(2) Inquiries and applications regarding the commission may be addressed to the director of the Montana State Lottery, 2525 North Montana, Helena, MT 59601.

(3) The commission consists of five members appointed by the Governor. The commission is allocated to the Department of Administration for administrative purposes as prescribed by 2-15-121 , MCA.

(4) The director of the Montana lottery is appointed by the Governor. The assistant director for security is appointed by the lottery director. All other employees are hired by the lottery director. A chart of the organization of the lottery is attached as part of this rule and by this reference is incorporated.

(1) The commission adopts and incorporates by reference the following model rules, which may be found at http://sosmt.gov/:

(a) the Attorney General's model procedural rules ARM 1.3.201, 1.3.202, 1.3.211 through 1.3.224, and 1.3.226 through 1.3.233, including the appendix of sample forms in effect March 3, 2014. These rules provide model rules of practice for contested case hearings and declaratory rulings; and

(b) the Secretary of State's model rules ARM 1.3.101, 1.3.102, 1.3.301, 1.3.302, 1.3.304, 1.3.305, 1.3.307 through 1.3.309, and 1.3.311 through 1.3.313 in effect March 3, 2014. These rules define model requirements for rulemaking under the Montana Administrative Procedure Act.

(2) The commission adopts and incorporates the public meeting rule of the Department of Administration found in ARM 2.2.102. The rule describes the actions the commission must take to provide adequate notice of a public meeting and provides that meetings may be held electronically or may be recorded.

This rule has been repealed.

In addition to the definitions found in 23-7-103, MCA, the following definitions apply to this chapter:

(1) "Chain" means three or more places of business having the same owner.

(2) "License" means the document issued by the lottery which authorizes a sales agent to sell lottery tickets at a fixed place of business.

(3) "Lottery ticket" means all lottery tickets, including scratch tickets and terminal-issued tickets.

(4) "Place of business" means the premises where any Montana business is conducted and includes but is not limited to:

(a) retail businesses;

(b) businesses of religious, charitable, civic, or fraternal organizations;

(c) senior citizen centers; and

(d) businesses of the state or any of its political subdivisions.

(5) "Player" means a person who:

(a) has purchased a lottery game ticket, chance, wager, or bet; and

(b) is not restricted from purchase under 23-7-302, MCA.

(6) "Provisional license" means a license issued by the director which temporarily authorizes a licensee to conduct the sale of lottery tickets pending processing of the license application.

(7) "Scratch ticket" means a lottery ticket that has a removable coating covering symbols that determine the amount of prize a player can win. 

(8) Terminal-issued ticket" means a lottery ticket printed by a terminal connected to a computer.

(1) The lottery shall provide lottery tickets, promotional coupons, and sports wagering to the public whenever the director, with the commission's concurrence, finds it feasible and in the state's best interest.

(2) The director shall adopt working papers for each scratch game, including, but not limited to:

(a) game name;

(b) ticket design;

(c) number of tickets;

(d) book size;

(e) security specifications;

(f) prize structure; and

(g) shipping requirements.

(3) The director shall determine, with the commission's concurrence, the length of each lottery game or promotional coupon. The starting date and closing date of each game or coupon must be publicly announced.

(4) The director shall adopt parameters for all games, including, but not limited to:

(a) prize structures;

(b) validation requirements;

(c) drawing eligibility;

(d) claim periods;

(e) prize restrictions; and

(f) other game-specific requirements.

(5) Game and promotional coupon parameters are subject to the commission's concurrence.

(6) The commission shall adopt parameters for sports wagering games, including but not limited to:

(a) holding fixed odds wagering;

(b) bettor participation in wagering games;

(c) minimum and maximum wager limits;

(d) bet acceptance;

(e) bet cancellation;

(f) event results;

(g) winning bets;

(h) winnings payouts;

(i) maximum winnings;

(j) disputes and complaints; and

(k) sports and bet types.

(7) The director may conduct a grand prize event. The procedures for conducting preliminary drawings and for the grand prize event shall be determined by the director, subject to 23-7-102, MCA.

