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NOTICES

DEPARTMENT OF REVENUE

Retail Incentive Program and Related Retailer Incentive Programs and Promotions for Fiscal Year 2019-2020

[49 Pa.B. 3427]
[Saturday, June 29, 2019]

Under the State Lottery Law (72 P.S. §§ 3761-101—3761-314) and 61 Pa. Code § 803.11 (relating to powers and duties of the Secretary of Revenue), and under Title 4, Amusements, (4 Pa.C.S. §§ 501—505) the Secretary of Revenue hereby provides public notice of the Retail Incentive Program and Related Retailer Incentive Programs and Promotions (collectively referred to as ”the Program”) for fiscal year 2019-2020.

This notice describes the Program, including incentives, bonuses, and promotions available to Retailers throughout fiscal year 2019-2020.

1. Effective Date: The Retail Incentive Program and related retailer incentive programs and promotions described herein are effective as of July 1, 2019.

2. Purpose: The Pennsylvania Lottery (hereinafter referred to as ”Lottery”), hereby gives notice of the Retail Incentive Program, as provided for in 4 Pa.C.S. § 504, and of related retailer incentive programs, as provided for in 61 Pa. Code § 803.11 (relating to the powers and duties of the Secretary of Revenue), 61 Pa. Code § 819.222(b) (relating to incentives for the sale of instant tickets), 61 Pa. Code § 875.17 (relating to the sale of terminal based tickets), 61 Pa. Code § 874.17 (relating to the sale of raffle lottery games) in order to detail programs planned by the Lottery for the fiscal year beginning July 1, 2019 and ending June 30, 2020. The Retail Incentive Program and the related retailer incentive programs and promotions, as described in this notice were developed to create a comprehensive, compensation package for Lottery Retailers and to reward them for helping the Lottery achieve its goals. Changes or additions to the Retail Incentive Program will be communicated through an amended notice published in the Pennsylvania Bulletin. Changes or additions related to the retailer incentive programs and promotions as described in this notice will be communicated through the usual methods of communication.

3. Definitions:

(a) Agent or Lottery Sales Agent or Retailer: A person licensed under section 305 of the State Lottery Law. For the purposes of this notice each separate Retail Location with a separate Lottery license shall be considered a separate Retailer in all respects.

(b) Fiscal Year: For the purposes of this notice only, the accounting year used by the Lottery beginning on July 1, 2019 and ending on June 30, 2020.

(c) Lottery or Pennsylvania Lottery: The Lottery established under the State Lottery Law.

(d) Traditional Lottery Products: For the purposes of this notice, traditional lottery products are limited to instant lottery games, terminal-based lottery games, Fast Play games, raffle lottery games and WebCash.

(e) Retailer in Good Standing: To be a Retailer in Good Standing, the Retailer must meet all of the following requirements:

(1) Must be an active Retailer permitted to sell Lottery tickets.

(2) Must be an active Retailer on the first day of the Quarter and the last day of the Quarter.

(f) Secretary: The Secretary of Revenue of the Commonwealth.

(g) Standard Retailer Commission: The amount of compensation provided to Retailers for selling Lottery products, as set forth in the State Lottery Law and the corresponding regulations. The current commission is defined in 61 Pa. Code § 805.10 (relating to compensation).

(h) State Lottery Law: The Act of August 26, 1971 (P.L. 351, No. 91), known as the State Lottery Law (72 P.S. §§ 3761-101—3761-314).

(i) Quarter: A Quarter is a period of time during the year which consists of three consecutive months and which are consistent with the descriptions below.

(1) First quarter is the period of time beginning on July 1 and ending on September 30.

(2) Second quarter is the period of time beginning on October 1 and ending on December 31.

(3) Third quarter is the period of time beginning on January 1 and ending on March 31.

(4) Fourth quarter is the period of time beginning on April 1 and ending on June 30.

(j) Retail Location: Physical location of a Retailer, including a physical address or other designation used by the Lottery to determine the physical location of a Retailer.

4. Program Goals: The Lottery seeks to attain the following business goals through the operation of the Program:

(a) Adoption of Lottery Best Practices: The Lottery has identified certain best practices as described in section 5, below, and desires to encourage the adoption of these best practices by all Retailers.

(b) Increasing Retailer Sales: Traditional Lottery Products can only be sold at physical, Retail Locations and the Lottery desires to award Retailers who increase their sales for the benefit of older Pennsylvanians through the Retail Incentive Program, retailer incentive programs and promotions.

(c) Encouraging Retailers to Engage in Specific Best Practices: The Lottery has undertaken to establish the Lottery Best Practices Initiatives as identified in section 9, below, in select Retail Locations throughout the Commonwealth that elect to do so through the Program.

(d) Rewarding Retailers: The Lottery has established an aggressive bonus program under the Sales Growth Incentive Program as described in section 8, below, for Retailers who increase their sales proportionately with the overall increase in sales goals the Lottery has established in fiscal year 2019-2020.

5. Lottery Best Practices:

(a) Lottery has identified the following ten best practices that Lottery Retailers are encouraged to adopt and adhere to in order to maximize Lottery sales and player engagement with Traditional Lottery Products at Retail Locations.

(1) Ask for the Sale: Retailers can maximize their Traditional Lottery Product sales and player engagement by encouraging customers to buy Traditional Lottery Products.

