Section Tax 61.08 - Retailer contract terms and conditionsThe retailer's contract shall include all of the following terms and conditions:
(1) CONTRACT PERIOD AND SALES AUTHORIZATION. The retailer's contract shall remain in effect for at least one year and shall expire on the date shown on the certificate of authority. The administrator may renew the contract. However, the retailer does not have a substantial interest in, or a vested legal or equitable right to, a contract renewal.(2) CONTRACT NOT ASSIGNABLE OR TRANSFERABLE. The retailer's contract may not be assigned or transferred from one person or location to another.(3) RETAILER IS NOT AN EMPLOYEE OR AGENT OF THE STATE. The retailer is not an employee or agent of the state of Wisconsin and is not entitled to any right, privilege or benefit that would accrue to an employee or agent of the state of Wisconsin.(4) INDEMNIFICATION. The retailer shall indemnify and hold harmless the state of Wisconsin, the Wisconsin lottery, and the Wisconsin lottery's employees and agents from and against all claims, suits, or actions arising from any willful or negligent act or omission of the retailer or its agents while performing under the terms of the retailer contract.(5) COMPLIANCE WITH STATE LAW AND RULES. During the term of the retailer contract, the retailer shall comply with ch. 565, Stats., the Wisconsin lottery's administrative rules and any other applicable state law and administrative rules.(6) COMPLIANCE WITH RETAILER'S HANDBOOK. During the term of the retailer contract, the retailer shall comply with instructions and procedures for each game as set forth in the retailer handbook.(7) CERTIFICATE OF AUTHORITY. The certificate of authority is not assignable or transferable and shall be conspicuously displayed at the point of sale.(8) NOTIFICATION OF CHANGES IN THE RETAILER'S APPLICATION. (a) The retailer shall notify the administrator, in writing, within 15 calendar days of every change of its organizational structure, including but not limited to changes from a sole proprietorship to a partnership or to a corporation.(b) The retailer shall notify the administrator, in writing, at least 30 calendar days in advance of any change of the retailer's business address.(c) The retailer shall notify the administrator, in writing, within 15 calendar days if the retailer, or any of the retailer's partners, officers, directors or owners, as described under s. 565.10(3), Stats., have been convicted of or pleaded guilty or no contest to a felony, a gambling related offense, or fraud or misrepresentation in any connection.(9) RECORDS AND RECORDKEEPING. (a) During the term of the retailer's contract and until the retailer gives a final accounting at the end of the contract term, the retailer shall maintain current, complete and accurate lottery accounting records and correspondence including but not limited to, the receipt, sale, handling, and returns for credit of all lottery tickets received by the retailer.(10) INSURANCE REQUIREMENT. (a) During the term of the retailer's contract the retailer shall do all of the following: 1. Maintain worker's compensation insurance, if required to do so under ch. 102, Stats.2. Maintain public liability and property damage insurance against any claim that may occur in carrying out the retailer's contract. Minimum coverages are $300,000 single limit liability or $100,000 bodily injury per person and $300,000 per occurrence and $100,000 property damage.(b) The insurance requirements under par. (a) 1. and 2. do not apply to a state agency or a local unit of government.(c) The retailer, by signing and executing the contract, warrants and represents to the Wisconsin lottery that the retailer has in place and will maintain during the contract period the insurance set forth under par. (a) 1. and 2. and at the minimum levels set forth under par. (a) 2.(d) During the term of the retailer's contract, the administrator reserves the right to request from the retailer verification that the retailer has complied with the insurance requirements under par. (a) 1. and 2.(11) SALE OF TICKETS. (a) The retailer shall accept only cash for lottery tickets.(b) The retailer may not intentionally sell a lottery ticket to a person under 18 years of age.(c) The retailer shall sell a minimum monthly average of $400 worth of instant scratch tickets or instant break-open tickets or the sum of both each fiscal quarter, under s. Tax 61.04(1) (d).(d) The retailer may not exchange lottery tickets with any other person including other retailers.(e) The retailer may not sell any lottery tickets at a price different from the price authorized by the Wisconsin lottery, condition the sale of a lottery ticket upon purchase of any other item or service or impose any restriction upon the sale of a lottery ticket unless specifically authorized by the administrator.(f) The retailer may not play the lottery games by using any method other than random, fair chance, or by any method contrary to the principle that every lottery ticket has an equal and random chance of winning.(g) The retailer shall make player brochures available to potential lottery ticket customers and explain the game rules when requested.(h) The retailer may not add any service fee, handling fee, or other expense to the purchase of a ticket or share.(j) The retailer may not charge any service fee, handling fee or other cost when validating a ticket regardless of whether the ticket or share is a winning or non-winning ticket or share, without the written permission of the administrator.(k) The retailer may not conduct sales of lottery tickets or shares to off-premises customers by telephone, email, instant messaging or similar electronic means, or by mail, parcel, delivery service, or similar service.