EXTERNAL POLICY AND PROCEDURES

Transcription

1 EXTERNAL POLICY AND PROCEDURES TITLE: NEW MEXICO LOTTERY AUTHORITY RULES FOR ONLINE GAMES AUTHOR: EXECUTIVE EXECUTIVE STAFF: Karla Wilkinson DATE: June 6, 2018 CEO: David Barden DATE: June 6, 2018 BOARD CHAIR: Dan Salzwedel DATE: June 6, 2018 EFFECTIVE DATE: JULY 14, 2000 ORIGINAL: REVISION: X # 24 REVISION DATE: JUNE 6, 2018

2 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 9 th day of April 2015, updated for changes made in the MUSL Powerball Group Rules on May 7, _Dan Salzwedel s/dan Salzwedel, Board Chair (SEAL)

3 Table of Contents NEW MEXICO LOTTERY AUTHORITY RULES FOR ONLINE GAMES... 4 Purpose... 4 General Use and Applicability... 4 Definitions... 4 Policy ) Sale of On-Line Game Tickets ) Game Description ) Method of Playing an On-line game ) Determination of Prize Winner ) Ticket Validation ) Ticket Responsibility ) Prize Payment ) Game Termination and Prize Claim Period ) Applicable Law ) Purchase and Prize Restrictions ) Taxes and Debt Setoffs ) Printed Play Slip ) Drawings ) Dissemination of Winning Numbers Information ) Release of Information About Winners ) Promotional Prize Expense Exception ) Order of Precedence ) Rules ) Roadrunner Cash Game Description ) Powerball Game Description ) Pick 3 Game Description ) NMLA Raffle Game Description ) Mega Million Game Description ) Lotto America ) Pick

4 NEW MEXICO LOTTERY AUTHORITY New Mexico Lottery Authority Rules for Online Games Author: Executive Issued on: July 14, 2000 O 109 Approved by: NMLA Board 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, October 26, 2015, June 8, 2016, May 15, 2018 and June 6, Revision No: 24 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 through , 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. New Mexico Lottery Authority Rules for Online Games Page 4 of 21

5 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. 7) "Drawing" means the formal process of randomly selecting winning numbers in accordance with MUSL Group Drawing Procedures and the New Mexico Lottery Online 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 Act or the Act means the New Mexico Lottery Act, N.M.S.A., 1978, Sections through , as the same may be amended from time to time. 18) "On-line lottery game" means a lottery game that is connected to a central computer via a communications system through which a player selects a specified group of numbers or symbols out of a predetermined range of numbers or symbols and purchases a ticket bearing the player-selected or computer-generated numbers or symbols for eligibility in a drawing regularly scheduled in accordance with game rules. 19) On-line system" means the central system and the terminals connected to the central system through a communication medium approved by the NMLA (i.e. satellite, radio, telecommunication line, etc.) 20) Party Lottery or Member Lottery means a state lottery or lottery of a political subdivision or entity that has joined the MUSL and, in the context of these Product Group Rules that has joined in selling the games offered by the MUSL Powerball Product Group, the Hot Lotto Product Group of the MUSL Mega Millions Product Group. New Mexico Lottery Authority Rules for Online Games Page 5 of 21