(2) Keep Lottery Fresh and Clean: Retailers can maximize their sales of Traditional Lottery Products and player engagement by maintaining and keeping clean the area of their establishment in which Traditional Lottery Products are sold and displayed.

(3) Know Lottery Products: Retailers can maximize their Traditional Lottery Product sales and player engagement by being knowledgeable about the wide variety of Traditional Lottery Products.

(4) Pay Winning Tickets: Retailers can maximize their Traditional Lottery Product sales and player engagement by paying winning Lottery tickets of $2,500, or less, that players present at their Retail Locations.

(5) Post Winning Tickets: Retailers can maximize their Traditional Lottery Product sales and player engagement by posting winning tickets sold at their Retail Locations.

(6) Maintain Inventory: Retailers can maximize their Traditional Lottery Product sales and player engagement by maintaining their inventory of Traditional Lottery Products, specifically scratch-off tickets, and by introducing new Traditional Lottery Products promptly upon issuance.

(7) Post Jackpot Amounts: Retailers can maximize their Traditional Lottery Product sales and player engagement by posting jackpot amounts prominently in places where they are highly visible to customers.

(8) Make Lottery Visible: Retailers can maximize their Traditional Lottery Product sales and player engagement by making Traditional Lottery Products easily visible in their Retail Locations.

(9) Display Indoor Signs: Retailers can maximize their Traditional Lottery Product sales and player engagement by posting Lottery signs and advertisements inside of their Retail Locations.

(10) Display Outdoor Signs: Retailers can maximize their Traditional Lottery Product sales and player engagement by posting Lottery signs and advertisements outside of their Retail Locations.

(b) To meet the goals of the Lottery and to encourage the Lottery Best Practices described in section 5(a), above, the Lottery provides each Retailer with Lottery-owned equipment and advertising materials based upon the individual retail environment.

6. Program Requirements:

(a) Unless otherwise stated in this notice, to participate in the Program, the Retailer must be a Retailer in Good Standing.

(b) The determination of a Retailer’s eligibility for participation will be made at the end of each Quarter of the Program for the fiscal year beginning on July 1, 2019 and ending on June 30, 2020.

(1) The determination will be made based on the information in the Lottery’s financial accounting system for the Retailer and the status of the Retailer’s license as of September 30, 2019 for the first quarter.

(2) The determination will be made based on the information in the Lottery’s financial accounting system for the Retailer and the status of the Retailer’s license as of December 31, 2019 for the second quarter.

(3) The determination will be made based on the information in the Lottery’s financial accounting system for the Retailer and the status of the Retailer’s license as of March 31, 2020 for the third quarter.

(4) The determination will be made based on the information in the Lottery’s financial accounting system for the Retailer and the status of the Retailer’s license as of June 30, 2020 for the fourth quarter.

(c) A Retailer may be eligible to participate in and receive the incentives provided in section 8, below, for each Quarter in which the Retailer satisfies the eligibility requirements of this section and the requirements of section 8.

(d) A Retailer may be eligible to participate in and receive the incentives provided in section 9, below, one time during the Fiscal Year if the Retailer satisfies the eligibility requirements of this section and the requirements of section 9 and is approved for participation.

(e) A Retailer is only eligible for participation in the Program for those Quarters in which the Retailer remains eligible for the entire Quarter. Failure to maintain the requirements of a Retailer in Good Standing for any reason for any Quarter shall preclude the Retailer from receiving any payment or payments that the Retailer would otherwise be entitled to for that Quarter.

(f) The final determination of a Retailer’s eligibility will be made by the Secretary, whose judgment will be final and binding.

7. How to Enroll:

(a) Licensed Retailers are automatically enrolled in the Sales Growth Incentive Program as described in section 8, below, and the Quarterly Retailer Incentive Programs as described under section 10 of this notice.

(b) Retailers who do not wish to participate in the Sales Growth Incentive Program must sign a form indicating that the Retailer understands and acknowledges that the Retailer will not receive incentives as described under section 8 of this notice.

(c) Participation in the Lottery Best Practices Initiatives is voluntary on the part of each Retailer and requires the Retailer to opt-in as described in this notice.

(d) Retailers who wish to enroll one or more of the Lottery Best Practices Initiatives are responsible for reading this notice and any Lottery materials advertising the Lottery Best Practices Initiatives to the Lottery through their Lottery Sales Representative or by emailing the Lottery at [email protected]

8. Sales Growth Incentive Program: Retailers may qualify for a Sales Growth Incentive, in addition to the Standard Retailer Commission, by meeting the requirements of this section.

(a) The Lottery will establish a sales baseline for each Retailer.

(1) For a Retailer existing in fiscal year 2018-2019, the Lottery will establish a sales baseline for each Retailer based on that Retailer’s fiscal year 2018-2019 sales for each Quarter that the Retailer is eligible for the Sales Growth Incentive Program under sections 6 and 7 of this notice.

(2) If the Retail Location was not licensed as a Retailer in fiscal year 2018-2019, the Lottery will establish a sales baseline for that Retailer for each Quarter that the Retailer is eligible for the Sales Growth Incentive Program under sections 6 and 7 of this notice. The Lottery may consider any relevant factors to determine the sales baseline.

(3) If the Retailer was not a licensed Retailer for the entirety of any Quarter in fiscal year 2018-2019, the Lottery will establish a sales baseline for that Retailer for the corresponding Quarter based on sales at the Retail Location for the same Quarter in fiscal year 2018-2019.

