Oregon Administrative Rules › Chapter 177 - OREGON STATE LOTTERY › Division 85 - POWERBALL® › Section 177-085-0035 - Powerball Prize Payment

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Selection of Payment Type: Grand Prizes shall be paid, at the election of the
			 player made no later than 60 days after validation of the prize, with either a
			 per-winner annuity or single lump sum payment. If the payment election is not
			 made by the player within 60 days after validation, then the prize shall be
			 paid as an annuity prize. The election to take the single lump sum payment may
			 be made at the time of validation of the prize claim or within 60 days
			 thereafter. An election made after validation is final and cannot be revoked,
			 withdrawn, or otherwise changed.
(2) Share of the Grand Prize: Shares of the
			 Grand Prize shall be determined by dividing the amount available in the Grand
			 Prize Pool Account equally among all tickets with winning game plays of the
			 Grand Prize.
(3) Lump Sum Payment:
			 Winner(s) who elect a lump sum payment shall be paid their share(s) in a single
			 lump sum payment.
(4) Annuity
			 Payment: The annuitized option prize shall be determined by multiplying a
			 winner's share of the Grand Prize Pool Account by a process as approved by the
			 MUSL Board. Neither MUSL nor the Party Lotteries or the Licensee Lotteries
			 shall be responsible or liable for changes in the advertised or estimated
			 annuity prize amount and the actual amount purchased after the prize payment
			 method is actually known to MUSL. In certain instances announced by the Product
			 Group, the Grand Prize shall be a guaranteed amount and shall be determined
			 pursuant to section (11) of this rule. If individual shares of the Grand Prize
			 Pool Account funds held to fund an annuity are less than $250,000.00, the
			 Product Group, in its sole discretion, may elect to pay the winners their share
			 of the amount held in the Grand Prize Pool Account.
(5) Initial and Annual Payments: Except as
			 may be controlled by statute, all annuitized prizes shall be paid annually in
			 thirty payments with the initial payment being made directly with available
			 funds, to be followed by twenty-nine payments funded by the annuity. All
			 annuitized prizes shall be paid annually in thirty graduated payments
			 (increasing each year) by a rate as determined by the Product Group. Prize
			 payments may be rounded down to the nearest $1,000. Annual payments after the
			 initial payment shall be made by the lottery on the anniversary date of the
			 first payment or if such date falls on a non-business day, then the first
			 business day following the anniversary date of the first payment. Funds for the
			 initial payment of an annuitized prize or the lump sum payment prize shall be
			 made available by MUSL for payment by the Selling Lottery no earlier than the
			 15th calendar day (or the next banking day if the fifteenth day is a holiday)
			 following the drawing.
(6) Lack of
			 Available Funds: If necessary, when the due date for the payment of a prize
			 occurs before the receipt of sufficient funds in the prize pool trust to pay
			 the prize, then the transfer of funds for the payment of the full lump sum
			 payment amount may be delayed pending receipt of funds from the Selling
			 Lotteries. The Lottery may elect to make the initial payment from its own funds
			 after validation, with notice to MUSL.
(7) Death of Winner: In the event of the
			 death of a lottery winner during the annuity payment period, unless prohibited
			 by state law, the MUSL Finance and Audit Committee, in its sole discretion
			 excepting a discretionary review by the Product Group, upon the petition of the
			 estate of the lottery winner (the "Estate") or the persons identified on the
			 winner's Beneficiary Designation form (BDF), whichever is applicable, to the
			 state lottery of the state in which the deceased lottery winner purchased the
			 winning ticket, and subject to applicable federal, state, or district laws, may
			 make payment to the Estate or the designated beneficiary of the discounted
			 present value of the remaining annuitized prize payments. If a determination is
			 made, then securities and/or amounts held to fund the deceased lottery winner's
			 annuitized prize may be distributed to the Estate or the persons on the BDF.
			 The identification of the securities, if any, to fund the annuitized prize is
			 at the sole discretion of the MUSL Finance and Audit Committee or the Product
			 Group.