6 Policy 21) Parties and individually Party means the Party Lottery above and the Multi-State Lottery Association MUSL, previously established for the Powerball Group. 22) "Play slip" or "bet slip" means a card approved by the NMLA used in marking a player's game plays and containing one or more boards. 23) Prize expense or game prize expense means the percentage of sales expected to be paid out as prizes by game design. 24) Prize fund means the amount of money available from each game s ticket sales from which the Lottery pays that game s prizes. 25) Prize pool means the prize expense recognized on an individual drawing and any amounts of previous prize expense not won and carried forward by game design. 26) Product Group means a group of lotteries that have joined together to offer a common product pursuant to the terms of the Multi-State Lottery Agreement and the Product Group s own rules. 27) Quick Pick means the random selection of numbers by the on-line system which appears on a ticket and are played by a player in the game. 28) Raffle means a number-match game with a limited number of tickets available that will be sold within a limited sales period with set prizes that can be won. 29) "Retailer" means a person or legal entity authorized by the New Mexico Lottery to sell lottery tickets. 30) "Set prize" means a prize that is advertised to be paid by a single cash payment and, except in instances outlined in these rules, will be equal to the prize amount established by the NMLA Board and/or MUSL for the prize level. 31) (Lottery)"Terminal" means a device authorized by the NMLA to function in an on-line, interactive mode with the central system for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including the purchasing of tickets, the validation of tickets and the transmission of reports. 32) Ticketless Transaction shall include plays sold through subscription, internet or nonstandard terminals. (See Terms and Conditions for Online Game Purchases) 33) Ticket Validation is the process retailers use to determine if a game ticket is a winner. To validate a game ticket, retailers must scan the bar code containing a multi-digit serial number on the front of each ticket using the (Lottery) terminal. 34) Ticket Validation Code is a unique multi-digit serial number that is assigned to each ticket printed using the (lottery) terminal. 35) Unclaimed prizes means winning plays or tickets that have not been claimed within the 90 calendar days allowed for the claiming of prizes. Unclaimed prizes are forfeited and shall be paid into the Lottery s prize fund pursuant to section (c) (4) of the New Mexico Lottery Act. 36) "Winning numbers" means the numbers randomly selected at each drawing, which shall be used to determine winning plays contained on a game ticket produced by a Lottery terminal for that drawing. 37) Winning Play or winning ticket means a ticket produced in advance by the terminal for a specific drawing which contains at least the minimum requisite number of matches to the winning numbers drawn for the corresponding drawing. 1) Sale of On-Line Game Tickets a) Only Retailers who have entered into a Retailer contract with the NMLA, and have been approved by the NMLA, at the NMLA s sole discretion, for the sale of on-line games, and the NMLA Claim Center are authorized to sell on-line game tickets. On- New Mexico Lottery Authority Rules for Online Games Page 6 of 21

7 line game tickets may only be sold at the Retailer business location(s) listed in the Retailer Certificate for which the NMLA has authorized the sale of tickets for on-line games unless authorized by the Lottery to sell at a remote site. Or is a properly and validly registered ticketless transaction play. b) Each on-line game ticket shall sell for the retail sales price authorized by the CEO and stated in the individual Game Rules and Procedures or as authorized by the CEO for promotional purposes. c) Retailers shall sell lottery tickets for any and all on-line games, as directed by the NMLA. d) A ticket may be voided or canceled only for those games designated by the NMLA. No ticket that can be used to claim a prize shall be returned to the Lottery for credit. If a player makes a selection on a play slip that is incorrect, the player may void that board s selection prior to its insertion into the terminal, by marking the VOID box at the bottom of the board on the play slip. 2) Game Description The Game Description for each on-line game shall be included as part of these rules and shall contain the following information: a) Game name; b) Prize structure; c) Play style; d) Days of drawings; e) Retail sales price. 3) Method of Playing an On-line game a) The CEO or designee, subject to final approval by the CEO, shall determine the method of play for each game, including but not limited to the requisite digits, numbers or symbols for each game. b) Plays may be entered manually using the lottery terminal keypad or by means of a play slip provided by the NMLA and hand-marked by the player or by such other means approved by the NMLA. Retailers shall not permit the use of facsimiles or copies of play slips, or other materials that are inserted into the terminals play slip reader that are not printed or approved by the NMLA nor shall they permit the use of any play slips that are not hand marked by the player. Retailers shall not permit any device to be connected to a lottery terminal to enter plays or for any other purpose, except as approved by the NMLA. For Raffle games, play slips will not be available. Raffle tickets will contain a unique ticket number that will be sold in a sequential order. c) Game instructions issued to Retailers and made available to the public shall include the method of play. 4) Determination of Prize Winner a) A claim form shall be submitted by the winner(s) of prizes exceeding six hundred dollars ($600.) The claim form must be completely filled out and signed. b) If the owner of a prize-winning ticket is unable to complete a claim form due to a legal, physical or other disability, a guardian, conservator, custodian, fiduciary or duly authorized representative having a power of attorney may complete and sign a claim form on the owner s behalf. The claim form shall indicate the name of the lawful payee. The personal representative must have a valid power of attorney to claim the prize for the legal owner. New Mexico Lottery Authority Rules for Online Games Page 7 of 21

