Texas Lottery - Retailer Guide

Retailer

Guide

To Policies and Procedures

Eective 05/22/2024

IGT™ HOTLINE

24 HOURS • 7 DAYS A WEEK

800-458-0884

TEXAS LOTTERY

RETAILER SERVICES

7:00AM – 5:30PM CT MON– FRI

800-375-6886

SALES LICENSE

Application for License 3

Provisional License 3

Validity 4

License Renewal 4

Changes in Application 4

RETAILER PROCEDURES AND

REGULATIONS

Temporary Store Closing 7

Terminal Operation Hours 7

Selling Tickets 7

Responsible Gambling 8

Retailer Bonuses 8

Invoices and Reports 8

Lottery Sales Representative 8

Ticket Security 8

Lost or Stolen Tickets 9

Damaged or Destroyed Tickets 9

Compliance Activity Monitoring Process 10

BANKING AND ACCOUNTING

Electronic Funds Transfer 13

Invoice Period 13

Sweep Date 13

Insufficient Funds 13

Bank Errors 14

Changing Bank Accounts 14

Lottery Services Portal 15

SCRATCH TICKETS

Initial Order 19

Assignment to Retail Location 19

Scratch Ticket Status 19

Scratch Ticket Delivery 19

Scratch Ticket Confirmation 20

Scratch Ticket Activation 20

Ordering Tickets 20

Scratch Ticket Numbers 20

Settled Packs 21

Scratch Ticket Validation 21

Prize Levels 22

Defacing Tickets 22

Defective Tickets 22

Damaged or Altered Tickets 23

Returning Tickets 23

End of Game 23

DRAW GAME TICKETS

Generating Draw Game Tickets 27

Misprinted Tickets 27

Canceling Daily 4™ and Pick 3™ Tickets 27

Draw Game Ticket Inquiry 28

Draw Game Ticket Validation 28

Prize Levels 29

Damaged or Altered Tickets 29

LICENSEE VIOLATIONS 33

EXHIBITS

Terminal “Today” Report 39

Terminal “Week To Date” Report 40

LSP “Full Statement” 41

CONTENTS

Application for License

Provisional License

Validity

License Renewal

Changes in Application Information

LICENSE

SALES

Complete a Texas Lottery Application for Ticket Sales License. You can apply for a license online by using the

Lottery Services Portal (LSP). To register with LSP, go to tx-lsp.lotteryservices.com or texaslottery.com

Retailers page. You also may download the application and additional forms from our website at texaslottery.

com (go to Retailers/Forms), email to retailerforms@lottery.state.tx.us or call Retailer Services at 800-375-

6886.

The fee is $125.00 for the first location and $50.00 for each additional location with the same sales tax

number. Make check or money order payable to Texas Lottery Commission. Complete the Electronic Funds

Transfer (EFT) Authorization Form and attach a voided check for the account.

Applicants are required to provide electronic fingerprints for use in conducting a check of criminal history

records of the Texas Department of Public Safety (TDPS) in accordance with applicable statutes. Applicants

should not make appointments to be fingerprinted prior to submitting the license application to the Texas

Lottery Commission. Once an application is received, applicants will be contacted and provided information

on how to make an appointment to get fingerprinted and submit them for processing by the TDPS.

Send a completed Texas Lottery Application and EFT Authorization form along with fee payment to:

Retailer Services

Texas Lottery Commission

PO Box 16660

Austin TX 78761-6660

For assistance in completing the application, email us at retailerwebhelp@lottery.state.tx.us or call

800-375-6886. Please allow approximately two weeks for application processing.

APPLICATION FOR LICENSE

Some applicants will receive a provisional license until all eligibility checks have been completed.

PROVISIONAL LICENSE

A Texas Lottery Ticket Sales License must be renewed every two years by the expiration date shown on the

license. The renewal fee is $15. You may renew online via the Lottery Services Portal at

tx-lsp.lotteryservices.com or texaslottery.com/lsp as early as four months before the license expiration date.

If you have not renewed online by 60 days before the expiration date, the Texas Lottery will send you a

renewal application. Your renewal application must include any applicable fees and must be postmarked by

the expiration date shown on the license. You must provide written notification of any changes to information

in your license application including owners, officers and contact information.

VALIDITY

A Texas Lottery Ticket Sales License is valid only at the location named on the license and the license is non-

transferable. If your business changes ownership, the new owner must apply for a new license. The application

fee for a new Ticket Sales License is $125. The fee for a new license is $50 if the owner of a location is

applying for a license for another location with the same sales tax number.

You must notify the Texas Lottery in writing (includes email), with an authorized signature, of any change in

the information on your original or most recent renewal application, such as a change in officers or a change

in your mailing address. You also may submit changes to your license information via the Lottery Services

Portal at tx-lsp.lotteryservices.com or texaslottery.com/lsp.