(b) Sales baseline figures may account for periods in which the Retailer did not have Traditional Lottery Product sales but met the definition of Retailer in Good Standing.

(c) Each Retailer shall be provided with their sales baseline figures and sales goals by the Lottery in writing.

(d) A Retailer who exceeds their prior year sales figure by at least 4%, but not more than 7.99%, for any Quarter in the Fiscal Year to which this notice applies, shall be awarded an additional 0.75% incentive above the Standard Retailer Commission. For example, assuming that the Retailer has met all other requirements of this notice, a Retailer with a sales baseline of $100,000 for a Quarter, who raises their sales by 4% to $104,000, shall be entitled to the Sales Growth Incentive of 0.75% in addition to the Standard Retailer Commission and will be entitled to a Sales Growth Incentive payment of $780. With the Standard Retailer Commission of $5,200 on sales of $104,000, the Retailer would receive a total payment of $5,980 for that Quarter.

(e) A Retailer who exceeds their sales baseline figure for any Quarter by at least 8% shall be awarded an additional 1.50% incentive above the Standard Retailer Commission. For example, assuming that the Retailer has met all other requirements of this notice, a Retailer with a sales baseline of $100,000 for a Quarter, who raises their sales by 8% to $108,000, shall be entitled to a 1.50% incentive in addition to the Standard Retailer Commission and will be entitled to Sales Growth Incentive payment of $1,620. With the Standard Retailer Commission of $5,400 on sales of $108,000, the Retailer would receive a total payment of $7,020 for that Quarter.

(f) A Retailer shall not receive an incentive above 1.50% for any Quarter under section 8 of this notice.

9. Lottery Best Practices Initiatives:

(a) Qualifying Retailers: In order to participate in one or more of the Lottery Best Practices Initiatives as described below, the Retailer must meet the eligibility requirements as set forth in section 6 of this notice. Only Retailers who agree to participate and are approved by the Lottery shall be eligible for the Lottery Best Practices Initiatives. Retailers that are engaging in the best practices or who have already received Lottery-owned equipment or materials listed below are not eligible to participate in the applicable initiatives unless they are increasing their level of engagement relative to a specific initiative.

(b) Levels of Participation: Consistent with the Lottery’s objectives, qualifying Retailers will fall into one of four levels for participation in the Lottery Best Practices Initiatives, as follows:

(1) Level 1 Retailer: A Retailer that has a Quarterly average of $125,000 or more in sales of Traditional Lottery Products for the fiscal year beginning on July 1, 2018 and ending on June 30, 2019.

(2) Level 2 Retailer: A Retailer that has a Quarterly average between $120,000 and $124,999 in sales of Traditional Lottery Products for the fiscal year beginning on July 1, 2018 and ending on June 30, 2019.

(3) Level 3 Retailer: A Retailer that has a Quarterly average of less than $120,000 in sales of Traditional Lottery Products for the fiscal year beginning on July 1, 2018 and ending on June 30, 2019.

(4) Level 4 Retailer: A Retailer that meets all of the following criteria:

(i) The prospective Retailer submitted a complete application to become a Lottery Retailer during fiscal year 2019-2020, in addition to any other forms and agreements that must be completed by prospective Retailers.

(ii) The proposed Retail Location was not a licensed Retailer in fiscal year 2018-2019.

(iii) The application is approved by the Lottery in fiscal year 2019-2020.

(c) Enrollment in the Lottery Best Practices Initiatives: A Retailer who wants to participate in one or more of the Lottery Best Practices Initiatives must opt-in by March 1, 2020.

(d) Schedule for Delivery of Materials and Equipment: For each Retailer that has opted-in to one or more of the Lottery Best Practices Initiatives and has been approved for participation, the Lottery will determine when the materials or Lottery-owned equipment, as applicable, for each of the Lottery Best Practices Initiatives will be delivered. Delivery and installation dates will be scheduled at the Lottery’s discretion.

(e) Lottery Best Practices Initiatives:

(1) The following Lottery Best Practices Initiatives are available to Level 1 Retailers upon approval for participation by the Lottery:

(i) Increased Counter Facings Initiative:

(A) Level 1 Retailers are required to increase their counter facings by 12 and agree to maintain the display in such a way as to prevent anything from impeding the view of the increased facings.

(B) Level 1 Retailers are eligible to receive a one-time payment of $500 following agreement and approval to participate in the Increased Counter Facings Initiative for Level 1 Retailers.

(ii) Designated Lottery Space Initiative:

(A) Level 1 Retailers that agree to participate in the Designated Lottery Space Initiative must create and maintain a physical location within the Retail Location designated for customers to play the lottery and agree to install and maintain the Lottery-owned equipment.

(B) Level 1 Retailers are eligible to receive a one-time payment of $350 following agreement and approval to participate in the Designated Lottery Space Initiative for Level 1 Retailers.

(iii) Winner Awareness Area Initiative:

(A) Level 1 Retailers that agree to participate in the Winner Awareness Area Initiative must create and maintain a physical location within the Retail Location, of a minimum of 6 square feet, designated to display winning tickets paid by the Retailer and must update the area with tickets paid by the Retailer on a monthly basis.

(B) The Lottery will provide the Retailer with the materials necessary to display winning tickets.

(C) Level 1 Retailers are eligible to receive a one-time payment of $350 following agreement and approval to participate in the Winner Awareness Initiative for Level 1 Retailers.