8 c) If the person signing the claim form is a personal representative of the estate of a deceased winner, that person shall submit his letter of administration or its legal equivalent showing the appointment from the court having jurisdiction over the estate. d) A person who signs a claim form shall be deemed to have represented that the information contained therein is accurate and complete. e) No incomplete claim form shall be processed for payment. 5) Ticket Validation a) An original game ticket shall be the only proof of a game play or plays and the submission of a winning ticket to the NMLA, or its authorized Retailer, shall be the sole method of claiming a prize or prizes. No copies or reproductions will be accepted. b) The ticket must not be blank, mis-registered, defective, or printed or produced in error. c) The ticket must not be counterfeit or forged, in whole or in part and will be submitted to the Lottery Security Division for investigation d) The ticket shall not be mutilated, altered, unreadable, reconstituted or tampered with in any manner, and will be submitted to the Lottery Security Division for investigation. e) The ticket must be printed on ticket stock that meets the security requirements for ticket stock used for NMLA on-line games. f) Tickets may be purchased through a selling lottery ticketless transaction process if properly and validly registered as a ticketless transaction play. g) The ticket shall have been issued by the NMLA or authorized Retailer in an authorized manner. h) The ticket shall have been received or recorded by the NMLA by applicable deadlines. i) To be a valid ticket and eligible to receive a prize, a ticket shall satisfy all the requirements established by the NMLA for the sale, purchase and validation of winning tickets sold through its on-line system. All winners, tickets and transactions are subject to Lottery rules, policies, procedures and state law. j) Tickets reported and verified as stolen or obtained illegally will not be valid for claiming a prize and will be submitted to the Lottery Security Division for investigation k) Liability for void, altered, or misprinted tickets, or disputes if any, is limited to the refund of the retail sales price. 6) Ticket Responsibility a) It shall be the sole responsibility of the player to verify the accuracy of the game play or plays and other data printed on the ticket. The placing of plays is done at the player's own risk through the Lottery Retailer who is acting on behalf of the player in entering the play or plays. b) Until such time as a signature or mark is placed upon a ticket in the area designated for signature, the bearer of the ticket shall own the ticket. When a signature is placed on the ticket in the place designated, the person whose signature or mark appears in such area shall be the owner of the ticket and shall be entitled (subject to the validation requirements in Rule F - Ticket Validation) to any prize attributable thereto. c) Payment of prizes for valid winning tickets bearing multiple signatures shall be divided according to the percentages as agreed to in writing by the parties. The parties must agree on the percentages prior to the prize being paid. d) A receipt for a ticketless transaction play has no value and is not evidence of a play. e) The NMLA is not responsible for lost, stolen, misdirected, misprinted, misdispensed, or damaged tickets. f) The NMLA is not responsible for wagers recorded on the gaming system for which a ticket was not produced due to a telecommunications interruption. New Mexico Lottery Authority Rules for Online Games Page 8 of 21

9 g) The NMLA is not obligated to resolve competing claims to winning tickets. h) The NMLA shall not be responsible for tickets claimed by a player in error for a lower prize at a Retailer. i) Liability for void, altered, or misprinted tickets, or disputes if any, is limited to the refund of the retail sales price. 7) Prize Payment a) All prizes must be claimed within 90 calendar days of the drawing in which the prize was won. If the 90 th calendar day falls on a day in which the NMLA is not open for business, the ticket must be claimed on the first business day after the ninetieth (90 th ) calendar day. A ticket that is mailed must be received at the Lottery headquarters within ninety (90) calendar days of the drawing. If the Lottery is not open for business the ticket must be received the first business day after the ninetieth (90 th ) calendar day of the drawing. b) Prizes of one hundred thousand dollars ($100,000) or more must be claimed in person at Lottery Headquarters. c) Payment of prizes of $1 million or more may be delayed for periods of three weeks, or more, from the date of validation of the original winning ticket. d) Prizes exceeding six hundred dollars ($600) must be claimed at the Lottery, either at Lottery headquarters or by mail using a Lottery claim form. e) Prizes of six hundred dollars ($600) or less may be claimed at any Lottery Retailer or mailed to the New Mexico Lottery at: New Mexico Lottery; PO Box 93190; Albuquerque, NM No claim form is required. f) The holder of a winning ticket may win only one prize per board in connection with the winning numbers drawn, and shall be entitled only to the prize won by those numbers in the highest matching prize category, unless allowed by the specific Game Rules. g) The NMLA may not pay prizes to any claimant who purchases a ticket from an unauthorized Retailer. h) Prizes are not assignable, but prizes may be paid to a deceased winner s estate or to a person designated by judicial order. i) Under no circumstances will the NMLA pay a prize or share of a prize without the original ticket being presented to the NMLA. 8) Game Termination and Prize Claim Period The NMLA, at any time, may announce the termination date for an individual on-line game. If this occurs, no tickets shall be sold past the termination date. All advance play tickets and multi-draw tickets for that game shall be honored and drawings will continue until the last date for which tickets have been sold. For Raffles games, there will be no advance play tickets available; all tickets will be sold in a sequential order. 9) Applicable Law In purchasing a ticket, the purchaser agrees to comply with and abide by all applicable laws, rules, regulations, policies, procedures, and decisions of the NMLA. 10) Purchase and Prize Restrictions In accordance with the Lottery Act: a) No on-line game ticket may be purchased by and no prize shall be paid to any member of the Board, any officer or employee of the NMLA, an owner, officer or employee of a lottery vendor or, in the case of a corporation, an owner of five percent or more of the New Mexico Lottery Authority Rules for Online Games Page 9 of 21

