01-003 Code Vt. R. 01-130-003-X - HOT LOTTO RULES

Part I ADMINISTRATION

Section 1.0 Introduction

These rules establish the procedures and requirements for operating and playing Hot Lotto, a lotto game run by the Multi-State Lottery Association (hereinafter referred to as "MUSL"), of which the Vermont Lottery is a member. Generally, the Hot Lotto game shall be operated in accordance with any agreement between the State of Vermont and MUSL, the Constitution, the By-Laws of the Multi-State Lottery Association, the Multi-State Lottery Association Rules and applicable Vermont law.

Part II HOT LOTTO GAME RULES

Section 2.0 Definitions

The following definitions apply unless the context requires a different meaning or is otherwise inconsistent with the intention of the rules adopted by the Product Group.

2.1 "Advertised Grand Prize". The Advertised Grand Prize amount shall be the amount determined and publicly announced by the Product Group to be the Grand Prize for the drawing. The "Advertised Grand Prize" amount is not the Gross Grand Prize Value. The Advertised Grand Prize amount shall be the minimum cash amount that would be paid as a "Withholding Taxes Paid" prize to the Grand Prizewinner(s), on a pari-mutuel basis, after calculating the potential federal and jurisdictional withholding taxes, if any, applicable to resident United States citizens with a valid Social Security Number, to the Gross Grand Prize Value. If a Member Lottery advertises an "Estimated Grand Prize", that shall have the same meaning as an "Advertised Grand Prize".

2.2 "Agent" or "retailer" means a person or entity licensed by the Lottery to sell lottery tickets.

2.3 "Drawing" means the formal process of selecting winning numbers that determine the number of winners for each prize level of the game.

2.4 "Computer pick" means the random selection of two-digit numbers by the computer system that appear on a ticket and are played by a player in the game. Computer pick has the same meaning as "easy pick", which is used in other Lottery materials.

2.5 "Executive Director" means the Executive Director of the Vermont Lottery appointed by the Vermont Lottery Commission.

2.6 "Game board" or "boards" means that area of the play slip that contains two (2) sets of numbered squares to be marked by the player, the first set containing forty-seven (47) squares, numbers one (1) through forty-seven (47) and the second set containing nineteen (19) squares, numbers one (1) through nineteen (19). Game board has the same meaning as "panel" as used in other Lottery materials.

2.7 "Game ticket" or "ticket" means a lottery ticket produced by a terminal that meets the specifications defined in the rules of the Lottery and Section 7.0 (Ticket Validation) or is a properly and validly registered subscription play.

2.8 "Gross Prize Value" shall mean the prize value prior to deductions for any applicable withholding taxes due the federal or jurisdictional governments.

2.9 "Guaranteed Grand Prize" as used in these Rules refers to the guarantee by the Product Group as to the "Gross Grand Prize Value" amount; the "Advertised Grand Prize" amount is not a guaranteed prize amount.

2.10 "Lottery" or "the Lottery" means the Vermont Lottery.

2.11 "MUSL" means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the Party Lotteries.

2.12 "MUSL Board" means the governing body of the MUSL that is comprised of the chief executive officer of each Party Lottery.

2.13 "On-Line Lottery Game" means a lottery game wherein a player selects numbers out of a larger predetermined set or sets of numbers.

2.14 "Party Lottery" or "Member Lottery" means a state lottery or lottery of a political subdivision or entity that has joined the MUSL and, in the context of these Hot Lotto Rules, that has joined in selling the Hot Lotto game.

2.15 "Play" or "bet" means the six (6) numbers, the first five (5) from a field of forty-seven (47) numbers and the last one (1) from a field of nineteen (19) numbers, that appear on a ticket as a single lettered selection and are to be played by a player in the game.

2.16 "Product Group" means a group of lotteries that have joined together to offer a common product pursuant to the terms of the Multi-State Lottery Agreement and the Product Group's own rules.

2.17 "Play slip" or "bet slip" means a card used in marking a player's game plays and containing one or more boards.

2.18 "Set Prize" means all other prizes except the Grand Prize that are advertised to be paid by a single cash payment and, except in instances outlined in these rules, will be equal to the prize amount established by the MUSL Board for the prize level.

2.19 "Subscription" means a Hot Lotto bet recorded on the Lottery's central computer system, under the name and address of a subscriber, for a specified range of draw dates.

