http://www.sos.state.tx.us/texreg/archive/June162017/Proposed%20Rules/16.ECONOMIC%20REGULATION.#16

 

 

 

 

PART 9. TEXAS LOTTERY COMMISSION

CHAPTER 401. ADMINISTRATION OF STATE LOTTERY ACT

The Texas Lottery Commission ("Commission") proposes the repeal of existing 16 TAC §401.315 ("Mega Millions" On-Line Game Rule) and proposes new 16 TAC §401.315 ("Mega Millions" Game Rule). The purpose of the proposed new rule is to conform the play of the Mega Millions lottery game in Texas to the game changes recently adopted by the group of U.S. lotteries operating under an agreement to sell the Mega Millions draw game ("Mega Millions Lotteries"). These changes include (i) an increase in the purchase price from $1 to $2 per Play; (ii) changing the game matrix from 5/75 (selection of five numbers from a field of 75 numbers) plus 1/15 (one number from a field of 15 numbers) to 5/70 (five numbers from a field of 70 numbers) plus 1/25 (one number from a field of 25 numbers); and (iii) offering a new optional jackpot-only wager called Just the Jackpot™, in which a player may purchase two chances to win the Grand Prize for the reduced rate of $3, but will forego the option to win any secondary (non-jackpot) prizes. The increased price per ticket and the matrix change anticipate larger and faster growing jackpots, resulting in increased ticket sales and revenue to the Foundation School Fund. The Commission anticipates the new Mega Millions game changes to be implemented on October 28, 2017.

The new rule also includes language updates regarding the Mega Millions game, including notice that the Texas Lottery is selling the Mega Millions game pursuant to the rules and procedures of the Multi-State Lottery Association ("MUSL") and subject to a Cross-Sell Agreement between MUSL and the non-MUSL Mega Millions Lotteries, and language to facilitate the potential future sale of lottery tickets using Commission-approved third-party point-of-sale ("POS") systems. Finally, the proposed rule language conforms to the required percentage of sales contributions by the Texas Lottery to be held in certain prize reserve and prize pool funds maintained by MUSL. Because of the number of changes necessary to conform the Commission's rule to MUSL's Mega Millions rule, the Commission proposes to repeal its existing Mega Millions rule at §401.315 and proposes the new rule language as new §401.315.

Kathy Pyka, Controller, has determined that for each year of the first five years the new rule will be in effect, there will be no significant fiscal impact for state or local governments as a result of the proposed new rule. There will be no adverse effect on small businesses, micro businesses, or local or state employment. There will be no additional economic cost to persons required to comply with the new rule, as proposed. Furthermore, an Economic Impact Statement and Regulatory Flexibility Analysis is not required because the proposed new rule will not have an economic effect on small businesses as defined in Texas Government Code §2006.001(2).

Michael Anger, Director of Lottery Operations, has determined that for each year of the first five years the proposed new rule will be in effect, the public benefit anticipated is providing Texas Lottery players with notification of the changes to the Mega Millions game and to update the Texas Lottery Mega Millions game rule in conformance with MUSL rules. The game changes are anticipated to offer players the potential for larger jackpots. Players will also have the option to participate in the new jackpot-only wager type called Just the Jackpot™.

The Commission requests comments on the proposed new rule from any interested person. Comments on the proposed new rule may be submitted to Deanne Rienstra, Assistant General Counsel, by mail, at Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email atlegal.input@lottery.state.tx.us. Comments must be received within 30 days after publication of this proposal in order to be considered.

SUBCHAPTER D. LOTTERY GAME RULES

16 TAC §401.315

This repeal is proposed under Texas Government Code §466.015, which authorizes the Commission to adopt rules governing the operation of the lottery, §466.451, which authorizes the Commission to adopt rules relating to a multi-jurisdiction lottery game, and §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

This proposal is intended to implement Texas Government Code, Chapter 466.

§401.315."Mega Millions" On-Line Game Rule.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 2, 2017.

TRD-201702164

Bob Biard

General Counsel

Texas Lottery Commission

Earliest possible date of adoption: July 16, 2017

For further information, please call: (512) 344-5012