10 corporate stock of a lottery vendor; or any one physically residing as a member of the same household in the principal place of residence of any such person. b) No lottery tickets shall be sold to or purchased by a person under the age of eighteen (18). Nothing herein shall be construed to prevent the making of a gift of a lottery ticket to a person under the age of eighteen (18). 11) Taxes and Debt Setoffs In accordance with the Lottery Act and subject to specific On Line Game Rules (MUSL, Powerball Group Rules, Hot Lotto Group and Party Lottery Group (Mega Millions): a) Any lottery prize is subject to applicable state and federal taxes. The NMLA shall report to the state and federal taxing authorities any lottery prize exceeding six hundred dollars ($600). Prizes will be subject to tax withholding in accordance with applicable law. b) Prizes exceeding six hundred dollars ($600) are subject to collection by the Human Services Department in accordance with the New Mexico Lottery Act, N.M.S.A., 1978, Section ) Printed Play Slip a) The NMLA, or its authorized Retailers, may provide play slips at no cost to the players. b) Play slips are provided solely for the convenience of the players and shall have no pecuniary or prize value and shall not constitute evidence of ticket purchase or of numbers or symbols selected. c) If a play slip is used, the player shall select the requisite number of squares for each single lettered panel for that game. d) Facsimiles of play slips or copies of any original may not be used in place of Lottery approved play slips. e) Play slips will not be available for Raffle Games. 13) Drawings a) The New Mexico Lottery Authority shall establish the drawing procedures to be followed at each In-state On Line drawing. The drawing procedures shall provide that a minimum of five minutes elapse between the close of the game ticket sales and the time of the drawing for those tickets sold, if necessary b) All drawings shall be open to the public and shall comply with the Lottery Act. c) The NMLA staff and Internal Auditor, or his or her designee, prior to and after the drawing, may inspect any equipment used in a drawing. d) The number of drawings and drawing days for on-line games is established, and may be changed, upon approval by the NMLA CEO and the Board. e) On-line game drawings shall be recorded on a video tape or any digital recording device deemed acceptable by the NMLA and retained for a period of time established by the NMLA. Failure to record the draw or retain the tape, or the partial or total failure of technical, electronic, or mechanical equipment used to conduct or record the draw shall not invalidate the draw or change the outcome of a game. f) The Lottery reserves the right to delay or cancel any drawing due to exigent circumstances if approved by the CEO and the Executive VP of Security or their designees. g) If televised the drawings will occur no sooner than five minutes after draw break and within two hours of draw break except in those cases that televised scheduling or technical difficulties preclude adherence to the draw times. In such instances the New Mexico Lottery Authority Rules for Online Games Page 10 of 21