2.20 "Terminal" means a device authorized by the Lottery to function in an on-line, interactive mode with the Lottery's computer system for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including making purchases, validating tickets, and transmitting reports.

2.21 "Winning numbers" means the six (6) numbers, the first five (5) from a field of forty-seven (47) numbers and the last one (1) from a field of nineteen (19) numbers, randomly selected at each drawing, that shall be used to determine winning plays contained on a game ticket.

2.22 "Withholding Taxes Paid Prizes" shall mean prizes where the Lottery pays the prize winner a net prize amount, that consists of the Lottery withholding and depositing on behalf of the prize winner the required federal and jurisdictional withholding taxes (if any) on the "gross prize value" and the residual amount paid to the prize winner.

Section 3.0 Game Description

3.1 Hot Lotto is a five (5) out of forty-seven (47) plus one (1) out of nineteen (19) on-line lottery game that pays Grand Prize payments as a cash lump sum payment on a pari-mutuel basis. All prizes are paid on a cash basis. To play Hot Lotto, a player shall select five (5) different numbers, between one (1) and forty-seven (47) and one (1) additional number between one (1) and nineteen (19), for input into a terminal. The additional number may be the same as one of the first five numbers selected by the player. Tickets can be purchased for one dollar ($ 1.00), including sales tax where mandated, either from a terminal operated by an agent (i.e., a clerk-activated terminal) or from a terminal operated by the player (i.e., a player-activated terminal). If purchased from an agent, the player may select a set of five (5) numbers and one (1) additional number by communicating the six (6) numbers to the agent, or by marking six (6) numbered squares in any one game board on a play slip and submitting the play slip to the agent or by requesting "computer pick" from the agent. The agent will then issue a ticket, via the terminal, containing the selected set or sets of numbers, each of which constitutes a game play. Tickets can be purchased from a player-activated terminal by use of a touch screen or by inserting a play slip into the machine. Tickets may also be purchased through a lottery subscription system as provided in Rule 3.6.

3.2 Claims. A ticket (subject to the validation requirements set forth in Rule 7.0 (Ticket Validation)) shall be the only proof of a game play or plays and the submission of a winning ticket to the issuing Party Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A play slip has no pecuniary or prize value and shall not constitute evidence of ticket purchase or of numbers selected.

3.3 Cancellations Prohibited. A ticket may not be voided or canceled by returning the ticket to the selling agent or to the Lottery, including tickets that are printed in error. No ticket that can be used to claim a prize shall be returned to the Lottery for credit. Tickets accepted by retailers as returned tickets and that cannot be re-sold shall be deemed owned by the bearer thereof.

3.4 Player Responsibility. It shall be the sole responsibility of the player to verify the accuracy of the game play or plays and other data printed on the ticket. The placing of plays is done at the player's own risk through the on-line agent who is acting on behalf of the player in entering the play or plays.

3.5 Entry of Plays. Plays may only be entered manually using the lottery terminal keypad or touch screen or by means of a play slip provided by the Party Lottery and hand-marked by the player or by such other means approved by the Party Lottery. Retailers shall not permit the use of facsimiles of play slips, copies of play slips, or other materials that are inserted into the terminal's play slip reader that are not printed or approved by the Party Lottery. Retailers shall not permit any device to be connected to a lottery terminal to enter plays, except as approved by the Party Lottery.

3.6 Registration of Plays. Subscription plays may be registered by the Lottery at a lottery processing site that meets the requirements established by the Product Group and the MUSL Security and Integrity Committee.

3.7 Future Plays. No Party Lottery shall offer advance plays or multi-draw plays that extend more than 180 days beyond the sale date unless the Party Lottery has a process in place to allow players to make changes to their plays in the event of a game change. Proceeds from advance sales may be held by the Party Lottery until the draw date for which the ticket applies.

3.8 Drawings. Drawings shall be held at the times and places established by the Product Group and the results shall be subsequently announced to the public.

(a) The Member Lottery Director shall determine the time for the end of sales prior to the drawings, which shall not be later than the time established by the Product Group. On-line terminals shall not process on-line tickets for that drawing after the time established by the Member Lottery Director.

(b) The Product Group shall designate the type of drawing equipment to be used and shall establish drawing procedures to randomly select the winning combination and to ensure the integrity of the drawing process.

