Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 370 - Nebraska Lottery Regulations › Chapter 700 - POWERBALL › Section 370-700-704 - PRIZE PAYMENT

Current through June 17, 2024
704.01 Grand Prizes
Grand Prizes shall be paid, at the election of the player
				  made the day of or within sixty days after the player is entitled to the prize,
				  with either a per winner annuity or cash payment. Shares of the Grand Prize
				  shall be determined by dividing the cash available in the Grand Prize pool
				  equally among all winners of the Grand Prize. Winner(s) who elected a cash
				  payment shall be paid their share(s) in a single cash payment. The annuitized
				  option prize shall be determined by multiplying a winner's share of the Grand
				  Prize pool by the MUSL annuity factor. The MUSL annuity factor is determined by
				  the best total securities price obtained through a competitive bid of
				  qualified, pre-approved brokers made after the prize win at the time the player
				  elects whether to receive the prize as a per winner annuity or in a single cash
				  payment. In certain instances announced by the MUSL POWERBALL Product Group,
				  the Grand Prize shall be determined pursuant to Regulation 704.05. At the time
				  of purchase, the system will automatically select the annuitized payment. If
				  the player fails to make a prize payment election within sixty days after they
				  are entitled to the prize, the prize shall be paid as a per winner annuity.
				  However, if individual shares of the cash held to fund an annuity are less than
				  $250,000, the MUSL POWERBALL Product Group, in its sole discretion, may elect
				  to pay the winners their share of the cash held in the Grand Prize pool. All
				  annuitized prizes shall be paid annually in thirty payments with the initial
				  payment being made in cash, to be followed by twenty-nine payments funded by
				  the annuity. All annuitized prizes shall be paid annually in thirty (30)
				  graduated payments (increasing each year) by a rate as determined by the
				  Product Group. Prize payments may be rounded down to the nearest one thousand
				  dollars ($1,000). Funds for the initial payment of an annuitized prize shall be
				  made available by MUSL for payment by the Party Lottery by the fifteenth
				  calendar day following the drawing. A state may elect to make the initial
				  payment from its own funds after validation, with notice to MUSL In the event
				  of the death of a lottery winner during the payment period, the MUSL POWERBALL
				  Product Group, in its sole discretion, upon the petition of the estate of the
				  lottery winner (the "Estate") to the state lottery of the state in which the
				  deceased lottery winner purchased the winning ticket, and subject to federal,
				  state, or district applicable law, may accelerate the payment of all the
				  remaining lottery proceeds to the Estate. If the MUSL POWERBALL Product Group
				  makes such a determination, then securities and/or cash held to fund the
				  deceased lottery winner's, annuitized prize may be distributed to the Estate.
				  The identification of the securities to fund the annuitized prize shall be at
				  the sole discretion of the MUSL POWERBALL Product Group.
704.01A POWERBALL Grand Prize winners who
				first became entitled to their Grand Prizes prior to October 21, 1998, and who
				are still receiving payment of their prize via annual payment, may elect to
				redeem their Grand Prize annual payments for a single lump sum
				payment.
704.01B Grand Prize
				winners who elect to redeem their Grand Prizes for a single lump sum payment
				will receive the proceeds from the sale of securities held by the MUSL
				POWERBALL Product Group. Upon request of the Grand Prize winner and the Lottery
				Division, the MUSL POWERBALL Product Group shall specify which securities would
				be sold in redemption of the Grand Prize winners' Grand Prize.
704.01C Grand Prize winners interested in
				making the above election must submit a written request to the Director of the
				Lottery Division, P.O. Box 98901, Lincoln, Nebraska 68509-8901. The written
				request must indicate a securities purchaser selected by the Grand Prize
				winner, a sale date for the securities, and a financial institution account
				where the proceeds from the sale of securities is to be transferred. Grand
				Prize Winners making this election must sign a release form designed by the
				Lottery Division releasing the MUSL POWERBALL Product Group, MUSL, the Lottery
				Division, the State of Nebraska, and any and all employees and officers of
				those entities from any liabilities arising from exercise of the Grand Prize
				winner's election.
704.01D The MUSL
				POWERBALL Product Group shall sell the securities to the purchaser indicated by
				the Grand Prize winner on the date the Grand Prize winner indicated. The MUSL
				POWERBALL Product Group shall transfer the amount received from the sale to the
				State of Nebraska. The State of Nebraska shall transfer the amount received
				from the MUSL POWERBALL Product Group, less applicable withholding tax and
				setoff amounts, to the Grand Prize winner's indicated financial institution
				account.
704.01E Players must make
				this election by December 31, 2000. Players not making this election prior to
				December 31, 2000 will continue to receive their Grand Prize via annual payment
				according to the original terms of their Grand Prize.