11 drawing shall occur as soon as televised scheduling permits or the technical difficulties have been resolved. 14) Dissemination of Winning Numbers Information The dissemination and publication of winning numbers by telephone or in the media is for informational purposes only, and the NMLA shall not pay a prize based upon information obtained from winning number information lines or any source other than the official draw results as electronically recorded in the central computer system. The NMLA is not responsible for incorrect information provided by a Retailer or NMLA staff, telephonic or in person, or by any forms of media. Only tickets validated by the system will be honored. 15) Release of Information About Winners a) Pursuant to the New Mexico Open Records Act, a prize winner s name, city and state of residence and the amount of the prize won may be regarded as matters of public record which may be released by the NMLA. b) The NMLA shall not release the street address, telephone number or personal identifiers of a prizewinner, except as may be required pursuant to lawful authority or urgent necessity. 16) Promotional Prize Expense Exception With written CEO approval, the NMLA may make temporary changes to the prize expense to change the in-state on-line game prize structures and set prize amounts for promotional purposes. The changes to the prize structure must be in such an amount that the expected prize expense does not exceed the expected prize pool. When in effect, this section supersedes other rules related to prize expense. 17) Order of Precedence These Rules shall be interpreted in the following order of precedence: a) New Mexico Lottery Act; b) Multi-State Lottery Association Rules, Powerball Group Rules, and Lotto America Group Rules; (as applicable). c) Party Lotteries or Parties Mega Million Group Rules; d) These Rules; e) Terms and Conditions for Online Game Purchases; f) NMLA On-Line Digital Drawing Procedures Manual 18) Rules MUSL Rules and specific game rules as may be adopted and amended are hereby incorporated. 19) Roadrunner Cash Game Description Game name: Roadrunner Cash Retail sales price: $1 Play style: Five (5) of thirty-seven (37) New Mexico Lottery Authority Rules for Online Games Page 11 of 21

12 Prize structure: The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Roadrunner Cash. Number of Matches Per Ticket Probability 1 in: All five (5) 435, Jackpot Any four of five 2, $200 Any three of five $5 Any two of five 8.79 $1 Approx. Overall Odds 7.97 Set Prize Amount Drawings: Roadrunner Cash drawings are currently held nightly seven (7) nights a week from Sunday through Saturday but may be changed at the discretion of the CEO. Expected Prize Pay Out: The advertised Jackpot is an estimate of the actual Jackpot and is pari-mutuel. The remaining prizes are set prizes however; some or all may become pari-mutuel under certain circumstances. Roadrunner Cash Top Prize: The minimum starting Jackpot for Roadrunner Cash will be $25,000. For estimated advertised Jackpot amounts over $25,000, up to and including $250,000, the Lottery will as a matter of practice pay the estimated advertised Jackpot absent of any sales or system anomalies or any Acts of God. If the estimated advertised Jackpot is more than $250,000, the Lottery will pay the actual Jackpot amount, but no less than the estimated advertised Jackpot, absent of any sales or system anomalies or any Acts of God. For purposes of this policy, the advertised Jackpot will be paid when generated sales for that draw are sufficient to fund the advertised Jackpot within 5% +/-. In the event the actual sales for that draw fail to achieve, or the actual sales exceed, required levels to fund the advertised estimated Jackpot amount by more than 5%, then the actual amount shall be paid. Cancellations: Roadrunner Cash tickets may not be cancelled. Roadrunner Cash Software Requirements Specifications: The current and official Roadrunner Cash Software Requirements Specifications and any future modifications shall become part of these rules. 20) Powerball Game Description Effective October 4, 2015 (New Matrix 69/26). POWER PLAY changes: Effective with the drawing on October 7, Game name: Powerball New Mexico Lottery Authority Rules for Online Games Page 12 of 21

13 Retail sales price: $2 Play style: Five (5) of sixty-nine (69) plus one (1) of twenty-six (26). Prize structure: The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Powerball. Number of Matches Per Ticket Probability 1 in: Set Prize Amount All five + Powerball 292,201,338 Grand Prize/Jackpot All five 11,688, $1 million Any four of five + Powerball 913, $50,000 Any four of five 36, $100 Any three of five + Powerball 14, $100 Any three of five $7 Any two of five + Powerball $7 Any one of five + Powerball $4 Powerball $4 Overall Odds Drawings: Powerball drawings are held Wednesday and Saturday evenings. Expected Prize Pay Out: The Grand Prize shall be determined on a pari-mutuel basis. Prize Fund Exception: Except as provided in the Powerball Group Rules, all other prizes awarded shall be paid as set prizes. Power Play Description: The Powerball Power Play promotion is a limited extension of the Powerball game and is conducted in accordance with the Powerball game rules and other lottery rules applicable to the Powerball game except as may be amended in the Powerball Group Rules. The promotion will begin at a time announced by the Selling Lottery and will continue until discontinued by the lottery. The promotion will offer to the owners of a qualifying play a chance to increase the amount of any of the eight lump sum Set Prizes (the lump sum prizes normally paying $4 to $1,000,000) won in a drawing held during the promotion. The Grand Prize jackpot is not a Set Prize and will not be increased. Qualifying Play: A qualifying play is any single Powerball play for which the player pays an extra dollar for the Power Play option. Power Play Prizes to be Increased: Except as provided in the Powerball Group Rules, a qualifying play which wins one of the seven lowest lump sum Set Prizes (excluding the Match 5+0 prize) will be multiplied by the number selected, either two, three, four, five, or 10 (2, 3, 4, 5, or 10), in a separate random Power Play drawing announced during the official Powerball drawing show. The 10X multiplier is only in play when the Jackpot is $150 million or less. The announced Match 5+0 prize, for players selecting the Power New Mexico Lottery Authority Rules for Online Games Page 13 of 21