(iv) Signage Initiative:

(A) Level 1 Retailers that agree to participate in the Signage Initiative must increase and maintain the amount of Lottery provided indoor and outdoor signage displayed at the Retail Location above the amount the Retailer displays prior to agreeing to participate in the Signage Initiative.

(B) Level 1 Retailers are eligible to receive a one-time payment of $350 following agreement and approval to participate in the Signage Initiative for Level 1 Retailers.

(v) Second-Chance Drawing Initiative:

(A) A Level 1 Retailer that agrees to participate in the Second-Chance Drawing Initiative must conduct a Second-Chance Drawing during the Fiscal Year.

(B) To conduct a Second-Chance Drawing, Level 1 Retailers must conduct a drawing for Lottery players in which they randomly select one or more winners. The Retailer shall receive at least $100 worth of Lottery coupons or promotional tickets to support the drawing.

(C) Level 1 Retailers that agree to participate in the Second-Chance Drawing Initiative must also supply a prize, not otherwise prohibited by law that matches or exceeds the monetary value of the Lottery coupons or promotional tickets provided to support the drawing. The prize supplied by the Retailer may be made using money, merchandise or any other item of value provided by the Retailer.

(D) Level 1 Retailers are eligible to receive the Lottery coupons or promotional tickets following agreement and approval to participate in the Second-Chance Drawing Initiative for Level 1 Retailers.

(E) Level 1 Retailers that participate in the Second-Chance Drawing Initiative are responsible for developing and communicating the rules for the Second-Chance Drawings conducted by the Retailer. Retailers who participate in the Second-Chance Drawing Initiative are responsible for implementing and adhering to the rules that they develop for the Second-Chance Drawings they conduct. The Lottery does not administer and is not responsible for the conduct or the outcome of the Second-Chance Drawings as described in this notice.

(F) The Lottery will only support one Second-Chance Drawing for each qualifying and approved Level 1 Retailer.

(vi) All-In Initiative:

(A) Level 1 Retailers that agree to participate in the All-In Initiative must conduct each of the Lottery Best Practices Initiatives as described in section 9(e)(1)(i)—(v) for Level 1 Retailers.

(B) Level 1 Retailers are eligible to receive a one-time payment of $1,550 as well as the Lottery coupons or promotional tickets used to support the Second-Chance Drawing Initiative, following agreement and approval to participate in the All-In Initiative for Level 1 Retailers.

(2) The following Lottery Best Practices Initiatives are available to Level 2 Retailers upon approval for participation by the Lottery:

(i) Increased Counter Facings Initiative:

(A) Level 2 Retailers are required to increase their counter facings by eight and agree to maintain the display in such a way as to prevent anything from impeding the view of the increased facings.

(B) Level 2 Retailers are eligible to receive a one-time payment of $200 following agreement and approval to participate in the Increased Counter Facings Initiative for Level 2 Retailers.

(ii) Designated Lottery Space Initiative:

(A) Level 2 Retailers that agree to participate in the Designated Lottery Space Initiative must create and maintain a physical location within the Retail Location designated for customers to play the lottery and to agree to install and maintain the Lottery-owned equipment.

(B) Level 2 Retailers are eligible to receive a one-time payment of $100 following agreement and approval to participate in the Designated Lottery Space Initiative for Level 2 Retailers.

(iii) Winner Awareness Area Initiative:

(A) Level 2 Retailers that agree to participate in the Winner Awareness Area Initiative must create and maintain a physical location within the Retail Location, of a minimum of 6 square feet, designated to display winning tickets paid by the Retailer, and must update the area with tickets paid by the Retailer on a monthly basis.

(B) The Lottery will provide the Retailer with the materials necessary to display winning tickets.

(C) Level 2 Retailers are eligible to receive a one-time payment of $100 following agreement and approval to participate in the Winner Awareness Initiative for Level 2 Retailers.

(iv) Second-Chance Drawing Initiative:

(A) Level 2 Retailers that agree to participate in the Second-Chance Drawing Initiative must conduct a Second-Chance Drawing during the Fiscal Year.

(B) To conduct a Second-Chance Drawing, Level 2 Retailers must conduct a drawing for Lottery players in which they randomly select one or more winners. The Retailer shall receive at least $100 worth of Lottery coupons or promotional tickets to support the drawing.

(C) Level 2 Retailers that agree to participate in the Second-Chance Drawing Initiative must also supply a prize, not otherwise prohibited by law that matches or exceeds the monetary value of the Lottery coupons or promotional tickets provided to support the drawing. The prize supplied by the Retailer may be made using money, merchandise or any other item of value provided by the Retailer.

(D) Level 2 Retailers are eligible to receive the Lottery coupons or promotional tickets following agreement and approval to participate in the Second-Chance Drawing Initiative for Level 2 Retailers.

(E) Level 2 Retailers who participate in the Second-Chance Drawing Initiative are responsible for developing and communicating the rules for the Second-Chance Drawings conducted by the Retailer. Retailers who participate in the Second-Chance Drawing Initiative are responsible for implementing and adhering to the rules that they develop for the Second-Chance Drawings they conduct. The Lottery does not administer and is not responsible for the conduct or the outcome of the Second-Chance Drawings as described in this notice.

(F) The Lottery will only support one Second-Chance Drawing for each qualifying and approved Level 2 Retailer.

(v) All-In Initiative:

(A) Level 2 Retailers that agree to participate in the All-In Initiative must conduct the Lottery Best Practices Initiatives as described in section 9(e)(2)(i)—(iv) for Level 2 Retailers.

