Or. Admin. Code § 177-046-0110

Current through Register Vol. 63, No. 10, October 1, 2024

Section 177-046-0110 - Payment of Prizes

(1) General Provisions for Claiming Prizes; Determining the Validity of Claims; and Paying Claims:

(a) All winning Lottery tickets or shares may be presented to the Oregon State Lottery for payment or, if permitted by the applicable game rule, some winning tickets or shares for prizes of $600 or less may also be presented for payment to the appropriate Lottery retailer.

(b) Timing and Deadline for Submitting a Claim: Any winning draw game ticket of $50,000 and over is not eligible for prize payment until the next Lottery business day after it is issued. Whether a claim for a prize is submitted to a retailer or to the Lottery by mail, private express carrier, secure drop box, or by an individual personally presenting the claim, the winning ticket or share (including the completed claim form, if applicable) must be received by the retailer or the Lottery within one-year after the drawing results become official (for draw games) or one year after the end of the lottery game in which the prize was won, unless a different time period is specified by the Lottery in the rules for a particular game or promotion. If the final day of the one-year claim period falls on a day when the Lottery is not processing prize claims, such as a weekend, Lottery holiday, furlough closure day, or unforeseen circumstances, the claim period shall be extended until 5:00 p.m. on the next day the Lottery is processing prize claims.

(c) Failure of Delivery: The claimant of a prize bears all risk associated with the method chosen to submit a claim, the timeliness of the claim submission and, in the case of submission by mail, private express carrier, or secure drop box, failure of the claim to be received by the Lottery or a retailer.

(d) If the Director determines that the ticket or share is invalid, or a non-winning ticket or share, or the claim is invalid, the Director shall deny the claim and the Lottery will notify the claimant. An invalid ticket or share will not be returned to the claimant and is not eligible for any second chance or promotional drawing. A non-winning ticket will only be returned to the claimant if the claimant provides return postage and a self-addressed envelope or mailing container in which to return the ticket.

(e) Conflicting Information or Discrepancies: If there is conflicting information or discrepancies including, but not limited to, between the name or names on a winning Lottery ticket or share and the name or names on a claim form, the Lottery may withhold prize payment until the conflicting information has been resolved to the Director's satisfaction. Discrepancies include, but are not limited to, names or addresses scratched out or erased or unreadable or altered names or addresses.

(f) Investigations: At the discretion of the Director or Assistant Director for Security, the Lottery may conduct an investigation to aid in the determination of the rightful owners prior to payment of any prize.

(g) Determinations: The Director's decisions regarding the determination of a winning Lottery ticket or share, or the determination of the rightful owner or owners of a prize, or of any other dispute or matter arising from payment or awarding of prizes are final and binding on all parties claiming an ownership interest in a prize.

(h) Payment Decisions: The Director shall make the final decision on whether any prize is paid or any annual prize payment is made. All prizes shall be paid within a reasonable time after they are validated, unless the Director delays a prize payment. The Director may, at any time, delay any prize payment in order to review the validity of a prize claim, or review a change of circumstances relative to the prize awarded, the payee, or the claim, or review any other relevant matter that may come to the Director's attention. Except as set forth in OAR 177-098-0060, for any prize requiring annual payments, all payments after the first payment shall be made on the anniversary date of the first payment in accordance with the type of prize awarded. Any delayed annual payment will be brought up to date immediately when payment is authorized by the Director.

(i) Social Security Numbers or Individual Taxpayer Identification Numbers (ITIN): Each United States resident or nonresident who is to receive a payment of winnings greater than $600 shall furnish to the Lottery the information required on the Internal Revenue Service Form W-2G (or any other form required by the IRS,) including but not limited to the winner's name, address, and social security number or ITIN. This disclosure is mandatory and the authority for such disclosure is 42 USC 405(c)(2)(C), 26 CFR 31.3402(q)-1(e), ORS 461.715(1)(a), and 461.719(2)(a). A winner's social security number or ITIN will be used for the purpose of identifying child support or public assistance overpayment obligors and payments owed and to administer state and federal tax laws, including collection of tax.

(j) Deductions from Prize Amount Paid: When a prize claim is submitted or claimed digitally through a player account, the Lottery will reduce the amount of the prize actually paid to the winner by any amounts required by law to be withheld from payment, including without limitation applicable tax withholding, a writ of garnishment or other legal attachment, child support, or other obligations owed to the State of Oregon. A winner will not be entitled to the full prize amount in such cases and the amounts withheld will be transferred or retained by the Lottery as required by law.