3.9 Withholding Taxes Paid Prizes. A Grand Prize winner shall receive a "Withholding Taxes Paid Prize". "Withholding Taxes Paid Prizes" mean prizes where the Party Lottery pays the prize winner a net prize amount, that consists of the Party Lottery reducing the "gross prize value" by the required federal and jurisdictional withholding taxes (if any), and withholding and depositing on behalf of the prize winner the required federal and jurisdictional withholding taxes (if any) on the "gross prize value" and the Party Lottery paying the prizewinner the residual amount (subject to any setoff requirements). Grand Prize winners will receive a Withholding Taxes Paid prize determined after deducting all applicable withholding taxes regardless of the "Advertised Grand Prize Amount", and which may be higher or lower than the "Advertised Grand Prize" amount.

Federal and jurisdictional withholding tax rates are subject to change and will be determined at the time the prize is awarded.

The "Withholding Taxes Paid" prize amount reported to the federal and jurisdictional revenue authorities by the Party Lottery as subject to income taxation shall reflect the amount paid to the prize winner and also the amount remitted as withholding taxes to the federal and jurisdictional authorities (if any) on behalf of the prize winner.

The Party Lottery and MUSL are not responsible for additional income or other taxes applicable in excess of the amount withheld and remitted by the Party Lottery that may be due when the prizewinner files all tax returns for the year the prize is claimed; Prizewinners should verify personal tax liability with a financial advisor.

For example, if a single Grand Prize winner wins the "Advertised Grand Prize" of $ 2,000,000.00 that has a gross prize value of $ 3,050,000.00, and the federal withholding tax rate is 25% and the jurisdictional tax rate is 6%, the Party Lottery will withhold and remit $ 762,500.00 in federal tax withholding, $ 183,000.00 in jurisdictional tax withholding and pay the prize winner $ 2,104,500.00 in a single cash prize payment (subject to any setoff requirements); at the end of the tax year the Party Lottery will communicate to the prizewinner a W-2G Form showing prize won of $ 3,050,000.00.

Section 4.0 Prize Pool

4.1 Prize Pool. The prize pool for all prize categories shall consist of fifty percent (50%) of each drawing period's sales, including tax, after the prize reserve accounts are funded to the amounts set by the Product Group. Any amount remaining in the prize pool at the end of this game shall be carried forward to a replacement game or expended in a manner as directed by the Product Group in accordance with state law.

4.2 Prize Reserve Accounts. An amount equal to up to one percent (1%) of a Party Lottery's sales, including tax, shall be deducted from a Party Lottery's Grand Prize Pool and placed in trust in one or more prize reserve accounts when the Grand Prize exceeds $ 2,000,000.00. An additional two percent (2%) of a Party Lottery's sales, including tax, shall be deducted from a Party Lottery's Grand Prize Pool and placed in trust in one (1) or more prize reserve accounts when the Grand Prize exceeds $ 5,000,000.00 until the Party Lottery's share of the prize reserve account(s) reach(es) the amounts designated by the Product Group.

The Product Group has established the following prize reserve accounts for the Hot Lotto game: the Prize Reserve Account (PRA), which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason, and to fund deficiencies in low-tier prize payments (subject to the limitations of these rules); the Set-Aside Account, which is used to guarantee payment of the minimum or starting Grand Prize; the Hot Lotto Sizzler Rollover Account, which is described in Part III of these rules; and the Lower Tier Prize Pool, which holds the temporary balances that may result from having fewer than expected winners in the low-tier set prize categories. The source of the Lower Tier Prize Pool funds is the Party Lottery's weekly prize contribution less actual set prize liability.

Once the Party Lottery's share of the prize reserve accounts exceeds the designated amounts, the excess shall become part of the Grand Prize pool. The Product Group, with approval of the MUSL Finance & Audit Committee, may establish a maximum balance for the prize reserve account(s). The Product Group may determine to expend all or a portion of the funds in the reserve accounts for the purpose of indemnifying the Party Lotteries in the payment of prizes to be made by the participating lotteries, subject to the approval of the Board. The shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and shares of the Party Lotteries. Any amount remaining in a prize reserve account at the end of this game shall be carried forward to a replacement prize reserve account or expended in a manner as directed by the Product Group in accordance with state law.