Certain changes may require the submission of a new license application. For example, if you sell your

business, the new owner will not be permitted to sell lottery tickets under your license. Also, if you change

your business structure—for example, changing from a sole proprietorship to a corporation—or acquire a

new Federal Employer Identification Number (also known as a Federal Tax Identification Number), you must

submit a new application and any applicable fees.

If you are adding a new owner, you will be required to submit an Application for the Addition of Officer/

Director/Partner form, or an Owner Eligibility Certification form if you are adding an owner via the Lottery

Services Portal. These forms are available at texaslottery.com/Retailers or by calling Retailer Services at

800-375-6886. The fee for adding an owner is $25 unless the new owner already exists in our system. There is

no fee for adding an owner that is in our system to a new location.

LICENSE RENEWAL

CHANGES IN APPLICATION

Temporary Store Closing

Terminal Operation Hours

Selling Tickets

Responsible Gambling

Retailer Bonuses

Invoices and Reports

Lottery Sales Representative

Ticket Security

Lost or Stolen Tickets

Damaged or Destroyed Tickets

Compliance Activity Monitoring Process

RETAILER PROCEDURES

AND REGULATIONS

If you plan to close your business temporarily, an owner, officer, partner or director must notify the Texas

Lottery in advance by letter, phone, email or fax. You must provide the dates and times when you plan to

be closed and a telephone number where you can be contacted while your business is closed. A lottery sales

representative (LSR) will pick up all tickets and any lottery equipment. You should call Retailer Services at

least five days before reopening your business in order to schedule the re-installation of your terminal and

resume ticket deliveries.

PLEASE NOTE: Your bank account will continue to be swept while your business is closed, so you must keep

your bank account open with sufficient funds to pay any charges. You may call Retailer Services on Monday to

find out the amount of your sweep for the upcoming Wednesday. You also can obtain the sweep information

online via the Lottery Services Portal (tx-lsp.lotteryservices.com or texaslottery.com).

Terminal operating hours are almost 24 hours except from midnight to 12:30 a.m. C.T. You may sell scratch

tickets during terminal down time. You may resume validating tickets and selling draw games at 12:30 a.m. C.T.

TEMPORARY STORE CLOSING

Tickets may be sold only at your licensed location. Scratch and draw game tickets should be available for sale

at all times during your normal business hours, except during the terminal down time.

You may not accept credit cards or food stamp benefits as payment for tickets. Debit cards, cash, checks and

Texas Lottery coupons or vouchers are acceptable forms of payment.

You may not charge an additional fee for purchasing Texas Lottery tickets with a debit card.

You may not require a customer to purchase merchandise or service in order to purchase or redeem a Texas

Lottery ticket.

You may sell lottery tickets only to adults (18 or older). It is a violation of your retailer license to sell tickets or

pay prizes to a person who is not 18 years or older. Retailers are not authorized to pay prizes to an adult who

is presenting a prize-winning ticket on behalf of a minor.

You may not sell tickets for a price greater than the Texas Lottery price that is printed on the ticket. You may

give tickets away for promotional purposes. Each store must set its own policy regarding if and when store

employees may purchase tickets.

Federal law prohibits the sale of lottery tickets by telephone or by mail. Federal law also prohibits the

transportation of tickets across state lines for resale.

TERMINAL OPERATION HOURS

SELLING TICKETS

Bonus payments for 1% of the jackpot portion sold in Texas will be made to eligible retailers for selling a

Powerball

or Mega Millions

jackpot-winning ticket. If multiple jackpot-winning tickets are sold by more than

one Texas Lottery retailer, the bonus for 1% of the Powerball or Mega Millions jackpot portion sold in Texas

will be divided equally between the retailers, up to a maximum of $1 million for any drawing.

This budgetary item does not apply to the Retailer Cash Incentive Program.This budgetary item does not apply to the Retailer Cash Incentive Program.

The Texas Lottery is committed to generating revenue for the state of Texas through the responsible

management and sale of entertaining lottery products. The Texas Lottery will incorporate the highest

standard of security, integrity and responsible gaming principles. “Integrity and Responsibility” is a core value

of the Texas Lottery Commission that incorporates educating retailers, our employees, and the public about

responsible play including ways to keep lottery play a positive experience, the signs of problem gambling

and resources available for help. For more Positive Play information please go to texaslottery.com Social

Responsibility page then click on the Education tab.

RETAILER BONUSES

Your lottery sales representative (LSR) can assist you in ordering tickets and monitoring inventory and can

provide you with updated product information and merchandising support. Your LSR can also provide some

technical assistance. It is important to maintain an open line of communication with your LSR to make your

experience as a Texas Lottery retailer both positive and productive.

