Ariz. Admin. Code § R19-3-214 - Payments to Lottery

A. Money collected from the sale of Lottery tickets by retailers are trust monies required to be collected for the benefit of the state and shall be paid to the Lottery according to subsections (B) and (C).

B. Except for instant tab tickets, a retailer shall pay for ticket sales in the following manner:

1. Pay to the Lottery weekly, the amount due from the sale of its Lottery tickets for the period one week previous, or as otherwise agreed upon in writing.

2. Unless otherwise agreed upon according to (D) of this section, the amount due for Draw Game tickets means the retailer's gross Draw Game sales revenue, minus any promotional tickets, prize winnings paid out by the retailer, the retailer's sales commission, and plus or minus any accounting or prize adjustments.

3. Unless otherwise agreed upon according to (D) of this section, the amount due for instant scratch tickets is based on billing for instant ticket packs issued to a retailer with billing occurring 45 days after a pack is activated, or after 85% of winning tickets in the pack are validated, whichever occurs first, minus any promotional tickets, returned tickets, prize winnings paid out by the retailer, the retailer's sales commission, and plus or minus any accounting or prize adjustments. Corporate account retailers may elect to settle in 21 days with no associated validation percentage.

4. The retailer shall deposit funds in a timely manner into a bank account from which the electronic funds transfer will be made to the Lottery.

a. The retailer shall provide the Lottery with an electronic funds transfer authorization showing a valid bank account number from which the amounts due to the Lottery will be transferred, and

b. The retailer shall notify the Lottery of any bank account changes a minimum of 10 business days before the effective date of the change.

5. If the electronic funds transfer is returned to the Lottery for any reason, the retailer shall immediately make arrangements to become current on the amount owed. Additionally, if the retailer's payment is returned to the Lottery:

a. The Director may require that the retailer's Lottery-issued equipment be disabled;

b. The Director may revoke, suspend, or deny renewal of the retailer's license according to R19-3-204 ;

c. The Director may require payment for instant scratch tickets upon activating the pack for sale;

d. The Director may require the return of the retailer's current inventory of instant scratch tickets and suspend further delivery of instant scratch tickets; and

e. The Director may charge a processing fee.

C. A retailer selling instant tab tickets shall pay the Lottery's authorized representative for instant tab tickets.

D. The Lottery may agree in writing to an alternative payment arrangement if such arrangement is in the best interest of the Lottery.

DE. If the retailer owes money to the Lottery, the Lottery may offset that debt with any monies that are owed to the retailer by the Lottery.

Notes

Ariz. Admin. Code § R19-3-214

New Section made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.