(1) Lottery tickets or chances may be sold at any place of business in Montana:

(a) that is licensed by the lottery;

(b) that is not engaged in business exclusively as a lottery ticket or chance sales agent;

(c) that is financially responsible;

(d) that is accessible to the public and meets ADA standards;

(e) whose owner has not been convicted of a felony or a gambling-related offense; and

(f) whose owner does not have a financial interest in any gaming supplier.

(2) Sports wagering may be offered at any place of business in Montana:

(a) that is licensed by the lottery;

(b) that is under the control of a person in possession of a gambling operator license as defined in 23-5-177, MCA;

(c) that is not engaged in a business exclusively as a sports wagering sales agent;

(d) that is financially responsible;

(e) that is accessible to the public and meets ADA standards;

(f) whose owner has not been convicted of a felony or gambling-related offense;

(g) whose owner does not have a financial interest in any gaming supplier; and

(h) whose owner is not a person prohibited from receiving a license pursuant to 23-7-301, MCA.

(1) Each person applying for a license must either:

(a) file an application for registration of assumed business name with the Montana Secretary of State's office if 30-13-203, MCA, is applicable; or

(b) if a corporation, be licensed to do business in Montana; or

(c) if a foreign corporation, obtain a certificate of authority to transact business in the state from the Montana Secretary of State's office.

(1) A person interested in obtaining a license as a sales agent shall:

(a) complete an application and pay the required licensing fee;

(b) file an application for a license using the application forms on montanalottery.com; and

(c) indicate license type:

(i) lottery only; or

(ii) sports wagering only.

(2) There is a one-time non-refundable $50 application fee for a license.

(3) The application must provide sufficient information for the director to determine the eligibility for a license as set forth in 23-7-301, MCA, and these rules and for the director for security to perform sufficient background checks to ensure that applicants and licensees conform to the law and rules.

(1) Each licensed sales agent and any employee of the sales agent involved in the sale, bookkeeping, or any other aspect of the lottery and sports wagering shall:

(a) read and understand the laws and commission rules concerning lottery and sports wager licenses; and

(b) sign all official application forms indicating that the sales agent is familiar with the laws and commission rules and agrees not to violate these laws or rules.

(1) An applicant shall, before being licensed, authorize the debiting and crediting of an account in the applicant's name for the purpose of electronic funds transfer to or from the state's collection account, as provided in ARM 2.63.801. 

(2) The sales agent shall execute all forms required by the lottery director, the sales agent's bank, or the initiating bank.

(3) The lottery shall provide to the sales agent the means to track sales, cashing, adjustment, and invoicing activity for bookkeeping purposes.

(1) The director may require a surety bond from the owner or corporation making the application to the lottery to become a lottery sales agent. The bond amount is determined by:

(a) if the location was previously licensed, the sales total for the six months prior to closing;

(b) for a new location, the sales of a similarly sized sales agent in a community of approximately the same population for the six months before the application date.

(2) The sales agent shall maintain the bond for two years.

(1) Sales agents who sell scratch or terminal-issued tickets are entitled to a 5 percent base commission of the face value of tickets sold. 

(2) Sales agents who sell scratch tickets may increase the scratch ticket commission up to an additional 5 percent.

(a) Each sales agent is assigned a scratch ticket sales base. The scratch ticket sales base is determined using the prior fiscal year's average scratch ticket pack activations minus pack returns.

(b) For each sales quarter, the sales agent's scratch tickets are measured against the assigned base by scratch tickets activated and not returned to the lottery.

(c) For each 2 percent increase in sales agent's sales over the established base sales during the sales quarter, the sales agent's commission must be increased by an additional 0.5 percent, not to exceed a 10 percent total commission for any quarter.

(3) Sales agents who sell terminal-issued tickets designated in lottery policy may increase the terminal-issued commission for participating games up to an additional 5 percent.

(a) Each sales agent is assigned a terminal-issued ticket sales base for participating games. The terminal-issued ticket quarterly sales base is determined by a sales agent's previous year's sales performance. Sales agents with quarterly revenue greater than $1,000 are eligible for this bonus program.

(b) For each sales quarter, the sales agent's terminal-issued tickets are measured against the assigned base by gross sales for participating games.

(c) Sales agents who achieve the minimum sales quarter growth requirement must receive an additional bonus rate commission for participating terminal-issued games, not to exceed a 10 percent total commission for any quarter.