You are responsible for lottery tickets in your possession, and you should handle them in the same manner

you handle cash.

For security and accounting purposes, please keep all documents, invoices and reports concerning your

lottery account for a minimum of seven weeks.

INVOICES AND REPORTS

TICKET SECURITY

LOTTERY SALES REPRESENTATIVE

RESPONSIBLE GAMBLING

Within 24 hours of discovery that tickets have been stolen, you must report the theft to the IGT Hotline at

800-458-0884. After reporting stolen tickets to the hotline, contact your local law enforcement agency and

request a case number. You must provide the case number to the IGT Hotline within 24 hours to complete

the process. IGT will notify the Texas Lottery. Retailers may receive an adjustment for tickets lost or stolen in

Active status provided no validations have occurred on tickets in the range reported.

The sooner you report a theft to IGT, the sooner the tickets can be deactivated in the system, which will

prevent the tickets from being validated. If validations occur on the tickets, you will be responsible for the

range of tickets in which the validations occurred.

You must report lost tickets to the IGT Hotline within 24 hours of discovering the loss. Contact Texas Lottery

Retailer Services at 800-375-6886 if you have questions. If you find tickets that were reported lost or stolen

they must be returned to your LSR; do not sell.

Tickets are considered damaged or destroyed if rendered unsaleable through circumstances not the fault of

the retailer. The Texas Lottery no longer charges a fee for damaged or destroyed packs in Confirmed status.

For tickets damaged or destroyed by causes other than fire, call the IGT Hotline at 800-458-0884 as soon

as possible and no later than three (3) weeks from the occurrence. You may receive credit for a range of

Activated tickets that are damaged if no validations have occurred on tickets in the range reported.

If tickets were damaged by fire, report to fire department within 24 hours of discovery of the fire and provide

the Texas Lottery a copy of the fire marshal report that identifies the location and cause of the fire. If tickets

were damaged other than by fire, provide the Texas Lottery a copy of the insurance claim or receipt for

repairs. Credit for damaged tickets may be granted for no more than two separate incidents in a twelve-

month period.

A ticket that is illegible or damaged while being produced at the terminal may be considered a misprinted

ticket. You may receive credit for a misprinted draw game ticket if you send the ticket with a Retailer Request

for Adjustment form to the Texas Lottery. Forms are available on the Texas Lottery website Retailers page

under Forms. A ticket which does not print due to “out of paper” will not be accepted for credit.

LOST OR STOLEN TICKETS

DAMAGED OR DESTROYED TICKETS

The goal of the Compliance Activity Monitoring Process (CAMP) is to provide an automated, centralized

system that tracks and monitors all Texas Lottery and Charitable Bingo jurisdictional complaints received

or violations discovered by the agency. CAMP enables the agency to rapidly identify problem areas of

compliance activity or complaint trends. A jurisdictional complaint is one in which the Texas Lottery

Commission has the authority to interpret and apply the law in accordance with the State Lottery Act, the

Bingo Enabling Act, and the Texas Lottery and Charitable Bingo administrative rules.

Complaints must be submitted in writing. Complainants are encouraged to submit complaints on the official

Texas Lottery Commission Complaint Form. Complainants are kept informed of the status of their complaints

if they provide contact information.

The general public can obtain a complaint form by:

• Visiting the website at texaslottery.com

• Visiting one of our Texas Lottery claim centers

• Contacting the Texas Lottery at 800-375-6886

• Mailing a request to the Texas Lottery,

Attn: CAMP, P.O. Box 16630, Austin, TX 78761-6630

• Emailing request to Complaint@lottery.state.tx.us

For more information, call the CAMP section at

512-344-5300 or email your questions to Complaint@

lottery.state.tx.us.

COMPLIANCE ACTIVITY MONITORING PROCESS

Electronic Funds Transfer

Invoice Period

Sweep Date

Insucient Funds

Bank Errors

Changing Bank Accounts

Lottery Services Portal

BANKING

AND ACCOUNTING

You must maintain a bank account that the Texas Lottery can credit or debit (sweep) through its Electronic

Funds Transfer (EFT) system.

The weekly invoice period runs from 12:30 a.m. Sunday through midnight Saturday, Central Time. A weekly

statement will be available on your terminal after 12:30 a.m. C.T. each Sunday. Weekly statements are also

available online through the Lottery Services Portal at tx-lsp.lotteryservices.com or texaslottery.com/lsp.

A sweep notice will be sent to your bank electronically on Sunday at midnight. Once the sweep notice has

been sent to your bank, the sweep amount cannot be changed.

Your bank account will be swept on Wednesday for the previous week’s activity. If a bank holiday falls on

Monday, Tuesday or Wednesday, the sweep for that week will occur on Thursday. The entire amount you owe

must be available for the sweep. The EFT system will not accept a partial payment, nor can an account be

reswept.

