5617675 Lottery and Charitable Games Control Board, DC - Notice of Proposed Rulemaking - Changes to Powerball Game effective Oct 5, 2015
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THE DISTRICT OF COLUMBIA
LOTTERY AND CHARITABLE GAMES CONTROL BOARD
NOTICE OF PROPOSED RULEMAKING
The Interim Executive Director of the District of Columbia Lottery and Charitable Games Control Board (D.C. Lottery), pursuant to the authority set forth in the Law to Legalize Lotteries, Daily Numbers, and Bingo and Raffles for Charitable Purposes in the District of Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Official Code §§ 3-1306 and 3-1321 (2012 Repl.)); District of Columbia Financial Responsibility and Management Assistance Authority Order, issued September 21, 1996; Office of the Chief Financial Officer Financial Management Control Order No. 96-22, issued November 18, 1996, and Office of the Chief Financial Officer Financial Management Control Orders No. 97-15, issued May 15,1997, and No. 96-16 (September 24, 1996); and Office of the Chief Financial Officer Financial Management Control Order No. 15-11, issued April 14, 2015 (appointing Tracey Cohen Interim Executive Director of the District of Columbia Lottery and Charitable Games Control Board), hereby gives notice of the adoption of amendments to Chapters 9 (Description of On-Line Games) and 99 (Definitions) of Title 30 (Lottery and Charitable Games, of the District of Columbia Municipal Regulations (DCMR).
These amendments are necessary to implement unilateral changes to the nationwide POWERBALL® game. These changes start October 4, 2015.
The Interim Executive Director also gives notice of the intent to take final rulemaking action to adopt these amendments in no less than thirty (30) days from the date of publication in the D.C. Register.
Chapter 9, DESCRIPTION OF ON-LINE GAMES, of Title 30 DCMR, LOTTERY AND CHARITABLE GAMES, is amended as follows:
Section 906, DESCRIPTION OF THE POWERBALLÒ GAME, is amended as follows:
Subsections 906.1 and 906.4 are amended to read as follows:
906.1 POWERBALL® is a five (5) out of sixty-nine (69) plus one (1) out of twenty-six (26) numbers online lottery game drawn every Wednesday and Saturday as part of the POWERBALL drawing event, which pays the Grand Prize, at the player’s election, on an annuitized pari-mutuel basis or as a cash lump sum payment of the total cash held for this prize pool on a pari-mutuel basis. Except as provided in these rules, all other prizes are paid on a fixed cash basis. To play POWERBALL®, a player must select five (5) different numbers, between one (1) and sixty-nine (69) and one (1) additional number between one (1) and twenty-six (26) for input into a terminal.
906.4 The price of a POWERBALL® game ticket shall be one (1) play for two dollars ($ 2) or any other price designated by the Executive Director from a price schedule adopted by the Agency pursuant to § 500.1.
Section 907, PRIZE POOL(S) AND BONUS PRIZE, is renamed “POWERBALL® PRIZE POOL(S)” and amended as follows:
907 POWERBALL® PRIZE POOL(S)
907.1 The Agency shall pay in prizes at least fifty percent (50%) of each week's POWERBALL® sales from all tickets and shall allocate that amount to the winning pool or pools for payment of prizes for that game.
907.2 The prize money allocated to the Grand Prize category shall be awarded equally to the number of game boards winning a Grand Prize.
907.3 If in any game drawing there are no plays that qualify for the prize, the prize money for that game drawing shall be added to the prize pool.
907.4 Any amount remaining in the prize pool at the end of this game shall be returned to all lotteries participating in the prize pool after the end of all claim periods of all selling lotteries, carried forward to a replacement game or expended in a manner as directed by the Executive Director in accordance with District law.
907.5 An amount up to five percent (5%) of a Party Lottery’s sales, including any specific statutorily mandated tax of a Party Lottery to be included in the price of a play, shall be deducted from a Party Lottery’s Grand Prize Pool contribution and placed in trust in one or more Powerball prize pool accounts and prize reserve accounts held by the Product Group at any time that the prize pool accounts and Party Lottery’s share of the prize reserve account(s) is below the amounts designated by the Product Group.