(2) Retailer Validation and Payment of Prizes: To determine whether a physical Lottery ticket or share presented for payment entitles the holder to a prize, a retailer must validate the claim with the Lottery by scanning the bar code or manually entering the bar code number printed on each Lottery ticket or share into equipment provided by the Lottery, and, if authorized by the Lottery, pay the holder the prize amount due.

(a) Retailer Payment: Unless the prize has multiple owners, a retailer is authorized to pay a prize of $600 or less and shall pay that prize in cash or check, or any combination thereof.

(b) Dishonored Check: If a retailer's prize payment check is dishonored, the payee of the check may seek payment from the Lottery by presenting a copy of the dishonored check at Lottery Headquarters or a Lottery Branch during Lottery business hours, or by mailing a copy of the dishonored check with a winner claim form to the Lottery Mailing Address. If the Lottery determines that payment of the prize is authorized, the retailer has not paid the prize, and it is unlikely that the retailer will pay the prize, the Lottery may then issue a check to the payee of the dishonored check in the amount of the prize due. The Lottery may require submission of the original check issued by the retailer prior to making payment to the payee.

(c) Retailer Sanction: A retailer that pays a prize with a check that is dishonored may be subject to termination of its Lottery Retailer Contract.

(3) Submission of Prize Claim to Lottery: The holder of a winning ticket or share may claim a prize by submitting the winning ticket or share using one of the methods described in this section, unless a different method is provided for claiming a Highest Prize in the specific rules for the game from which the Highest Prize is derived. A winner claim form may be obtained from any Lottery retailer, from the Lottery Headquarters or a Lottery Branch, or may be downloaded from the Lottery's website.

(a) Presenting Claim at Lottery Headquarters or Lottery Branch: Except as provided in subsections (d) and (e) of this section, a claimant may bring and present a ticket or share at Lottery Headquarters or a Lottery Branch during Lottery business hours, unless the ticket or share, or a Lottery rule, specifies that the ticket or share may only be presented at Lottery Headquarters. Prize claims worth $50,000 or more must be presented to the Lottery in person unless an exception is approved under subsection (b) of this section.

(b) Presenting Claim by Mail, Private Express Carrier, or Secure Drop Box:

(A) A claimant may present a claim by mail or private express carrier by signing the ticket or share, writing the claimant's mailing address on the ticket or share, completing a winner claim form, and mailing it together with the winning ticket or share to the Lottery Mailing Address. Registered mail is recommended.

(B) The Lottery may provide a secure drop box on Lottery Headquarters premises into which a claimant may deposit a signed ticket or share and completed winner claim form. Such secure drop box will be marked as such with Lottery signage. The claim is considered received by the Lottery on the date the claim is retrieved by Lottery personnel from the secure drop box.

(C) Unless an exception is approved by the Director or Assistant Director for Security (or, in the event of both of their absences, a person acting as a designee for the Director or Assistant Director for Security), only claims worth less than $50,000 may be submitted to the Lottery by mail, private express carrier, or secure drop box.

(c) Electronic Claim Form: A winner may submit an electronic claim form through the Internet if a winning ticket or share has already been presented using one of the methods specified in subsection (a) or (b) of this section. If the winner submits an electronic claim, the form is received by the Lottery only when the claim enters the Lottery's information processing system in a form that is retrievable by the Lottery and at the time and date noted by the Lottery's information processing system. The Lottery is not responsible for any electronic transmission failures or errors. An electronic winner claim form must include the winner's electronic signature that meets the requirements specified by the Lottery on the instructions for the winner claim form.

(d) Claiming Through the DraftKings Sportsbook Player Account: In the DraftKings Sportsbook, a prize is considered claimed immediately upon validation that the share is a winning share as determined by the rules for the particular game. Upon such validation, any taxes or other offsets required by law to be withheld will be withheld and any amounts remaining will be credited to the player account. There are no unclaimed prizes in the DraftKings Sportsbook game and prizes in such games may only be claimed as provided in this subsection.

(e) During the public health emergency related to COVID-19, the Lottery will comply with executive orders intended to prevent the spread of COVID-19 and may limit available methods for claiming prizes, especially in-person claiming, during the state of emergency. Claimants may be able to schedule appointments to claim prizes in person, although appointments may be limited as needed to protect the health and safety of staff and the public and to comply with executive orders.

