Section 316-35-600 - DEFINITIONS, SCOPE, AND ESTABLISHMENT BY COUNTIES, CITIES, AND VILLAGES600.01General Authorization. Bingo, Lottery, Raffle, and Lottery by Pickle Card Regulations 35-600 through 35-623 are adopted to carry out the provisions of the Nebraska County and City Lottery Act.600.02Definitions. The definitions found in Neb. Rev. Stat. §§ 9-603.02 to 9-618 apply to these regulations. The following definitions also apply for purposes of Regulations 35-600 through 35-623:600.02A Agent means a person authorized by the applicant or licensee to act for or in place of an applicant or licensee as a business representative to modify, affect, accept performance of, or transact business.600.02B Business day means any day except Saturday, Sunday, or a legal holiday.600.02C Cash means United States currency and does not mean checks, personal or otherwise, debit cards, or credit cards.600.02D Compliance procedures for keno mean the analysis required by Reg-35-616 to determine whether the regulations are being followed during the operation of the keno game.600.02E Conditioning, as it applies to keno, means a restatement of how many numbers or combinations of numbers are being selected by the players, the way in which they are wagered, and the corresponding dollar amounts wagered.600.02F Debt holder of a corporation, partnership, or limited liability company means a person that holds any mortgages, notes, bonds, convertible debentures, or other obligations, whether written or oral, issued by the corporation, partnership, or limited liability company.600.02G Department means the Nebraska Department of Revenue.600.02H Digital-on-premises ticket means a digital ticket purchased in person on the operator's approved mobile application or other approved mobile wagering device verified to be present at the location of the lottery operator or an authorized sales outlet location.600.02I Draw ticket means the ticket prepared by a licensed lottery worker to record the winning numbers of each keno game if winning number selection is by manual ball draw method.600.02J Electronic tablet ticket generation device means any electronic device which is exclusively provided by the operator on site that is capable of building a wager to be processed by the tablet or by a keno writer. Any reference in these regulations to "tablet" or "operator's tablet" means this definition, unless otherwise stated.600.02K Electronic transfer of funds, also known as an electronic funds transfer (EFT) means the movement of value or funds between financial institutions through the Federal Reserve's Automated Clearing House (ACH) system.600.02L Equity holder of a corporation, partnership, or limited liability company means an individual or person that holds any capital stock, whether common or preferred, or any ownership interest or share issued by the corporation, partnership, or limited liability company.600.02M Free play keno coupon means a certificate which entitles the holder to wager an amount corresponding to the face value of the coupon without charge. This coupon may be issued and redeemed through the lottery operator's digital-on-premises purchasing application.600.02N Governing board means, in the case of a city, the city council; in the case of a village, the village board; or, in the case of a county, the county board.600.02O Independent game location means a location where keno wagers are placed and winning number selection is performed. An independent game location is not electronically linked to another location for purposes of transmitting or receiving winning number selection.600.02P Inside ticket means keno paper with 80 preprinted numbers on which the player marks numbers to be wagered on and the type of wager. Inside ticket also includes electronic bet slips prepared by the player on or through the digital-on-premises purchasing application or the operator's tablet.600.02Q Keno manager means the shift manager, supervisor, or individual in charge of the daily operation of a keno game at a location, an individual licensed as a sales outlet officer or owner, or an individual licensed as a lottery operator, officer, or owner.600.02R Keno system means an integrated system of computer hardware and software that generates outside tickets, records game outcomes, verifies winning tickets, produces management reports, and performs other functions and internal audit controls for the keno operation.600.02S Keno writer means an individual whose primary responsibilities include accepting inside tickets or other requests for wagers and payments of wagers from players, issuing outside tickets, voiding tickets, redeeming tickets, and assisting with keno application issues. A keno writer does not include a keno manager, a lottery operator, or any person who is directly in charge of the manual selection of winning numbers.600.02T Licensed racetrack enclosure has the same meaning as in Neb. Rev. Stat. § 9-1103(10).600.02U Licensee means a person holding a license issued by the Department pursuant to the Nebraska County and City Lottery Act.600.02V Lottery equipment means:(a) all proprietary devices, machines, and parts used in and which are an integral part of conducting the lottery; and(b) equipment used in maintaining the equipment described in (a).600.02V(1) Lottery equipment is equipment that directly affects the outcome of the lottery or monitors the operation