Ariz. Admin. Code § 19-3-202.01

Current through Register Vol. 30, No. 44, November 1, 2024

Section R19-3-202.01 - License Endorsement Types; Specific Requirements

A. Lottery retailers shall hold a general product license in addition to any qualifying endorsements. Retailers who qualify for specific license endorsements may submit the additional required information when applying for a general product license, or at a later date.

B. A retailer with a license endorsement may voluntarily relinquish the endorsement in writing at any time. Relinquishment of an endorsement will not automatically terminate the general product license.

C. General Product License

1. A general product license permits a retailer to sell all Lottery products that do not require a specific license endorsement under this section.

2. Retailers selling Lottery products or providing Lottery services prior to receiving applicable license endorsements are in violation of this Article.

3. Retailers with a general product license shall refer prizewinners of prizes greater than $599 to an official Lottery office for validation and redemption.

D. Charitable. A charitable endorsement permits the licensed retailer to sell Lottery products in accordance with A.R.S. § 5-554(H). Applicants for a charitable endorsement must provide documentation of the following:

1. Recognition by the United States Internal Revenue Service of the licensee's tax-exempt status,

2. Operation within the state of Arizona for at least two years.

E. Keno

1. A Keno endorsement permits the licensed retailer to offer Keno in accordance with A.R.S. § 5-554(J) and (K). Applicants for a Keno endorsement must provide documentation of one of the following:

a. Fraternal organization auxiliary location,

b. Veterans' organization auxiliary location, or

c. Racetrack enclosure or additional wagering facility where pari-mutuel wagering on horse races is conducted.

2. Applicants for a Keno endorsement must demonstrate to the Lottery that the physical location of the retail facility is located at least five miles from an Indian gaming facility.

F. Redemption Agent

1. A Redemption Agent endorsement permits the licensed retailer to validate and pay winning Lottery tickets up to $4,999.

2. Applicants for a Redemption Agent endorsement must demonstrate the ability to pay prizes up to $4,999 in accordance with this Article.

3. A retailer with a Redemption Agent endorsement shall provide a separate accounting of Lottery monies upon request by the Lottery.

4. A retailer with a Redemption Agent endorsement is responsible for verification of identity and social security number and shall require prizewinners to provide acceptable identification and documentation.

5. Payment for any prizewinners who cannot provide required documentation shall be referred to an official Lottery office.

6. The confidentiality of all player data shall be maintained at all times. Disclosing any personal information to anyone other than the Lottery or as required by law is prohibited. Any known or suspected loss of protected data must be reported to Lottery within one hour.

7. For prizes over $599, retailers with a Redemption Agent endorsement shall determine, through the Lottery provided terminal and prior to paying the prize, whether the holder of a winning lottery ticket is subject to Arizona debt set-off requirements under A.R.S. § 5-575. Prizewinners shall be referred to an official Lottery office if Retailer is notified as such through the claim redemption process.

8. Retailers with a Redemption Agent endorsement shall provide claim documentation and original tickets for each validation to Lottery at the end of each week.

G. Route Services

1. Applicants for a Route Services endorsement must have sufficient space for installation of Lottery equipment as close to the front of the store as reasonably possible. Equipment shall be close to the checkout area and/or entry/exit door and in regular view of retail staff.

2. Retailer shall deposit Lottery cash receipts on behalf of the Lottery and timely return any adjustment forms and/or request for credit.

3. Lottery may compensate a retailer with a Route Services endorsement with a periodic rental fee for the space occupied by each vending machine.

H. The Lottery may issue a limited license with regard to duration, type of products, methods of selling or validating products, or qualification requirements.

Ariz. Admin. Code § R19-3-202.01

New Section made 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.