Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 316 - NEBRASKA DEPARTMENT OF REVENUE › Chapter 35 - CHARITABLE GAMING; ART. 6 COUNTY/CITY LOTTERY › CITY-COUNTY LOTTERY › Section 316-35-600 - DEFINITIONS, SCOPE, AND ESTABLISHMENT BY COUNTIES, CITIES, AND VILLAGES

Current through June 17, 2024
600.01
General Authorization.
Bingo, Lottery, Raffle, and Lottery by Pickle Card Regulations 35-600 through
				  35-623 are adopted to carry out the provisions of the Nebraska County and City
				  Lottery Act.
600.02
Definitions.
The definitions found in Neb. Rev. Stat. §§
										9-603.02 to
				  9-618 apply to these regulations.
				  The following definitions also apply for purposes of Regulations 35-600 through
				  35-623:
600.02A Agent means a person
				  authorized by the applicant or licensee to act for or in place of an applicant
				  or licensee as a business representative to modify, affect, accept performance
				  of, or transact business.
600.02B
				  Business day means any day except Saturday, Sunday, or a legal
				  holiday.
600.02C Cash means United
				  States currency and does not mean checks, personal or otherwise, debit cards,
				  or credit cards.
600.02D Compliance
				  procedures for keno mean the analysis required by Reg-35-616 to determine
				  whether the regulations are being followed during the operation of the keno
				  game.
600.02E Conditioning, as it
				  applies to keno, means a restatement of how many numbers or combinations of
				  numbers are being selected by the players, the way in which they are wagered,
				  and the corresponding dollar amounts wagered.
600.02F Debt holder of a corporation,
				  partnership, or limited liability company means a person that holds any
				  mortgages, notes, bonds, convertible debentures, or other obligations, whether
				  written or oral, issued by the corporation, partnership, or limited liability
				  company.
600.02G Department means
				  the Nebraska Department of Revenue.
600.02H Digital-on-premises ticket means a
				  digital ticket purchased in person on the operator's approved mobile
				  application or other approved mobile wagering device verified to be present at
				  the location of the lottery operator or an authorized sales outlet
				  location.
600.02I Draw ticket means
				  the ticket prepared by a licensed lottery worker to record the winning numbers
				  of each keno game if winning number selection is by manual ball draw
				  method.
600.02J Electronic tablet
				  ticket generation device means any electronic device which is exclusively
				  provided by the operator on site that is capable of building a wager to be
				  processed by the tablet or by a keno writer. Any reference in these regulations
				  to "tablet" or "operator's tablet" means this definition, unless otherwise
				  stated.
600.02K Electronic transfer
				  of funds, also known as an electronic funds transfer (EFT) means the movement
				  of value or funds between financial institutions through the Federal Reserve's
				  Automated Clearing House (ACH) system.
600.02L Equity holder of a corporation,
				  partnership, or limited liability company means an individual or person that
				  holds any capital stock, whether common or preferred, or any ownership interest
				  or share issued by the corporation, partnership, or limited liability
				  company.
600.02M Free play keno
				  coupon means a certificate which entitles the holder to wager an amount
				  corresponding to the face value of the coupon without charge. This coupon may
				  be issued and redeemed through the lottery operator's digital-on-premises
				  purchasing application.
600.02N
				  Governing board means, in the case of a city, the city council; in the case of
				  a village, the village board; or, in the case of a county, the county
				  board.
600.02O Independent game
				  location means a location where keno wagers are placed and winning number
				  selection is performed. An independent game location is not electronically
				  linked to another location for purposes of transmitting or receiving winning
				  number selection.
600.02P Inside
				  ticket means keno paper with 80 preprinted numbers on which the player marks
				  numbers to be wagered on and the type of wager. Inside ticket also includes
				  electronic bet slips prepared by the player on or through the
				  digital-on-premises purchasing application or the operator's tablet.
600.02Q Keno manager means the shift manager,
				  supervisor, or individual in charge of the daily operation of a keno game at a
				  location, an individual licensed as a sales outlet officer or owner, or an
				  individual licensed as a lottery operator, officer, or owner.