of the lottery and includes, but is not limited to: keno balls; keno ball selection devices, including electrically-operated blower machines, automated ball draw systems, and other electronic selection devices; random number generators; and keno systems.600.02V(2) Any equipment that does not directly affect the outcome of the lottery or is not an integral part of any system that monitors the operation of the lottery is not considered lottery equipment. For example, lottery equipment does not include video or digital recording equipment required for ball draw games, security cameras and systems, display devices, recording media, or other supply items used with the lottery equipment that do not directly affect the outcome of the game.600.02W Lottery operator means any individual, sole proprietorship, partnership, limited liability company, or corporation which is licensed by the Department and responsible for conducting a lottery on behalf of a county, city, or village as provided by a written contract between the county, city, or village and the lottery operator. This contract may include responsibility and liability for all operational aspects of the lottery, including: daily gaming operations; purchase, repair, replacement, and maintenance of lottery equipment; purchase and maintenance of lottery supplies; compensation, staffing, and training of all employees and agents; processing and handling of lottery gross proceeds; preparing all reports required of a county, city, village, or lottery operator; advertising; developing official rules and procedures for play; collecting prizes and progressive game prizes; overseeing the lottery operation; record keeping; and all other lottery functions. Any reference in these regulations to "operator" means this definition, unless otherwise stated.600.02X Lottery operator location means the main location of the lottery operator where keno wagers are placed.600.02Y Lottery supplies means all tickets, cards, boards, sheets, or other supplies which are used in and are an integral part of conducting any lottery activity. 600.02Y(1) Lottery supplies do not include any item that does not directly affect the outcome of the lottery.600.02Y(2) For example, lottery supplies do not include keno paper, crayons and markers, and other supplies that do not directly affect the outcome of the game.600.02Z Main location means a location where keno wagers may be placed, and winning numbers are selected and electronically transmitted to satellite locations.600.02AA Multirace ticket means a single ticket which allows a player to make the same keno wager on consecutive games. A player must wait until the last game wagered on has been called to collect any accumulated winnings, unless approval has been obtained from the keno manager or from the keno writer on duty and all voided wagers are properly documented in the transaction log.600.02BB Non-segregated bank account means a bank account which holds funds related to the operation of the keno lottery as well as funds from other sources.600.02CC Outside ticket means the official paper ticket generated by the keno system that shows the player's wager. This includes the digital ticket generated by the digital-on-premises purchasing application or the operator's tablet.600.02DD Owner means a person with a right to share in the profits, losses, or liabilities of a license applicant or licensee. The term includes loan guarantors who make actual debt payments for, or contribute capital to, a license applicant or licensee with a contingent right to share in the profits, losses, or liabilities of the operation. The term ownership interest has the same meaning as owner.600.02EE Person means any individual or organization, including any sole proprietorship, partnership, limited liability company, or corporation.600.02FF Play in a keno lottery means placing a wager, cashing a winning ticket, or collecting any winnings.600.02GG Premises means any building, or any distinct portion of a building, where the lottery is conducted or played. Premises may include the main location, an independent game location, a sales outlet location, or a satellite location. Premises does not include any areas outside the building.600.02HH Quick Pick ticket means a keno ticket for which the player selects numbers by requesting that the keno system generate them at random on an outside ticket.600.02II Random number generator means hardware, software, or a combination hardware and software device for generating number values that exhibit characteristics of randomness.600.02JJ Regrade means to manually recalculate the prize payout of a winning keno ticket according to the printed pay schedule.600.02KK Replay means playing the identical keno wager as a prior wager with no change to selected numbers, conditioning, or amount of wager.600.02LL ROM (read only memory) means the electronic component used for storing nonvolatile information in lottery equipment that provides instructions needed by the computer to begin its operations each time it is turned on. This includes programmable ROM (PROM) and erasable programmable ROM (EPROM).600.02MM Sales outlet location means a location other than the lottery operator location where keno wagers are placed.600.02NN Satellite location means a location where keno wagers are placed and where the winning numbers are electronically received from the main location. Winning number selection cannot be performed at a satellite location.600.02OO Segregated bank account means a bank account which holds only funds related to the operation of the keno lottery.600.02PP Substantial interest or connected with, interested in, or otherwise concerned directly or indirectly means having a significant responsibility for, or otherwise benefitting or having rights from, a license issued by the Department. 