4.3 Expected Prize Payout Percentages. Grand Prize payment amounts shall be determined on a pari-mutuel basis. Except as provided in these rules, all other prizes awarded shall be paid as set cash prizes with the following expected prize payout percentages:

Number of Matches Per Play	Prize Payment	Prize Pool Percentage Allocated to Prize
All five (5) of first set plus one (1) of second set.	Gross Grand Prize Value*	52.1188%
All five (5) of first set and none of second set.	$ 30,000.00	3.7056%
Any four (4) of first set plus one (1) of second set.	$ 3,000.00	4.3232%
Any four (4) of first set and none of second set.	$ 100.00	2.5940%
Any three (3) of first set plus one (1) of second set.	$ 50.00	2.9542%
Any three (3) of first set and none of second set.	$ 6.00	6.3811%
Any two (2) of first set plus one (1) of second set.	$ 6.00	4.7268%
Any one (1) of first set plus one (1) of second set.	$ 3.00	11.5214%
None of first set plus one (1) of second set.	$ 2.00	11.6750%

* The above reflects the Gross Grand Prize Value; the "Advertised Grand Prize" is described elsewhere in these Rules. The Gross Grand Prize Value amount will be reduced by federal and jurisdictional withholding taxes (if any) that will be remitted by the Party Lottery on behalf of the prizewinner with the prizewinner receiving the residual amount as their Grand Prize payment (subject to offsets). The prize amount reported to the federal and jurisdictional revenue authorities by the Party Lottery as subject to income taxation shall reflect the amount paid to the prize winner (including any offsets) and also the amount remitted as withholding taxes to the federal and jurisdictional authorities (if any) on behalf of the prize winner.

(a) The prize money allocated to the Gross Grand Prize Value category shall be divided equally by the number of Plays winning the Grand Prize; see infra.

(b) The prize pool percentage allocated to the set prizes (the cash prizes of $ 30,000.00 or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw. If the total of the set prizes awarded in a drawing exceeds the percentage of the prize pool allocated to the set prizes, then the amount needed to fund the set prizes awarded shall be drawn from the following sources, in the following order:

(i) the amount allocated to the set prizes and carried forward from previous draws, if any;

(ii) an amount from the PRA, if available, and

(iii) an amount from the set-aside account, if available, not to exceed the balance of that account. If, after these sources are depleted, there are not sufficient funds to pay the set prizes awarded, then the highest set prize shall become a pari-mutuel prize. If the amount of the highest set prize, when paid on a pari-mutuel basis, drops to or below the next highest set prize and there are still not sufficient funds to pay the remaining set prizes awarded, then the next highest set prize shall become a pari-mutuel prize. This procedure shall continue down through all set prize levels, if necessary, until all set prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning plays in proportion to their respective prize percentages.

Section 5.0 Probability of Winning

The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Hot Lotto.

Number of Matches Per Ticket	Probability Distribution	Probable/Set Prize Amount
All five (5) of first set plusone (1) of second set	1: 29,144,841	$ 7,594,954.50* **
All five (5) of first setand none of second set	1: 1,619,157.833333	$ 30,000.00
Any four (4) of first set plusone (1) of second set	1: 138,784.957143	$ 3,000.00
Any four (4) of first setand none of second set	1: 7,710.275397	$ 100.00
Any three (3) of first set plusone (1) of second set	1: 3,384.998955	$ 50.00
Any three (3) of first setplus and none of second set	1: 188.055497	$ 6.00
Any two (2) of first set plusone (1) of second set	1: 253.874922	$ 6.00
Any one (1) of first set plusone (1) of second set	1: 52.076907	$ 3.00
None of first set plusone (1) of second set	1: 34.261123	$ 2.00
Overall	1: 17.217787
* The Grand Prize amount does not include the Prize Reserve Account deduction or any other deductions, if any. ** The Gross Grand Prize Value amount reflects the "Gross Prize Value"; the "Advertised Grand Prize" and "Withholding Taxes Paid Prize" amounts are discussed elsewhere in these Rules, see infra.

Section 6.0 Prize Payment

6.1 Grand Prizes. Grand Prizewinner(s) shall be paid, with a single cash payment. The Gross Grand Prize Value shall be a guaranteed amount and Grand Prize winner share(s) shall be determined pursuant to Section 6.5 (Funding of Guaranteed Prizes).

For past Hot Lotto Grand Prize winners who had elected an annuity payout of their Grand Prize, in the event of the death of a lottery winner during the annuity payment period, the Product Group, in its sole discretion, upon the petition of the estate of the lottery winner (the "Estate") to the state lottery of the state in which the deceased lottery winner purchased the winning ticket, and subject to federal, state, or district applicable laws, may accelerate the payment of all of the remaining lottery proceeds to the Estate. If the Product Group makes such a determination, then securities and/or cash held to fund the deceased lottery winner's annuitized prize may be distributed to the Estate. The identification of the securities to fund the annuitized prize shall be at the sole discretion of the Product Group.