(4) Sales agent ticket sales bases, minimum requirements, and bonus rates may be adjusted annually at the discretion of the commission.

(5) Annually, the director's staff shall review the plan for providing additional commissions to sales agents based on incremental sales and report to the commission. This review will include a recommendation for maintaining the existing plan or modifying the plan for the next year.

(6) The sales agent commission for sports wagers will be set by the State Lottery and Sports Wagering Commission. Prior to changing the sales agent base commission rate for sports wagers, the State Lottery and Sports Wagering Commission shall:

(a) provide notice of the proposed change and opportunity for public comment;

(b) consider the impact of the proposed change on sales agents, the state, and other parties involved in the operation of sports wagering; and

(c) ensure the proposed change is equitable and does not disproportionally impact or burden sales agents, the state, and other parties involved in the operation of sports wagering.

This rule has been repealed.

This rule has been repealed.

(1) Each sales agent shall ensure all persons purchasing or cashing lottery products are 18 years of age or older.

(2) All persons selling lottery products must be 18 years of age or older.

(3) The lottery shall verify the age of all persons establishing a sports wagering account to ensure they are 18 years of age or older by:

(a) physical verification of a government-issued identification as described in ARM 2.63.1201(1); or

(b) electronic verification of information provided by the player.

This rule has been repealed.

This rule has been repealed.

(1) Each sales agent shall prominently display the license in each licensed place of business in an area visible to the general public and in a manner that prevents theft or defacement of the license.

(2) Each sales agent shall post a notice that persons must be 18 years of age to play.

(3) A sales agent operating a sports wagering facility shall also post information from the lottery including:

(a) sports wagering game conditions that are available through the official website;

(b) responsible gambling resources approved by the director that are dedicated to helping persons with potential gambling problems; and

(c) information governing self-imposed responsible gaming limits and the ability for the player to establish those limits.

(1) A license may be issued only for the location specified in the application.

(2) Each person shall submit a separate application for each location at which the person intends to sell lottery tickets or offer sports wagering.

(3) Each location for which an application is submitted must be a fixed location.

(4) The address of the licensed premises must appear on the license.

This rule has been repealed.

(1) Upon the loss, mutilation, or destruction of any license issued by the director, the sales agent shall submit a written request to replace the license to the director.

(2) The request for a duplicate license must be accompanied by a statement signed under oath or penalty of perjury stating the details of the circumstances under which the license was lost, mutilated, or destroyed, and bearing a certification that the license was, in fact, lost, mutilated, or destroyed.

(3) The request for a duplicate license must be accompanied by a nonrefundable fee of $25.

(4) The existing pieces of any mutilated or partially destroyed license shall be surrendered to the director at the time a request for a duplicate license is made.

(5) If a licensee finds a lost license after a duplicate has been issued, the licensee shall immediately surrender such license to the director.

(1) A licensee shall notify the director of any of the following changes in the licensed business: 

(a) any change of business structure;

(b) material change of ownership;

(c) voluntary or involuntary business closure;

(d) changes in the officers;

(e) changes in the board of directors;

(f) change of business address; and

(g) any change of bank account information.

(2) Pursuant to the licensee's contract, a licensee shall notify the director of any change, move, or removal of lottery terminal, equipment, and/or peripherals.

This rule has been repealed.

(1) The change of a business address for any licensee is not considered to be the assignment or transfer of the license if all of the following criteria are met:

(a) the licensee informs the director in writing of the change of address including the old address, the new address, and the reasons for the change of address;

(b) the old location ceases all business activity by the licensee and not merely the sale of tickets, chances, wagers, or bets;

(c) the new license location does not begin the transaction of any business prior to the cessation of all business at the previous location;

(d) the director is satisfied that the change in location meets all the requirements for initial licensure.

(2) If all the criteria in (1) are met, the director shall issue a license bearing the new address, with the same identification number.

This rule has been repealed.

