Oregon Chapter 461
Chapter 461 — Oregon State LotteryDownload Full 2005 Oregon Revised Statutes (coming soon!)
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Chapter 461 —
2007 EDITION
PUBLIC HEALTH AND SAFETY
GENERAL PROVISIONS
461.010 Definitions
461.015 Short
title
461.020 Purpose
461.030 Local
laws preempted; applicability of other laws; severability
461.040 Effect
on other gambling laws
461.050 Location
of offices
ADMINISTRATION
(
461.100 Oregon
State Lottery Commission; members; duties; meetings
461.110 Criminal
identification information available to lottery; fingerprints; service and
execution of warrants
461.120 Commission
exempt from certain laws; rulemaking; applicability of Administrative
Procedures Act
461.130 Authority
of commission; delegation; contracts for security services
461.140 Biennial
budget report to Legislative Assembly
(State Lottery Director)
461.150 State
lottery director; appointment; assistant directors; duties and powers
461.160 Authority
of director to contract for services
461.170 Coordination
between director and commission
461.180 Studies;
accountability; audits; delegation
461.190 Assistant
Director for Security
OPERATION OF LOTTERY
461.200 Operation
of lottery
461.210 Security
measures; ticket content; rules
461.215 Video
lottery games
461.217 Video
lottery game regulation; limitation on number and placement of terminals; rules
461.220 Number
and value of prizes; required information on lottery tickets; rules;
advertising
461.230 Method
for determining winners; rules
461.240
461.250 Validation
and payment of prizes; tabulation of sales and prizes; assignment of prizes;
payment on behalf of deceased winner; claim period; ineligibility of lottery
employees; rules
461.253 Voluntary
assignment of prizes; petition for judicial order; issuance of order;
commission intervention in proceeding
461.257 Judicial
order suspending voluntary assignment laws upon finding of adverse tax
consequences for all prize winners
461.260 Distribution
of tickets and shares; rules
LOTTERY GAME RETAILERS
461.300 Selection
of retailers; rules; contracts
461.310 Compensation
for retailers
461.330 Display
of certificate of authority; bond or letter of credit; payments for tickets or
shares
461.335 Temporary
letter of authority; grounds for revocation
LOTTERY VENDORS AND CONTRACTORS
461.400 Procurements
461.410 Vendor
disclosure for major procurements
461.420 Contract
with vendor convicted of crime prohibited
461.430 Contractor
required to comply with applicable laws; performance bond
461.440 Commission’s
authority to contract; rules
461.445 Policy
on payment to contractors
LOTTERY FINANCES
461.500 Lottery
to be self-supporting; allocation of revenues
461.510 State
Lottery Fund; types of disbursements
461.520 Establishment
of checking accounts and petty cash fund
461.530
461.535 Intercollegiate
Athletic Fund
461.540 Administrative
Services Economic Development Fund
461.543 Sports
Lottery Account; distribution of revenues
461.544 Use
of proceeds of video lottery games
461.547 Distribution
of certain video lottery revenues to counties for economic development
461.548 Video
lottery proceeds to be treated separately from other lottery proceeds
461.549 Use
of video lottery proceeds for treatment of gambling-related behavioral problems
461.550 Expenditure
limitation not applicable to lottery
461.555 Capital
Construction Trust Fund; sources; uses
461.560 Taxation
of sales and prizes
PROHIBITED CONDUCT
461.600 Sales
to minors
MISCELLANEOUS
461.700 Additional
disclosure requirements; costs of investigation
461.715 Holding
of certain lottery prizes for child support; rules; procedure
461.725 Enforcement
officers to enforce prohibition on gray machines
461.740 Policy
on hiring by firms receiving lottery-funded benefits
GENERAL PROVISIONS
461.010
Definitions. Unless the
context requires otherwise, the definitions contained in this chapter shall
govern the construction of this chapter.
(1) “Lottery” or “state lottery” means the
Oregon State Lottery established and operated pursuant to the Constitution of
the State of
(2) “Commissioner” means one of the
members of the lottery commission appointed by the Governor pursuant to the
Constitution of the State of
(3) “Director” means the Director of the
Oregon State Lottery appointed by the Governor pursuant to the Constitution of
the State of
(4) “Lottery commission” or “commission”
means the five-member body appointed by the Governor pursuant to the
Constitution of the State of
(5) “Lottery game” or “game” means any
procedure authorized by the commission whereby prizes are distributed among
persons who have paid, or unconditionally agreed to pay, for tickets or shares
which provide the opportunity to win such prizes.