600.02PP(1) For a sole proprietorship, this includes, but is not limited to, an individual or his or her spouse owning, operating, managing, or conducting, directly or indirectly, a part of the sole proprietorship.600.02PP(2) For a partnership, this includes, but is not limited to, an individual, his or her spouse, or a partnership, limited liability company, or corporation owning, operating, managing, or conducting, directly or indirectly, a part of the partnership activity, or sharing in any of the profits or potential profits of the partnership activity.600.02PP(3) For a limited liability company, this includes, but is not limited to, the involvement of an individual, his or her spouse, or a partnership, limited liability company, or corporation, owning, operating, managing, or conducting, directly or indirectly, a part of the limited liability company activity or sharing in any of the profits or potential profits of the limited liability company activity.600.02PP(4) For a corporation, this includes, but is not limited to, an individual, his or her spouse, or a partnership, limited liability company, or corporation owning, operating, managing, or conducting, directly or indirectly, a part of the corporation activity, or being an officer or director of the corporation, or being a holder, directly or indirectly, of 10% or more of any class of stock in the corporation or debt representing 10% or more of the total assets of the corporation.600.02PP(5) For a nonprofit corporation or nonprofit organization, this includes, but is not limited to, an individual or his or her spouse being an officer, director, or managing the business affairs of the nonprofit corporation or nonprofit organization.600.02QQ Technology partner means any corporation or business entity which is not otherwise licensed under the Act or these regulations, that contractually agrees to develop some or all of a lottery operator's digital-on-premises ticket system or operator's tablet.600.02RR Transaction log means a record of all transactions entered on the keno system. The transaction log includes, but is not limited to, all outside ticket information, ticket processing, voided tickets, game closing time, game results, payout, and all other information required by these regulations to be entered on the transaction log.600.02SS Way ticket means a single outside ticket which allows a player to wager on a combination of groups of numbers in various ways.600.03Election Required. Any county or city, or any village as defined in Neb. Rev. Stat. §§ 17-201, et seq., desiring to establish and conduct a lottery must hold an election, and a majority of the registered voters of the county, city, or village casting ballots on the issue must approve the establishment of the lottery. The term county also includes a municipal county as provided in Neb. Rev. Stat. §§ 13-2801, et seq. 600.03A The issue may be decided at a regular election or at a special election called by the governing board of the county, city, or village for the purpose of voting on establishing a lottery.600.03B If an initiative petition signed by at least 20% of the number of individuals voting in the city or village in the last preceding general election is submitted to the governing board of the city or village, the question of whether a lottery will be approved must be submitted to the voters as provided in Neb. Rev. Stat. §§ 18-2501, et seq.600.04License Required. After voter approval, the county, city, or village must obtain a license from the Department to conduct a lottery. 600.04A An applicant for a license must submit a Nebraska Application for County/City Lottery, Form 50G, to the Department. Each application must include: 600.04A(1) The name and address of the applicant;600.04A(2) A certified copy of the election results showing that the lottery was approved by a majority of the registered voters of the county, city, or village that cast ballots in the election;600.04A(3) The approval by ordinance or resolution adopted by the governing board of a county, city, or village authorizing the conduct of a lottery;600.04A(4) The names, addresses, and dates of birth of each individual employed by the county, city, or village to conduct the lottery;600.04A(5) The name and address of the authorized representatives designated by the county, city, or village or by a joint entity created by the county, city, or village by entering into an agreement pursuant to the Interlocal Cooperation Act, to examine, sign, and approve a lottery worker license application for submission to the Department;600.04A(6) The name and address of at least one individual employed by the county, city, or village who represents the county, city, or village in all matters with the Department regarding the conduct of the lottery;600.04A(7) A written statement describing the type of lottery to be conducted by the county, city, or village;600.04A(8) If the county, city, or village has entered into a written