(1) After notice, the director has the authority to provisionally suspend the license and, after a hearing before the commission, permanently revoke the license and endorsement of any person who has:

(a) knowingly provided false or misleading information to the lottery or any other agency conducting an investigation on behalf of the lottery;

(b) been convicted of a felony;

(c) endangered the security of the lottery;

(d) sold any ticket, chance, wager, or bet at a higher price than that set by commission rule;

(e) intentionally or knowingly initiated or accepted an offer of compensation from another person, or agreed to aid another person or persons, to claim all or a share of a lottery prize or sports wager winnings by means of fraud, deceit, or misrepresentation;

(f) intentionally preprinted multiple terminal-issued draw game or raffle tickets with the objective of gaining an advantage over other lottery sales locations while benefiting financially, either directly or indirectly, from sale of those tickets;

(g) intentionally amassed packs of scratch tickets or taken other intentional actions to gain an advantage over other lottery sales locations while benefiting financially, either directly or indirectly, from sale of those tickets; or

(h) tampered with any equipment used for lottery or sports wagering.

(2) The director may provisionally suspend the license and, after a hearing before the commission, permanently suspend or revoke a license and/or endorsement for any of the following reasons:

(a) a change of business location;

(b) an insufficient sales volume;

(c) a delinquency in remitting money owed to the lottery;

(d) a violation of any rule adopted by the commission;

(e) knowingly selling to or cashing a lottery or sports wager ticket for a person under the age of 18 years;

(f) allowing an employee under the age of 18 to sell or cash lottery or sports wager tickets;

(g) failing to redeem lottery prize or sports wager winnings as directed by the lottery;

(h) refusing to acquire or display any materials required by the director; or

(i) the sales agent is ineligible for a license and the facts giving rise to such ineligibility occurred or were discovered subsequent to the issuance of a license.

(3) Upon notice of revocation or suspension, the suspended sales agent shall give a final accounting to the lottery and surrender the license, equipment, paper, and tickets to the lottery. The sales agent is liable for all money still owed the lottery.

(4) In circumstances where the suspended sales agent owns or is a partner in multiple locations, the restriction, suspension, or termination of one location associated with the suspended sales agent is grounds for restriction, suspension, or termination of all locations.

(1) The director may issue a special temporary license to a licensed lottery-only sales agent upon conditions considered necessary including, but not limited to:

(a) license period;

(b) days and hours of sale;

(c) location of special sale;

(d) specific business licensed;

(e) specific sporting, charitable, social, or other event where lottery tickets may be sold under the temporary license.

(2) No temporary licenses will be issued for sports wagering.

This rule has been repealed.

(1) As a condition of licensing, a sales agent shall agree to participate in the lottery's electronic funds transfer system.

(2) The director may determine the schedule for debiting (sweeping) the sales agent's account, subject to concurrence of the commission. The director may allow deviation from the schedule for the first game and in other special circumstances.

(3) The sales agent shall bring any accounting error, bank account change, or dispute to the attention of the lottery before the next scheduled sweep.

(4) A sales agent must pay the amount of any nonsufficient fund sweep immediately by certified check, cashier's check, or money order. If the debt is not paid, the sales agent shall immediately surrender all tickets, equipment, paper, and other lottery material and is subject to license revocation proceedings.

(5) Two or more sweeps that result in nonsufficient funds are cause for license suspension or revocation.

This rule has been repealed.

(1) The price of a lottery ticket is determined by the lottery commission. A sales agent may not sell a lottery ticket for more than the price printed on the ticket. A sales agent may give away tickets.

This rule has been repealed.

(1) The sales agent is responsible for all lottery tickets after acceptance and bears the burden of any loss, including theft or damage.

(1) Sales agents shall immediately report the theft, loss, or damage of any tickets, paper, or equipment to the director and local law enforcement authorities. 

(2) Sales agents shall contact the lottery to report any suspicious activity that could affect the integrity of the lottery, including but not limited to:

(a) an offer of compensation from another person to claim a lottery prize or wager winnings;

(b) any attempt to influence winning a prize through the use of coercion, fraud, deception, or tampering with equipment and materials; or

(c) persons seeking technical information regarding the operation of lottery equipment.

(3) The sales agent and any employee shall cooperate in any investigation conducted by the lottery, the attorney general, legislative auditor, or local law enforcement authorities.

(4) The lottery shall monitor and review transaction activity to ensure system integrity and for potential criminal violations.

This rule has been repealed.