(13) RETAILER RESPONSIBILITY FOR TICKETS. (a) The retailer shall be responsible for the condition and security of lottery tickets received. If the retailer's lottery tickets are lost, stolen, mutilated, damaged, unaccountable, or otherwise unsalable, the retailer shall be solely responsible for those tickets. Except as provided in pars. (c) and (cm), the administrator may not reimburse the retailer for those losses.(b) The retailer shall report by telephone within 24 hours any stolen tickets to the Wisconsin lottery, consistent with the instructions for reporting stolen tickets as indicated in the retailer contract.(c) The administrator may credit the retailer's account for the value that the retailer paid for instant scratch tickets that are unsalable after all the following conditions are met: 1. The tickets became unsalable due to any malfunction of lottery equipment used in the sale of the tickets or if the tickets are deemed to be misprinted or void, consistent with the features and procedures document of the game to which the ticket or share belongs.2. The unsalable tickets are returned to the lottery before the settlement date of the game to which the pack belongs. Tickets returned after the settlement date may not be credited for value by the administrator.3. There is no validation of any ticket that is returned for credit, and the latex or other protective measures on each returned ticket show no signs of tampering.4. At the discretion of the administrator, the lottery may assess a service charge against the retailer account to recover the cost of returning the tickets.5. Credit shall be the retailer's purchase price, and any credit or service charge shall be made to the retailer's electronic fund transfer account.(cm)1. The administrator may credit the retailer's account for the value the retailer paid for instant scratch tickets that are stolen. In determining whether to provide credit, the administrator may consider the following factors: a. Compliance with the reporting requirement under par. (b).b. Whether the theft has been reported to law enforcement.c. Final return date of the game to which the stolen tickets belong.d. Validation of any ticket that is reported stolen.e. The retailer's prior record of reporting stolen tickets to the department.f. Security of the retailer's business and the place where tickets are stored.g. Any other facts and circumstances the administrator believes pertinent.2. Credit under this paragraph shall be the retailer's purchase price, and any credit shall be made to the retailer's electronic fund transfer account.(d) In the event that the lottery administrator announces a settlement date for a game, a retailer may return tickets for credit on or before that announced settlement provided that conditions under par. (c) 2. to 5. are met.(e) The administrator may charge a retailer for shipments delivered on a date different than the retailer's scheduled order delivery date or shipped on a date other than the retailer's shipment date. If a retailer is charged, the expense shall be limited to the cost of the delivery.(14) RETAILER'S PAYMENT FOR TICKETS. (a) All lottery tickets received by the retailer shall be deemed to have been purchased by the retailer.(b) The retailer's accounting records and correspondence under par. (a) shall be available to the administrator for examination and copying during the retailer's regular business hours. All of those records and correspondence are subject to seizure and audit without prior notice.(bm) The retailer's electronic fund transfer account shall be debited no less often than every 60 days for tickets received within the last 60 days.(c) A retailer shall remit to the lottery, no less frequently than every sixty (60) days, the proceeds from the sale of lottery tickets received since the last remission of proceeds. The terms of billing processes shall be set by the administrator.(d) If the retailer failed to place sufficient funds in the electronic fund transfer account for the tickets received, the retailer may not receive more tickets until the retailer pays the amount due the lottery consistent with pars. (bm) and (c), or until the retailer has signed an agreement with the administrator which indicates an alternative schedule of payment for outstanding debts consistent with s. Tax 61.02(1m). The administrator shall determine whether to offer an alternative payment agreement to a retailer on a case by case basis, taking into consideration the retailer's previous payment history.(e) The administrator may assess the retailer a surcharge, an interest penalty, or both, for each dishonored retailer's check or electronic fund transfer. The surcharge shall be equal to the costs incurred, incident to each dishonor. Interest may be charged only in the event that a retailer account is referred for overdue collection, and may be assessed at a rate not to exceed 8.5% of the overdue amount.(15) BULK RESELLING WITHOUT PERMISSION IS PROHIBITED. (a) A retailer may not intentionally resell, or aid in the act of reselling, bulk tickets without the written permission of the administrator.(b) For purposes of this section, "reselling" means selling or aiding in the selling of multiple tickets to anyone engaged in the business of selling lottery tickets for profit. Persons who participate in ticket buying pools among friends, family or co-workers are not involved in reselling, provided that all tickets are purchased by all participants at the price set by the lottery administrator.(16) INSTANT SCRATCH TICKET REDEMPTION. (a) The retailer shall redeem low tier prizes for tickets sold at the retailer's outlet and presented to the retailer by the customer. If the customer elects to redeem the low tier prize at another retail location or at any Wisconsin lottery office, the Wisconsin lottery shall debit the retailer's account in that amount.