Ariz. Admin. Code § 19-3-204.02

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

Section R19-3-204.02 - Lottery Determination of Need for Emergency Action

A. The Director may determine the need for emergency action to disable a retailer's Lottery-issued equipment, suspend sales of Lottery games, or remove tickets if the public welfare is threatened pending a proceeding for revocation, suspension, or denial of renewal, in the following circumstances:

1. The Lottery's regularly-scheduled electronic transfer of the retailer's bank account is unsuccessful;

2. The retailer fails to comply or cooperate with an investigation concerning Arizona state laws or Lottery regulations;

3. The retailer, or officer, director, partner, LLC member or manager, controlling agent, or local premise manager is charged with a felony, felony theft that is designated as a misdemeanor, misdemeanor theft, embezzlement, or a crime involving gambling or fraudulent schemes and artifices;

4. The retailer sells a Lottery ticket in any transaction to a person using a public assistance voucher issued by any public entity or an electronic benefits transfer card issued by the Arizona Department of Economic Security;

5. The retailer, or an officer, employee, or agent of the retailer sells an altered or expired Lottery ticket, or a Lottery ticket after the announced end of the game;

6. The retailer sells a ticket at a price greater than face value, including adding debit card fees to Lottery purchases;

7. The retailer pays less than the full prize value of the ticket at validation;

8. A retailer violates a provision of the state of Arizona liquor laws under A.R.S. § 4-101 Title 4.

9. A retailer violates a provision of the state of Arizona gaming laws under A.R.S. Title 5, Chapters 1 through 4

10. The retailer offers to sell a Lottery ticket, sells a Lottery ticket, or pays a prize on any winning Lottery ticket to a person under 21 years of age;

11. The retailer advises a player that a winning ticket presented for validation was not a prize winner;

12. The retailer, or an officer, employee, or agent of the retailer sells any Lottery product for consideration other than U.S. currency, check, credit card, debit card or, if a player requests, the exchange of a winning Lottery ticket;

13. The retailer, or an officer, employee, or agent of the retailer sells a Lottery ticket by telephone, mail, fax, on the internet, or on premises not authorized by the Lottery;

B. A retailer who receives a Notice of Intent to Revoke a Retailer's License with a finding of emergency action shall:

1. Immediately cease all sales of Lottery products, and

2. Surrender the license and all other Lottery property and products upon request by the Director's representative.

3. Immediately settle all financial accounts with the Lottery.

C. The Director shall notify the retailer in writing within five days of taking an emergency action that an expedited hearing or informal conference may be obtained before the Office of Administrative Hearings under A.A.C. R2-19-103 and A.A.C. R2-19-110.

D. If the retailer fails to settle the financial account and surrender the license and all other Lottery property and products, the Director shall take steps allowed by law to secure payment and return of Lottery property and products.

Ariz. Admin. Code § R19-3-204.02

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.