(6) “Person” means any natural person or
corporation, trust, association, partnership, joint venture, subsidiary or
other business entity.
(7) “Lottery game retailer” means a person
with whom the lottery commission has contracted for the purpose of selling
tickets or shares in lottery games to the public.
(8) “Lottery vendor” or “vendor” means any
person who submits a bid, proposal or offer to provide goods or services to the
commission or lottery.
(9) “Lottery contractor” means a person
with whom the state lottery has contracted for the purpose of providing goods
and services for the state lottery. [1985 c.2 §1(7); 1985 c.302 §1(7)]
461.015
Short title. This chapter
shall be known as the Oregon State Lottery Act of 1984. [1985 c.2 §1(1); 1985
c.302 §1(1)]
461.020
Purpose. The people of the
State of
461.030
Local laws preempted; applicability of other laws; severability. (1) This chapter shall be applicable and
uniform throughout the state and all political subdivisions and municipalities
therein, and no local authority shall enact any ordinances, rules or
regulations in conflict with the provisions hereof.
(2) Any other state or local law or
regulation providing any penalty, disability or prohibition for the
manufacture, transportation, distribution, advertising, possession or sale of
any lottery tickets or shares shall not apply to the tickets or shares of the
state lottery. The gambling laws of the State of
(3) If any provision of this chapter or
the application thereof to any person or circumstance is held invalid, such
invalidity shall not affect other provisions or applications of this chapter
which can be given effect without the invalid provision or application, and to
this end the provisions of this chapter are severable.
(4) This chapter is dependent and is
conditioned upon the passage by the voters at the November 6, 1984, general
election of an amendment to section 4, Article XV of the Oregon Constitution
authorizing state operation of a lottery.
(5) The Oregon State Lottery is subject
to:
(a) Statewide financial reporting required
in ORS 291.040.
(b) The mass transit assessment under ORS
291.405.
(c) The deposit of state money to the
State Treasurer under ORS 293.265. [1985 c.2 §8(2),(3),(5),(6),(9); 1985 c.302 §8(2),(3),(5),(6),(9)]
461.040
Effect on other gambling laws.
Nothing contained in this chapter shall be construed to repeal or modify existing
state laws with respect to gambling, except that the state-operated lottery
established by the Constitution of the State of Oregon and this chapter shall
not be subject to such laws. [1985 c.2 §1(3); 1985 c.302 §1(3)]
461.050
Location of offices. The
Oregon State Lottery shall have its principal offices in the capital city. [1985
c.302 §8(7)]
461.055 [1995 c.341 §2; 1997 c.645 §1; 1999 c.1093 §16;
2003 c.794 §286; repealed by 2007 c.569 §1]
ADMINISTRATION
(
461.100
(2)(a) The Oregon State Lottery Commission
shall consist of five members appointed by the Governor and confirmed by the
Senate who shall serve at the pleasure of the Governor.
(b) The members shall be appointed for
terms of four years.
(c) Vacancies shall be filled within 30
days by the Governor, subject to confirmation by the Senate, for the unexpired
portion of the term in which they occur.
(3) At least one of the commissioners
shall have a minimum of five years’ experience in law enforcement and at least
one of the commissioners shall be a certified public accountant. No person
shall be appointed as a lottery commissioner who has been convicted of a felony
or a gambling related offense. No more than three members of the commission
shall be members of the same political party.
(4) The commission shall exercise all
powers necessary to effectuate the purpose of this chapter. In all decisions,
the commission shall take into account the particularly sensitive nature of the
lottery and shall act to promote and insure integrity, security, honesty and
fairness in the operation and administration of the state lottery.
(5) Lottery commissioners shall be
eligible for compensation and expenses under ORS 292.495.
(6) Lottery commissioners shall file a
verified statement of economic interest with the Oregon Government Ethics
Commission and shall be subject to the provisions of ORS chapter 244.
(7) The Governor shall select annually
from the membership of the commission a chairperson who serves at the pleasure
of the Governor. The chairperson or a majority of the members of the commission
then in office shall have the power to call special meetings of the commission.