907.6 The Product Group has established the following prize reserve accounts for the POWERBALL® game: the Powerball Prize Reserve Account (PRA), which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason; and the Powerball Set Prize Reserve Account (SPRA), which is used to fund deficiencies in low-tier Powerball prize payments (subject to the limitations of these rules).
Section 908, POWERBALL® GRAND PRIZE PAYMENT, is amended as follows:
Add Subsection 908.22 to read as follows:
908.22 The holder of a winning ticket may win only one (1) prize per play in connection with the winning numbers in the highest matching prize category.
Section 909, POWERBALL® FIXED PRIZE STRUCTURE, is renamed “POWERBALL® SET PRIZE STRUCTURE”, and is amended as follows:
909 POWERBALL® SET PRIZE STRUCTURE
909.1 Provided the prize pools are fully funded, the set prize payments for POWERBALL® based on a two dollar ($ 2) bet are as follows:
Number of Matches Per Play
All five (5) of first set plus one (1) Grand Prize
of second set.
All five (5) of the first set and $ 1,000,000.00
none of the second set
Any four (4) of the first set plus $ 50,000.00
one (1) of the second set
Any four (4) of the first set and $ 100.00
none of the second set
Any three (3) of the first set plus $ 100.00
one (1) of the second set
Any three (3) of the first set and $ 7.00
none of the second set
Any two (2) of the first set plus $ 7.00
one (1) of the second set
Any one (1) of the first set plus $ 4.00
one (1) of the second set
None of the first set plus $ 4.00
one (1) of the second set
909.2 If the prize pools are not fully funded and there are not sufficient funds in the prize pool to pay Powerball Set Prizes, the prizes shall be paid pursuant to § 909.3, including payment on a pari-mutuel basis if required.
909.3 The Powerball Set Prize (for single payment prizes of one million dollars ($1,000,000.00) or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the Powerball Set Prizes awarded in the current draw. If the total of the Powerball Set Prizes (as multiplied by the respective Power Play multiplier if applicable) awarded in a drawing exceeds the percentage of the prize pool allocated to the Powerball Set Prizes, then the amount needed to fund the Powerball Set Prizes, including Power Play prizes, awarded shall be drawn from the following sources, in the following order:
(a) The amount allocated to the Powerball Set Prizes and carried forward from previous draws, if any;
(b) An amount from the Set Prize Reserve Account, if available, not to exceed forty million dollars ($ 40,000.000.00) per drawing; and
(c) Other amounts as agreed to by the Product Group in their sole discretion.
909.4 If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes awarded, including Power Play prizes, then the highest Set Prize shall become a pari-mutuel prize. If the amount of the highest Set Prize, when paid on a pari-mutuel basis, drops to or below the next highest Set Prize and there are still not sufficient funds to pay the remaining Set Prizes awarded, then the next highest Set Prize, including Power Play prizes, shall become a pari-mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning plays in proportion to their respective prize percentages. Powerball Set Prizes and Power Play prizes will be reduced by the same percentage.
909.5 By agreement with the Licensee Lotteries, the Licensee Lotteries shall independently calculate their Set Prize pari-mutuel prize amounts including Power Play prizes. The Party Lotteries and the Licensee Lotteries shall then agree to set the pari-mutuel prize amounts for all lotteries selling the game at the lesser of the independently-calculated prize amounts.