6.2 Low-Tier Cash Prize Payments. All low-tier cash prizes (all prizes except the Grand Prize) shall be paid in cash or warrants through the Party Lottery that sold the winning ticket(s). A Party Lottery may begin paying low-tier cash prizes after receiving authorization to pay from the MUSL central office.

6.3 Prizes Rounded. Prizes that, under these rules, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

6.4 Rollover. If the Grand Prize is not won in a drawing, the prize money allocated for the Grand Prize shall roll over and be added to the Grand Prize pool for the following drawing.

6.5 Funding of Guaranteed Prizes. Prior to a drawing the Product Group shall determine and publicly announce the "Advertised Grand Prize" amount for that drawing.

The Gross Grand Prize Value amount, that is used to determine the Advertised Grand Prize amount, shall be a guaranteed amount, and the Product Group may offer guaranteed minimum Gross Grand Prize Value amounts or minimum increases in the Gross Grand Prize Value amount between drawings or make other changes in the allocation of prize money where the Product Group finds that it would be in the best interest of the game. Guaranteed Gross Grand Prize Value amounts shall be funded as determined by the Product Group.

Grand Prizewinner shares shall be determined as follows: If there are multiple Grand Prize winners during a single drawing, then a winner's share of the Grand Prize shall be determined by dividing the Gross Grand Prize Value by the number of winners. Each Grand Prizewinner's share shall be paid as a "Withholding Taxes paid" prize with applicable federal and jurisdictional withholding amounts reducing the amount of cash paid to the prize winner(s); see Section 3.7 (Withholding Taxes Paid Prizes) and infra. Minimum guaranteed prizes or increases may be waived if the alternate funding mechanism set out in Section 4.3(b) (Expected Prize Payout Percentages) becomes necessary.

6.6 Limited to Highest Prize Won. The holder of a winning ticket may win only one (1) prize per Play in connection with the winning numbers drawn, and shall be entitled only to the prize won by those numbers in the highest matching prize category.

6.7 Prize Claim Period. Prize claims shall be submitted within the period set by the Party Lottery selling the ticket, which in Vermont is one year from the prize eligibility date. The prize eligibility date is the date of the winning draw.

6.8 Prize Assignment. Payment of a prize may be made to a person other than the winner pursuant to Vermont Statutes Annotated, Title 31, Section 654a(c), which adopts the payment provisions of Title 31, Section 674L.1.1A-I.

Section 7.0 Ticket Validation

7.1 General Requirements for Validation. To be a valid ticket and eligible to receive a prize, a ticket shall satisfy all the requirements established by a Party Lottery for validation of winning tickets sold through its on-line system and any other validation requirements adopted by the Product Group, the MUSL Board, and published as the Confidential MUSL Minimum Game Security Standards. The MUSL and the Party Lotteries shall not be responsible for tickets that are altered in any manner.

7.2 Specific Requirements for Validation of Tickets Sold in Vermont

(a) To be a valid ticket and eligible to receive a prize, all the following requirements must be satisfied:

(1) The ticket must have been issued by the Lottery through a licensed agent, via a terminal, in an authorized manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner.

(2) The ticket date must have been recorded in the Lottery's central computer system before draw-break and at least sixty (60) minutes prior to the scheduled drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the drawing (regardless of when the drawing is held) is void.

(3) The information appearing on the ticket must correspond precisely with the party Lottery's computer record.

(4) The system assigned validation number must appear in its entirety, and correspond, using a computer validation file, to the winning game play or plays printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records.

(5) The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective.

(6) All information appearing on an apparent winning ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid.

(7) The ticket must be intact, fully legible, complete and not miscut, correspond to the data on file at the Lottery in every respect.

(8) The ticket must pass all other security criteria determined by the Vermont Lottery Commission and MUSL.

(9) The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof.

(10) An apparent winning ticket shall be void unless the ticpaper stock roll which was in use at the time of the bet by, and validly issued to, the agent from whom the ticket was purchased.

(b) In the event that a ticket fails to pass all the criteria set forth in subpart (a) of this rule, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the Executive Director shall be final and binding. If the Executive Director determines that the ticket is not eligible to receive a prize, then the Executive Director may, at the Executive Director's option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant's sole and exclusive remedy.