ELECTRONIC FUNDS TRANSFER

INVOICE PERIOD

SWEEP DATE

INSUFFICIENT FUNDS

A “bank return” occurs if the total amount due is not available when the EFT system sweeps your account.

This is also referred to as insufficient funds (NSF). In the event of a bank return, your license will be suspended

immediately; any lottery equipment linked to your retailer number will be disabled; and you will be subject

to a penalty (5 percent of total amount due) and a $25 fee. You may not sell any lottery products during the

time your license is suspended. Any time your terminal is disabled, call 800-458-0884.

If this is not your fourth suspension in 12 months, you will be able to resume selling lottery products by paying

the full amount due (does not include penalties and fees) by cashier’s check or money order. Payments must

be sent by U.S. Postal Service (USPS) or by courier service to Texas Lottery headquarters. If you use USPS,

send the payment to: Texas Lottery Commission, ATTN: Retailer Services, P.O. Box 16660, Austin, TX 78761-

6660. If you use a courier service, send the payment to: Texas Lottery Commission, ATTN: Retailer Services,

1801 Congress Ave, Suite 6.403, Austin, TX 78701.

The penalties and fees amount will be included in your next bank sweep and will be itemized separately from

your regular lottery business sweep amount. If funds are not available to cover the fees and penalties, your

license will be suspended immediately. Confirm with your bank that the Texas Lottery is authorized for two

sweeps: one for amount due and one for penalties and fees.

If your license is suspended four times in a 12-month period or if you fail to pay the full amount due within 30

days of suspension, the Texas Lottery will begin proceedings to revoke your license.

NOTE: Payments related to Retailer Cash Incentive Programs will be scheduled to occur on a different day

(usually Friday) than regular lottery bank sweep day (usually Wednesday).

If a bank return is due to a bank error, your bank should fax a letter to Retailer Services at 512-344-5253 or

email scanned letter to retailerforms@lottery.state.tx.us accepting responsibility for the return. The letter

must be on bank letterhead and signed by an officer of the bank, and it must state that you had sufficient

funds in the account at the time of the sweep to cover your outstanding obligations. You can find an example

of a bank-error letter on the Texas Lottery website at tx-lsp.lotteryservices.com or texaslottery.com/

retailerforms.

A bank return due to a frozen account is not considered a bank error.

If your bank accepts responsibility for the sweep return, the return will not be considered in determining

whether you are subject to license revocation. You will, however, be responsible for bank-return fees

and penalties.

BANK ERRORS

If you change your bank account, you must submit an Electronic Funds Transfer (EFT) form and provide

a voided check for the new account. You can download the EFT form from the Texas Lottery website at

texaslottery.com/retailerforms. You may also update your banking information through the online Lottery

Services Portal at tx-lsp.lotteryservices.com or texaslottery.com/lsp.

You must keep your current account open with funds available for the weekly sweep until the Texas Lottery

has notified you that your records have been updated.

CHANGING BANK ACCOUNTS

LOTTERY SERVICES PORTAL

The Lottery Services Portal (LSP) links retailers to their lottery financial and inventory information using the

link at tx-lsp.lotteryservices.com or the Texas Lottery website at the texaslottery.com Retailers page.

Prospective retailers can register with LSP and submit a license application online. Current license holders may

enroll in the service by using their Lottery ID, establishing their email address as a username and selecting

a password. You must be an owner, officer, partner or director to establish a user profile. Once you have

established a user profile, you may add additional users and assign privileges to each user.

After you have logged in, you will find step-by-step instructions in the FAQ section on how to navigate

through the LSP. If you have problems or issues not covered in the FAQ section, you may contact Retailer

Services by phone at 800-375-6886 or email to RetailerWebHelp@lottery.state.tx.us. You may also request

information about the LSP and schedule a retailer training session for you and your employees through your

LSR or IGT district office.

Updates from the Texas Lottery accounting system are transferred to the LSP each night. Your account

information will be available the following morning. The LSP is available 24 hours a day, seven days a week.

You may access the following information through the LSP:

• Low-Tier and Mid-Tier Validation Reports

• Inventory Reports that display issued, confirmed and activated packs and the cost of each pack

• Packs that have settled on your lottery account, along with the date and time of the settlement

• Reports of draw game transactions such as sales and cashes

• Up to 3 years of account history

• Printer-friendly formats for each report

• Changes to your bank account

• Retailer Cash Incentive Program status and payment history

The information requested for LSP registration is needed to verify that you are a licensed Texas Lottery

retailer. To view the LSP Privacy Statement, go to texaslottery.com/lsp.