agreement with a lottery operator; 600.04A(8)(a) A copy of the proposal submitted to the county, city, or village by the individual, sole proprietorship, partnership, or corporation selected to operate the lottery; and600.04A(8)(b) A copy of the proposed contract or written agreement between the county, city, or village and the selected lottery operator.600.04A(9) The biennial license fee for the county, city, or village of $100;600.04A(10) The method of winning number selection to be used in the keno lottery activity and, if both a ball draw and a random number generator are used, a separate schedule showing the days and times each will be used; and600.04A(11) Any other information which the Department deems necessary.600.04B A county, city, or village must notify the Department within 30 days of any changes in the information originally submitted in its application. Changes can be reported by filing an amended application and identifying only the information to be changed. All requests for change must be signed by a member of the governing board, a governing official, or other individual authorized by a Power of Attorney filed with the Department.600.04C A county, city, or village is not considered licensed until it has physical possession of the printed license issued by the Department.600.04D A copy of the signed and dated final contract or written agreement between the county, city, or village and the selected lottery operator must be provided to the Department prior to starting the lottery.600.04E A license obtained by a county, city, or village to conduct a lottery must be renewed with the Department biennially if the county, city, or village intends to continue its lottery activity. The biennial license expires May 31 of every even-numbered year.600.04E(1) License fees are due with the renewal application.600.04E(2) Applications for renewal of a county, city, or village license must be submitted to the Department on a Nebraska Application for County/City Lottery, Form 50G, at least 60 days prior to the expiration date of the current license.600.04F A county, city, or village electing to conduct a lottery may only conduct one type of lottery at any one time. If a county, city, or village conducting a lottery wishes to change the type of lottery that it conducts, it must notify the Department in writing of the change at least 30 days before the change takes effect.600.05Sales Outlet Qualifications. Prior to a county, city, village, or lottery operator conducting a lottery at a sales outlet location, the county, city, or village must establish sales outlet location qualification standards by ordinance or resolution. 600.05A The established qualification standards must be met by any person seeking to have its location qualify as an authorized sales outlet location.600.05B The qualification standards are the sole basis on which the county, city, or village approves or disapproves each person that desires to conduct the lottery at its location.600.05C The county, city, or village must file a copy of the ordinance or resolution establishing the qualification standards with the Department within 30 days after its adoption.600.05D The county, city, or village must notify the Department of all approved sales outlet locations within 30 days of approval.600.06Participation Restrictions. Participation restrictions for playing or working with the county/city lottery include: 600.06A No individual under the age of 19 can play or participate in any way in any lottery.600.06B No owner or officer of a lottery operator with whom the county, city, or village contracts to conduct its lottery can play any lottery conducted by the county, city, or village at any time.600.06C No employee or agent of a county, city, village, lottery operator, or sales outlet location can play the lottery of the county, city, or village for which he or she performs work during the time he or she is actually working at the lottery or while on duty with the lottery. This also prohibits an individual from purchasing a multirace ticket for which some or all of the games will be called while the individual is on duty with the lottery.600.06D A county, city, or village which authorizes the conduct of a lottery must establish by ordinance or resolution, the additional limitations, if any, on the playing of any lottery conducted by that county, city, or village by any member of the governing board, a governing official, or the immediate family of the member or official. 600.06D(1) For purposes of this regulation, immediate family means spouse, children, grandchildren, siblings, or parents, including those individuals with the same relationship to the spouse, residing in the same household under the control and support of the head of such household.600.06E Nothing in this regulation prevents a county, city, village, lottery operator, or sales outlet location from adopting more restrictive player participation rules.600.06E(1) The county, city, or village may adopt any restrictions by ordinance or resolution or by virtue of contractual agreements reached between the county, city, or village and the lottery operator.600.06E(2) The lottery operator or sales outlet location may adopt any restrictions by internal policies formulated by either party.600.07Physical Limits of a Lottery. A county, city, or village electing to conduct a lottery may only do so within the boundaries