(B) Level 2 Retailers are eligible to receive a one-time payment of $400 as well as the Lottery coupons or promotional tickets used to support the Second-Chance Drawing Initiative, following agreement and approval to participate in the All-In Initiative for Level 2 Retailers.

(3) The following Lottery Best Practices Initiatives are available to Level 3 Retailers upon approval by the Lottery:

(i) Ask for the Sale Initiative:

(A) A Level 3 Retailer that agrees to participate in the Ask for the Sale Initiative must conduct an Ask for the Sale promotion at the Retail Location once during the Fiscal Year.

(B) To conduct an Ask for the Sale promotion, the Level 3 Retailer must agree to ask every customer to purchase a Lottery ticket during the agreed upon time frame and must display Lottery provided materials advertising the promotion.

(C) Level 3 Retailers shall receive up to $100 worth of Lottery coupons or promotional tickets to support the promotion by awarding any player not asked to purchase a Lottery ticket, a Lottery coupon or promotional ticket.

(D) Level 3 Retailers who opt-in to the Second-Chance Drawing Initiative as described in section 9(e)(3) are not eligible for the Ask for the Sale Initiative.

(ii) Second-Chance Drawing Initiative:

(A) Level 3 Retailers that agree to participate in the Second-Chance Drawing Initiative must conduct a Second-Chance Drawing during the Fiscal Year.

(B) To conduct a Second-Chance Drawing, Retailers must conduct a drawing for Lottery players in which they randomly select one or more winners. The Retailer shall receive at least $100 worth of Lottery coupons or promotional tickets to support the drawing.

(C) Level 3 Retailers are eligible to receive Lottery coupons or promotional tickets following agreement and approval to participate in the Second-Chance Drawing Initiative for Level 3 Retailers.

(D) Level 3 Retailers who participate in the Second-Chance Drawing Initiative are responsible for developing and communicating the rules for the Second-Chance Drawings conducted by the Retailer. Retailers who participate in the Second-Chance Drawing Initiative are responsible for implementing and adhering to the rules that they develop for the Second-Chance Drawings they conduct. The Lottery does not administer and is not responsible for the conduct or the outcome of the Second-Chance Drawings as described in this notice.

(E) Level 3 Retailers are not eligible to participate in the Second-Chance Drawing Initiative if the same Retailer opted-in and was approved for the Ask for the Sale Initiative as described in this notice.

(F) The Lottery will only support one Second-Chance Drawing for each qualifying and approved Level 3 Retailer.

(4) Level 4 Retailers are eligible for the Prospective Social Environment Retail Recruitment Initiative as described below, upon approval of the Lottery:

(i) Level 4 Retailers that agree to participate in the Prospective Social Environment Retail Recruitment Initiative must meet the requirements of a Level 4 Retailer as described in section 9(b)(4).

(ii) Level 4 Retailers that agree to participate in the Prospective Social Environment Retail Recruitment Initiative must agree to the installation of Lottery-owned equipment, as recommended by the Lottery for the specific Retail Location. Required Lottery-owned equipment includes, but is not limited to, at least two monitors for the display of certain terminal-based Lottery games, commonly referred to as monitor games.

(iii) Level 4 Retailers that agree to participate in the Prospective Social Environment Retail Recruitment Initiative must be a Retailer in Good Standing for 6 months following the installation of the Lottery-owned equipment.

(iv) Level 4 Retailers that agree to participate in the Prospective Social Environment Retail Recruitment Initiative must keep the Lottery-owned equipment installed and operational for 6 months following the installation of the Lottery-owned equipment.

(v) Level 4 Retailers are eligible to receive a one-time payment of $500 for each monitor installed, following agreement and approval to participate in the Prospective Social Environment Retail Recruitment Initiative.

(vi) All Lottery-owned equipment to be installed shall be determined by the Lottery. Level 4 Retailers may request certain equipment be placed in their Retail Location. The ultimate decision as to the type of Lottery-owned equipment, number of monitors, and the like, that will be placed in a Retail Location is at the sole discretion of the Lottery.

(vii) Level 4 Retailers who agree to participate in the Prospective Social Environment Retail Recruitment Initiative must acknowledge and agree to the terms of the Prospective Social Environment Retail Recruitment Initiative. The Lottery is authorized to deduct $500 for each monitor installed from the Retailer’s bank account as part of the Retailer’s weekly settlement process if the Retailer fails to have the Lottery-owned equipment installed and operational for a period of 6 months from the date of installation or if the Retailer fails to maintain its status as a Retailer in Good Standing.

(f) Level 2 Retailers that have opted-in to one or more of the Lottery Best Practices Initiatives, that have been approved for participation, and that reach an average of $125,000 in sales for any Quarter during the Fiscal Year shall be entitled to the same cash payment, if any, associated with the specific Lottery Best Practices Initiatives participated in by the Retailer.

(g) If a Level 3 Retailer reaches the thresholds of either a Level 1 Retailer or a Level 2 Retailer in Traditional Lottery Product sales for either the first or second quarter during the Fiscal Year, the Retailer may apply for the respective Lottery Best Practices Initiatives for the newly achieved Retailer level. If approved by the Lottery for participation in the specific Lottery Best Practices Initiatives, the Retailer shall be entitled to the same cash payment, if any, associated with the specific Lottery Best Practices Initiatives participated in by the Retailer.