(1) Winning lottery and sports wager tickets will be redeemed:

(a) by any sales agent for lottery and sports wager tickets less than $600; or

(b) if the lottery ticket or sports wager ticket value is $600 or more, by presenting the ticket, a claim form, and valid, unexpired photo identification to the lottery, either by mail or in person. Play slip or sales receipt may not be used to claim a prize. Acceptable types of identification include an original or copy of:

(i) driver license;

(ii) government-issued identification card;

(iii) military identification card;

(iv) passport;

(v) permanent resident card;

(vi) Department of Veterans Affairs medical benefits card; and

(vii) tribal government-issued identification card.

(2) In lieu of the methods described in (1), a winning sports wager ticket may be redeemed to the player's account when the sports wager is managed through the player's account.

(3) A winning lottery or sports wager ticket may be redeemed only by an organization with a federal employer's identification number or by an individual.

(4) The claimant's city of residence and amount of prize is public information. The lottery may use a claimant's name and photograph for publicity and advertising purposes only upon written authorization by the claimant.

(5) Unless otherwise provided in the parameters for a specific game, a claimant shall sign the back of a winning lottery or sports wager ticket.

(6) The lottery may deny a claim for a winning lottery or sports wager ticket if the ticket:

(a) was not legally issued;

(b) was stolen;

(c) is altered, forged, or so mutilated that its authenticity cannot reasonably be determined.

(7) By submitting the claim, the claimant discharges the lottery of all further liability upon payment of the prize claimed.

(8) A lottery or sports wager ticket is a bearer instrument until signed. The person who signs the lottery or sports wager ticket is the bearer of the ticket. Payment of any prize may be made to the bearer, and all liability of the lottery terminates upon such payment.

(9) Upon validation of a winning claim, a check, electronic transfer, or warrant for the amount of the prize shall be issued to the claimant, less any applicable state or federal income tax withholding.

(10) A lottery or sports wager ticket not passing all validation checks is invalid and no prize may be paid on such ticket.

(11) The director's decision concerning validation and payment of any prize is final and binding.

(12) Prizes over $100,000 may be paid in equal yearly installments without interest over a period of not more than 20 years, as determined by the director. No installment may be less than $20,000.

(13) If the commission enters into an agreement to participate in a game for prizes over $100,000 that requires payment periods of more than 20 years or yearly installment payments of less than $20,000 as a condition of participation, the commission may adopt the installment payment amounts and time periods necessary to comply with the conditions of the game.

(14) All prizes payable at the death of a winner shall be paid to a designated beneficiary, the estate of the deceased, or to a person designated by judicial order.

(15) An owner or employee of a licensed lottery sales agent shall identify themselves as such to lottery officials when claiming a prize at the lottery office or through the claim mail process. This information must be recorded on the claim form maintained by the lottery as part of the prize file.

(1) Sales agents are responsible for the security of all winning lottery tickets and sports wagers they redeem. Sales agents will bear the burden of any loss incurred as a result of:

(a) multiple redemptions of winning lottery and sports wager tickets;

(b) nonwinning lottery and sports wager tickets redeemed in error as winning lottery and sports wager tickets; or

(c) failure to redeem winning lottery and sports wager tickets in the manner determined by the director.

(1) Only players who have established a sports wagering account as defined in 23-7-103, MCA, may engage in mobile sports wagering.

(2) The lottery may accept wagers at a sports wagering facility through a sports wagering terminal without the player establishing a sports wagering account.

(3) The lottery shall record and maintain the information submitted to initially create a sports wagering account.

(4) Before establishing a sports wagering account, the lottery shall:

(a) verify the player's identity by physical or electronic means;

(b) verify the player is 18 years of age or older by physical or electronic means as provided in ARM 2.63.410;

(c) verify the player is not self-excluded from participating in sports wagering by participation in the self-exclusion program as provided in ARM 2.63.1304;

(d) verify the player is not prohibited from sports wagering by 23-7-302(4), MCA, or otherwise prohibited from participating in sports wagering;

(e) record the document number of the government-issued identification credentials examined, or other methodology for remote, multi-sourced authentication, which may include third-party and governmental databases, as approved by the director; and

(f) record the player's:

(i) acceptance of the terms and conditions and privacy policy; and

(ii) acknowledgment that the information provided is accurate and that the player is prohibited from allowing any other person to access or use their sports wagering account.

