Kentucky Administrative Regulations › Title 202 - INDEPENDENT ADMINISTRATIVE BODIES › Chapter 3 - Kentucky Lottery Corporation › Section 202 KAR 3:030 - Retailers

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO: KRS Chapter 154A
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				154A.400(1) requires the
				Kentucky Lottery Corporation to develop and maintain a statewide network of
				lottery retailers that will serve the public convenience to promote the sale of
				lottery products, while insuring the integrity of the lottery. To govern the
				selection of lottery retailers,
				KRS
				154A.400(1)(b) requires the
				Board of Directors of the Kentucky Lottery Corporation to develop a list of
				objective criteria upon which the selection of lottery retailers shall be
				based. This administrative regulation lists the objective criteria upon which
				the selection of lottery retailers shall be based.
Section 1. Definitions.
(1) "Applicant" means the individual or
			 entity applying for a license to sell lottery products.
(2) "Board" means the Board of Directors of
			 the KLC as established by
			 KRS
			 154A.030(1).
(3) "Cashing agent" means a retailer who has
			 signed a "Retailer License Agreement Addendum for Cashing Agents" and who is
			 authorized and required to cash lottery products of a value authorized by the
			 KLC, up to and including $25,000, during KLC's business hours (8:00 a.m. EST to
			 5:00 p.m. EST).
(4) "Draw-based
			 product" means:
(a) Any KLC ticket or product
			 in which the player may determine if the player has won or lost after the
			 drawing in which the prize was won; or
(b) Any other KLC ticket or product generated
			 by the retailer terminal.
(5) "Draw-based retailer" means a retailer
			 that sells one (1) or more draw-based products.
(6) "Instant product" means any KLC ticket or
			 product in which the player may determine instantly if the player has won or
			 lost.
(7) "KLC" means the Kentucky
			 Lottery Corporation.
(8) "Licensing
			 documents" means the:
(a) Application for
			 Retailer License;
(b) Retailer
			 License Agreement;
(c) Retailer
			 License Agreement Addendum for Cashing Agents; and
(d) Retailer License Certificate.
(9) "Lottery equipment and
			 supplies" means all lottery devices and materials provided to retailers by the
			 KLC or its vendors: terminals, monitors, ticket checkers, communication
			 devices, advertising materials, play slips, play centers, vending machines,
			 ticket stock, and ticket dispensers.
(10) "Lottery product" means any KLC
			 draw-based product, instant product, or a coupon issued by the KLC for a
			 draw-based or instant product sold or distributed at a retail outlet or
			 directly by the KLC.
(11) "Owner"
			 means:
(a) An individual or sole
			 proprietor;
(b) A
			 partner;
(c) A member of a limited
			 liability company;
(d) An
			 officer;
(e) A director;
			 or
(f) A shareholder of a
			 corporation, except that, in the case of owners of equity securities of a
			 publicly-traded corporation, only the names and addresses of those known to the
			 corporation to own beneficially five (5) percent or more of the
			 securities.
(12)
			 "Retailer" is defined by
			 KRS
			 154A.010(7) and includes the
			 following:
(a) An individual or sole
			 proprietorship;
(b) A limited or
			 general partnership, including a registered limited partnership;
(c) A limited liability company;
(d) A corporation;
(e) A trust;
(f) Other entity, business, or enterprise;
			 or
(g) The owner of a
			 retailer.
(13) "Retailer
			 handbook" means the handbook made available to retailers by the KLC, which
			 describes KLC's billing, ticket validation and ordering procedures, payments to
			 retailers, lottery products, and the operation and maintenance of lottery
			 equipment and supplies.
(14)
			 "Retailer License" means the ability to sell lottery products to the public and
			 is identified through the issuance of a Retailer License Certificate.
(15)"Retailer License Agreement" means the
			 agreement executed by the retailer and the KLC, setting forth the terms and
			 conditions under which the Retailer License is issued.