Initial Order

Assignment to Retail Location

Scratch Ticket Status

Scratch Ticket Delivery

Scratch Ticket Conrmation

Scratch Ticket Activation

Ordering Tickets

Scratch Ticket Numbers

Settled Packs

Scratch Ticket Validation

Prize Levels

Defacing Tickets

Defective Tickets

Damaged or Altered Tickets

Returning Tickets

End of Game

SCRATCH

TICKETS

After you have completed training and a lottery terminal has been installed at your retail location, an initial

scratch ticket order will be issued. If you have questions about your shipment or would like to order additional

tickets, call an instant/scratch ticket specialist (ITS) at the IGT Hotline 800-458-0884.

Scratch tickets are assigned to a specific licensed retail location and may not be sold at another location.

The following terms describe the status of scratch tickets.

• Issued - A pack of scratch tickets is in “issued” status if it has been assigned to a retailer but has not

been confirmed through the retailer terminal. You may not sell or validate tickets from a pack in

issued status.

• Confirmed - A pack of scratch tickets is in “confirmed” status if the retailer has confirmed receipt

of the tickets through the retailer terminal. You may not sell or validate tickets from a pack in

confirmed status.

• Activated - A pack of scratch tickets is in “activated” status if the retailer has activated the pack

through the retailer terminal. You may sell tickets from a pack in activated status unless the game is

closed. You may validate tickets from a pack in activated status until the end of validations date.

• Settled - A pack of scratch tickets is in “settled” status if it has been charged to your account. You

may sell tickets from a pack in settled status unless the game is closed. You may validate tickets

from a pack in settled status until the end of validations date.

INITIAL ORDER

ASSIGNMENT TO RETAIL LOCATION

SCR ATCH TICKET STATUS

SCRATCH TICKET DELIVERY

Scratch tickets will arrive at your location in sealed packages. Be sure the order is addressed to your store

before accepting it. An enclosed packing slip/invoice will identify the contents of each package by game and

pack number. Immediately after delivery, you should make sure that the invoice shows the correct retailer

name and number, and you should compare the pack numbers on the invoice to the numbers on the packs

in the package. If there is a difference between what is shown on the packing slip/invoice and the actual

contents of the package (missing packs, extra packs or wrong pack numbers) you must call the IGT Hotline

immediately (no later than five business days of receiving the order) at 800-458-0884. After five business

days you are financially responsible for $25 per pack if any are missing.

Tickets delivered to your location will be in “issued” status. After you have determined that the invoice is

accurate, you must confirm receipt of the tickets through your terminal using the Scratch Ticket Menu button.

You must activate a pack before selling any tickets from the pack. You must confirm receipt of a pack before

you activate the pack. If you sell tickets from a pack that has not been activated, players will not be able to

redeem winning tickets from that pack at other locations. If a ticket from a pack that was confirmed, but not

activated at your terminal, is validated at your terminal the pack will automatically be activated.

You may order scratch tickets through your LSR or by calling the IGT Hotline at 800-458-0884 (option 1).

SCRATCH TICKET CONFIRMATION

SCRATCH TICKET ACTIVATION

ORDERING TICKETS

Tickets in a pack are numbered. For example, a pack containing 150 tickets will begin with ticket number

001 and end with ticket number 150. For your convenience, reverse numbering is provided on each ticket to

indicate the number of tickets remaining in the pack. For example, 002(149) indicates ticket number 2 and

there are 149 tickets remaining. For sales tracking and security purposes, tickets should be sold in order.

SCRATCH TICKET NUMBERS

A pack is charged to your account when it “settles.” A pack of tickets will settle on your Texas Lottery account

in one of the following ways:

• You may use your terminal Scratch Ticket Menu button to settle a pack of tickets at any time.

• A pack will automatically settle when 70 percent of the low-tier prizes in the pack have been

validated unless you are participating in the 21-Day Settlement Class.

• A pack will settle automatically 45 days after the date of activation or 21 days after activation for

retailers participating in the 21-Day Settlement Class.

• When picking up tickets from an active pack at your store, the LSR must settle the pack and then

credit the returned tickets.

• Any tickets that are not returned to an LSR by the game closing date will settle automatically.

SETTLED PACKS

Texas Lottery retailers may pay prizes only to adults (18 or older). Retailers are not authorized to pay prizes to

an adult who is presenting a prize-winning ticket on behalf of a minor (under 18).

Under no circumstances may you or your employees purchase or offer to purchase a winning Texas Lottery

ticket from a customer.

You should validate a scratch ticket only if you intend to pay the prize. If the ticket has a value of more than

$100, the terminal will display a message asking if you wish to proceed with validation. However, if the ticket

has a value of $100 or less, the terminal will automatically validate the ticket and you must pay the prize

associated with the ticket. The terminal will not allow you to validate a ticket if the prize is greater than $599.

