177-040-0025 Retailer Compensation — Traditional Lottery Games (1)(a) Traditional Sales Compensation: The Lottery shall pay a retailer eight percent of weekly sales of traditional lottery game tickets or shares offered by the Lottery and sold by the retailer. (b) Calculation of Sales: A retailer’s weekly sales shall be calculated on the combined weekly gross sales of Draw game tickets and Scratch-it tickets made from the retailer’s premises during a business week, less Scratch-it ticket returns recorded by the Lottery and other sales related adjustments made during the week. For the purpose of calculating weekly sales, Scratch-it tickets are sold when the tickets are activated by the retailer, and Draw game tickets are sold when the request for the Draw game ticket is electronically received and verified by the Lottery’s central computer system. (2)(a) One Percent Selling Bonus: For selling any winning and validated Scratch-it or Draw game ticket with a prize of $10,000 or more, a Lottery retailer shall receive a bonus equal to one percent (1.00%) of the offered or advertised prize won by the player up to a maximum bonus of $100,000 rounded to the nearest dollar. For example: For selling a winning and validated annuitized prize of $8,000,000, the selling Lottery retailer shall receive a bonus of $80,000 regardless of the payment option chosen by the winner; for selling a winning and validated Scratch-it prize of $25,000, the selling Lottery retailer shall receive $250. (b) Bonus for Variable Prizes: Prior to the implementation of a traditional lottery game that includes one or more prizes with a value that is, in the opinion of the Director, variable or in some other way ambiguous including, but not limited to, circumstances such as non-monetary prizes or annuities of unspecified duration, the Director shall assign a prize value to any such prize for the purposes of determining the retailer selling bonus pursuant to subsection (a) of this section. The Director’s determination of the prize value is final. (3) One Percent Prize Payment Bonus: For paying a winning and validated Scratch-it or Draw game ticket with a prize of $600 or less, a Lottery retailer shall receive a bonus from the Lottery equal to one percent of the prize won by the player. (4) Alternative Compensation Agreements: Upon approval of the Commission, the Director may enter into an alternative compensation agreement with certain Lottery retailers to accommodate new business models aimed at the retention and recruitment of Lottery retailers offering different sales styles. Under such alternative compensation agreements, the Lottery retailer may receive a compensation rate, selling bonuses, and prize payment bonuses that are less, or more, than the rates or bonuses established in sections (1), (2), and (3) of this rule. The compensation rate and bonuses shall be determined by the Director for each agreement. Statutory/Other Authority: OR Const. Art. XV § 4(4)(a) & ORS 461.120, 461.260, 461.300 Statutes/Other Implemented: OR Const. Art. XV § 4, ORS 461.120, 461.260, 461.300, 461.310, 461.445 History: LOTT 4-2020, amend filed 06/04/2020, effective 06/28/2020 LOTT 6-2004, f. & cert. ef. 5-26-04 LOTT 3-2004(Temp), f. & cert. ef. 4-6-04 thru 10-1-04 LOTT 22-2002, f. & cert. ef. 11-25-02 LOTT 11-2002(Temp), f. 9-6-02, cert. ef. 9-9-02 thru 3-6-03 LOTT 9-1999, f. 5-27-99, cert. ef. 6-27-99 LC 12-1996, f. & cert. ef. 12-27-96 LC 4-1995, f. 4-27-95, cert. ef. 5-1-95