10. Quarterly Retailer Incentive Promotions:

(a) The Lottery will conduct Quarterly incentive promotions that provide Retailers with an opportunity to earn a reward by conducting various promotions related to the sale of Traditional Lottery Products.

(b) The Lottery will advise Retailers of the Quarterly incentive promotions through Lottery sales-terminal messages, information provided by Lottery Sales Representatives and information provided on the Retailer’s Corner of the Lottery website, https://www.palottery.state.pa.us/About-PA-Lottery/For-Retailers.aspx.

(c) The rewards to Retailers issued through the Quarterly incentive promotions may include, but are not limited to, bonus commissions and entries into drawings.

11. Funds for the Retail Incentive Program: For fiscal year 2019-2020, the Pennsylvania Lottery caps expenditures of the Sales Growth Incentive Program as described in section 8, above, the Lottery Best Practices Initiatives as described in section 9, above, and the Quarterly Retailer Incentive Promotions as described in section 10, above, to the statutory requirement of 0.5% of the sale of Traditional Lottery Products at Retail Locations within fiscal year 2019-2020 as required pursuant to 4 Pa.C.S. § 504(b).

12. Nonlapse: Amounts remaining in the Retail Incentive Program at the end of the Fiscal Year shall not lapse, but shall be used to fund retail sales initiatives including, but not limited to, new equipment, signage, training, coupons, consumer and agent in-store promotions and sales makeovers that are designed to improve in-store merchandising, foot traffic and sales as determined by the Lottery.

13. Retailer Incentive Programs and Promotions:

(a) The Pennsylvania Lottery is authorized to offer retailer incentive programs and promotions pursuant to 61 Pa. Code § 811.41. Any expenditures for the Program incurred by the Lottery that exceed the limit set forth at 4 Pa.C.S. § 504(b) in section 11, above, will be attributed to retailer incentive programs and promotions authorized pursuant to 61 Pa. Code § 811.41.

(b) The Retail Incentive Program will run concurrently and in conjunction with the retailer incentive programs and promotions described in this notice.

14. Payments: Payments due to Retailers pursuant to the requirements of the Retail Incentive Program and the related retailer incentive programs and promotions described in this notice will be credited to the Retailer’s bank account on file with the Lottery at a time determined by the Lottery.

15. Applicability: This notice applies only to the Retail Incentive Program for the fiscal year beginning on July 1, 2019 and ending on June 30, 2020 and the related retailer incentive programs and promotions described in this notice. Additional related retailer incentive programs and promotions may be conducted throughout the Fiscal Year pursuant to the State Lottery Law and corresponding regulations and will be communicated through normal methods of communication.

C. DANIEL HASSELL,
Secretary

[Pa.B. Doc. No. 19-986. Filed for public inspection June 28, 2019, 9:00 a.m.]

This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.

Information included at this site has been derived directly from the Pennsylvania Code, the Commonwealth’s official publication of rules and regulations and from the Pennsylvania Bulletin, the Commonwealth’s official gazette for information and rulemaking

Bonus Policy

Bonuses, promotions and special offers may be offered for PA iLottery at the Pennsylvania Lottery’s sole discretion. In order to participate in a bonus, promotion or special offer offered for PA iLottery, an individual is required to be 18 years of age; have a valid and verified account through PA iLottery; have accepted, acknowledged and agreed to the Terms and Conditions and End User License Agreement (“Terms and Conditions”) for participation in PA iLottery; and must not be self-excluded or participating in a cool-off period through PAiLottery.com.

The following is an overview of the terms and conditions (“Bonus Policy”) associated with bonuses and promotions offered for PA iLottery. Please be advised that individual bonuses, promotions and special offers may be governed by specific rules. However, if there is a conflict between the specific rules for a bonus, promotion or special offering and this Bonus Policy, the specific rules shall prevail. In the event there is a conflict between the specific rules for a bonus, promotion or special offering and the Terms and Conditions for PA iLottery, the Terms and Conditions shall prevail.

The Pennsylvania Lottery reserves the right, in its sole discretion, to cancel or suspend a bonus, promotion or special offer at any time and for any reason.

Threshold Requirements

While other requirements and restrictions will apply, an individual is required to meet all of the following threshold requirements to participate in Promotions offered related to PA iLottery and through PAiLottery.com:

  1. The individual must be 18 years of age or older.
  2. The individual must be a registered VIP Players Club member with a PA iLottery account. To become a VIP Players Club member and become a registered PA iLottery player, visit http://www.pailottery.com. Becoming a VIP Players Club member and registered iLottery player is free.
  3. The individual must have accepted, acknowledged and agreed to the Terms and Conditions and End User License Agreement (“Terms and Conditions”) for participation in PA iLottery.
  4. The individual must be within the geographical boundaries of the Commonwealth of Pennsylvania in order to place any wagers required as part of a Promotion.

Promotion Rules and Requirements

The following is an overview of rules and requirements that apply to all Promotions. These rules and requirements are applicable to every Promotion offered by the Pennsylvania Lottery for PA iLottery and through PAiLottery.com, unless the rules and requirements associated with a specific Promotion explicitly state otherwise.