Section 8.0 Ticket Responsibility

8.1 Signature. Until such time as a subscription play is properly and validly registered with the Member Lottery, or until such time as a signature or, if permitted by state or district law, a mark or printed name is placed upon a ticket in the area designated for signature, mark or name, a ticket shall be owned by the bearer of the ticket. When a subscription play is validly and properly registered with the Lottery, or when a signature, mark, or name is placed on the ticket in the place designated, the person who has registered the ticket, or if not registered, whose signature, mark, or name appears in such area shall be the owner of the ticket and shall be entitled (subject to the validation requirements in Section 7.0 (Ticket Validation) and state, district or jurisdiction law) to any prize attributable thereto.

8.2 Multiple Signatures. The manner of payment of prizes for valid winning tickets bearing multiple signatures, marks, or names shall be determined by the Law of the State of Vermont.

8.3 Stolen Tickets. The Product Group, the MUSL and the Party Lotteries shall not be responsible for lost or stolen tickets.

8.4 Subscription Plays. A receipt for a subscription play has no value and is not evidence of a play. A subscription play is valid when registered with the lottery in accordance with lottery rules and the person or, if permitted by the lottery rules, the persons registering the play shall be the owner of the subscription play.

Section 9.0 Ineligible Player

9.1 A ticket or share for a game issued by the MUSL or any of its Party Lotteries shall not be purchased by, and a prize won by any such ticket or share shall not be paid to:

(a) A MUSL employee, officer, or director;

(b) A contractor or consultant under agreement with the MUSL to review the MUSL audit and security procedures;

(c) An employee of an independent accounting firm under contract with the MUSL to observe drawings or site operations and actually assigned to the MUSL account and all partners, shareholders, or owners in the local office of the firm; or

(d) An immediate family member (parent, stepparent, child, stepchild, spouse, or sibling) of an individual described in subsections (a), (b), and (c) and residing in the same household.

9.2 No tickets or subscription may be sold to, or purchased by, individuals who have not attained the age of majority. However, tickets or subscriptions may be given as gifts to minors or any other individuals except as prohibited by Vermont law.

9.3 No member of the Vermont Lottery Commission or employee of the Vermont Lottery, or members of their immediate household, may claim or receive prize money in any lottery operated by the Vermont Lottery Commission, including but not limited to Hot Lotto.

Section 10.0 Applicable Law

In purchasing a ticket, the purchaser agrees to comply with and abide by all applicable Vermont laws, rules, regulations, procedures, and decisions by the Lottery.

Part III SPECIAL GAME RULES: HOT LOTTO SIZZLER PROMOTION

Section 11.0 Promotion Description

The Hot Lotto Sizzler promotion is a limited extension of the Hot Lotto game and is conducted in accordance with the Hot Lotto Game Rules and other lottery rules applicable to the Hot Lotto Game except as may be amended herein. The promotion will begin at a time announced by the Lottery and will continue until discontinued by the Lottery. The promotion will offer to the owners of a qualifying play a chance to multiply the amount of any of the eight lump sum Set Prizes (the lump sum prizes normally paying $ 2.00 to $ 30,000.00) won in a drawing held during the promotion. The Grand Prize jackpot is not a Set Prize and will not be multiplied.

Section 12.0 Qualifying Play

A qualifying play is any single Hot Lotto play for which the player pays an extra dollar for the Sizzler option play and that is recorded at the Lottery's central computer as a qualifying play.

Section 13.0 Prizes to Be Multiplied

A qualifying play that wins one (1) of the eight (8) lump sum Set Prizes will be multiplied by three (3). The Hot Lotto Group may change this multiplier number for special promotions from time to time

Section 14.0 Reserved

Section 15.0 Sizzler Prize Pool

15.1 Sizzler Prize Pool. The Sizzler Prize Pool for all prize categories shall consist of approximately forty-seven and eight thousand eight hundred thirteen ten thousandths percent (47.8813%) of each drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket. Any amount remaining in the prize pool at the end of this game shall be carried forward to a replacement game or expended in a manner as directed by the Product Group in accordance with state law.

15.2 Prize Reserve Funding. Two and one thousand one hundred eighty seven ten thousandths percent (2.1187%) of sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the Sizzler Prize Pool or in one or more prize reserve accounts until the prize reserve accounts reach the amounts designated by the Product Group.

