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THE DISTRICT OF COLUMBIA
LOTTERY AND CHARITABLE GAMES CONTROL BOARD
NOTICE OF PROPOSED RULEMAKING
The Executive Director of the District of Columbia Lottery and Charitable Games Control Board, pursuant to the authority set forth under Section 4 of 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 (2007 Repl.)); District of Columbia Financial Responsibility and Management Assistance Authority Order issued September 21, 1996, and Office of the Chief Financial Officer Financial Management Control Order No. 96-22 issued November 18, 1996, hereby gives notice of the intent to adopt the following amendments to Chapters 6 (Claims and Prize Payments) and 9 (Description of On-Line Games) of Title 30 (Lottery and Charitable Games) of the District of Columbia Municipal Regulations (DCMR).
These amendments are necessary to implement the changes to the MEGA MILLIONS® game pursuant to the Multi-State Lottery Association (“MUSL”) MEGA MILLIONS Game Group Agreement. The game changes are scheduled to take place on October 22, 2013.
The Executive Director gives notice of his intent to take final rulemaking action to adopt the amendments in not less than thirty (30) days from the date of publication of this notice in the D.C. Register.
Title 30 (Lottery and Charitable Games), Chapter 6 (Claims and Prize Payments), Section 606 (Annuitized Prizes) of the DCMR is amended as follows:
Subsection 606.7 is amended to read as follows:
606.7 The MEGA MILLIONS® annuitized prize shall be paid in thirty (30) graduated annual installments upon completion of internal validation procedures. The initial payment shall be paid upon completion of internal validation procedures. The subsequent twenty-nine (29) payments shall be paid graduated annually to coincide with the month of the Federal auction date at which the bonds were purchased to fund the annuity with graduated annual installments defined in the Mega Millions Lotteries’ Finance and Operations Procedures. Payments shall escalate by a factor of five percent (5%) annually, and annual payments shall be rounded down to the nearest even one thousand dollar ($1,000.00) increment. All such payments shall be made within seven days of the anniversary of the annual auction date.
Add Subsections 606.8 and 606.9 to read as follows:
606.8 If individual shares of the cash held to fund an annuity is less than two hundred fifty-thousand dollars ($250,000.00), the Mega Millions Product Group, in its sole discretion, may elect to pay the winners their share of the cash held in the Grand Prize Pool.
606.9 All Mega Millions annuitized prizes shall be paid graduated annually in thirty (30) payments with the initial payment being made in cash, to be followed by twenty-nine (29) payments funded by the annuity. Prize payments may be rounded down to the nearest one thousand dollars ($1,000.00).
Title 30 (Lottery and Charitable Games), Chapter 9 (Description of On-Line Games) of the DCMR is amended as follows:
Section 917 (Description of the Mega Millions® Game) is amended to read as follows:
917 DESCRIPTION OF THE MEGA MILLIONS® GAME
917.1 MEGA MILLIONS® is a five (5) out of seventy-five (75) plus one (1) out of fifteen (15) online lottery game which pays out the Grand Prize, at the player’s election, as provided in this chapter either 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.
917.2 To play MEGA MILLIONS®, a player shall select five (5) different numbers, between one (1) and seventy-five (75) and one additional number between one (1) out of fifteen (15) for input into a terminal.
917.3 The price of each MEGA MILLIONS® play shall be $1.00. A player may purchase up to five plays on one ticket. Multiple draws are available for up to 20 consecutive draws beginning with the current draw. From time to time, the Executive Director may authorize the sale of MEGA MILLIONS® tickets at a discount for promotional purposes. Additionally, a multiplier feature, MEGAPLIER®, is available for an additional $1.00 per play. Each bet and the respective prize payouts are listed in Section 918 of this chapter.
917.4 MEGA MILLIONS® tickets may be purchased in the District of Columbia only at a licensed location from the D.C. Lottery Agent. No MEGA MILLIONS® ticket purchased outside of the District of Columbia may be presented to a D.C. Lottery Agent for payment within the District of Columbia.
917.5 MEGA MILLIONS® drawings shall be held at the time(s) and location set out in the MUSL MEGA MILLIONS Game Group Agreement.
917.6 In a single drawing, a player may win in only one prize category per single MEGA MILLIONS® play in connection with MEGA MILLIONS® winning numbers, and shall be entitled only to the highest prize.