(8) Low-Tier Prizes: All
			 prizes are paid directly through the Lottery that sold the winning ticket, and
			 at the discretion of the Selling Lottery may be paid by cash, check, warrant,
			 or electronic transfer. The Lottery may begin paying low-tier prizes after
			 receiving authorization to pay from the MUSL central office.
(9) Rounding of Powerball® Grand Prize
			 Payments: Annuitized payments of the Grand Prize or a share of the Grand Prize
			 may be rounded to facilitate the purchase of an appropriate funding mechanism.
			 Breakage on an annuitized Grand Prize win shall be added to the first payment
			 to the winner or winners. Prizes other than the Grand Prize which, under OAR
			 177-085-0025(4)(c)  and OAR 177-085-0065(11), may become single-payment,
			 pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples
			 of whole dollars. Breakage resulting from rounding these prizes shall be
			 carried forward to the prize pool for the next drawing.
(10) Roll Over of Powerball® Grand Prize:
			 If the Grand Prize is not won in a drawing, the prize money allocated for the
			 Grand Prize shall roll over and be added to the Grand Prize Pool Account for
			 the following drawing.
(11)
			 Guaranteed Powerball® Prizes:
(a) The
			 Product Group may offer guaranteed minimum Grand Prize amounts or minimum
			 increases in the Grand Prize amount between drawings or make other changes in
			 the allocation of prize money where the Product Group finds that it would be in
			 the best interest of the game.
(b)
			 If a minimum Grand Prize amount or a minimum increase in the Grand prize amount
			 between drawings is offered by the Product Group, then the Grand Prize amount
			 shall be determined as follows:
(A) All
			 Winners Select Annuity: If there are multiple Grand Prize winners during a
			 single drawing, each selecting the annuitized option prize, then a winner's
			 share of the guaranteed annuitized Grand Prize shall be determined by dividing
			 the guaranteed annuitized Grand Prize by the number of tickets with winning
			 game plays.
(B) Mix of Lump Sum and
			 Annuity: If there are multiple Grand Prize winners during a single drawing and
			 at least one of the Grand Prize winners has elected the annuitized option
			 prize, then the MUSL annuity factor shall be utilized to determine the cash
			 pool. The cost of the annuitized prize(s) will be determined at the time the
			 annuity is purchased through a process approved by the MUSL Board.
(C) No Winners Select Annuity: If no winner
			 of the Grand Prize during a single drawing has elected the annuitized option
			 prize, then the amount of the cash in the Grand Prize Pool Account shall be an
			 amount equal to the guaranteed annuitized amount divided by the MUSL annuity
			 factor.
(c) Changes in
			 Allocation of Prizes: Minimum guaranteed prizes or increases may be waived if
			 the alternate funding mechanism set out in OAR 177-085-0025(4)(c)  becomes
			 necessary. Approval of the Group is required to change the guaranteed minimum
			 Grand Prize amounts or minimum increases in the Grand Prize amount. Effective
			 after the drawing on April 8, 2020, the Group may increase, decrease, or
			 eliminate the guaranteed minimum Grand Prize amount of any announced minimum
			 Grand Prize increases effective at any time following the next drawing
			 following the action taken by the Group.
(d) Funding of Guaranteed Grand Prizes: If
			 the amount in the Grand Prize Pool Account, Grand Prize Carry Forward Pool
			 Account, and Set Aside Pool Account and contributions from Licensee Lotteries
			 who are not participating in the Prize Reserve Account are insufficient to fund
			 the amount required by awarded Guaranteed Grand Prize(s), then the Prize
			 Reserve Account, and thereafter contributions from individual Member Lotteries
			 and Licensee Lotteries participating in the Prize Reserve Account, may be
			 required to fund Guaranteed Grand Prize award deficiencies. Contributions from
			 the Prize Reserve Account shall first be utilized, and then from individual
			 Member Lotteries and Licensee Lotteries participating in the Prize Reserve
			 Account if necessary. Contributions required from the Prize Reserve Account or
			 from Member Lotteries and Licensee Lotteries participating in the Prize Reserve
			 Account shall be determined on a pro rata basis based on sales since the most
			 recent Grant Prize win.