOTTERY AUTHORITY This New Mexico Lottery Authority Rules for Online Games approved and adopted by the New Mexico Lottery Authority Board of Directors on the 8h day of June 2016. _Dan Salzwedel___________ s/Dan Salzwedel, Board Chair (SEAL) Page 2 of 27 Table of Contents NEW MEXICO LOTTERY AUTHORITY RULES FOR ONLINE GAMES .................................... 4 Purpose ..................................................................................................................................... 4 General Use and Applicability .................................................................................................... 4 Definitions .................................................................................................................................. 4 Policy ......................................................................................................................................... 7 1) Sale of On-Line Game Tickets ...................................................................................... 7 2) Game Description ......................................................................................................... 7 3) Method of Playing an On-line Game ............................................................................. 8 4) Determination of Prize Winner ...................................................................................... 8 5) Ticket Validation ........................................................................................................... 8 6) Ticket Responsibility ..................................................................................................... 9 7) Prize Payment ............................................................................................................ 10 8) Game Termination and Prize Claim Period ................................................................. 11 9) Applicable Law............................................................................................................ 11 10) Purchase and Prize Restrictions ................................................................................. 11 11) Taxes and Debt Setoffs .............................................................................................. 11 12) Printed Play Slip ......................................................................................................... 11 13) Drawings ..................................................................................................................... 12 14) Dissemination of Winning Numbers Information .......................................................... 12 15) Release of Information About Winners ........................................................................ 13 16) Promotional Prize Expense Exception ........................................................................ 13 17) Order of Precedence................................................................................................... 13 18) Rules .......................................................................................................................... 13 19) Roadrunner Cash Game Description .......................................................................... 14 20) Powerball Game Description ....................................................................................... 16 21) Pick 3 Game Description ............................................................................................ 19 22) Hot Lotto Game Description ........................................................................................ 21 23) NMLA Raffle Game Description .................................................................................. 24 24) Mega Million Game Description .................................................................................. 25 25) MONOPOLY® Millionaires’ Club .................................................................................. 27 Page 3 of 27 NEW MEXICO LOTTERY AUTHORITY New Mexico Lottery Authority Rules for Online Games Author: Executive Issued on: July 14, 2000 O – 109 Revised on: January 11, 2001, March 14, 2002, September 26, 2002, August 21, 2003, February 26, 2004, August 28, 2004, May 26, 2005, August 17, 2006, July 26, 2007, January 22, 2009, September 24, 2009, December 03, 2009, August 31, 2011, February 07, 2013, July 11, 2013, November 05, 2013, March 4, 2014, September 23, 2014, April 9,2015, Approved by: NMLA Board October 26, 2015 and June 8, 2106. Revision No: 22 NEW MEXICO LOTTERY AUTHORITY RULES FOR ONLINE GAMES Purpose These rules are the guidelines and regulations, for the New Mexico Lottery Authority Online Games. General Use and Applicability These rules are applicable to New Mexico Lottery staff, retailers, vendors, and players. Definitions “New Mexico Lottery Act”, “Lottery Act”, or “the Act” means the New Mexico Lottery Act, N.M.S.A., 1978, Sections 6-24-1 through 6-24-34, as the same may be amended from time to time. “New Mexico Lottery Authority”, “New Mexico Lottery”, “NMLA”, “Lottery”, or “Authority” means the New Mexico Lottery Authority, a public body, politic and corporate, separate and apart from the State of New Mexico, constituting a governmental instrumentality, established and operated pursuant to the New Mexico Act. 1) “Advance play” means a ticket purchased in advance for future drawings that can be selected by the specific day of the week chosen within seven (7) days of the purchase of the ticket. 2) “Board” or “NMLA Board” means the New Mexico Lottery Authority board of directors as appointed pursuant to the New Mexico Lottery Act. 3) “Central system” means the central computer system used to control and monitor the online gaming environment to which the terminals are connected by a communication medium authorized by the NMLA. 4) “Claim form” means the official form of the NMLA, supplied by the NMLA Claims Center and submitted by the player, to claim a prize exceeding six hundred dollars ($600.) This form is available at any NMLA Retailer, at NMLA Headquarters, and on the New Mexico Lottery website. 5) "CEO" shall mean the Chief Executive Officer of the Lottery appointed by the Board pursuant to the New Mexico Lottery Act. 6) “Draw break” means the period of time between the close of game ticket sales prior to a drawing and the resumption of game ticket sales for the next drawing. Page 4 of 27 NEW MEXICO LOTTERY AUTHORITY New Mexico Lottery Authority Rules for Online Games Author: Executive Issued on: July 14, 2000 O – 109 Revised on: January 11, 2001, March 14, 2002, September 26, 2002, August 21, 2003, February 26, 2004, August 28, 2004, May 26, 2005, August 17, 2006, July 26, 2007, January 22, 2009, September 24, 2009, December 03, 2009, August 31, 2011, February 07, 2013, July 11, 2013, November 05, 2013, March 4, 2014, September 23, 2014, April 9,2015, Approved by: NMLA Board October 26, 2015 and June 8, 2106. Revision No: 22 7) "Drawing" means the formal process of randomly selecting winning numbers in accordance with MUSL Group Drawing Procedures and the New Mexico Lottery On- line Games Drawing Procedures Manual. 8) “Exchange ticket” means a new ticket that is produced when cashing a winning prize on a multi-draw ticket in which there are any remaining plays on the ticket for future drawings. 9) "Game board" or "board" means that area of the play slip, also known as a “panel” that contains the numbered squares to be marked by the player. Each set of numbers on the play slip, marked by a letter, is considered a separate board. 10) “Game play”, "play" or "bet" means the numbers that appear on a ticket produced by the terminal, as a single lettered selection and are to be played by a player in the game. 11) "Game ticket" or "ticket" means a ticket produced by a terminal that meets the specifications defined in Rule F - Ticket Validation. 12) “Internal Auditor” means the internal auditor employed by the Lottery pursuant to the Lottery Act. 13) “Licensee Lottery” shall mean a state lottery or lottery of a government unit, 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. 14) “Multi-draw” means a ticket for the current drawing plus a specified number of subsequent drawings. The number of future drawings available is determined at the sole discretion of the Lottery. Note: When presenting a ticket for validation, an “exchange ticket” will be issued if there are any remaining plays on the ticket for future drawings. 15) “MUSL” means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the Party Lotteries. 16) “New Mexico Lottery Authority”, “New Mexico Lottery” “NMLA” or “Lottery” means the New Mexico Lottery Authority, a public body, politic and corporate, separate and apart from the state, constituting a governmental instrumentality, established and operated pursuant to the New Mexico Lottery Act. 17) “New Mexico Lottery Act” or “Lottery