(b) The retailer may not redeem winning lottery tickets for prizes in amounts different from the amounts authorized by the administrator or condition redemption of a lottery prize upon the purchase of any other item or service, or impose any restriction upon the redemption of a lottery prize unless specifically authorized in writing by the administrator.(17) BREAK-OPEN TICKETS. (a) The administrator may accept returned break-open tickets for credit only under any of the following circumstances: 1. If the tickets are defective, the retailer shall return as many of the suspected defective tickets as is possible, using the original packaging materials if possible.2. If the order was filled incorrectly by the Wisconsin lottery, the retailer shall return any incorrectly shipped break-open tickets, using the original packaging materials if possible.3. If the shipment of tickets is unopened by the retailer. To be considered unopened, the package shall contain all the tickets that it contained when delivered to the retailer and have the original packaging and shipping seals intact and unopened.4. If the lottery administrator announces a settlement date for a game, a retailer may return tickets for credit on or before the date provided that the retailer returns the tickets using the original packaging materials, or in a manner acceptable to the lottery administrator.(b) The retailer shall redeem all prizes from tickets purchased at the retailer's outlet unless the features and procedures document for the game state otherwise.(18) POINT-OF-SALE MATERIAL. The retailer shall maintain and display prominently lottery point-of-sale material, including the door decal, current game poster, current game player brochures and the ticket dispenser. The retailer shall maintain and display a sign provided by the lottery that indicates which games no longer have a top prize.(19) RIGHT TO APPEAL SUSPENSION OR TERMINATION. In the event the administrator suspends or terminates the retailer's contract, the retailer is entitled to an appeal in accordance with the provisions set forth under s. Tax 61.10.(20) SUSPENSION OR TERMINATION PROCEDURE. The retailer, upon notice of the suspension or termination, shall immediately stop selling lottery tickets. Within 2 weeks of the suspension or termination, the retailer shall make payment on any money owed to the Wisconsin lottery and surrender all unsold tickets and all state owned lottery property.(21) GROUNDS FOR SUSPENSION. The retailer's contract may be suspended without prior notice by the Wisconsin lottery for any of the following reasons: (a) The retailer failed to meet one or more of the qualifications for being a retailer under s. 565.10, Stats., or under the Wisconsin lottery's administrative rules.(b) The retailer violated a provision under ch. 565, Stats., or of this chapter.(c) The retailer failed to sell a minimum monthly average of $400 worth of instant scratch tickets or instant break-open tickets or the sum of both in any fiscal quarter, under s. Tax 61.04(1) (d).(d) The retailer intentionally sold a lottery ticket to a person under 18 years of age.(e) The retailer endangered the security of the Wisconsin lottery.(f) The retailer engaged in fraud, deceit, misrepresentation or other conduct prejudicial to public confidence in the Wisconsin lottery.(g) The retailer failed to remit money owed to the Wisconsin lottery or failed to make payment on or before the settlement date.(h) The retailer engaged in advertising of lottery products or services, or both, that in the administrator's determination was false, deceptive, or misleading.(i) The retailer failed to follow instructions and procedures for the conduct of any particular lottery game or lottery special event.(22) GROUNDS FOR TERMINATION. The retailer's contract may be terminated by the Wisconsin Lottery, regardless of whether the retailer has been previously suspended. Any issue which is grounds for termination may be considered instead for suspension, at the discretion of the administrator. The administrator may consider whether a retailer acted to promptly cure a cause within a reasonable time after notice, when reviewing the grounds for termination. The retailer's contract may be terminated for the following reasons:(a) The retailer failed to meet one or more of the qualifications for being a retailer under s. 565.10, Stats., or under this chapter.(b) The retailer endangered the security of the lottery, or engaged in fraud, deceit, misrepresentation or other conduct in a manner that would cause perceptions prejudicial to public confidence.(c) The retailer engaged in any practice identified under s. Tax 61.08(21) (a) to (i).Wis. Admin. Code Department of Revenue Tax 61.08
Cr. Register, March, 1989, No. 399, eff. 4-1-89; corrections made under s. 13.93(2m) (b) 6 and 7., Stats., Register, March, 1995, No. 471; am. (11) (c) and (21) (c), Register, October, 2000, No. 538, eff. 11-1-00; CR 01-088: r. (15) (c) and am. (1), (3), (5), (7), (8), (10), (11) (b), (e) and (h), (13), (14) (b), (bm), (c) and (d), (15) (a), (b) and (d), (16), (19), (20) and (21) (intro.) and (a) to (h) Register February 2002 No. 554, eff. 3-1-02; CR: 04-083: am. (11) (c), (13) (a), (14) (d), (16) (a) and (21) (c), r. (11) (h), (12), and (15), cr. (13) (c) and (d), r. and recr. (17) (a) Register April 2005 No. 592, eff. 5-1-05; CR 07-087: cr. (11) (h), (j), (k), (13) (e), (14) (c), (15), (17) (a) 4., and (22), am. (13) (c) 1., (14) (bm), (17) (b), (18), (21) (intro.) and (g), renum. (14) (c) and (d) to be (14) (d) and (e) and am. Register April 2008 No. 628, eff. 5-1-08; CR 13-034: am. (11) (h), (k), (13) (a), cr. (13) (cm) Register December 2013 No. 696, eff. 1-1-14. Section Tax 61.08 interpretss. 565.02(3) (j), 565.10(7) to (15), and 565.12, Stats.