Section 910, PROBABILITY OF WINNING, is renamed “PROBABILITY OF WINNING POWERBALLÒ PRIZES”, and is amended as follows:
910 PROBABILITY OF WINNING POWERBALLÒ PRIZES
910.1 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 POWERBALLÒ:
PROBABILITY DISTRIBUTION
Probable/Set
Number of Matches Per Ticket Winners Probability Prize Amount
All five (5) of first set plus
one (1) of second set 1 1: 292,201,338.0000 Grand Prize
All five (5) of first set
and none of second set 25 1:11,688,053.5200 $ 1,000,000.00
Any four (4) of first set plus
one (1) of second set 320 1: 913,129,1813 $ 50,000.00
Any four (4) of first set
and none of second set 8,000 1: 36,525.1673 $ 100.00
Any three (3) of first set plus
one (1) of second set 20,160 1:14,494.1140 $ 100.00
Any three (3) of first set
and none of second set 504,000 1:579.7646 $ 7.00
Any two (2) of first set plus
one (1) of second set 416,640 1:701.3281 $ 7.00
Any one (1) of first set plus
one (1) of second set 3,176,880 1:91.9775 $ 4.00
None of first set plus
one (1) of second set 7,624,512 1:38.3239 $ 4.00
Overall 11,750,538 1:24.8671
Section 913, DESCRIPTION OF THE POWERBALLÒ POWER PLAY PROMOTION, is renamed “DESCRIPTION OF THE POWERBALLÒ POWER PLAY PROMOTION AND PRIZE PAYMENT”, and is amended as follows:
913 DESCRIPTION OF THE POWERBALLÒ POWER PLAY PROMOTION AND PRIZE PAYMENT
913.1 The POWERBALLÒ Power Play Promotion ("Power Play") is a limited extension of the POWERBALLÒ game and is conducted in accordance with the POWERBALLÒ game rules and other lottery rules applicable to the POWERBALLÒ game except as may be amended herein. The Executive Director shall determine the starting and ending dates of Power Play. Power Play will offer to the owners of a qualifying play a chance to multiply the amount of any of the eight (8) lowest Set Prizes (the prizes normally paying four dollars ($ 4.00) to $ one million dollars ($1,000,000)) won in a drawing held during the promotion. The Grand Prize is not a Set Prize and will not be increased.
913.2 A qualifying play is any single POWERBALLÒ play for which the player pays an extra dollar for the Power Play option play and which is recorded at the Agency's central computer as a qualifying play.
913.3 Except as provided in these rules, a qualifying play which wins one of seven lowest Set Prizes (excluding the Match 5+0 prize) will be multiplied by the number selected, either two, three, four, five or sometimes ten (2, 3, 4, 5 or sometimes 10), in a separate random Power Play drawing announced during the official Powerball drawing show. The ten (10X) multiplier will be available for drawings in which the initially advertised annuitized Grand Prize amount is one hundred fifty million dollars ($150,000,000.00) or less. The announced Match 5+0 prize, for players selecting the Power Play option, shall be two million dollars ($2,000,000.00) unless a higher limited promotional dollar amount is announced by the Product Group.
913.4 Prize Payments. All Power Play prizes shall be paid in one single payment through the Selling Lottery that sold the winning ticket(s). A Selling Lottery may begin paying Power Play prizes after receiving authorization to pay from the MUSL central office.
Section 914, POWERBALL® POWER PLAY PRIZE POOL AND PRIZE PAYMENT, is renamed “POWERBALL® POWER PLAY EXPECTED PRIZE PAYOUT AND PROBABILITY OF WINNING”, and is amended as follows:
914 POWERBALL® POWER PLAY EXPECTED PRIZE PAYOUT AND PROBABILITY OF WINNING
914.1 POWERBALL® POWER PLAY EXPECTED PRIZE PAYOUT
Prize Amount Regardless of Power Play number selected:
Match 5+0 $1,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00
Set Prize Amount 10X 5X 4X 3X 2X
Match 4+1 $50,000.00 $500,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00
Match 4+0 $ 100.00 $1,000.00 $500.00 $400.00 $300.00 $200.00
Match 3+1 $ 100.00 $1,000.00 $500.00 $400.00 $300.00 $200.00
Match 3+0 $ 7.00 $70.00 35.00 $28.00 $21.00 $14.00
Match 2+1 $ 7.00 $70.00 $35.00 $28.00 $21.00 $14.00
Match 1+1 $ 4.00 $40.00 $20.00 $16.00 $12.00 $8.00
Match 0+1 $ 4.00 $40.00 $20.00 $16.00 $12.00 $8.00
914.2 In certain rare instances, the Powerball set prize amount may be less than the amount shown. In such a 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 $50,000.00 becomes $25,000.00 under the rules of the POWERBALLÒ game and a 5x Power Play multiplier is selected, then a Power Play player winning that prize amount would win $125,000.00.