(4) Lottery and Prize Payment Methods: Upon validation of a winning Lottery ticket or share presented to the Lottery for payment, the Director may pay the amount of the prize due to the owner of the ticket or share in the payment method determined by the Lottery to be the most appropriate subject to the following:

(a) Lottery Cash Payment: Cash prize payments are only made at Lottery Headquarters and are limited to $50 per person per day. Any prize payment balance remaining above $50 shall be paid by check or payment device. Lottery will not mail cash.

(b) Prize Payments over $20,000: Any prize in an amount that is over $20,000 will be paid by the Lottery using the method that it determines is most secure and effective in light of the circumstances of the winner and the Lottery. Any merchandise prizes valued in excess of $20,000 will be paid as merchandise.

(c) Payment Through the DraftKings Sportsbook Player Account: In the DraftKings Sportsbook digital sports betting game, the Lottery only pays prizes digitally by crediting the player account after the withholding of any amounts required by law to be withheld.

(5) Claiming Lottery Tickets or Shares Jointly: If more than one name appears on a Lottery ticket or share, or if a Lottery ticket or share is owned by two or more claimants, and the names appearing and ownership by more than one person was mutually agreed upon, the prize must be claimed in accordance with the following:

(a) General: All persons claiming ownership of the winning Lottery ticket or share must complete and sign the Lottery's Request to Divide and Release Form or Release of Ownership Form at the time the prize is claimed. Each of the claimants signing the form must indicate his or her proportionate share of the prize. Each claimant must receive at least $1.00. At least one of the claimants of the ticket or share must sign the ticket or share. That person's signature must also appear on the request and release form. If a winning ticket or share is mailed to the Lottery with multiple signatures on it, the Lottery will mail the request and release form to each of the claimants.

(b) Relinquishment of Interest: If a person has signed a Lottery ticket or share to relinquish the person's ownership interest in the Lottery ticket or share, that person must sign the Lottery's release of ownership form relinquishing the person's ownership interest to the person the owner designates on the form. In no event will a person be permitted to relinquish ownership interest once it is determined that the person owes money for child support, other legal attachment has taken place or other amounts are otherwise required to be withheld by law. Once the Lottery receives the release of ownership form, it is irrevocable.

(c) Deceased Signatories: A deceased signatory who dies before signing the request and release form will be presumed to have an ownership interest equal to that of the other signatories. In the event there is a deceased signatory, the Director may withhold payment for 60 days from the date of validation to allow co-owners the opportunity to seek a declaratory ruling from a court.

(d) Issuance of Prize Checks to Multiple Owners: If a validated winning Lottery ticket or share is claimed by multiple owners who are sharing a single prize, the Director will pay each owner claiming a share of the prize amount that portion of the prize amount claimed by each owner, with the total shares paid not to exceed the total prize amount. No cash payments will be made to multiple owners. However, the Director reserves the right to issue a single prize payment to an owner whose name appears on the ticket or share instead of multiple prize payments to the owners of the ticket or share if the value of each separate prize share would be less than $50 or if the number of owners claiming a share of the prize exceeds 100 people. Lottery retailers are not authorized to pay multiple owners who share a single winning prize.

(6) Second Chance Drawing Prize: Sections (5) and (7) of this rule are not applicable to a prize claim from a second chance drawing. Prizes awarded by the Lottery from second chance drawings must be claimed in accordance with the provisions of OAR 177-052-0060 and only the person who submitted the winning entry in a second chance drawing may claim and be paid the prize.

(7) Power of Attorney.

(a) General: The owner of a winning ticket or share may designate in a written power of attorney an agent to act on the owner's behalf and to receive a prize payment on behalf of the owner. The Director shall confirm both the written authorization and the agent. An owner is encouraged to select a bonded agent. The Director may pay a prize to an agent for the owner of a winning ticket or share only if the Director determines that the agent has presented a valid power of attorney under Oregon law authorizing the Lottery to disburse a winning prize amount to the agent on behalf of the owner named on the winning ticket or share. The Director may require that any power of attorney submitted to the Lottery be in a form prescribed by the Lottery. The Director will accept a power of attorney for a winning ticket or share only when there is a single owner of the ticket or share. The owner of the ticket or share for whom a claim is submitted under a power of attorney must be a natural person over the age prescribed in the applicable game rules and be otherwise eligible to play Lottery games and claim a Lottery prize.