14 Play option, shall be paid two million dollars ($2,000,000) unless a higher limited promotional dollar amount is announced by the Group. Power Play Draws (Reserved for future use): MUSL will conduct a separate random Power Play drawing and announce results during each of the regular Powerball drawings held during the promotion. During each Powerball drawing a single number (2, 3, 4or 5) shall be drawn. The Powerball Group may modify the multiplier features for special promotions from time to time. Expected Prize Payout: Prize Amount Regardless of Power Play number selected: Match 5+0 $1,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Prize Amount 10X 5X 4X 3X 2X Match 4+1 $50,000 $500,000 $250,000 $200,000 $150,000 $ Match 4+0 $100 $1,000 $500 $400 $300 $200 Match 3+1 $100 $1,000 $500 $400 $300 $200 Match 3+0 $7 $70 $35 $28 $21 $14 Match 2+1 $7 $70 $35 $28 $21 $14 Match 1+1 $4 $40 $20 $16 $12 $8 Match 0+1 $4 $40 $20 $16 $12 $8 In certain rare instances, the Powerball set prize amount may be less than the amount shown. In such case, the eight (8) lowest Power Play Prizes will be changed to an amount announced after the draw. For example, if the Match 4+1 Powerball set prize amount of $50,000 becomes $25, under the rules of the Powerball game and a 5x Power Play multiplier is selected, then a Power Play player winning that prize amount would be $125, Power Play does not apply to the Powerball Grand Prize. Power Play Match 5 prize is set at two million dollars ($2,000,000.00), regardless of the multiplier selected. The 10X multiplier is only in play when the Jackpot is $150 million or less. Annuity: The Grand Prize Jackpot amount is estimated and will be paid out in 30 graduated payments (30 payments over 29 years); unless the annuitized jackpot is less than $250,000 then the lottery at its own discretion may elect to pay the winners their share of the cash. Cancellations: Powerball tickets may not be cancelled. Powerball Group Rules: The current and official Multi-State Lottery Association Rules and Powerball Group Rules and any future modifications shall become part of these rules. New Mexico Lottery Authority Rules for Online Games Page 14 of 21

15 21) Pick 3 Game Description Game name: Pick 3 Retail sales price: $1 Play style: Prize structure: 3 numbers from 0 to 9 each The following table sets forth the probability of winning in each prize category, based upon the total number of possible combinations in Pick 3. Example: Type of Play Your #s Numbers Drawn Prize Odds 1 in: Straight $500 1,000 Box (2 like numbers) ,121,211 $ Box (3 different 123,132,213, 123 numbers) 231,312,321 $ Straight/Box (2 like #s) (STR) $330* Exact or Any Order* ,121,211 (BOX) $ Straight/Box ( (STR) $290* different #s) Exact or ,132,213, (BOX) $ Any Order* 231,312,321 Match Front Pair , 121, 122, 124, 125, 126, 127, 128, $ , 223, 323, 56 Match Back Pair 423, 523, $5 623, 723, 823, 923 *Straight/Box prize for STR includes prize for straight win of $250 plus Box win of $80/$40. Drawings: Pick 3 drawings are currently held twice a day seven (7) days per week from Sunday through Saturday but may be changed at the discretion of the CEO. Expected Prize Pay Out: Except as provided in these rules, all prizes awarded shall be paid as set prizes. The prize expense for Pick 3 is recognized as prizes are won for that draw. Cancellations: Pick 3 tickets may not be cancelled. New Mexico Lottery Authority Rules for Online Games Page 15 of 21