If your terminal displays the message “PREVIOUSLY PAID BY OTHER” or “PREVIOUSLY PAID BY YOU” when

you attempt to validate the ticket, you should not pay the prize associated with the ticket. If the message

displays “PREVIOUSLY PAID BY YOU” and the customer denies receiving payment, you should review the

validation slip which displays the date of the payment. You also may ask the customer to contact a Texas

Lottery claim center or call the Texas Lottery at 800-375-6886.

When you validate a ticket and pay the prize, you must deface the ticket and dispose of it appropriately. Tear

the ticket, splitting the barcode top to bottom, discard half and attach the other half to the receipt generated

by the terminal. Keep these to assist with shift paperwork or to aid with your selected record keeping system.

Never return a validated ticket to a customer except in the following situation.

If you validate a ticket but are unable to pay the prize, return the ticket to the customer, direct them to

download the appropriate Winner Claim Form from the Texas Lottery website Retailers page and the

customer to contact a Texas Lottery claim center.

If a customer presents a ticket at a claim center that your business validated but you did not pay, and the

Texas Lottery pays the prize, your account will be adjusted to show you did not pay the ticket.

SCRATCH TICKET VALIDATION

PRIZE LEVELS

There are three prize ranges for scratch tickets: low-tier, mid-tier and high-tier. Low-tier prizes range from

$1 to $24.99. Mid-tier prizes range from $25 to $599. High-tier prizes are prizes of more than $599.

Retailers are encouraged to pay prizes up to and including $599. Beginning in 2023, cash prizes from $600 up

to and including $5,000 may be claimed via the Texas Lottery App

. Annuity, merchandise and jackpot prizes

cannot be claimed using the app. Prizes of a free draw game ticket will be paid the cash equivalent. Player will

be notified by email from Bank of America/Zelle of payment to player’s specified payment source. Prizes up

to and including $5 million may be claimed at metro claim centers in: Austin, Dallas, Fort Worth, Houston and

San Antonio. All other claim centers can pay prizes up to $2.5 million. All prizes over $5 million, Lotto Texas

Powerball and Mega Millions jackpot prizes, and prizes paid through an annuity must be claimed at Texas

Lottery headquarters in Austin. Before going to a claim center, players should visit texaslottery.com or call

800-375-6886 for current instructions on how and where to claim a prize.

Do not validate a ticket unless you have sufficient funds to pay a winner. If acceptable to the claimant, retailers

may pay cash prizes with cash, business check, certified check, cashier’s check, money order, gift card, store-

value card, or store merchandise, including lottery tickets. (The terminal will not allow you to validate a ticket

for a high-tier prize.) You may not charge a player a fee for paying a prize with a money order or check. You

may not require a purchase to redeem a lottery prize.

If a customer presents a prize-winning ticket of $600 or more, you should explain that they may claim a prize

up to and including $2.5 million at any claim center. Winner Claim Forms are available on the Texas Lottery

website Retailers page. A customer also may claim a prize by mail, but the customer bears any risk associated

with mailing a ticket.

You must deface validated lottery tickets except in cases where you validated a ticket but did not have

sufficient funds to pay the prize. You may deface a scratch ticket in several ways, including marking through

the barcode on the front of a ticket (top to bottom) or tearing through the barcode (top to bottom) on the

back of the ticket. Removing the corner of the ticket containing the barcode is usually sufficient.

Keep defaced tickets in a secure place until you reconcile validations to a terminal Today Report or a Daily

Report (see Exhibits) the next day.

DEFACING TICKETS

DEFECTIVE TICKETS

A pack may contain tickets that are defective because of errors in the manufacturing process. For example,

a ticket may have printing errors or perforation errors. Do not sell or validate tickets that you believe to be

defective, and do not sell any tickets from a pack that you believe contains one or more defective tickets.

Contact an Instant Ticket Specialist at the IGT Hotline to have the ticket(s) evaluated. You will be given credit

for any tickets that are determined to be defective.

You are responsible for tickets that are damaged while in your possession. Contact the IGT Hotline (800 -458-

0884) to report damaged tickets. Contact Retailer Services (800-375-6886) if you have questions about fees

associated with damaged tickets.

If a customer presents a ticket that is damaged or appears to have been altered, or you are in doubt about the

validity of an apparent winning ticket, do not validate the ticket. Return the ticket to the customer and ask

the customer to contact a Texas Lottery claim center.

If you have a lottery ticket self-service vending machine which dispenses a miss cut or damaged ticket, you

may mail the ticket with a Request for Adjustment Form to request a credit. Forms are available on the Texas

Lottery website Retailers page. You can either refund the player’s money or provide the player another ticket

of the same ticket price. Call the IGT Hotline to report the equipment malfunction.