914.3 The following table sets forth the probability of the various Power Play numbers being drawn during a single POWERBALLÒ drawing, except that the Power Play amount for the Match 5+0 prize will be two million dollars ($2,000,000). The Group may elect to run limited promotions that may modify the multiplier features.
POWER PLAY PROBABILITY OF WINNING
When the 10x multiplier is available:
Power Play Probability of Prize Increase Chance of Occurrence
10X - Prize Won Times 10 1 in 43 2.3255%
5X - Prize Won Times 5 2 in 43 4.6512%
4X - Prize Won Times 4 3 in 43 6.9767%
3X - Prize Won Times 3 13 in 43 30.2326%
2X - Prize Won Times 2 24 in 43 55.8140%
When the 10x multiplier is not available:
Power Play Probability of Prize Increase Chance of Occurrence
10X - Prize Won Times 10 0 in 42 0.00%
5X - Prize Won Times 5 2 in 42 4.7619%
4X - Prize Won Times 4 3 in 42 7.1429%
3X - Prize Won Times 3 13 in 42 30.9523%
2X - Prize Won Times 2 24 in 42 57.1429%
Power Play does not apply to the Grand Prize. Except as provided in § 914.1, a Power Play Match 5 prize is set at two million dollars ($2 million), regardless of the multiplier selected.
914.4 For Party Lotteries, the prize pool percentage allocated to the Power Play set prizes shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.
914.5 In drawings where the ten (10X) multiplier is available, the expected payout for all prize categories shall consist of up to forty-nine and nine hundred sixty-nine thousandths percent (49.969%) of each drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket. In drawings where the ”ten (10)” multiplier is not available, the expected payout for all prize categories shall consist of up to forty-five and nine hundred thirty-four thousandths percent (45.934%) of each drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket.
914.6 The prize payout percentage per draw may vary. The Power Play Prize Pool shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the Power Play prizes awarded in the current draw and held in the Power Play Pool Account.
914.7 In drawings where the “ten (10)” multiplier is available, an additional thirty-one thousandths percent (0.031%) of sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the Power Play pool account, for the purpose of paying Power Play prizes. In drawings where the “ten (10)” multiplier is not available, four and sixty-six thousandths percent (4.066%) of sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the Power Play pool account, for the purpose of paying Power Play prizes.
914.8 Any amount remaining in the Power Play pool account when the Product Group declares the end of this game shall be returned to the lotteries participating in the account after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game, or otherwise expended in a manner at the election of the individual Members of the Product Group in accordance with jurisdiction statute.
914.9 Power Play does not apply to the POWERBALL® Grand Prize or to any Bonus Prize.
9900 DEFINITIONS
Advertised Grand Prize - shall mean the estimated annuitized Grand Prize amount as determined by the MUSL Central Office by use of the MUSL Annuity Factor and communicated through the Selling Lotteries prior to the Grand Prize drawing. The “Advertised Grand Prize” is not a guaranteed prize amount and the actual Grand Prize amount may vary from the advertised amount.
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, is authorized to sell the Powerball game. Unless otherwise indicated, “Party Lottery” or “Member Lottery” does not include “Licensee Lotteries.”
Product Group or the Group - means a group of lotteries that has joined together to offer a product pursuant to the terms of the Multi-State Lottery Agreement and the Product Group’s own rules.
Set Prize also referred to as Low-Tier Prize - in regards to POWERBALL® means all other prizes, except the Grand Prize, and, except in instances outlined in these rules, will be equal to the prize amount established by the MUSL Board for the prize level.
All persons desiring to comment on the subject matter of this proposed rulemaking should file comments in writing not later than thirty (30) days from the date of publication of this notice in the D.C. Register. Comments should be filed with Antar Johnson, Senior Counsel, Lottery and Charitable Games Control Board, 2235 Shannon Place, S.E., Washington, D.C. 20020, or e-mailed to antar.johnson@dc.gov, or file online at www.dcregs.gov. Additional copies of these proposed rules may be obtained at the address stated above.
