Connecticut Administrative Code › Title 12 - Taxation › 865 - Online Casino Gaming, Retail and Online Sports Wagering, Fantasy Contests, Keno and Online Sale of Lottery Tickets › Section 12-865-21 - Online Lottery and Keno Drawing Operations

Current through July 10, 2024
(a) Official
			 procedures prescribing the process to conduct drawings for lottery draw games
			 for which tickets are sold online or via a mobile application shall be utilized
			 for every such lottery drawing to ensure the integrity and accuracy of all
			 drawings. This includes assuring that all equipment is properly certified and
			 maintained and that all official numbers are randomly selected.
(b) The winning numbers and symbols for all
			 lottery draw games that are offered through online lottery and drawn in the
			 state shall be selected using a random number generator, ball machine or other
			 drawing device, and shall be the same results used for retail lottery games.
			 Prior to implementation, unless previously tested and approved by the
			 department related to retail lottery operations, such device shall be tested
			 and certified by a department-approved independent testing laboratory,
			 including all device software and hardware. The device may also be tested by
			 the department. No device shall be utilized for lottery drawings conducted in
			 the state until approved by the department. Certification by a
			 department-approved independent testing laboratory shall be completed upon any
			 update or change made to the drawing device, unless the update or change does
			 not significantly impact the operation of the device and a waiver of this
			 requirement is granted in writing by the department.
(c) The drawing device shall randomly select
			 winning number combinations for all lottery draw games that are offered through
			 online lottery. Drawings shall be programmed to run no more frequently than
			 every four minutes for drawings for online lottery and shall be programmed to
			 run no more frequently than every three minutes for keno drawings.
(d) The drawing device shall be located in a
			 secure, locked room outfitted with an alarm system and subject to twenty-four
			 hours video surveillance. No one shall have unfettered access to the drawing
			 device, including all hardware and software utilized by the device. Only
			 designated employees of the department, CLC and authorized independent testing
			 laboratory employees shall be allowed access to the drawing device and there
			 shall be physical observance and electronic recording of any access to the
			 device. The CLC shall report to the department within twenty-four hours any
			 security breach or attempted security breach to the drawing device.
(e) On a yearly basis, the CLC shall have an
			 independent audit conducted on drawings for online lottery and keno drawings
			 that are offered online or via a mobile application to assure that drawings are
			 being conducted in accordance with approved drawing procedures, including but
			 not limited to, verification of pool closings and verification of the accuracy
			 of the winning numbers. The audit firm shall provide the department with a
			 written report of all audit findings.
(f) Once the winning numbers have been drawn
			 the results shall be verified by quality assurance tests that have been
			 previously tested and certified by an independent testing laboratory and
			 approved by the department. Once the numbers have been verified as accurate,
			 the winning numbers of the lottery draw game shall be displayed on the CLC
			 website, electronic wagering platform, and mobile application.
(g) Once the winning numbers are verified,
			 all winning account holders shall be notified and all winning prizes shall be
			 credited to the winning account holders in accordance with CLC's official
			 procedures on ticket redemption. Thereafter customer account balances shall be
			 updated with prize amounts and immediately available for use on the electronic
			 wagering platforms, or withdrawal of funds.
(h) No drawings shall take place live on the
			 CLC website or mobile application, however all past in-person drawings, which
			 were not conducted by a random number generator, shall be made available to the
			 public for review for a reasonable period of time as determined by
			 CLC.
(i) The CLC shall provide the
			 department with advance notice of, and procedures for, conducting the drawings
			 and any promotional drawings that are offered online or via a mobile
			 application. Such procedures shall include the process for entering a
			 promotional drawing, selecting winners, and how promotional drawing prizes
			 shall be funded. All promotional drawing procedures shall be reviewed by the
			 department and approved prior to said events being publicized or offered to
			 patrons.
(j) Gross gaming revenue
			 from keno, as defined in section 12-853 of the Connecticut General Statutes,
			 shall be reported to the department on a monthly basis. Gross gaming revenue
			 from keno shall not incorporate the issuance or redemption of
			 complimentaries.