(b) Method of Payment: The Lottery will not disburse cash to an agent for a winner. The Lottery will disburse payment to the designated agent for a ticket owner only by check, payment card or other method payable to the named owner of the ticket or share, not to the name of the agent.

(c) Power of Attorney Form: A power of attorney submitted to the Lottery must, at a minimum:

(i) be in written form,

(ii) specify the name, address and telephone number of the owner of the ticket or share;

(iii) be dated with a date that is later than the determination of the winner for the game in which a winning prize is being claimed,

(iv) specifically identify the winning prize and the game won,

(v) specify the name, address and telephone number of the agent who is authorized to claim the prize for the owner; and

(vi) clearly state that the agent may complete a claim form and sign the ticket or share in the name of the owner and receive payment of the prize for the owner. The Director, in his or her discretion, may also accept a general power of attorney form for a disabled or incompetent player if the Director determines that the general power of attorney is valid under Oregon law and that payment to the agent of a Lottery prize is within the authority conferred upon the agent under the general power of attorney.

(d) Identification of Owner: The Director may confirm to the Director's satisfaction that the agent is authorized to claim a prize on behalf of the owner of a winning ticket or share. The Director may attempt to verify or contact the owner of a winning ticket or share that is being claimed by an agent. The Director may request copies of additional documentation to establish the identity of the owner and the validity of the power of attorney including, without limitation, a driver's license, passport or similar identification and documents pertaining to the identity and signature of the owner in order to verify the validity of the power of attorney.

(e) Appearance: An agent may not present a winning ticket or share through the mail or by private express carrier, but must physically present the winning ticket or share with the power of attorney and any supporting documentation at the Lottery Headquarters to claim the prize payment on behalf of the owner. Subsequent to receipt of acceptable identification, along with a completed claim form from the agent, and the Director's review and approval of the power of attorney and other supporting documentation required by this rule or requested by the Director, the agent, in the presence of a duly authorized Lottery official, shall sign the owner's name on the winning Lottery ticket or share in the place indicated on the ticket or share and immediately return it to the Lottery. The Director shall then disburse payment as provided in these rules.

(f) Discharge of Lottery from Liability: The owners of lottery tickets or shares are responsible for safeguarding their tickets or shares and assume the risk of an agent with apparent authority from the owner presenting a claim for payment from the Lottery on behalf of the owner. The State of Oregon, its agents, officers, employees, and representatives, including but not limited to, the Oregon Lottery, its Director, agents, officers, employees, and representatives, are discharged of all liability upon payment to an apparent agent for the owner of a winning ticket or share in accordance with this rule. The Lottery is not responsible in any way for the fulfillment or completion of any agreement or power of attorney between the owner and the agent. The Director's decisions regarding the determination that a Lottery ticket or share is, or is not, a winning ticket or share or any question or dispute arising from the payment of such a prize is final and binding on all parties. In the event a question or issue arises regarding payment of a prize through an agent, the Director may withhold payment until the question or issue is resolved. The Lottery, the owner or the purported agent may petition a court of competent jurisdiction for judicial resolution of the matter.

(g) This section does not apply to the DraftKings Sportsbook digital sports betting game. Prizes in the DraftKings Sportsbook may not be claimed through a power of attorney; provided, however, moneys may be withdrawn from a player account through a power of attorney, if the form of power of attorney is approved and given effect by Lottery.

(8) Validation and Payment of Lost, Damaged or Destroyed Tickets or Shares: If a player of a game cannot submit an intact winning ticket or share because a retailer lost, damaged, or destroyed the ticket or share while attempting to perform validation procedures on the game ticket or share, or because the ticket or share was otherwise damaged so that it cannot be validated through the Lottery's central computer system or because it is otherwise unreadable, a prize claim based on such lost, damaged, or destroyed ticket or share may still be validated provided the claim is made before the end of the applicable claim period. For purposes of this rule, a ticket or share is unreadable if there is insufficient information remaining on the ticket or share for the Lottery's Security Section to reconstruct and validate the ticket or share.

(a) Player Form and Affidavit: To claim a prize based on a lost, damaged, or destroyed ticket or share, the player must obtain, complete, and sign a winner claim form and a claim affidavit furnished by the Lottery. The player shall submit the two completed forms along with any other evidence of the validation attempt that is in the player's possession (including, but not limited to, any slips, receipts or other evidence of play produced by the terminal at the time of the validation attempt) to the Lottery either by mail to the Lottery Mailing Address (registered mail recommended) or in person at the Lottery Headquarters or a Lottery Branch during Lottery business hours.

