Ariz. Admin. Code § 19-3-217

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

Section R19-3-217 - Unaccounted for and Stolen Instant Scratch Tickets

A. All Lottery tickets issued to a retailer holding a full product license or limited license shall be the property of the retailer until their return is acknowledged by the Lottery. The Lottery is not responsible for lost or stolen tickets.

B. A licensed retailer authorized to sell instant scratch tickets may be eligible for reimbursement of all or some stolen inventory if:

1. The retailer report s the stolen Lottery tickets to the local law enforcement agency and the Lottery Investigations unit within one hour from the time the theft occurs or the theft first could have been discovered;

2. The retailer provides a copy of the written police report to the Lottery;

3. The retailer cooperates in any investigation and prosecution of the theft;

4. The retailer provides accurate game, pack, and ticket information for the stolen inventory;

5. The retailer provides documentation a claim for the stolen inventory has been made to the retailer's insurance company and the claim was denied or if the retailer is self-insured, documentation of self-insurance; and

6. The stolen inventory had not been validated at the time it was reported stolen.

C. If a retailer licensed to sell instant scratch tickets has insufficient insurance to pay for the retailer's loss and the retailer complies with subsection (B), the Lottery may credit the retailer's account for stolen instant tickets as follows:

1. The Lottery may credit all charges against the account of the retailer for the stolen tickets if the Lottery determines the theft was from a source not associated with the retailer or by an unknown party.

2. The Lottery may credit 50% of the charges against the account of the retailer for the stolen tickets if the Lottery determines the theft was from an employee, manager, officer, director, or a relative with access to Lottery tickets.

3. Each retailer is limited to no more than two stolen ticket credit requests within any 12-month period.

D. The Lottery shall not issue a credit for stolen tickets if the Lottery finds a retailer holding a full product license or limited license was negligent or did not enforce reasonable loss-prevention procedures to protect tickets, ticket processing, and ticket accounting.

E. If a prize claim is made against a ticket that has been reported as stolen or a ticket unaccounted for by the retailer holding a full product license or limited license, the Lottery shall hold the prize money in trust pending the findings of an investigation by an appropriate law enforcement agency.

F. The loss of instant tab tickets is the responsibility of the retailer.

Ariz. Admin. Code § R19-3-217

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.