(8) Meetings of the commission shall be
open and public in accordance with state law. Records of the commission shall
be open and available to the public in accordance with state law. The
commission shall meet with the Director of the Oregon State Lottery not less
than monthly to make recommendations and set policy, to approve or reject
reports of the director, to adopt rules and to transact other business.
(9) A quorum of the commission shall
consist of a majority of the members of the commission then in office. All
decisions of the commission shall be made by a majority vote of all of the
commissioners then in office.
(10) The commission shall prepare
quarterly and annual reports of the operation of the state lottery. Such
reports shall include a full and complete statement of state lottery revenues,
prize disbursements, expenses, net revenues and all other financial
transactions involving state lottery funds. The commission shall, not less than
annually, contact interested parties, including those named in ORS 461.180 (3),
and provide them with such quarterly and annual reports as they may request. [1985
c.2 §2(1) to (10); 1985 c.302 §2(1) to (10); 1991 c.30 §1]
461.110
Criminal identification information available to lottery; fingerprints; service
and execution of warrants.
(1) Upon the request of the Oregon State Lottery Commission or the Director of
the Oregon State Lottery, the office of the Attorney General and the Oregon
State Police shall furnish to the director and to the Assistant Director for
Security such information as may tend to ensure security, integrity, honesty
and fairness in the operation and administration of the Oregon State Lottery as
the office of the Attorney General and the Oregon State Police may have in
their possession, including, but not limited to, manual or computerized
information and data.
(2) In order to determine an applicant’s
suitability to enter into a contract with or to be employed by the Oregon State
Lottery, each applicant identified in this subsection shall be fingerprinted.
The Assistant Director for Security may submit to the Department of State
Police bureau of criminal identification and to the Federal Bureau of
Investigation, for the purpose of verifying the identity of the following
persons and obtaining records of their arrests and criminal convictions,
fingerprints of:
(a) With respect to video game retailers,
each person for whom ORS 461.300 or an administrative rule of the Oregon State
Lottery Commission requires disclosure of the person’s name and address;
(b) With respect to lottery vendors and
lottery contractors, each person for whom ORS 461.410 or an administrative rule
of the Oregon State Lottery Commission requires disclosure of the person’s name
and address;
(c) Applicants for employment with the
Oregon State Lottery; and
(d) With respect to other persons and
entities that apply for contracts or have contracts with the Oregon State
Lottery, each person for whom ORS 461.300 requires disclosure of the person’s
name and address and for whom the Assistant Director for Security has prepared
written reasons, approved in writing by the director, for requiring the
confirmation of the person’s identity and records.
(3) For the purpose of requesting and
receiving the information described in subsections (1) and (2) of this section,
the Oregon State Lottery Commission is a state agency and a criminal justice
agency and its enforcement agents are peace officers pursuant to ORS 181.010 to
181.712 and rules adopted thereunder.
(4) Enforcement agents, designated as such
by the commission, shall have the same authority with respect to service and
execution of warrants of arrest and search warrants as is conferred upon peace
officers of this state. [1985 c.2 §2(11),(12); 1985 c.302 §2(11),(12); 1995
c.291 §1; 2007 c.71 §144]
461.120
Commission exempt from certain laws; rulemaking; applicability of Administrative
Procedures Act. (1)(a)
Except as otherwise provided by law, the provisions of ORS 279.835 to 279.855
and ORS chapters 279A, 279B, 279C, 282 and 283 do not apply to the Oregon State
Lottery Commission unless otherwise provided by this chapter.
(b) Officers and employees of the Oregon
State Lottery Commission are in the exempt service for purposes of ORS chapter
240 and other related statutes.
(c) ORS 276.004 (2), 276.021, 276.093 to
276.098, 276.410 to 276.426, 276.428, 276.440, 291.038, 291.201 to 291.260 and
292.210 to 292.250 do not apply to the Oregon State Lottery Commission.
(d) ORS 293.075, 293.190, 293.205 to
293.225 and 293.275 do not apply to the Oregon State Lottery Commission.
(e) ORS 279A.100 and ORS chapters 659 and
659A apply to the Oregon State Lottery Commission.
