370 Neb. Admin. Code, ch. 400, § 404

Current through September 17, 2024
Section 370-400-404 - LOTTERY GAME RETAILER CONTRACT
404.01 Upon receipt, review, and investigation of applications and applicant background, the Division may issue contracts for sales of lottery tickets in accordance with these regulations. The Division shall contract only such persons or entities which, in its opinion, will best serve the public interest and public trust in the lottery and promote the sale of lottery tickets.
404.02 Contract

The Division shall enter into a contract with each Lottery Game Retailer for the sale of instant tickets. Such contract shall set out the duties, responsibilities, and obligations of the parties to the contract. Such contract to continue in effect during the period the retailer complies with applicable statutes, regulation, fee requirements, and any other duties or requirements under the terms of the contract and these regulations.

404.02AAddendum for on-line Lottery Game Retailers. Those instant ticket Lottery Game Retailers selected to be an on-line Lottery Game Retailer shall execute an addendum to their existing contract with the Division that will set forth the duties, responsibilities and obligations of the on-line Lottery Game Retailer and the Division with respect to the sale of on-line games.
404.02BAddendum for on-line Lottery Game Retailers to sell tickets through Player Express Terminals. Those on-line Lottery Game Retailers selected to sell tickets through Player Express Terminals shall execute an addendum to their existing contract with the Division that will set forth the duties, responsibilities and obligations of the on-line Lottery Game Retailer and the Division with respect to the sale of on-line games through Player Express Terminals.
404.03 Repealed
404.04 Types of contracts

The Lottery may enter into the following types of contracts for Lottery Game Retailers.

404.04ARegular contract. A regular contract as a Lottery Game Retailer is a contract that is valid for an indefinite period until suspended or terminated. The Division may require periodic filings of changes or modifications to the information required under Reg-401, Lottery Game Retailer Applicants, as filed with the original application or the last update, or a statement that the information on file is still accurate.
404.04BTemporary contract. For specific events and activities or under such special conditions and for limited duration, the Division may issue to organizations or other persons a temporary contract for the duration of the event or conditions with such special terms as the Division may deem desirable.
404.04B(1) The Division may also enter into a temporary contract for a period of less than one (1) year with any person, who would otherwise be qualified for a regular contract.
404.05 Compensation

Each Lottery Game Retailer is entitled to compensation for their activities as Lottery Game Retailers which include selling lottery tickets, redeeming lottery prizes and other activities required by the Division. This compensation shall be calculated as five percent (5%) of the retail value of packs of instant tickets purchased from the Division and five percent (5%) of the gross proceeds from the sale of on-line lottery tickets by the Lottery Game Retailer and five percent (5%) of the face value of on-line tickets issued by the Lottery Game Retailer from the redemption of "free ticket" coupons, gift certificates and prizes. Lottery Game Retailers shall not accept any compensation for the sale of lottery tickets other than that set forth in this regulation, regardless of the source unless such compensation is otherwise specifically adopted or approved in writing by the Division.

404.06 Promotion of the lottery

Each Lottery Game Retailer shall agree to actively promote the lottery and shall sell all lottery products they are authorized to sell and to maintain a retailer's manual, point-of-sale materials and displays in accordance with instructions of the Division.

404.07 Contracts nontransferable

Each contract will authorize a specified organization to sell tickets at a specified location. No contract may be assigned or transferred to another person or organization. No other person or organization shall be subcontracted to perform any of the duties required in the Lottery Game Retailer contract. If the control of a Lottery Game Retailer changes hands, the Lottery Game Retailer may not sell any additional tickets until the Lottery Game Retailer has submitted a new application and has been granted a new contract.

404.08 Change of Lottery Game Retailer location

If a Lottery Game Retailer changes the location of the place of business, the Lottery Game Retailer shall not sell tickets at the new location until the Division has authorized the transfer of the Lottery Game Retailer. The Division shall consider the information concerning the Lottery Game Retailer's new location in the same manner as it would consider an initial application for that location.

404.08A The Division may approve a temporary location for a period of less than one (1) year for any existing Lottery Game Retailer. Such temporary location may be either in addition to or in place of the Lottery Game Retailer's originally approved location.
404.09 Changes to application information

The Lottery Game Retailer must notify the Division of any changes in the information provided with its application. The updated information must be provided within thirty (30) days of the change.

404.09A The changes that must be reported include, but are not limited to, any change in business structure, officers, board of directors, persons with substantial interest, business address, or the hiring of additional personnel needing background checks
404.10 Inspection of premises

Lottery Game Retailers shall allow employees or agents of the Division to enter upon the Retailer's premises in order to inspect lottery materials, tickets, and the premises. All books and records pertaining to the Lottery Game Retailer's lottery business, including video surveillance records, shall be available to the Division for inspection and copying during normal business hours of the Lottery Game Retailer and between 8 a.m. and 5 p.m., Monday through Friday. All books and records pertaining to the Lottery Game Retailer's lottery activities are subject to seizure by the Division without prior notice. Copies of video surveillance records shall be made available upon demand by the Division.

370 Neb. Admin. Code, ch. 400, § 404