Or. Admin. Code § 177-098-0060

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

Section 177-098-0060 - Prize Payment

(1)Selection of Payment Type: Jackpot Prizes shall be paid, at the election of the player made no later than 60 days after validation of the prize, with either a per winner annuity or single lump sum payment. If the payment election is not made by the player within 60 days after validation, then the prize shall be paid as an annuity prize. The election to take the single lump sum payment may be made at the time of validation of the prize claim or within 60 days thereafter. An election made after validation is final and cannot be revoked, withdrawn or otherwise changed.

(2)Share of the Jackpot Prize: Shares of the Jackpot Prize shall be determined by dividing the amount available in the Grand Prize Pool equally among all tickets with winning game plays of the Jackpot Prize in all participating lotteries. The prize money allocated from the current Mega Millions Grand Prize Pool for the Jackpot Prize, plus any previous portions of prize money allocated to the Jackpot Prize category in which no matching tickets were sold will be divided equally among all Jackpot Prize winning tickets in all participating lotteries.

(3)Lump Sum Payment: Jackpot Prize winner(s) who elect a lump sum payment (cash value option) shall be paid their share(s) in a single lump sum payment. The lump sum payment amount shall be determined by the Mega Millions lotteries. The lump sum payment shall be paid upon completion of all internal validation procedures. Prize payments may be rounded down to the nearest $1,000.

(4)Initial and Annual Annuitized Payments: All annuitized prizes shall be paid in graduated annual payments. The annuity option Jackpot Prize amount will be paid in thirty graduated annual installments. The initial payment shall be paid upon completion of all internal validation procedures. The subsequent twenty-nine payments shall be paid graduated annually to coincide with the month of the Federal auction date at which the bonds were purchased to fund the annuity, with graduated annual installments defined in the Mega Millions Lotteries' Finance and Operations Procedures. Payments shall escalate by a factor of five percent annually, and annual payments shall be rounded down to the nearest even one thousand dollar increment. All such payments shall be made within seven days of the anniversary of the annual auction date.

(5)Jackpot Prizes and Increases: The Mega Millions lotteries may set a minimum guaranteed annuity Jackpot Prize amount, which shall be advertised by the selling lotteries as the starting guaranteed annuity Jackpot Prize amount.

(6)Roll Over of Jackpot Prize: If in any Mega Millions drawing there are no Mega Millions plays which qualify for the Jackpot Prize category, the portion of the prize fund allocated to such Jackpot Prize category shall remain in the Jackpot Prize category and be added to the amount allocated for the Jackpot Prize category in the next consecutive Mega Millions drawing.

(7)Funding the Annuity: Funds for the initial payment of an annuitized prize or the lump sum prize shall be made available by MUSL for payment by the Party Lottery on a schedule approved by the Product Group. If individual shares of the Grand Prize pool funds held to fund an annuity is less than $250,000, the Product Group, in its sole discretion, may elect to pay the winners their share of the held in the Grand Prize Pool. Neither MUSL nor the party lotteries shall be responsible or liable for changes in the advertised or estimated annuity prize amount and the actual amount purchased after the prize payment method is actually known to MUSL.

(8)Lack of Available Funds: If necessary, when the due date for the payment of a prize occurs before the receipt of funds in the prize pool trust sufficient to pay the prize, the transfer of funds for the payment of the full lump sum cash amount may be delayed pending receipt of funds from the Party Lotteries or other lotteries participating in the Mega Millions Game. A Party Lottery may elect to make the initial payment from its own funds after validation, with notice to MUSL.

(9)Death of Winner: In the event of the death of a lottery winner during the annuity payment period, unless prohibited by state law, the MUSL Finance & Audit Committee, in its sole discretion excepting a discretionary review by the Product Group, upon the petition of the estate of the lottery winner (the "Estate") or the persons identified on the winner's Beneficiary Designation form (BDF), whichever is applicable, to the state lottery of the state in which the deceased lottery winner purchased the winning ticket, and subject to applicable federal, state, or district laws, may make payment to the Estate or the designated beneficiary of the discounted present value of the remaining annuitized prize payments. If such a determination is made, then securities and/or amounts held to fund the deceased lottery winner's annuitized prize may be distributed to the Estate or the persons on the BDF. The identification of the securities to fund the annuitized prize is at the sole discretion of the Finance & Audit Committee or the Product Group.

(10)No Recourse: If a party lottery purchases or holds the prize payment annuity for a prize won in that jurisdiction, that party lottery's game rules, and any prize payment agreement with the prize winner, shall indicate that the prize winner has no recourse on MUSL or any other party lottery for payment of that prize.

(11)Prize Payments: All prizes are paid through the Lottery that sold the winning ticket(s), and at the discretion of the Selling Lottery may be paid by cash, check, warrant, or electronic transfer. The Lottery may begin paying low-tier prizes after receiving authorization to pay from the MUSL central office.

(12)Rounding of Prize Payments: Annuitized payments of the Jackpot Prize or a share of the Jackpot Prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized Jackpot Prize win shall be added to the first payment to the winner or winners. Prizes other than the Jackpot Prize which, 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.

(13)One Prize per Game Play: The holder of a winning ticket may win only one prize per game 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. All liability for a Mega Millions® prize is discharged upon payment of a prize claim.

(14)Claim Expires in One Year: Claims for all prize categories, including the Jackpot Prize, shall be submitted within one year after the date of the drawing in accordance with this division, OAR 177-046-0110 and 177-070-0025(4).

Or. Admin. Code § 177-098-0060

LOTT 6-2010, f. 3-18-10, cert. ef. 3-21-10; LOTT 12-2010, f. 11-19-10, cert. ef. 12-12-10; LOTT 5-2013, f. 9-27-13, cert. ef. 10-19-13; LOTT 10-2016, f. 9-30-16, cert. ef. 10/18/2016; LOTT 7-2017, amend filed 10/27/2017, effective10/31/2017; LOTT 2-2018, amend filed 03/29/2018, effective 4/2/2018

Statutory/Other Authority: ORS 190, OR Const. Art. XV, Sec. 4(4) & 461

Statutes/Other Implemented: ORS 461