DAMAGED OR ALTERED TICKETS

You may return full packs of tickets that are in Issued or Confirmed status as long as the tickets have not

been damaged. Notify your LSR if you have packs of tickets to return. Refer to damaged ticket information in

previous section.

You may return partial packs that have been activated only when a game ends, or in connection with the

cancellation of your license or temporary closure. Refer to End of Game section.

RETURNING TICKETS

END OF GAME

Game closing procedures may be initiated for documented business reasons. These games may have prizes

unclaimed, including top prizes. Also, game closing procedures will be initiated when all top prizes have

been claimed. In most cases, except when all top prizes have been claimed, the game closing process allows

time for a “Pre-Call” period of 30 days when the Texas Lottery provides public notice to allow players the

opportunity to play for prizes in games prior to the Call Date.

When a game is to be closed, specific dates are set: the “Call” date and the “End-of-Game” date. The “Call” date

begins a 45-day period during which LSRs must pick up from retailers all remaining tickets for the games that

are going to close/end. The “End-of-Game” date is 45 days from the “Call” date and marks the close/end of the

game. No tickets for a closed game may be distributed to or sold by retailers after the “End of Game” date.

If you have tickets from a game that is closing/ending, it is your responsibility to provide those tickets to

your LSR when requested or to notify your LSR so the tickets can be picked up before the game closes.

Any confirmed or activated tickets in your possession when the game ends will automatically settle and

be charged to your account. It is a violation of your Texas Lottery license to sell tickets after the game has

closed. However, you may validate tickets until the end of validation date which is 180 days after the game

closes.

Generating Draw Game Tickets

Misprinted Tickets

Canceling Daily 4™ and Pick 3™ Tickets

Draw Game Ticket Inquiry

Draw Game Ticket Validation

Prize Levels

Damaged or Altered Tickets

DRAW GAME

TICKETS

Tickets for Texas Lottery draw games can be produced only at licensed lottery retailer terminals by inserting

a game playslip, scanning the Texas Lottery app QR code on a player’s device, or manually on the lottery

terminal using Quick Pick buttons or entering a player’s numbers. The terminal Quick Reference Card contains

detailed instructions for generating draw game tickets for each of the Texas Lottery draw games. You should

become familiar with those instructions. Ask your LSR for additional training on any game.

A ticket that is illegible or damaged while being produced at the terminal may be considered a misprinted

ticket. You may receive credit for a misprinted draw game ticket if you send the ticket with a Retailer Request

for Adjustment form to the Texas Lottery Commission. Forms are available on the Texas Lottery website

Retailers page under Forms .

A ticket that a customer requests but does not buy is considered to be a misprinted ticket. You may sell the

ticket to another customer before the drawing or buy the ticket yourself. Or, you may receive credit for a

misprinted drawing ticket, if you send the ticket with a Retailer Request for Adjustment form to the Texas

Lottery and it is postmarked before the draw. Pick 3 and Daily 4 tickets can be canceled with restrictions

outlined in the following section.

Retailers are responsible for keeping paper in the terminal. A ticket which does not print due to “out of paper”

will not be accepted for credit.

The Texas Lottery Retailer Services staff will review any requests for credit. If a request is approved, the

credit will appear on your weekly statement for the week in which it is approved. To check the status of an

adjustment request, please call Retailer Services, 800-375-6886.

MISPRINTED TICKETS

CANCELING

DA I LY 4™

AND

PICK 3™

TICKETS

GENERATING DRAW GAME TICKETS

Pick 3 and Daily 4 tickets may be canceled within 60 minutes of purchase at the terminal where purchased, as

long as the cancellation occurs on the same day and before the draw break. Other draw game tickets cannot

be canceled. Call Retailer Services if you have questions about credit for canceled tickets.

Free Pick 3 or Daily 4 tickets printed for a promotion such as Lone Star Lineup or “Buy $3.00 of Pick 3, Get a

Free Pick 3 Quick Pick,” cannot be canceled.

You should only validate a physical ticket only if you intend to pay the prize and if the ticket prize amount is

less than $600. To validate a draw game ticket, you must either scan the bar code or manually enter the serial

number of the bar code. If the ticket has a value of more than $100, the terminal will display a message asking

if you wish to proceed with validation. However, if the ticket has a value of $100 or less, the terminal will

automatically validate the ticket and you must pay the prize associated with the ticket. The terminal will not

allow you to validate a ticket if the prize is greater than $599. Remember only physical tickets are acceptable

for validation.

If your terminal displays the message “PREVIOUSLY PAID BY OTHER” or “PREVIOUSLY PAID BY YOU” when

you attempt to validate a ticket, you should not pay the prize associated with the ticket. If a customer denies

having received payment, you should review the validation slip which displays the date of the payment if the

ticket was “PREVIOUSLY PAID BY YOU.” Also, you may ask the customer to contact a Texas Lottery claim

center or call the Texas Lottery at 800-375-6886.