16 Limitation on Liability: Liability limits for any straight play number combination will be a maximum of $1 million for any one drawing. Once the $1 million maximum is reached for any straight play number combination, the gaming system will no longer accept that straight play number combination for that drawing. A terminal message will read: LIABILITY LIMIT WAGER REJECTED 22) NMLA Raffle Game Description The New Mexico Lottery may offer from time to time raffle games that are similar in play style but unique in name, price and prize structure. Each game will follow the rules established in this document as well as the individual raffle game procedures established for that particular raffle. In addition, the Lottery may offer from time to time, a second chance drawing in which a coupon may be printed with the sale of each Raffle Game ticket. Players will then send in the coupon for a chance to win merchandise prizes or other prizes at the discretion of the CEO and Executive Staff. Game name: New Mexico Lottery Raffle (Name of each individual Raffle will vary and will be determined by Executive Staff and CEO. Retail sales price: Price may vary for each individual raffle and will be determined by Executive Staff and CEO Play style: Prize structure: A number-match game with a limited number of tickets that will be sold within a limited sales period. Each ticket will contain a unique ticket number that will be printed in sequential order as they are sold across the state. Each raffle will contain set prizes that will be awarded via a random drawing. Will be based on each game produced by NMLA and will be determined by the CEO and Executive Staff. NMLA will produce no more than four (4) Raffle Games per year. Drawings: NMLA Raffle game drawing dates will be determined by Executive Staff and CEO Expected Prize Pay Out: NMLA Raffle game prizes will be set per game by the CEO and Executive Staff. Prize Fund Exception and Pay Outs: All prizes will be paid out as set prizes based on Raffle Game, the CEO and Executive Staff. Cancellations: NMLA Raffle Game tickets may not be cancelled. NMLA Raffle Game Requirements Specifications: The current and official Raffle Software Requirements Specifications and any future modifications shall become part of these rules. New Mexico Lottery Authority Rules for Online Games Page 16 of 21

17 23) Mega Million Game Description Game name: Mega Million Effective October 19, 2013 (New Matrix 75/15). Retail sales price: $12 Play style: Prize structure: Five (5) of seventy-five (75) of the first set, plus one (1) of fifteen (15) from the second set, referred to as Mega Ball. The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Mega Millions. Number of Matches Per Ticket Probability 1 in: Set Prize Amount All five of the first set, plus one of second set (Mega Ball) 258, Grand Prize/Jackpot All five of the first set 18, $1,000,000 Any four of first set, plus one of second set 739,688.1 $5,000 (Mega Ball) Any four of first set 52, $500 Any three of first set, plus one of second set 10, $50 (Mega Ball) Any three of first set $5 Any two of first set, plus one of second set $5 (Mega Ball) Any one of first set, plus one of second set $2 (Mega Ball) One of second set (Mega Ball) $1 Overall Odds Drawings: Mega Million drawings are held Tuesday and Friday evenings. Expected Prize Pay Out: The Advertised Grand Prize/Jackpot shall be determined on a pari-mutuel basis. Grand/Jackpot Prize: The prize money allocated from the current Mega Million prize pool for the Grand Prize, plus any previous portions of prize money allocated to the Grand Prize category in which no matching tickets were sold will be divided equally among all jackpot prize winning plays in all participating lotteries. The annuity Grand Prize amount will be paid in thirty (30) graduated annual installments. Grand Prizes won shall be funded by the Selling Lotteries in accordance with the formula set by the Mega Millions lotteries. The Mega Millions lotteries may set a minimum guaranteed annuity Grand Prize amount that shall be advertised by the selling lotteries as the starting guaranteed annuity Grand Prize amount. New Mexico Lottery Authority Rules for Online Games Page 17 of 21