600.02R Keno system means an integrated
				  system of computer hardware and software that generates outside tickets,
				  records game outcomes, verifies winning tickets, produces management reports,
				  and performs other functions and internal audit controls for the keno
				  operation.
600.02S Keno writer
				  means an individual whose primary responsibilities include accepting inside
				  tickets or other requests for wagers and payments of wagers from players,
				  issuing outside tickets, voiding tickets, redeeming tickets, and assisting with
				  keno application issues. A keno writer does not include a keno manager, a
				  lottery operator, or any person who is directly in charge of the manual
				  selection of winning numbers.
600.02T Licensed racetrack enclosure has the
				  same meaning as in Neb. Rev. Stat. §
											9-1103(10).
600.02U Licensee means a person holding a
				  license issued by the Department pursuant to the Nebraska County and City
				  Lottery Act.
600.02V Lottery
				  equipment means:
(a) all proprietary devices,
				  machines, and parts used in and which are an integral part of conducting the
				  lottery; and
(b) equipment used in
				  maintaining the equipment described in (a).
600.02V(1) Lottery equipment is equipment
				  that directly affects the outcome of the lottery or monitors the operation of
				  the lottery and includes, but is not limited to: keno balls; keno ball
				  selection devices, including electrically-operated blower machines, automated
				  ball draw systems, and other electronic selection devices; random number
				  generators; and keno systems.
600.02V(2) Any equipment that does not
				  directly affect the outcome of the lottery or is not an integral part of any
				  system that monitors the operation of the lottery is not considered lottery
				  equipment. For example, lottery equipment does not include video or digital
				  recording equipment required for ball draw games, security cameras and systems,
				  display devices, recording media, or other supply items used with the lottery
				  equipment that do not directly affect the outcome of the
				  game.
600.02W Lottery
				  operator means any individual, sole proprietorship, partnership, limited
				  liability company, or corporation which is licensed by the Department and
				  responsible for conducting a lottery on behalf of a county, city, or village as
				  provided by a written contract between the county, city, or village and the
				  lottery operator. This contract may include responsibility and liability for
				  all operational aspects of the lottery, including: daily gaming operations;
				  purchase, repair, replacement, and maintenance of lottery equipment; purchase
				  and maintenance of lottery supplies; compensation, staffing, and training of
				  all employees and agents; processing and handling of lottery gross proceeds;
				  preparing all reports required of a county, city, village, or lottery operator;
				  advertising; developing official rules and procedures for play; collecting
				  prizes and progressive game prizes; overseeing the lottery operation; record
				  keeping; and all other lottery functions. Any reference in these regulations to
				  "operator" means this definition, unless otherwise stated.
600.02X Lottery operator location means the
				  main location of the lottery operator where keno wagers are placed.
600.02Y Lottery supplies means all tickets,
				  cards, boards, sheets, or other supplies which are used in and are an integral
				  part of conducting any lottery activity.
600.02Y(1) Lottery supplies do not include
				  any item that does not directly affect the outcome of the lottery.
600.02Y(2) For example, lottery supplies do
				  not include keno paper, crayons and markers, and other supplies that do not
				  directly affect the outcome of the game.
600.02Z Main location means a location where
				  keno wagers may be placed, and winning numbers are selected and electronically
				  transmitted to satellite locations.
600.02AA Multirace ticket means a single
				  ticket which allows a player to make the same keno wager on consecutive games.
				  A player must wait until the last game wagered on has been called to collect
				  any accumulated winnings, unless approval has been obtained from the keno
				  manager or from the keno writer on duty and all voided wagers are properly
				  documented in the transaction log.
600.02BB Non-segregated bank account means a
				  bank account which holds funds related to the operation of the keno lottery as
				  well as funds from other sources.
600.02CC Outside ticket means the official
				  paper ticket generated by the keno system that shows the player's wager. This
				  includes the digital ticket generated by the digital-on-premises purchasing
				  application or the operator's tablet.
600.02DD Owner means a person with a right to
				  share in the profits, losses, or liabilities of a license applicant or
				  licensee. The term includes loan guarantors who make actual debt payments for,
				  or contribute capital to, a license applicant or licensee with a contingent
				  right to share in the profits, losses, or liabilities of the operation. The
				  term ownership interest has the same meaning as owner.