(f) Notwithstanding paragraph (a) of this
subsection, the provisions of ORS 282.210 shall apply to the Oregon State
Lottery Commission.
(2) The commission shall, in accordance
with ORS chapter 183, adopt and enforce rules to carry out the provisions of
this chapter. [1985 c.2 §2(13),(14); 1985 c.302 §2(13),(14); 1991 c.76 §2; 2001
c.621 §80; 2001 c.956 §3; 2003 c.794 §287; 2005 c.217 §26]
461.130
Authority of commission; delegation; contracts for security services. (1) Whenever a power is granted to the
commission, the power may be exercised by such officer or employee within the Oregon
State Lottery as is designated in writing by the commission. Any such
designation shall be filed in the office of the Secretary of State.
(2) The commission shall contract with the
Department of State Police to obtain necessary security services. A contract is
not intended to preclude the assistance of other law enforcement agencies as
the need arises.
(3) The commission shall have the
authority to conduct investigations, including the authority to issue subpoenas
to compel the attendance of witnesses and documents, to take testimony under
oath, to take depositions within or outside the state and to require answers to
interrogations. [1985 c.302 §2(15) to (17)]
461.140
Biennial budget report to Legislative Assembly. (1) The Oregon State Lottery Commission
shall prepare in each even-numbered year a budget report for the biennium
beginning July 1 of the following year.
(2) The commission estimates and requests
and appropriation measures shall be prepared in a manner approved by the
Legislative Fiscal Officer.
(3) Not later than November 10 of each
even-numbered year, the commission shall cause its budget estimates and
requests to be made available to the Governor, the Legislative Fiscal Officer
and to the Legislative Revenue Officer. Before December 1, the Legislative
Fiscal Officer or staff and the Legislative Revenue Officer or staff shall not
reveal to any other person the contents or nature of the budget and other
materials, except with the written consent of the commission.
(4) The commission shall furnish the
Legislative Assembly any further information required concerning its budget.
The commission, upon request, shall furnish a representative to assist the
Legislative Assembly, its Joint Committee on Ways and Means, appointed under
ORS 171.555, and the Legislative Revenue Officer in the consideration of its
budget and any accompanying measures.
(5) In all other respects the budget of
the Oregon State Lottery Commission shall be treated in the same manner as the
budgets of all other state agencies. [1985 c.302 §15]
(State
Lottery Director)
461.150
State lottery director; appointment; assistant directors; duties and powers. (1) The Governor shall appoint a Director of
the Oregon State Lottery, subject to confirmation by the Senate, who shall serve
at the pleasure of the Governor. The director shall implement and operate a
state lottery pursuant to the rules, and under the guidance, of the commission.
(2) The director shall be qualified by
training and experience to direct the operations of a state-operated lottery.
No person shall be appointed as lottery director who has been convicted of a
felony or any gambling related offense.
(3) The director shall receive such salary
as may be set by the commission with the approval of the Governor, and shall be
reimbursed for all expenses actually and necessarily incurred in the
performance of official duties. The director shall render full-time service to
the duties of office.
(4) The director shall, subject to the
approval of the commission, perform all duties, exercise all powers and
jurisdiction, assume and discharge all responsibilities and carry out and
effect the purposes of this chapter. The director shall act as secretary and
executive officer of the commission. The director shall supervise and administer
the operation of the Oregon State Lottery in accordance with this chapter, and
the rules adopted by the commission. In all decisions, the director shall take
into account the particularly sensitive nature of the state lottery, and shall
act to promote and insure integrity, security, honesty and fairness of the
operation and administration of the state lottery.
(5) The director shall recommend to the
commission the establishment of rules pertaining to the employment, termination
and compensation of all commission staff. The rules shall conform to generally
accepted personnel practices based upon merit principles. Under the rules so
established, the director may set the compensation, prescribe the duties and
supervise persons so hired. The director may terminate or otherwise discipline
persons so hired. No person shall be employed by the state lottery who has been
convicted of a felony or any gambling related offense.
(6) If a lottery employee transfers to a
state agency that is subject to ORS chapter 240, the employee is entitled to
transfer accrued sick leave, adjusted if necessary to reflect the accrual rate
in use for management and unrepresented employees under rules of the Personnel
Division.