(b) Evidence: The evidence submitted by the claimant must corroborate any validation attempt of the ticket or share by a retailer including, but not limited to, identification of the Lottery game retailer or clerk who attempted to validate the prize, the time and date of the validation attempt, the ticket or share validation number, the terminal number, and the prize amount.

(c) Investigation: The Assistant Director for Security will conduct an investigation to determine if the claim and winning game ticket or share are valid.

(d) Retailer Affidavit: A retailer who is the subject of an investigation conducted under this section must complete and provide to the Lottery a retailer affidavit form explaining the events in question.

(e) Director's Determination: Based upon all the facts and information available, the Director shall determine whether prize payment is warranted and authorized.

(f) Payment of Prize: Upon the Director's determination that the ticket or share submitted under this section is a valid, winning ticket or share, and that the player is the proper person to whom a prize is payable, the Lottery shall present or mail a check to the claimant in the amount of the prize due to the claimant.

(g) Restriction of Payment: Payment of claims submitted under this section is restricted to the prize amount. A winner is not entitled to lost interest earnings or any other form of damages due to a delay in a payment of a prize while the validation process described in this rule is completed.

(h) Retailer Sanctions: The Director may sanction a Lottery game retailer for the loss, damage or destruction of a winning ticket or share including, but not limited to imposing, a requirement for training for the retailer or the retailer's employees, and any other actions that the Lottery may take in response to a retailer's failure to perform contract duties or requirements as described in the Lottery retailer contract.

(i) Notification of Denial: If the Director determines that the ticket or share is invalid, or a non-winning ticket or share, or the claim is invalid, the Director shall deny the claim and notify the claimant. An invalid ticket or share will not be returned to the claimant and is not eligible for any second chance or promotional drawing. A non-winning ticket or share will be returned to the claimant if the claimant provides return postage and a self-addressed envelope or mailing container in which to return the ticket or share. If a claim is denied, the Director may, in his or her discretion, provide the claimant with one or more replacement tickets as provided by OAR 177-046-0160.

Or. Admin. Code § 177-046-0110

LOTT 12-2002(Temp), f. 9-6-02, cert. ef. 9-9-02 thru 3-6-03; LOTT 23-2002, f. & cert. ef. 11-25-02; LOTT 10-2005(Temp), f. & cert. ef. 11-2-05 thru 4-28-06; LOTT 18-2005, f. 12-21-05, cert. ef. 12-31-05; LOTT 4-2007(Temp), f. 11-8-07, cert. ef. 11-12-07 thru 5-9-08; LOTT 1-2008, f. 3-21-08, cert. ef. 3-31-08; LOTT 7-2009, f. 9-28-09, cert. ef. 10-1-09; LOTT 6-2010, f. 3-18-10, cert. ef. 3-21-10; LOTT 9-2010, f. 8-30-10, cert. ef. 9-5-10; LOTT 1-2013(Temp), f. & cert. ef. 2-1-13 thru 7-27-13; LOTT 2-2013, f. 6-24-13, cert. ef. 7-1-13; LOTT 3-2015, f. 9-25-15, cert. ef. 10/1/2015; LOTT 5-2017, temporary amend filed 10/09/2017, effective 10/09/2017 through 04/03/2018; LOTT 2-2018, amend filed 03/29/2018, effective 4/2/2018; LOTT 6-2018, minor correction filed 05/17/2018, effective 5/17/2018; LOTT 2-2019, temporary amend filed 10/01/2019, effective 10/01/2019 through 03/28/2020; LOTT 1-2020, amend filed 03/20/2020, effective 03/29/2020; LOTT 1-2021, amend filed 02/26/2021, effective 3/1/2021; LOTT 20-2021, temporary amend filed 12/17/2021, effective 12/17/2021 through 6/14/2022; LOTT 6-2022, amend filed 06/03/2022, effective 6/15/2022

Statutory/Other Authority: Or Const, Art XV, § 4(4)(a), ORS 461.120, 461.130, 461.150, 461.210, 461.230, 461.240, 461.250, 461.260, 461.400, 461.440, 461.715 & 461.719

Statutes/Other Implemented: Or Const, Art XV, § 4(4), ORS 316.194, 461.020, 461.220, 461.240, 461.560, ORS 461.120, 461.130, 461.150, 461.210, 461.230, 461.240, 461.250, 461.260, 461.400, 461.440, 461.715 & 461.719