600.02EE Person means any individual or
				  organization, including any sole proprietorship, partnership, limited liability
				  company, or corporation.
600.02FF
				  Play in a keno lottery means placing a wager, cashing a winning ticket, or
				  collecting any winnings.
600.02GG
				  Premises means any building, or any distinct portion of a building, where the
				  lottery is conducted or played. Premises may include the main location, an
				  independent game location, a sales outlet location, or a satellite location.
				  Premises does not include any areas outside the building.
600.02HH Quick Pick ticket means a keno
				  ticket for which the player selects numbers by requesting that the keno system
				  generate them at random on an outside ticket.
600.02II Random number generator means
				  hardware, software, or a combination hardware and software device for
				  generating number values that exhibit characteristics of randomness.
600.02JJ Regrade means to manually
				  recalculate the prize payout of a winning keno ticket according to the printed
				  pay schedule.
600.02KK Replay means
				  playing the identical keno wager as a prior wager with no change to selected
				  numbers, conditioning, or amount of wager.
600.02LL ROM (read only memory) means the
				  electronic component used for storing nonvolatile information in lottery
				  equipment that provides instructions needed by the computer to begin its
				  operations each time it is turned on. This includes programmable ROM (PROM) and
				  erasable programmable ROM (EPROM).
600.02MM Sales outlet location means a
				  location other than the lottery operator location where keno wagers are
				  placed.
600.02NN Satellite location
				  means a location where keno wagers are placed and where the winning numbers are
				  electronically received from the main location. Winning number selection cannot
				  be performed at a satellite location.
600.02OO Segregated bank account means a bank
				  account which holds only funds related to the operation of the keno
				  lottery.
600.02PP Substantial
				  interest or connected with, interested in, or otherwise concerned directly or
				  indirectly means having a significant responsibility for, or otherwise
				  benefitting or having rights from, a license issued by the Department.
600.02PP(1) For a sole proprietorship, this
				  includes, but is not limited to, an individual or his or her spouse owning,
				  operating, managing, or conducting, directly or indirectly, a part of the sole
				  proprietorship.
600.02PP(2) For a
				  partnership, this includes, but is not limited to, an individual, his or her
				  spouse, or a partnership, limited liability company, or corporation owning,
				  operating, managing, or conducting, directly or indirectly, a part of the
				  partnership activity, or sharing in any of the profits or potential profits of
				  the partnership activity.
600.02PP(3) For a limited liability company,
				  this includes, but is not limited to, the involvement of an individual, his or
				  her spouse, or a partnership, limited liability company, or corporation,
				  owning, operating, managing, or conducting, directly or indirectly, a part of
				  the limited liability company activity or sharing in any of the profits or
				  potential profits of the limited liability company activity.
600.02PP(4) For a corporation, this includes,
				  but is not limited to, an individual, his or her spouse, or a partnership,
				  limited liability company, or corporation owning, operating, managing, or
				  conducting, directly or indirectly, a part of the corporation activity, or
				  being an officer or director of the corporation, or being a holder, directly or
				  indirectly, of 10% or more of any class of stock in the corporation or debt
				  representing 10% or more of the total assets of the corporation.
600.02PP(5) For a nonprofit corporation or
				  nonprofit organization, this includes, but is not limited to, an individual or
				  his or her spouse being an officer, director, or managing the business affairs
				  of the nonprofit corporation or nonprofit organization.
600.02QQ Technology partner means any
				  corporation or business entity which is not otherwise licensed under the Act or
				  these regulations, that contractually agrees to develop some or all of a
				  lottery operator's digital-on-premises ticket system or operator's
				  tablet.
600.02RR Transaction log
				  means a record of all transactions entered on the keno system. The transaction
				  log includes, but is not limited to, all outside ticket information, ticket
				  processing, voided tickets, game closing time, game results, payout, and all
				  other information required by these regulations to be entered on the
				  transaction log.
600.02SS Way
				  ticket means a single outside ticket which allows a player to wager on a
				  combination of groups of numbers in various ways.