(7) Subject to approval of the commission,
the director may appoint, prescribe the duties of and terminate or otherwise
discipline no more than four assistant directors as the director deems
necessary. The compensation of each assistant director shall be established by
the director subject to approval of the commission. The director shall
supervise the assistant directors.
(8) The director and each assistant
director shall file a verified statement of economic interest with the Oregon
Government Ethics Commission and shall be subject to the provisions of ORS
chapter 244. [1985 c.2 §3(1) to (7); 1985 c.302 §3(1) to (8)]
461.160
Authority of director to contract for services. Under the rules of the commission, the
Director of the Oregon State Lottery may contract with any state agency or
political subdivision for the performance of such duties, functions and powers
as the director considers appropriate. [1985 c.302 §7(8)]
461.170
Coordination between director and commission. The Director of the Oregon State Lottery shall confer as frequently as
necessary or desirable, but not less than monthly, with the commission,
regarding the operation and administration of the Oregon State Lottery. The
director shall make available for inspection by the commission, upon request,
all books, records, files and other information and documents of the state
lottery, and shall advise the commission and recommend such matters as deemed
necessary and advisable to improve the operation and administration of the
state lottery. [1985 c.2 §3(9); 1985 c.302 §3(10)]
461.180
Studies; accountability; audits; delegation. (1) The Director of the Oregon State Lottery shall make an ongoing
study of the operation and the administration of the lotteries which may be in
operation in other states or countries, of available literature on the subject,
of federal laws which may affect the operation of the Oregon State Lottery and
of the reaction of citizens of the state to existing or proposed features in
lottery games, with a view toward recommending improvements that will tend to
serve the purposes of this chapter. The director may make recommendations to
the commission, Governor and Legislative Assembly on any matters concerning the
secure and efficient operation and administration of the state lottery and the
convenience of the purchasers of tickets and shares.
(2) The director shall make and keep books
and records which accurately and fairly reflect each day’s transactions,
including but not limited to, the distribution of tickets or shares to lottery
game retailers, receipt of funds, prize claims, prize disbursements or prizes
liable to be paid, expenses and all other financial transactions involving
state lottery funds necessary so as to permit preparation of financial
statements in conformity with generally accepted accounting principles and to
maintain daily accountability.
(3) The director shall make a monthly
financial report to the commission, and upon request provide copies of such
reports to the Governor, the Attorney General, the Secretary of State, the
State Treasurer and the Legislative Assembly. Such report shall include a full
and complete statement of state lottery revenues, prize disbursements,
expenses, net revenues and all other financial transactions involving state
lottery funds for the month.
(4) After the first six months of sales of
tickets or shares to the public, the director shall engage an independent firm
experienced in demographic analysis to conduct a special study which shall
ascertain the demographic characteristics of the players of each lottery game,
including but not limited to their income, age, sex, education and frequency of
participation. This report shall be presented to the commission, the Governor,
the Attorney General, the Secretary of State, the State Treasurer and the
Legislative Assembly. Similar studies shall be conducted after the first such
study from time to time as determined by the director.
(5) After the first full year of sales of
tickets or shares to the public, the director shall engage an independent firm
experienced in the analysis of advertising, promotion, public relations,
incentives, public disclosures of odds and numbers of winners in lottery games
and other aspects of communications to conduct a special study of the
effectiveness of such communications activities by the state lottery and make
recommendations to the commission on the future conduct and future rate of
expenditure for such activities. This report shall be presented to the
commission, the Governor, the Attorney General, the Secretary of State, the
State Treasurer and the Legislative Assembly. Until the presentation of such
report and action by the commission, the state lottery shall expend as close to
three and one-half percent as practical of the projected sales of all tickets
and shares for advertising, promotion, public relations, incentives, public
disclosures of odds and numbers of winners in lottery games and other aspects
of communications. Similar studies shall be conducted from time to time after
the first such study as determined by the director.
