Section 316-35-404 - CONDUCT OF THE GAME404.01 Each ticket used in any licensed lottery or raffle activity must be constructed as a two-part ticket, with a detachable stub. The portion of the ticket which is given to the purchaser must contain the following information legibly printed on each ticket: 404.01A The name of the licensed organization as it appears on the lottery or raffle license;404.01B The Nebraska identification number of the licensed organization (the 35- prefix number which is printed in the upper right hand corner of the license);404.01C The date the winners will be determined;404.01D The price per ticket;404.01E A statement setting forth whether the participant must be present to win; and404.01F A number, of a set of sequential numbers, which is different from any other number found on a ticket sold for that particular lottery or raffle activity.404.01G The detachable stub portion of the ticket shall contain a sequential number which corresponds to the number printed on the ticket from which it is detached. 404.01G(1) In addition, when the purchaser is not required to be present when the winner(s) are determined in order to be eligible to win a prize, the stub must contain the name, complete address, and telephone number of the purchaser. 404.01H Tickets shall not contain the word "DONATION" used in connection with the purchase price of the tickets.404.02 A sample lottery or raffle ticket or a copy of such tickets must be submitted with the organization's quarterly tax return for each lottery or raffle conducted by the licensed organization during the reporting period.404.03 Each lottery or raffle ticket shall be offered for the same price as every other ticket being sold for that particular lottery or raffle. Nothing shall prohibit an organization from offering a discount for the purchase of two or more tickets, provided that the discount is offered to all persons wishing to participate in the lottery or raffle; however, no person may be required to purchase more than one ticket in order to participate in a lottery or raffle. The sale of lottery or raffle tickets may not be conditioned upon the purchase of the right to play bingo or admission to a bingo game.404.04 All chances to participate in a lottery or raffle must be paid for in advance by either cash or a check. The extension of credit or use of a credit card is prohibited. Nothing in this section shall prohibit the issuing of free tickets; however, the value of all free tickets shall be included in the gross proceeds derived from the lottery or raffle activity. No person under 18 years of age may purchase a lottery or raffle ticket or receive a free ticket unless such lottery or raffle is being conducted under a special permit as set forth in Regulation 35-405. 404.04A Lottery or raffle tickets which have not been sold or given to a participant shall not be included when determining the winner(s). An organization shall not include unsold tickets when determining the winner(s) nor shall the organization purchase the unsold tickets to be included on behalf of the organization.404.04B Nothing in this regulation shall be construed to prohibit an organization from allowing free tickets given to participants from being included when determining the winner(s).404.05 No person under 18 years of age may sell or distribute a lottery or raffle ticket unless such lottery or raffle is being conducted under a special permit pursuant to Regulation 35-405. Each ticket seller shall return all eligible ticket stubs to the licensed utilization of funds member who shall account for all eligible ticket stubs prior to the determination of the winner(s). Any receptacle used for a ticket drawing shall be designed so that each ticket stub has an equal opportunity to be drawn.404.06 All proceeds derived from a lottery or raffle must be kept separate from any other monies of the organization and deposited into a separate lottery/raffle bank account.404.07 If a participant's presence is required when the winner(s) are to be determined, statements setting forth this condition must be conspicuously printed on each ticket and all promotional material concerning the lottery or raffle.404.08 A licensed utilization of funds member must be present to supervise and witness the determination of the winners. In those circumstances where the lottery or raffle participants are not required to be present, the determination of the winner(s) shall be conducted and witnessed by the utilization of funds member and at least one officer of the licensed organization.404.09 When more than one prize or opportunity to win has been offered in a particular ticket drawing lottery or raffle, and a series of drawings must be made to determine all the winners, once a ticket stub has been drawn it shall not be returned to the receptacle.404.09A This provision shall not apply to a calendar lottery or raffle.404.10 Every reasonable effort must be made by the licensed utilization of funds member to contact all winners. Prizes not claimed within ninety (90) days from the date on which winners are determined shall be utilized by the licensed organization for a lawful purpose. Nothing in this regulation shall prohibit the awarding of prizes in a lottery or raffle which is conducted under a special permit after the expiration date of the special permit provided that specific condition is set forth on the tickets and all winners have been determined and announced or posted prior to the expiration date of the special permit.404.11 Each lottery or raffle must be separate and distinct from any other lottery or raffle. All tickets to be sold must be sold prior to the determination of the winner(s). A lottery or raffle shall conclude on the date winner(s) are determined. No lottery or raffle shall have multiple dates for determining the winner(s). Neither losing nor winning ticket stubs in one lottery or raffle may be included in any other lottery or raffle. All winning lottery and raffle ticket stubs must be retained with the organization's records for a period of not less than six months from the drawing date.404.12 In the event that not enough tickets are sold to cover the cost of the prizes to be awarded, the licensed organization shall take the following steps: 404.12A Submit a request to the Department in writing at least ten (10) days prior to the date originally set to determine the winner(s), for an extension of the date to determine the winner(s). If an extension is granted by the Department, the licensed organization shall post notification of the extended date at its principal location and all locations where tickets are sold. Every effort shall be made to notify ticket purchasers and the public of this change. The notification shall include an alternative date for the determination of the winner(s). A desired level of profit is not sufficient cause for the granting of an extension.404.12B Cancellation of the lottery or raffle. Every effort must be made through the procedure described in Regulation 404.12A to generate gross proceeds through ticket sales to cover the cost of the prizes to be awarded. If the extension of the date to determine the winner(s) and the extended time for ticket sales does not generate enough proceeds to cover the cost of prizes to be awarded, the organization, upon approval of the Department, shall cancel the lottery or raffle and refund each participant the total amount to which he or she is entitled for each ticket purchased. A notice of the cancellation shall be posted at the organization's principal office. The notification of cancellation shall include the location or individual's name, complete address and telephone number where participants may receive their refund. Each participant shall present each of their ticket(s) for a refund. The utilization of funds member shall be responsible for the complete refund procedure. Any monies not claimed or refunded after ninety (90) days of the posting of the cancellation and after reasonable efforts to contact the ticket purchasers, shall be utilized by the licensed organization for a lawful purpose. Any prizes paid for and not returnable shall be utilized by the licensed organization for a lawful purpose.404.12C In the event that the organization is requesting an extension as provided in subsection A of this regulation relative to a lottery or raffle being conducted under a special permit, and the organization is requesting to extend the date to determine the winner(s) beyond the expiration date of the special permit, such extension shall be granted only if the organization agrees to pay out at least 65 percent of its gross receipts in prizes.404.13 The Nebraska Lottery and Raffle Act does not prohibit the advertising or promoting of a lottery or raffle in any manner. Any county or incorporated municipality may, however, impose restrictions on this activity. The selling or distributing of a lottery or raffle ticket through the United States mail is a federal violation according to Title 18, section 1302 of the United States Code.316 Neb. Admin. Code, 35, § 404