If you validate a ticket, you should pay the prize, then deface the ticket and keep the defaced ticket in a secure

place.

If you validate a ticket but are unable to pay the prize, return the ticket to the customer, direct them to

download the appropriate Winner Claim Form on the Texas Lottery website Retailers page and to contact a

Texas Lottery claim center.

If a customer presents a draw game ticket at a claim center that your business validated but did not pay, and

the Texas Lottery pays the prize, your account will be adjusted to show that you did not pay the ticket.

Under no circumstances may you or your employees purchase or offer to purchase a winning Texas Lottery

ticket from a customer.

You may use the “Draw Game Inquiry” function to determine whether a ticket is a winner. This is useful to

assure you have funds available to pay a prize before validating a ticket. Making a draw game inquiry does not

validate a ticket. You should validate a winning ticket only if you are able to pay the prize.

DRAW GAME TICKET VALIDATION

DRAW GAME TICKET INQUIRY

Retailers are encouraged to pay prizes up to and including $599. Beginning in 2023, cash prizes from $600 up

to and including $5,000 may be claimed via the Texas Lottery App. Annuity, merchandise and jackpot prizes

cannot be claimed using the app. Prizes of a free draw game ticket will be paid the cash equivalent. Player will

be notified by email from Bank of America/Zelle of payment to player’s specified payment source. Prizes up

to and including $5 million may be claimed at metro claim centers in: Austin, Dallas, Fort Worth, Houston and

San Antonio. All other claim centers can pay prizes up to $2.5 million. All prizes over $5 million, Lotto Texas,

Powerball and Mega Millions jackpot prizes, and prizes paid through an annuity must be claimed at Texas

Lottery headquarters in Austin. Before going to a claim center, players should visit texaslottery.com or call

800-375-6886 for current instructions on how and where to claim a prize.

Do not validate a ticket unless you have sufficient funds to pay a winner. If acceptable to the claimant, retailers

may pay cash prizes with cash, business check, certified check, cashier’s check, money order, gift card, store-

value card, or store merchandise, including lottery tickets. (The terminal will not allow you to validate a ticket

for a high-tier prize.) You may not charge a player a fee for paying a prize with a money order or check. You

may not require a purchase to redeem a lottery prize. Remember only physical tickets are acceptable for

validation.

If a customer presents a physical prize-winning ticket of $600 or more, you should explain that they may claim

a prize up to and including $2.5 million at any claim center. Winner Claim Forms may be downloaded from the

Texas Lottery website Retailers page. A customer also may claim a prize by mail, but the customer bears any

risk associated with mailing a ticket.

PRIZE LEVELS

DAMAGED OR ALTERED TICKETS

If a customer presents a ticket that is damaged or appears to have been altered, or you are in doubt about the

validity of an apparent winning ticket, do not validate the ticket. Return the ticket to the customer and ask

the customer to contact a Texas Lottery claim center or call the Texas Lottery at 800-375-6886.

LICENSEE

VIOLATIONS

The list of violations in the penalty chart below is not an exclusive list of violations and rules. The Texas

Lottery Commission is authorized to assess penalties for any violation of commission statutes or rules. Visit

texaslottery.com/retailers for the current version of Licensee Violations.

LICENSEE VIOLATIONS

Terminal “Today” Report

Terminal “Week To Date” Report

LSP “Full Statement”

EXHIBITS

TERMINAL “TODAY” REPORT

TERMINAL “WEEK TO DATE” REPORT

LSP “FULL STATEMENT”

Full Statement / Statement Summary

Page

Retailer 1234567

LOTTERY STORE

1234 MAIN STREET

AUSTIN, TX 78758

Reporting Period: Week Ending 04/10/2021

Scratch Ticket Information Draw Game Information

Count Amount Count Amount

Settlements 17

$7,425.00

Draw Game Sales 210

$818.00

Validations 258

($6,149.00)

Credits 10

($13.00)

Commissions

($371.25)

Cancels 0

$0.00

Adjustments 0

$0.00

Validations 20

($165.00)

Credits 0

$0.00

Commissions

($40.91)

Full Returns 0

$0.00

Adjustments 0

$0.00

Partial Returns

$0.00

Total Scratch Ticket

$904.75

Total Draw Game

$599.09

Summary Totals

Total Scratch Ticket Amount

$904.75

Total Draw Game Amount

$599.09

Total Other Adjustments

$0.00

Balance Forward

$0.00

Total Sweep Amount

$1,503.84

___________________________________________________________________________

NOTES

texaslottery.com

800-375-6886