(6) After the first nine months of sales
of tickets or shares to the public, the commission shall engage an independent
firm experienced in security procedures, including but not limited to computer
security and systems security, to conduct a comprehensive study and evaluation
of all aspects of security in the operation of the state lottery. Such study
shall include, but not be limited to, personnel security, lottery game retailer
security, lottery contractor security, security of manufacturing operations of
lottery contractors, security against ticket counterfeiting and alteration and
other means of fraudulently winning, security of drawings among entries or
finalists, computer security, data communications security, database security,
security in distribution, security involving validation and payment procedures,
security involving unclaimed prizes, security aspects applicable to each
particular lottery game, security of drawings in lottery games where winners
are determined by drawings of numbers, the completeness of security against
locating winners in lottery games with preprinted winners by persons involved
in their production, storage, distribution or sale and any other aspects of
security applicable to any particular lottery game and to the state lottery and
its operations. The portion of the report containing the overall evaluation of
the state lottery in terms of each aspect of security shall be presented to the
commission, the Governor, the Attorney General, the Secretary of State, the
State Treasurer and the Legislative Assembly. Notwithstanding other provisions
of state law, the portion of the report containing specific recommendations
shall be confidential and shall be presented only to the commission, the
Governor and the director. Similar studies of security shall be conducted
biennially thereafter.
(7) The director may delegate to any of
the employees of the Oregon State Lottery the exercise or discharge in the
director’s name of any power, duty or function of whatever character, vested in
or imposed by law upon the director. The official act of any such person so
acting in the director’s name and by the authority of the director shall be
considered to be an official act of the director. [1985 c.2 §3(10) to (16);
1985 c.302 §3(11) to (17); 1991 c.30 §2; 1997 c.625 §1]
461.190
Assistant Director for Security. The Assistant Director for Security appointed pursuant to the
Constitution of the State of Oregon and this chapter shall be responsible for a
security division to assure integrity, security, honesty and fairness in the
operation and administration of the Oregon State Lottery, including but not
limited to, an examination of the background of all prospective employees,
lottery game retailers, lottery vendors and lottery contractors. The Assistant
Director for Security shall be qualified by training and experience, including
at least five years of law enforcement experience, and knowledge and experience
in computer security, to fulfill these responsibilities. The Assistant Director
for Security shall, in conjunction with the Director of the Oregon State
Lottery, confer with the Attorney General or designee as the Assistant Director
of Security deems necessary and advisable to promote and insure integrity,
security, honesty and fairness of the operation and administration of the state
lottery. The Assistant Director for Security, in conjunction with the director,
shall report any alleged violation of law to the Attorney General and any other
appropriate law enforcement authority for further investigation and action. [1985
c.2 §3(8); 1985 c.302 §3(9)]
OPERATION OF
LOTTERY
461.200
Operation of lottery. Within
105 days after the confirmation by the Senate of the Director of the Oregon
State Lottery and at least three commissioners, the director shall begin public
sales of tickets or shares. The Oregon State Lottery shall be initiated and
shall continue to be operated so as to produce the maximum amount of net
revenues to benefit the public purpose described in section 4, Article XV of
the Constitution of the State of
461.210
Security measures; ticket content; rules. Upon recommendation of the Director of the Oregon State Lottery, the
Oregon State Lottery Commission shall adopt rules specifying the types of
lottery games to be conducted by the Oregon State Lottery, provided:
(1) Each lottery game shall contain
security measures that are designed to prevent the redemption of fraudulent
tickets. Every lottery ticket or stub printed after September 29, 1991, shall
include a lottery fact which refers to a specific lottery funded project or the
benefits and jobs created for a specific area of economic activity.
(2) No name of an elected official shall
appear on the tickets of any lottery game. [1985 c.2 §4(2); 1985 c.302 §4(2);
1985 c.458 §1(2); 1985 c.520 §1(2); 1991 c.76 §1; 1991 c.613 §1; 1991 c.962 §1]
461.213 [1989 c.828 §4(1),(2); 1991 c.345 §1; 1991
c.613 §3; repealed by 2005 c.810 §3]
461.215
Video lottery games. (1) The
Oregon State Lottery Commission may initiate a game or games using video
devices, the proceeds from which shall be transferred to the Administrative
Services Economic Development Fund for allocation as provided by law.
(2) In the approval and purchase of video
lottery games, game terminals and equipment, the lottery commission and any
game operator, distributor, retailer or owner shall prefer goods or services
that have been manufactured in this state if price, fitness and quality are
otherwise equal.
(3) The lottery commission shall separately
record and account for the costs and net proceeds of games operated under this
section. At such time as the lottery commission makes the quarterly transfer of
net proceeds provided for by ORS 461.540, it shall certify to the Oregon
Department of Administrative Services the amount of such transfer which
represents the net proceeds of games provided for in subsection (1) of this
section.
