Ariz. Admin. Code § 19-3-204

Current through Register Vol. 30, No. 49, December 6, 2024

Section R19-3-204 - Denial, Revocation, or Suspension of Retailer's License

A. The Lottery shall not issue or renew a license to an applicant if any of the following applies:

1. The applicant is a minor, a partnership or LLP in which one of the partners is a minor, an LLC in which one of the members or managers is a minor, or a corporation in which a corporate officer, director, or manager of Lottery sales is a minor;

2. The organization is an adult-oriented business as defined in A.R.S. § 13-1422 or displays sexually explicit material in violation of A.R.S. § 13-3507;

3. The applicant has sold a Lottery product without a license, or operated gaming machines or equipment that are required to be licensed, without a license, within one year of the person's date of application;

4. The applicant fails to have a controlling person at least 21 years of age; or

5. The applicant fails to meet all the application requirements of R19-3-202 and R19-3-201.01.

B. A license may be revoked, suspended, or denied renewal by the Director for any of the following reasons:

1. The retailer violates a provision of the criminal laws of the state of Arizona or the United States, which could be punished by jail time or imprisonment;

2. 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;

3. 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;

4. The retailer fails to maintain minimum sales requirements or does not follow the guidelines established by the Lottery. The Lottery shall provide minimum sales requirements to retailers at least 30 days prior to the effective change date;

5. The retailer commits an act that impairs the retailer's reputation for honesty and integrity;

6. The retailer sells a ticket at a price greater than face value;

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

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

9. The retailer sells tickets not activated for sale on three or more occasions within any 12-month period;

10. The retailer sells a ticket while license is suspended for insufficient funds;

11. The retailer does not make purchase or redemption of Lottery tickets convenient and readily accessible to the public;

12. The retailer provides to the Lottery a statement, representation, warranty, or certificate that the Lottery determines is false, incorrect, incomplete, or omits relevant information;

13. The retailer's actions cause two or more payments to be returned to the Lottery for insufficient funds;

14. The retailer becomes insolvent, unable or unwilling to pay debts, or is declared bankrupt;

15. The retailer, or officer, director, partner, LLC member or manager, controlling agent, or local premise manager of the retailer:

a. Is convicted of a felony, felony theft that is designated as a misdemeanor, misdemeanor theft, embezzlement, or a crime involving gambling or fraudulent schemes and artifices; or

b. Is the subject of a civil order, judgment, or decree of a federal or state authority for misrepresentation, consumer fraud, or any other fraud.

16. Facts are discovered which, if known at the time the retailer's license was issued or renewed, would have been grounds to deny licensure;

17. The retailer adds a minor as an owner, partner, officer, or controlling agent of the business;

18. The retailer, or an officer, employee, or agent of the retailer does any of the following:

a. Plays any Lottery game while working,

b. Fails to purchase or validate the ticket from another on-duty employee or through a Lottery product vending machine, or

c. Fails to pay for the ticket prior to playing the Lottery game.

19. 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;

20. 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;

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

22. The retailer fails to display the Authorized Retailer Notice, which includes the Americans with Disabilities Act Notice and Arizona Problem Gambling Helpline toll-free telephone number;

23. The retailer fails to report a change event defined in R19-3-210;

24. The retailer fails to comply or cooperate with an investigation concerning Arizona state laws, Lottery regulations, or denies access to Lottery personnel;

25. The retailer selling instant tab tickets fails to prominently display the flare for each instant tab game currently on sale within public view near the point of sale;

26. The retailer holding a charitable organization license no longer qualifies as a charitable organization or its letter of determination of tax-exempt status is suspended or revoked;

27. The retailer fails to comply with the rules governing its license; or

28. A retailer violates a provision of the state of Arizona liquor laws under A.R.S. Title 4.

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

30. A retailer harasses or displays violence towards any Lottery player, employee, vendor, or subcontractor.

C. An investigation of a violation of Lottery rules may be initiated by action of the Director or by a written complaint of any person.

1. An investigation initiated by a written complaint shall be investigated within 30 days of receiving the complaint.

2. During an investigation the Director may temporarily suspend a license under an emergency action, or impose specific conditions on a retailer.

D. An action to suspend or revoke a license shall be initiated by a notice of action to the retailer. Notice may be made by mail, handdelivery, or electronic mail with a copy by regular mail.

1. Notice to the retailer is effective notice if it is sent to the address in the application or the last address provided under R19-3-210.

2. A hard copy of the notice is not required if the retailer has consented in writing to receive notices via electronic mail.

Ariz. Admin. Code § R19-3-204

Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Section R4-37-204 adopted effective August 17, 1981 (Supp. 81-4). Amended as an emergency effective June 26, 1983 pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 83-3). Correction, former emergency amendment shown effective June 26, 1983 should read effective June 10, 1983. Former emergency amendment now adopted as a permanent amendment without change effective September 14, 1983 (Supp. 83-5). Amended effective March 6, 1986 (Supp. 86-2). Amended subsection (B) effective January 6, 1987 (Supp. 87-1). Amended effective September 12, 1989 (Supp. 89-3). R19-3-204 recodified from R4-37-204 (Supp. 95-1). Section R19-3-204 renumbered to R19-3-203; new Section R19-3-204 renumbered from R19-3-205 and amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Former R19-3-204 repealed; new R19-3-204 renumbered from R19-3-203 and amended 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.