18 Prize Fund Exception: The Prize Fund for any drawing is expected to be up to 55% of sales, but may be higher or lower based upon the number of winners at each prize level, as well as the funding required to meet the advertised Grand/Jackpot. Except as provided in the Mega Million Rules, all other prizes awarded shall be paid as set prizes. Megaplier: The Megaplier promotion is a limited extension of the Mega Million game and is conducted in accordance with the Mega Million game rules and other lottery rules applicable to the Mega Million game except as may be amended herein. The promotion will offer to the owners of a qualifying play a chance to multiply or increase the amount of any of the lump sum Set Prizes (the lump sum prizes normally paying $2.00 to $1,000,000.) won in a drawing held during the promotion. The Grand Prize is not a Set Prize and will not be multiplied or increased by means of the Megaplier promotion. A qualifying play that wins one of the lump sum Set Prizes will be multiplied by the number selected, either two, three, four or five (2, 3, 4, 5), in a separate random Megaplier drawing. MUSL will either itself conduct, or authorize a U.S. Lottery to conduct on its behalf. Before each Mega Millions drawing a single number (2, 3, 4 or 5) (does not include the grand/jackpot prize) shall be drawn. In the event, the multiplier drawing does not occur prior to the Mega Millions drawing, the multiplier number will be a 5 (five), which shall solely be determined by the lottery authorized to conduct the Megaplier drawing. Qualifying Play: A qualifying play is any single Mega Millions play for which the player pays an extra dollar for the Megaplier option play. Megaplier Prize Pool: Except as provided in the Powerball Group Rules, a qualifying play which wins one of the eight lowest lump sum Set Prizes (excluding the Grand Prize/Jackpot) shall be paid as follows: Prize Tier Megaplier 2X Megaplier 3X Megaplier 4X Megaplier 5X Match 5+1 Grand Prize/Jackpot Grand Prize/Jackpot Grand Prize/Jackpot Grand Prize/Jackpot Match 5+0 $2,000,000 $3,000,000 $4,000,000 $5,000,000 Match 4+1 $10,000 $15,000 $20,000 $25,000 Match 4+0 $1000 $1,500 $2000 $2,500 Match 3+1 $100 $150 $200 $250 Match 3+0 $10 $15 $20 $25 Match 2+1 $10 $15 $20 $25 Match 1+1 $4 $6 $8 $10 Match 0+1 $2 $3 $4 $5 Expected Prize Pay Out for Megaplier: All prizes awarded shall be paid as lump sum set prizes. Annuity: The Grand/Jackpot Prize is estimated and will be paid out in 30 annual installments. Cancellations: Mega Million ticket(s) may not be voided or cancelled. MUSL and MUSL Mega Million Product Group Rules: The current and official Multi- State Lottery Association Rules and MUSL Mega Millions Product Group Rules and any future modifications shall become part of these rules. New Mexico Lottery Authority Rules for Online Games Page 18 of 21

19 24) Lotto America The current and official Multi-State Lottery Association Rules and Lotto America Group Rules and any future modifications shall become part of these rules. 25) Pick 4 Game name: Pick 4 Retail sales price: $1.00 Play style: Prize structure: 4 numbers from 0 to 9 each The following table sets forth the probability of winning in each prize category, based upon the total number of possible combinations in Pick 4. New Mexico Lottery Authority Rules for Online Games Page 19 of 21

20 Example: Type of Play Straight 4-Way Box 6-Way Box 12-Way Box 24-Way Box Meaning Your #s Numbers Drawn 4 numbers, in exact order 3 like numbers, in any order 2 pairs of like numbers, in any order like numbers, in any order 4 unique numbers, in any order Prize Odds 1 in: $5,500 10, $1,400 2, $900 1,666.7 $ $ Way Straight/Box In Order (Straight) 3 like numbers, in any order (Box) $3, $700 2,500 6-Way Straight/Box In Order (Straight) 2 like pairs, in any order (Box) $3, $450 1, Way Straight/Box In Order (Straight) 2 like numbers, in any order (Box) $2, $ In Order (Straight) 1234 $2, Way Straight/Box 2- Pairs (Front or Back) 4 unique numbers, in any order (Box) In Order Match Front Pairs or Back Pairs $ XX or XX34 $1 51 Drawings: Pick 4 drawings are currently held twice a day seven (7) days per week from Sunday through Saturday but may be changed at the discretion of the CEO. Expected Prize Pay Out: Except as provided in these rules, all prizes awarded shall be paid as set prizes. The prize expense for Pick 4 is recognized as prizes are won for that draw. Cancellations: Pick 4 tickets may not be cancelled. New Mexico Lottery Authority Rules for Online Games Page 20 of 21

21 Limitation on Liability: Liability limits for any straight play number combination will be a maximum of $1 million for any one drawing. Once the $1 million maximum is reached for any straight play number combination, the gaming system will no longer accept that straight play number combination for that drawing. A terminal message will read: LIABILITY LIMIT WAGER REJECTED New Mexico Lottery Authority Rules for Online Games Page 21 of 21