Delaware State Lottery Office
Order
Payment of Prizes, Powerball game, Rule 23
Pursuant to 29 Del.C. Section 10118, the Delaware State Lottery Office hereby issues this Order adopting proposed amendment to the Lottery’s Rule 23. Following notice as required by 29 Del.C. Section 10115, the Lottery Office makes the following findings and conclusions:
Summary of Evidence and Information Submitted
1. The Lottery Office posted public notices of proposed rule amendments in the August 1, 1999 Register of Regulations. A copy of the proposed rule amendment is attached to this Order as exhibit #1. The Lottery proposed amendment to Rule 23- Payment of Prizes. The proposed amendment would clarify the prize procedure for players in the Lottery’s Powerball game. The proposed amendment would essentially allow a player to choose between the annuity or cash option at the time he or she becomes a winner, not at the time of purchase. This rule change is consistent with rules now recommended by other state lotteries participating in the Multi-State Lottery which administers the Powerball game.
2. The Lottery Office received no written comments during the formal comment period in August, 1999.
Finding of Fact
3. The public was given notice and an opportunity to provide Lottery with comments in writing on the proposed amendment to the Lottery’s rules. The Lottery received no public comments. This may be due to the fact the proposed rule amendment benefits all Lottery players by extending the time period for when a Powerball player can choose between the annuity or cash option. The Lottery finds that the proposed Rule is necessary and desirable for the efficient and economical operation and administration of the Lottery’s games and will improve overall convenience of the game for purchasers of Powerball tickets. Therefore, pursuant to 29 Del.C. Section 4805(a), the Lottery adopts the proposed amendment to Rule 23 on the Payment of Prizes.
Conclusions
4. The proposed rule was promulgated by the Lottery Office in accord with its statutory duties and authority as set for in 29 Del.C. Section 4805. The Lottery deems this proposed rule amendment necessary for the effective operation of the Delaware Lottery and its games, as established under 29 Del.C., Chapter 48. A copy of the rule amendment to section 23 - Payment of Prizes, adopted by the Lottery, is attached as exhibit #1 and incorporated as part of this Order. The Lottery adopts this rule pursuant to 29 Del.C. Section 4805 and 29 Del.C., Section 10113.
5. This adopted rule replaces in their entirety the former version of the Lottery Rules and any amendments. The effective date of this Order shall be ten (10) days from the publication of this Order in the Register of Regulations on October 1, 1999.
IT IS SO ORDERED this 1st day of September, 1999.
Wayne Lemons, Lottery Director
(23) Payment of Prizes
(a) All prizes shall be paid within a reasonable time after they are awarded and after the claims are verified by the Director. For each prize requiring annual payments, all payments after the first payment shall be made on the anniversary date of the first payment in accordance with the type of prize awarded. The Director may, at any time, delay any payment in order to review a change of circumstances relative to the prize awarded, the payee, the claim, or any other matter that may have come to his attention. All delayed payments will be brought up to date immediately upon the Director’s confirmation and continue to be paid on each original anniversary date.
(b) For Grand Prizes in the Lottery’s Powerball game, those prizes shall be paid at the election of the player made no later than 60 days after the player becomes entitled to the prize with either a per winner annuity or cash payment. If the payment election is not made at the time of purchase and is not made by the player within 60 days after the player becomes entitled to the prize, then the prize shall be paid as an annuity prize. An election for an annuity payment made by a player before ticket purchase or by system default or design may be changed to a cash payment at the election of the player until the expiration of 60 days after the player becomes entitled to the prize. The election to take the cash payment may be made at the time of the prize claim or within 60 days after the player becomes entitled to the prize. An election made after the winner becomes entitled to the prize is final and cannot be revoked, withdrawn or otherwise changed. Shares of the Grand Prize shall be determined by dividing the cash available in the Grand Prize pool equally among all winners of the Grand Prize. Winner(s) who elected a cash payment shall be paid their share(s) in a single cash payment. The annuitized option prize shall be determined in accordance with the rules and procedures approved by the Multi-State Lottery Association, of which the Delaware Lottery is a participating member. Neither the Multi-State Lottery Association nor the member lotteries including the Delaware Lottery shall be responsible or liable for changes in the advertised or estimated annuity prize amount and the actual amount purchased after the prize payment method is actually known to the Multi-State Lottery Association. In certain instances announced by the Multi-State Lottery Association Product Group, the Grand Prize shall be a guaranteed amount and shall be determined pursuant to MUSL rules and procedures. If individual shares of the cash held to fund an annuity is less than $250,000, the MUSL Product Group, in its sole discretion, may elect to pay the winners their share of the cash held in the Grand Prize pool. All annuitized prizes shall be paid annually in twenty-five equal payments with the initial payment being made in cash, to be followed by twenty-four payments funded by the annuity.