  1. Each Promotion is only available once per PA iLottery account, unless otherwise specifically stated.
  2. Unless otherwise specifically stated, a PA iLottery account holder (also referred to herein as a “player”) must enable Promotions in order to qualify for them. Most Promotions can be enabled through the My Bonuses section of the PA iLottery account. Other Promotions may require a code be entered. If a code is required, it must be entered at the time of the qualifying deposit.
  3. To be eligible for a Promotion, a PA iLottery account holder may be required to meet certain wagering or funding requirements as described in the requirements for a specific Promotion.
  4. Unless otherwise specifically stated, all iLottery games shall be eligible for a Promotion, including games introduced after the beginning of the Promotion.
  5. A Promotion may not be used in combination with any other Promotion offered through PA iLottery.
  6. Wagers placed to satisfy the wagering requirements for one Promotion may not contribute to satisfying the wagering requirements of any other Promotion.
  7. Promotional awards, unless otherwise specifically stated, will be issued in Bonus Money. Bonus Money does not constitute cash.
  8. If a player requests a withdrawal from their iLottery account prior to fulfilling wagering requirements specific to a Promotion, the request may result in forfeiture of the remaining balance of Bonus Money.
  9. For any wager placed while a Promotion is active, funds are deducted from the PA iLottery account holder’s cash balance, unless there is no cash available in the PA iLottery account holder’s account.
  10. Wagering and/or funding requirements for a Promotion must be met prior to the date specified in the specific requirements for a Promotion (“Expiration Date”). If the wagering and/or funding requirements are not met prior to the Expiration Date, Bonus Money and any winnings generated from the wagering of such Bonus Money will be forfeited.
  11. Cancellation of a Promotion prior to meeting the wagering and/or funding requirements for that Promotion will result in the forfeiture of any Promotion award, prize or Bonus money and any winnings derived therefrom.
  12. Promotion awards, including Bonus Money, cannot be withdrawn until the wagering and/or funding requirements for that specific Promotion are satisfied.
  13. Wagering on Draw Games (including Mega Millions and Powerball) may be performed using Bonus Money. Prizes won on Draw Games, where the wager was performed with Bonus Money, will be paid out in cash, regardless of the remaining play through requirements on the Bonus Money used to conduct the wager.
  14. The Lottery is not responsible for late, lost or misdirected entries not entered into a Promotion.
  15. The Lottery is not responsible for a PA iLottery account holder’s failure to receive notice of a Promotion.
  16. The Lottery is not responsible for a PA iLottery account holder’s failure to properly claim or enter a Promotion because of incompatible internet browsers, mobile lottery application failure or other technical issues.
  17. Employees of the Pennsylvania Lottery, MARC USA, MUSL, Scientific Games International, MDI Entertainment, LLC, and their subcontractors, or a spouse, child, brother, sister or parent residing as a member of the same household in the principle place of residence of any such person are not eligible to participate in a Promotion. Offer(s) void where prohibited or restricted.
  18. A PA iLottery account holder who has self-excluded from iLottery is ineligible to participate in the Promotion or to receive any Bonus Money, award or prize associated with a Promotion unless and until the self-exclusion period has expired and the player is reinstated.
  19. A PA iLottery account holder who elected to participate in a Cool-Off Period is ineligible to participate in a Promotion or to receive any Bonus Money, award or prize associated with a Promotion unless and until the Cool-Off period has expired.
  20. A PA iLottery account holder who elected to establish responsible gaming limits through PAiLottery.com, including deposit limits, spend limits and time-based limits, may be ineligible to participate in a Promotion or to receive any Bonus Money, award or prize associated with a Promotion if participation in the Promotion exceeds the iLottery account holder’s established gaming limits.
  21. Any individual who closes their PA iLottery account prior to the Expiration Date for a specific Promotion or before the award, prize or Bonus Money is credited to the player’s account will disqualify the player from the Promotion and the player will not be eligible to receive an award, prize or Bonus Money in the Promotion.
  22. The Pennsylvania Lottery reserves the right, in its sole discretion, to cancel or suspend a Promotion and change these rules if a Promotion cannot be conducted as planned due to errors in these rules or advertising, unauthorized intervention, tampering, fraud, technical errors, viruses, worms, bugs, or any other cause beyond the control of the Pennsylvania Lottery or its vendor(s) that, in the Pennsylvania Lottery’s sole judgment, could corrupt or impair the administration, security, fairness, integrity, or proper conduct of the Promotion.
  23. All entries shall be subject to verification by the Pennsylvania Lottery.
  24. The Pennsylvania Lottery reserves the right, in its sole discretion, to disqualify a participant found to be tampering with the operation of the Promotion or to be acting in violation of these rules, iLottery Terms and Conditions, or applicable law.
  25. Promotions are governed by the laws of the Commonwealth of Pennsylvania and by the iLottery Terms and Conditions, which must be agreed to prior to participation in a Promotion. Applicable laws and regulations apply.
  26. A winning player is responsible for all taxes arising from or in connection with any prize or award won through participation in a Promotion.
  27. Promotion offers and Promotion codes are not transferrable.
  28. Prizes, Bonus Money or awards received as a result of participation in a Promotion are not transferable.
  29. Games played in demo mode are excluded from Promotions.
  30. Any references to time of day in rules for a Promotion refers to Eastern Prevailing Time.
  31. Other restrictions may apply.