15.3 Expected Prize Payout. Except as provided in these rules, all prizes awarded shall be paid as lump sum set prizes. Instead of the Hot Lotto set prize amounts, qualifying Sizzler plays will pay the amounts shown:

	Hot Lotto Prize Amount	Pays Instead 3X
Match 5+0	$ 30,000.00	$ 90,000.00
Match 4+1	$ 3,000.00	$ 9,000.00
Match 4+0	$ 100.00	$ 300.00
Match 3+1	$ 50.00	$ 150.00
Match 3+0	$ 6.00	$ 18.00
Match 2+1	$ 6.00	$ 18.00
Match 1+1	$ 3.00	$ 9.00
Match 0+1	$ 2.00	$ 6.00

In certain rare instances, the Hot Lotto set prize amount may be less than the amount shown. In such case, the Sizzler prizes will be a multiple of the new Hot Lotto prize amount. For example, if the Match 5 of the first set and none of the second set Hot Lotto set prize amount of $ 30,000.00 becomes $ 27,000.00 under the rules of the Hot Lotto game, then a Sizzler player winning that prize would win $ 81,000.00 ($ 27,000.00 x 3).

Section 16.0 Reserved

Section 17.0 Limitations on Payment of Sizzler Prizes

17.1 Sizzler Prize Pool Carried Forward. The Sizzler prize pool percentage allocated to the Sizzler set prizes shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.

17.2 Pari-Mutuel Prizes - All Prize Amounts. If the total of the original Hot Lotto set prizes and the multiplied Sizzler set prizes awarded in a drawing exceeds the percentage of the prize pools allocated to the set prizes and Sizzler prizes, then the amount needed to fund the set prizes (including the multiplied set prizes) awarded shall be drawn from the following sources, in the following order:

(i) the amount allocated to the set prizes (including the multiplied set prizes) and carried forward from previous draws, if any;

(ii) an amount from the Hot Lotto Prize Reserve Account, if available in the account, not to exceed one million dollars ($ 1,000,000.00) per drawing. If, after these sources are depleted, there are not sufficient funds to pay the set prizes awarded (including multiplied prizes), then the highest set prize (including the multiplied prizes) shall become a pari-mutuel prize. If the amount of the highest set prize, including the multiplied set prizes, when paid on a pari-mutuel basis, drops to or below the next highest set prize and there are still not sufficient funds to pay the remaining set prizes awarded, then the next highest set prize, including the multiplied prize, shall become a pari-mutuel prize. This procedure shall continue down through all set prizes levels, if necessary, until all set prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning plays in proportion to their respective prize percentages.

Section 18 Prize Payment

18.1 Prize Payments. All Sizzler prizes shall be paid in one lump sum through the Member Lottery that sold the winning ticket(s). A Member Lottery may begin paying Sizzler prizes after receiving authorization to pay from the MUSL central office.

18.2 Prizes Rounded. Prizes, that, under these rules, may become pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the Sizzler prize pool for the next drawing.

Part IV AGENTS

Section 19.0 Agents

19.1 Agents selling Hot Lotto and Sizzler tickets shall comply with all applicable Vermont laws, rules, regulations, procedures, and decisions of the Lottery and with all applicable MUSL rules, regulations and requirements.

19.2 Each agent shall receive 6.00 percent (6%) of gross receipts for Hot Lotto and Sizzler tickets sold by that agent as a commission. The 6.00 percent (6%) commission applies to Hot Lotto and Sizzler sales only.

Part V SUBSCRIPTIONS

Section 20.0 Subscriptions

20.1 Specific information required for a subscription

(a) To play by subscription a player shall provide the Lottery with the following information:

(1) 5 different 2-digit numbers between one (01) and a designated number and one additional 2-digit number between one (01) and a designated number;

(2) Name;

(3) A Vermont mailing address;

(4) Home telephone number;

(5) Work telephone number, if applicable;

(6) A gift message, if applicable;

(7) The number of draws the subscription shall be valid;

(8) Indicate Sizzler Option (Yes or No)

(9) Affirmation of age eligibility; and

(10) Payment method.

(b) If the subscriber selects payment for subscription by check, the check shall be payable to the Vermont Lottery Commission and attached to the subscription application form.

(c) [Reserved]

(d) The completed subscription form shall be forwarded to the Lottery headquarters for processing.

(e) Upon receipt of the subscription application, the Lottery shall enter the subscribers' information into a Lottery approved subscription database program.

(f) The database program will assign the next available effective draw date for the subscription, as determined by MUSL.