917.7 For purpose of prize calculation with respect to any MEGA MILLIONS® pari-mutuel prize, the calculation shall be rounded down so that prizes shall be paid in multiples of one dollar.
917.8 With respect to the MEGA MILLIONS® grand/jackpot prize, the prize amount paid shall be the advertised grand/jackpot prize amount. However, the advertised grand/jackpot prize amount is subject to change based on sales forecasts and/or actual sales. Additionally, this prize amount may be rounded up to the next highest affordable multiple of one million dollars, at the discretion of the party lotteries.
917.9 Subject to the laws and rules governing each party lottery, the number of prize categories and the allocation of the prize fund among the prize categories may be changed at the discretion of the directors, for promotional purposes. Such change shall be announced by public notice.
917.10 Prize liability cap. Notwithstanding any provision in the rule to the contrary, should total prize liability (exclusive of jackpot prize carry forward) exceed 300 percent of draw sales or 50 percent of draw sales plus $50,000,000, whichever is less, (both hereinafter referred to as the "liability cap"), the second through fifth prizes shall be paid on a pari-mutuel rather than guaranteed prize basis, provided, however, that in no event shall the pari-mutuel prize be greater than the guaranteed prize. The amount to be used for the allocation of such pari-mutuel prizes (two through five) shall be the liability cap less the amount paid for the jackpot prize and prize levels six through nine.
917.10 Subscription sales. A subscription sales program may be offered, at the discretion of the Executive Director.
917.11 MEGA MILLIONS® tickets shall show the player's selection of numbers or Quick Pick (QP) numbers, election of the multiplier feature, MEGAPLIER®, boards played, drawing date, jackpot payment option, and validation and reference numbers.
917.12 It shall be the exclusive responsibility of the player to verify the accuracy of the player's selection(s) and other data printed on the ticket. A ticket is a bearer instrument until signed. Neither a party lottery nor its sales agents shall be responsible for lost or stolen tickets.
917.14 In purchasing a ticket issued for MEGA MILLIONS®, the player agrees to comply with and be bound by all applicable statutes, administrative rules and regulations, and procedures of the party lottery of the Jurisdiction in which the MEGA MILLIONS® ticket is issued, and by directives and determinations of the director of that party lottery. Additionally, the player shall be bound to all applicable provisions in the MEGA MILLIONS® Finance and Operations Procedures. The player agrees, as its sole and exclusive remedy that claims arising out of a MEGA MILLIONS® ticket can only be pursued against the party lottery of ticket purchase. Litigation, if any, shall only be maintained within the state in which the MEGA MILLIONS® ticket was purchased and only against the party lottery that issued the ticket. Nothing in this rule shall be construed as a waiver of any defense or claim the D.C. Lottery may have in the event a player pursues litigation against the D.C. Lottery, its officers, or employees.
917.15 A ticket subject to the validations requirements of this title shall be the only proof of a wager.
917.16 Each drawing shall determine, at random, the six winning numbers in accordance with the MEGA MILLIONS® drawing procedures. Any numbers drawn are not declared winning numbers until the drawing is certified by the commission in accordance with the drawing procedures. The winning numbers shall be used in determining all MEGA MILLIONS® winners for that drawing.
917.17 For winning MEGA MILLIONS® tickets for which no claim or redemption is made within the specified claim period for each respective party lottery, the corresponding prize monies shall be returned to the other party lotteries in accordance with procedures for the reconciliation of prize liability pursuant to the MUSL MEGA MILLIONS Game Group Agreement and as may be agreed to from time to time by the directors of the party lotteries.
917.18 The Executive Director shall announce each incentive or bonus program prior to its commencement. The announcement shall specify the beginning and ending time, if applicable, of the incentive or bonus program and the value for the award(s).