Examples of the Types of Bonuses or Promotions that May be Offered through PA iLottery

Details of each Promotion offered for PA iLottery and through PA iLottery.com will appear on a web page or in an email specific to the Promotion and will include: wagering and/or funding requirements for the Promotion; instructions on how to claim or participate in the Promotion; expiration date of the Promotion; expiration date of any Bonus Money awarded as part of the Promotion; any games that must be played to participate in the Promotion; and any other details relevant to the Promotion. The following are descriptions of general categories of Promotions that may be offered through PA iLottery and PAiLottery.com:

Deposit Bonus: Deposit Bonus promotions require a PA iLottery account holder to deposit a specific amount of money into their account during a specified period of time. The PA iLottery account holder is required to play through the qualifying deposit and/or Bonus Money specified number of times before the Bonus Money specific to the Promotion will be converted to cash.

Cashback Bonus: Cashback Bonus promotions require the PA iLottery account holder to play a specific game or games during a specified period of time. A PA iLottery account holder can earn Bonus Money up to a specified dollar based on the account holder’s Net Loss (as defined herein) during the promotional period. Please see the additional information below regarding Cashback Bonuses.

Prize Draw: Prize Draw promotions require the PA iLottery account holder to engage in a specified activity, such as making a qualifying deposit or playing a specific game, during a specified period of time. Based on participation in the specified activity, the player can earn an entry or entries into a drawing that includes various prizes, such as Bonus Money or physical prizes. Please see the additional information below regarding Prize Draw Promotions.

Bonus Share: Bonus share promotions require PA iLottery account holders to play a specific game or games during a specified time period to earn a share of a designated amount of Bonus Money to be split among qualifying players.

Bonus Money: In Bonus Money promotions, the PA iLottery account holder is awarded Bonus Money if the account holder enables the promotion. The player will be required to meet specified wagering and/or funding requirements.

Additional Rules and Requirements Specific to Cashback Bonus Promotions

In addition to the other rules and requirements, as set forth herein, there are rules and requirements specific to Cashback Bonus Promotions. The following is an overview of those additional rules and requirements only applicable to Cashback Bonus Promotions. These rules and requirements are applicable to every Cashback Bonus Promotion offered by the Pennsylvania Lottery for PA iLottery and through PAiLottery.com, unless the requirements associated with a specific Promotion specifically state otherwise.

  1. “Net Loss” is equal to the sum of a player’s Cash Wagering minus the sum of the player’s cash winnings during the promotional period as set forth in the specific rules for each Cashback Bonus Promotion. A Net Loss for any Cashback Bonus Promotion must be greater than $0.
  2. “Cash Wagering” is defined to include wagering of cash, excluding Bonus Money, during the promotional period.
  3. “Cash Winnings” is defined to include all cash won by a player from their cash wagers conducted placed during the promotional period. Wagers placed using Bonus Money are excluded from Cash Winnings.
  4. Once Bonus Money is converted to cash, following the fulfillment of wagering requirements for the applicable promotion. Wagering activities with the converted funds will apply to Cash Wagering and Net Loss calculations during the promotional period.
  5. Promotional periods, as referenced herein, will be set forth in the specific rules for each Cashback Bonus Promotion.

Additional Rules and Requirements Specific to Prize Draw Promotions

In addition to the other rules and requirements, as set forth herein, there are rules and requirements specific to Prize Draw Promotions. The following is an overview of those additional rules and requirements only applicable to Prize Draw Promotions. These rules and requirements are applicable to every Prize Draw Promotion offered by the Pennsylvania Lottery through PA iLottery and PAiLottery.com, unless the requirements associated with a specific Promotion specifically state otherwise.

  1. The Lottery will conduct one drawing from among all of the qualifying PA iLottery account holders (“entrants”).
  2. A computer-generated randomizer will be used to select the winning entrants from among the qualifying PA iLottery account holders.
  3. Each Prize Draw Promotion will include a minimum of one prize. The maximum number of prizes to be awarded will be set forth in specific Prize Draw Promotion rules.
  4. Winning entrants will be notified of their prizes via email within three (3) business days of the drawing date set forth in the specific Prize Draw Promotion rules.
  5. Prizes awarded will be posted to the winning entrants’ PA iLottery accounts within three (3) business days of the drawing date set forth in the specific Prize Draw Promotion rules.
  6. The odds of a qualifying PA iLottery account holder being selected as a winning entrant in a Prize Draw Promotion depends upon the number of qualifying PA iLottery account holders participating in the specific Prize Draw Promotion.
  7. Prize Draw Promotion entrants may only win the prize for which they are first selected in that specific Prize Draw Promotion. Subsequent entries, from the same entrant, selected in the drawing will be disqualified, even if entered under separate PA iLottery accounts, and a replacement entry will be selected.

Our Commitment

PA iLottery is operated by the Pennsylvania Lottery, which is committed to promoting responsible play and supports the state and national councils on problem gambling. We work to generate funding to benefit older Pennsylvanians in a socially responsible way.

If compulsive gambling is a concern for you or someone that you care about, please call 1-800-GAMBLER for confidential assistance. Know the signs. Have the conversation.

Please play responsibly.

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PA iLottery, toll-free at 1-833-530-PLAY (7529)
The Pennsylvania Lottery. Benefits Older Pennsylvanians. Every Day.
1200 Fulling Mill Road, Suite One, Middletown, PA 17057
palottery.com 1-800-692-7481

Players must be 18 years or older and located within Pennsylvania at time of play.
Please Play Responsibly.
PROBLEM GAMBLING HELPLINE: 1-800-GAMBLER (1-800-426-2537)

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If you or someone you know has a gambling problem and wants help,
Call
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PAiLottery.com may offer bonuses, special offers and free spins to PA players from time to time, subject to the Bonus Policy available here.