(g) The database program will assign the following identification numbers to the subscription:

(1) Subscriber number; and

(2) Subscription number.

(h) The Lottery will assign the following identification numbers to the subscription:

(1) Batch number; and

(2) Sequence or certificate number.

(i) The Lottery shall print a subscription confirmation card which shall list the following information:

(1) Subscriber name;

(2) Subscriber address;

(3) 5, 2-digit numbers and 1, additional 2-digit number;

(4) Sizzler Option (Yes or No)

(5) Day, month and year the subscription is effective;

(6) Day, month and year the subscription expires;

(7) A gift message, if applicable;

(8) Subscription number;

(9) Batch number; and

(10) Sequence or certificate number.

(j) The Lottery shall forward a subscription confirmation card to the subscriber.

(k) it shall be the sole responsibility of the player to verify the following are correct:

(1) Subscriber name;

(2) Subscriber address;

(3) Subscriber chosen 5, 2-digit numbers and one additional 2-digit number;

(4) Sizzler Option (Yes or No)

(5) Subscription play length; and

(6) Effective and expiration dates.

(l) It shall be the sole responsibility of the subscriber to notify the Lottery of incorrect data on the confirmation card prior to the effective date of the subscription.

(m) A subscription application form has no pecuniary or prize value and shall not constitute evidence of ticket purchase or of numbers selected.

(n) Once a subscription play is registered with the Lottery, the registration shall constitute the only acceptable evidence of play for the subscriber.

(o) A subscription does not become effective until the effective date listed on the confirmation card, which shall match the effective date listed in the Lottery's subscription database.

(p) Any changes to a subscriber's name or address shall be requested in writing by the subscriber and include the previous name and address. Name and address changes shall require a notarized letter from the subscriber.

(q) There shall be no changes to the subscriber's numbers during the effective dates of the subscription unless authorized by MUSL.

(r) Prizes shall be paid, by check or by expiration date extensions, as determined by MUSL.

(s) Prize checks shall be made payable to the subscription name(s) as recorded in the Lottery's central computer system;

(t) Subscriptions, once in effect, cannot be cancelled in whole or in part except as determined by MUSL.

(u) Subscription renewal forms shall be forwarded to the subscriber by the Lottery within a time period prior to the subscription's expiration date as determined by MUSL.

(v) The subscription renewal form shall contain the following information:

(1) Subscriber's name;

(2) Subscriber's address;

(3) 5 2-digit numbers and one additional 2-digit number;

(4) Sizzler Option (Yes or No)

(5) Subscriber number;

(6) Subscription number; and

(7) Expiration date including free play extensions, if any.

(w) If the subscriber elects to continue a subscription, the subscriber shall provide the Lottery with the following information:

(1) Subscription play length;

(2) Sizzler Option (Yes or No)

(3) Change of address, if applicable;

(4) Payment method; and

(5) A change of numbers of 5 2-digit numbers and 1 additional 2-digit number, if applicable.

(x) [Reserved]

(y) If the subscriber selects payment for subscription by check, the check shall be payable to the Vermont Lottery Commission and attached to the subscription renewal form.

(z) The completed subscription renewal form shall be forwarded to the Lottery headquarters for processing.

(aa) Upon receipt of the subscription renewal form, the Lottery shall enter the subscriber's information into a Lottery approved subscription database program.

(ab) The database program will assign the next available effective draw date for the subscription, as determined by MUSL.

(ac) The database program will assign a unique subscription number to the subscription:

(ad) The Lottery will assign the following identification numbers to the subscription:

(1) Batch number; and

(2) Sequence or certificate number.

(ae) The Lottery shall print a subscription confirmation card which shall list the following information:

(1) Subscriber name;

(2) Subscriber address;

(3) 5, 2-digit numbers and 1, additional 2-digit number;

(4) Sizzler Option (Yes or No)

(5) Day, month and year the subscription is effective;

(6) Day, month and year the subscription expires;

(7) A gift message, if applicable;

(8) Subscription number;

(9) Batch number; and

(10) Sequence or certificate number.

(af) The Lottery shall forward a subscription confirmation card to the subscriber.

Notes

01-003 Code Vt. R. 01-130-003-X

STATUTORY AUTHORITY: 31 V.S.A. § 654a
EFFECTIVE DATE: July 5, 2009 Secretary of State Rule Log #09-020
AMENDED: May 12, 2013 Secretary of State Rule Log #13-011