917.19 The Prize Pool shall consist of up to fifty-five percent (55%) of each drawing period’s sales.
Section 918 (Mega Millions® Fixed Prize Structure and Probability) is amended to read as follows:
918 MEGA MILLIONS® FIXED PRIZE STRUCTURE AND PROBABILITY
918.1 Provided the prize pools are fully funded, the fixed prize payments for MEGA MILLIONS® based on a one dollar (1) bet are as follows:
Number of Matches Per Play
(a) All five (5) of the first set and
Mega Ball Grand Prize
(b) All five (5) of the first set and
no Mega Ball $ 1,000,000.00
(c) Any four (4) of the first set plus
the Mega Ball $ 5,000.00
(d) Any four (4) of the first set and
no Mega Ball $ 500.00
(e) Any three (3) of the first set plus
the Mega Ball $ 50.00
(f) Any two (2) of the first set plus
the Mega Ball $ 5.00
(g) Any three (3) of the first set and
no Mega ball $ 5.00
(h) Any one (I) of the first set plus
The Mega Ball $ 2.00
(i) None of the first set plus
the Mega Ball $ 1.00
918.2 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®:
PROBABILITY DISTRIBUTION
Number of Matches Probable Set
Per Ticket Winners Probability Prize Amount
All five (5) of first
set plus the Mega Ball 1 1: 258,890,850 GRAND PRIZE*
All five (5) of the
first set and NO
Mega Ball 14 1: 18,492,203.57 $1,000,000.00*
Any four (4) of the
first set plus the Mega Ball 350 1: 739,688.14 $5,000.00
Any four (4) of the
first set and no Mega Ball 4,900 1: 52,834.87 $500.00
Any three (3) of the
first set plus the Mega Ball 24,150 1: 10,720.12 $50.00*
Any two (2) of the first
set plus the Mega Ball 338,100 1: 765.75 $5.00
Any three (3) of the first
set plus no Mega Ball 547,400 1: 472.95 $5.00
Any one (1) of the first
set plus the Mega Ball 4,584,475 1: 56.47 $2.00
None of the first set
plus the Mega Ball 12,103,014 1: 21.39 $1.00
Overall Odds 17,602,404 1:14.71
918.3 Except as provided in these rules, all prizes awarded shall be paid as lump sum set prizes. Instead of the MEGA MILLIONS® set prize amounts, qualifying MEGAPLIER® plays will pay the amounts shown below when matched with the MEGAPLIER® number drawn:
Prize Levels Standard With Megaplier Purchase
Standard 2x 3X 4X 5X
Match 5+0 $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00 $5,000,000.00
Match 4+1 $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00
Match 4+0 $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.000
Match 3+1 $50.00 $100.00 $150.00 $200.00 $250.00
Match 3+0 $5.00 $10.00 $15.00 $20.00 $25.00
Match 2+1 $5.00 $10.00 $15.00 $20.00 $25.00
Match 1+1 $2.00 $4.00 $6.00 $8.00 $10.00
Match 0+1 $1.00 $2.00 $3.00 $4.00 $5.00
Multiplier numbers do not apply to the Mega Millions Grand Prize.
918.4 In certain rare instances, the Mega Millions set prize amount may be less than the amount shown. In such case, the MEGAPLIER® prizes will be a multiple of the changed Mega Millions prize amount announced after the draw. For example, if the Match 4+1 Mega Millions set prize amount of five thousand dollars ($5,000.00) becomes two thousand dollars ($2,000.00) under the rules of the Mega Millions game, then a MEGAPLIER® player winning that prize amount with a 4X multiplier would win eight thousand dollars ($8,000): two thousand dollars multiplied by four ($2,000.00 x 4).
918.5 The following table sets forth the probability of the various MEGAPLIER® numbers being drawn during a single MEGA MILLIONS® drawing, The MEGA MILLIONS® and/or MUSL Group may elect to run limited promotions that may increase the multiplier numbers.
MEGAPLIER® Probability of Prize Increase
5X - Prize Won Times 5 6 in 15
4X - Prize Won Times 4 3 in 15
3X - Prize Won Times 3 4 in 15
2X - Prize Won Times 2 2 in 15
Multiplier numbers do not apply to the Mega Millions Grand Prize.
Title 30 (Lottery and Charitable Games), Chapter 99 (Definitions) of the DCMR is amended as follows:
Section 9900 is amended by amending the definition for “Megaplier” to read as follows:
MEGAPLIER-A Mega Millions game feature by which a player, for an additional wager of $1 per play, can increase the guaranteed prize amount or pari-mutuel prize amount, as applicable, excluding the Grand/Jackpot prize by a factor of two, three, four or five times depending upon the multiplier number that is drawn prior to the Mega Millions drawing.
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 Register. Comments should be filed with the Executive Director, District of Columbia Lottery and Charitable Games Control Board, 2101 Martin Luther King, Jr., Avenue, S.E., Washington, D.C. 20020. Copies of these proposed rules may be obtained at the address stated above.