(k) All lottery
			 draw game and keno ticket purchases that are made online or via a mobile
			 application shall be final.
(l) In
			 the event of unforeseen problems which might reasonably cause substantial
			 detriment to the public interest of the state, the department may order an
			 immediate suspension of the sales of any tickets or the conducting of any
			 drawing relating to a particular game of online keno or a particular lottery
			 drawing for which tickets are sold through the internet or a mobile
			 application. The department shall provide written notice to the CLC of such
			 suspension and set forth any specific requirements regarding public notice of
			 the game suspension. The department may thereafter require the CLC to establish
			 new procedures relating to the manner in which any incidental drawings are to
			 be conducted, winners to be determined, and the amount of any prizes to be
			 fixed. In addition, if during the actual conduct of any drawing related to
			 online lottery or online keno, a problem arises requiring immediate action, the
			 commissioner shall take immediate action.
(m) The CLC shall prohibit unauthorized
			 persons from accessing proprietary lottery draw game winning ticket
			 information. In the event the CLC becomes aware of a compromise or potential
			 compromise of security regarding exposure of information contained in the game
			 winning ticket information, the CLC shall notify the commissioner upon such
			 discovery. The CLC shall thereafter take all necessary steps to restore
			 security as quickly as possible.
(n) The CLC shall submit to the department
			 game certification for any online lottery draw game or keno game for
			 functionality and compliance with the act and sections 12-865-1 to 12-865-34,
			 inclusive, of the Regulations of Connecticut State Agencies. The department may
			 require the CLC to submit any online lottery draw game or keno game for testing
			 at an independent testing laboratory and production of a compliance
			 certification report in a form prescribed by the department. The CLC shall also
			 submit any additional information requested by the department.
(o) In addition to the disclosures of odds of
			 winning required under section
			 12-568a-17(p) of
			 the Regulations of Connecticut State Agencies, the CLC shall include a
			 prominent and clear statement of the average chances of winning per ticket on
			 the electronic wagering platform for all online lottery and online keno offered
			 on the electronic wagering platform. Additionally, the CLC shall include a
			 prominent and clear statement of the odds of winning each individual prize
			 level in game descriptions on its website.
(p) Except as otherwise provided in sections
			 12-568a-1 to
			 12-568a-24, inclusive, of the
			 Regulations of Connecticut State Agencies, a lottery draw game discontinuation
			 shall not affect the rights of those who purchased tickets prior to the
			 effective date of discontinuation.
(q) In the event that the CLC changes a
			 lottery draw game to a different lottery draw game, the CLC shall set a date
			 that all eligible tickets must be purchased by in order to participate in the
			 final drawing of the old game.
(r)
			 The CLC, and any online gaming operator that may offer online lottery or keno
			 on behalf of the CLC, shall require that any online gaming service provider
			 that has access to the electronic wagering platform utilized for online lottery
			 and keno shall utilize software protection to prohibit the provider's employees
			 from tampering with pools, liabilities or winning ticket information.
(s) The CLC, and any online gaming operator
			 that may offer online lottery or keno on behalf of the CLC, shall produce
			 system pool reports to verify liabilities, which shall be generated immediately
			 at the close of online lottery and keno games. If an attempt is made to tamper
			 with information, such activity shall be indicated on the activity log and the
			 online gaming operator shall notify the department and the CLC upon discovering
			 such attempt.
(t) If the CLC
			 utilizes the same online gaming operator for online lottery and keno as it uses
			 for sports wagering, it shall ensure that the online gaming operator provides
			 system reports that reveal all system activity generated at and by terminals
			 that are used to wager on a sports event at a sports wagering facility,
			 including, but not limited to: wagers, cashes, cancels, errors, statuses,
			 validations, activations, deactivations, special reports, sign-ons, sign-offs,
			 inquiries, and diagnostic requests. These reports shall be available upon the
			 department's request and shall be used to verify the operating status of the
			 electronic wagering platform and the sport wagering retailer
			 terminals.