of the county, city, or village, or within a licensed racetrack enclosure which abuts the corporate limits of a city or village, or which is within the zoning jurisdiction of a city. 600.07A A county, city, or village electing to conduct a lottery may enter an agreement pursuant to the Interlocal Cooperation Act to conduct a joint lottery with another county, city, or village if each county, city, or village that is included within the agreement has authorized a lottery in accordance with the Nebraska County and City Lottery Act.600.07B All parties to an agreement under the Interlocal Cooperation Act must hold a valid license to conduct a lottery issued by the Department if currently conducting a county/city lottery.600.07C A joint lottery may only be conducted within the boundaries of the counties, cities, or villages, or within a licensed racetrack enclosure which abuts the corporate limits of, or which is within the zoning jurisdiction of, the cities or villages which are conducting the joint lottery.600.08Expiration. A lottery to be conducted by a county, city, or village which was authorized by an election held on or after October 1, 1989, and which is inactive for more than any 10 consecutive years, is no longer authorized.600.09Right to Vote on Continuation. The registered voters of any county, city, or village have the right to vote on the question of whether or not an existing lottery should be continued. 600.09A If an initiative petition on continuing an existing lottery, signed by at least 20% of the number of individuals voting in the county, city, or village at the last preceding general election, is presented to the governing board of the county, city, or village conducting the lottery, the question of whether or not the lottery will continue must be submitted to the voters.600.09B If the governing board of a county, city, or village decides to submit the issue to the registered voters of the county, city, or village at a regular or special election, the question of whether or not the lottery will continue must be submitted to the voters.600.09C If a majority of the voters voting on the issue vote to discontinue the lottery, the county, city, or village must discontinue the lottery within 60 days after the certification of the election results.600.09D If the voters decide to discontinue the lottery, the county, city, or village must notify the Department within 30 days of the certification of the election results. The notification consists of a copy of a certification of the results of the election prepared by the county, city, or village election commissioner or other official with the authority to certify the results of an election.600.09E An election authorized under Reg-35-600.09B cannot be held within two years after the election authorizing the lottery, and not more than once every two years.600.09F If an election results in discontinuing a lottery, a subsequent election to authorize another lottery cannot be held within two years after the election resulting in discontinuing the previously-authorized lottery.600.09G Any contract entered into by a county, city, or village relating to conducting a lottery must include a provision permitting the county, city, or village to terminate the contract by giving 30 days' notice to the other party if the lottery has been discontinued by an election authorized under Neb. Rev. Stat. §§ 9-626 or 9-627.600.10Local Restrictions. Any county, city, or village may tax, regulate, control, or prohibit any lottery conducted pursuant to the Nebraska County and City Lottery Act within the boundaries of the county, city, or village by resolution or ordinance, except that no county may impose a tax or otherwise regulate, control, or prohibit any lottery within the corporate limits of a city or village. 600.10A If a city or village which has exercised its authority to prohibit lotteries of a county within its boundaries annexes any area in which a lottery is being lawfully conducted by a county, the county may continue the lottery for a period not to exceed the shorter of: (1) the remainder of the term of the county's agreement with the lottery operator; or600.11Municipal Counties. If any county, city, or village is conducting a lottery at the time it is consolidated into a municipal county, the municipal county is subject to the same rights and obligations with respect to the lottery as the county, city, or village which was abolished. 600.11A Any rights or obligations under existing lottery contracts of counties, cities, and villages which were abolished continue in effect.600.11B The lottery will continue to be subject to all other provisions of the Nebraska County and City Lottery Act, except that it cannot be expanded to any new location in any area of the municipal county where the lottery was not previously authorized before the consolidation, unless the expansion has been approved by a majority of the registered voters of the municipal county voting at a regular election or special election called by the governing board of the municipal county for this purpose.316 Neb. Admin. Code, 35, § 600
Neb. Rev. Stat. §§ 9-1,104, 9-601, 9-602, 9-603, 9-603.01, 9-603.02, 9-603.03, 9-604.01, 9-605, 9-605.01, 9-606, 9-606.01, 9-606.02, 9-607, 9-613, 9-614, 9-615, 9-615.01, 9-619, 9-620, 9-625, 9-626, 9-627, 9-630, 9-631, 9-634, 9-635, 9-643, and 9-644. _____ .Amended effective 1/1/2024