(5) Unauthorized access to, or use of, a player's sports wagering account by a person other than the player for whom the sports wagering account was established is prohibited.

(6) A player is allowed only one sports wagering account.

(7) A sports wagering account may be funded using methods described in ARM 2.63.409.

(8) The lottery shall suspend a sports wagering account if a preponderance of evidence indicates:

(a) the account has not been used to make any wagers for a consecutive 18-month period;

(b) illegal activity;

(c) a negative account balance;

(d) fraudulent or multiple failed automated clearing house (ACH) deposit attempts; however, a failed ACH deposit attempt may not be considered fraudulent if the player has successfully deposited funds via an ACH transfer on a previous occasion with no outstanding chargebacks;

(e) the account was issued in error or in violation of statute or rule; or

(f) a violation of the terms and conditions of the sports wagering account that are posted on montanalottery.com and the mobile application.

(9) When a sports wagering account is suspended, the player may not:

(a) wager;

(b) deposit funds;

(c) withdraw funds, unless the reason for the suspension would not prohibit a withdrawal;

(d) change their sports wagering account; or

(e) remove the sports wagering account from the system.

(10) A suspended sports wagering account may be restored:

(a) upon expiration of the time period established by the player as indicated in the self-exclusion program provided for in ARM 2.63.1304;

(b) upon the lottery's permission; or

(c) when the player is no longer a prohibited sports wagering participant.

(11) Funds may be withdrawn from a sports wagering account for:

(a) wagers;

(b) check or wire transfer by the lottery made payable to the player and issued directly or delivered to the player's address on file;

(c) credits to the player's debit card;

(d) a transaction using sports wagering equipment; or

(e) any other means approved by the lottery.

(12) Sports wagering account funds may not be withdrawn unless all conditions are met, including:

(a) successful resolution of player dispute or investigation;

(b) the ACH funding transaction clears or the chargeback period ends; and

(c) the funding of lottery-provided promotional rewards clears.

(13) A player may not transfer funds or rewards between or among sports wagering accounts.

(14) The lottery shall suspend and close a sports wagering account if the account has not been used to make any wagers for a consecutive 18-month period. In such circumstances:

(a) funds within the suspended sports wagering account to be closed are no longer accessible by the player;

(b) funds in the account must be returned to the player; and

(c) the player may only create a new sports wagering account after the suspended account is closed by the lottery.

(1) The voluntary self-exclusion program allows persons who wish to refrain from sports wagering to notify the lottery that they accept responsibility for refraining from sports wagering offered by the lottery. Each person seeking placement in the voluntary self-exclusion program acknowledges the responsibility to refrain from engaging in sports wagering.

(2) A person may request placement in the voluntary self-exclusion program by completing the application and following the procedure outlined at montanalottery.com.

(3) A program participant may not create a sports wagering account and may not collect any winnings or recover any losses resulting from any sports wagers under the lottery's control.

(4) The program participant must forfeit all rewards or points earned through any player reward or other promotional programs offered by the lottery.

(5) A person who has self-excluded may request removal from the self-exclusion program by following the procedure outlined at montanalottery.com.

(1) The lottery shall provide players choices in their sports wagering account to select responsible gaming options, including self-limiting options such as:

(a) a deposit limit offered on a daily, weekly, and monthly basis that specifies the maximum amount of money a player may deposit into their sports wagering account during a particular period of time;

(b) a spending limit offered on a daily, weekly, and monthly basis that specifies the maximum amount of player funds that may be put at risk during a particular period of time; and

(c) a time-based limit, offered daily that specifies the maximum amount of time, measured hourly from the player's log-in to log-off, a player may spend playing on a sports wagering system.

(2) Information about player protection and responsible gaming is available at montanalottery.com.

(3) Players' personally identifiable information is protected in accordance with the privacy policy located at montanalottery.com.

(4) Self-exclusion is allowed as described in ARM 2.63.1304.

(5) As described in ARM 2.63.410, the lottery shall reasonably ensure a player under the age of 18 is prohibited from participating in sports wagering by verifying the age of each person who obtains a sports wagering account and by informing licensees of their responsibility to verify the legal age of persons placing a sports wager.