(4) Video lottery terminals operated under
authority of the lottery commission are specifically exempted from the provisions
of 15 U.S.C. §1172. [1989 c.828 §6; 1991 c.461 §80; 1991 c.962 §2; 1993 c.18 §117]
461.217
Video lottery game regulation; limitation on number and placement of terminals;
rules. (1) As used in this
section, “video lottery game retailer” means a contractor under contract with
the Oregon State Lottery to place video lottery game terminals on premises
authorized by the contract.
(2) A video lottery game terminal that
offers a video lottery game authorized by the Director of the Oregon State
Lottery may be placed for operation only on the premises of an establishment
that has a contract with the Oregon State Lottery as a video lottery game
retailer. The terminal must be within the control of an employee of the video
lottery game retailer. A terminal may not be placed in any other business or
location.
(3) A video lottery game terminal may be
placed only on the premises of an establishment licensed by the Oregon Liquor
Control Commission with a full on-premises sales license, a limited on-premises
sales license or a brewery-public house license. A video lottery game terminal
may be placed only in that part of the premises that is posted by the Oregon
Liquor Control Commission as being closed to minors. In addition to the
requirements of this subsection, the director may by rule establish such other
criteria and conditions as the director determines appropriate for the
placement of video lottery game terminals in establishments.
(4) No more than six video lottery
terminals may be placed in or on premises described in subsection (3) of this
section.
(5) No more than 10 video lottery game
terminals may be placed on the premises of a race meet licensee licensed under
ORS 462.020 that qualifies as a video lottery game retailer. [1991 c.962 §10;
1999 c.351 §16; 2003 c.787 §1; 2007 c.631 §1]
461.220
Number and value of prizes; required information on lottery tickets; rules;
advertising. (1) Upon
recommendation of the Director of the Oregon State Lottery, the Oregon State
Lottery Commission shall adopt rules that specify the number and value of
prizes for winning tickets or shares in each lottery game including, without
limitation, cash prizes, merchandise prizes, prizes consisting of deferred
payments or annuities and prizes of tickets or shares in the same lottery game
or other lottery games conducted by the Oregon State Lottery.
(2) In each lottery game utilizing
tickets, the following information shall be printed on each ticket:
(a) A close approximation of the odds of
winning some prize or some cash prize, as appropriate for the lottery game.
(b) An approximation of a payout
percentage that will be returned to players in the form of prizes for the
lottery game. For online games, the approximation may be based on the average
payout percentage over several prior years.
(c) The statement that “Lottery games are
based on chance, should be played for entertainment only and should not be
played for investment purposes.”
(3) A detailed tabulation of the estimated
number of prizes of each particular prize denomination that are expected to be
awarded in each lottery game and the close approximation of the odds of winning
such prizes shall be available at each location at which tickets or shares in
such lottery games are offered for sale to the public.
(4) Notwithstanding subsection (1) of this
section, the commission may specify by rule the number and value of prizes for
lottery games that use video devices or that use tickets or shares that allow a
player to manually reveal covered play symbols, or the commission may make such
information available at each location that offers such games using video
devices, tickets or shares for sale to the public.
(5) All television, radio and newspaper
advertising of a lottery game shall include a disclaimer representing a close
approximation of the odds of winning some prize and an approximation of the
amount that will be returned to the players in the form of prizes for the game
in the following words: “The odds of winning some prize are one in (some
number). The prize payout percentage is (some number).” where the numbers
stated represent a close approximation of the odds of winning some prize and
the prize payout percentage. However, this subsection does not apply to
advertising the purpose of which is to advertise the location where tickets may
be purchased or to provide information about the winners.
(6) All television, radio and newspaper
advertising of lottery games funded by the lottery commission, including
advertising that is intended to indicate where tickets may be purchased or to
provide information about prize winners, shall include the disclaimer that “Lottery
games are based on chance, should be played for entertainment only and should
not be played for investment purposes.”
(7) All television, radio and newspaper
advertising intended to publicize projects or programs funded by lottery
dollars shall include the disclaimer that “Lottery games are based on chance
and should be played for entertainment only.” However, this subsection does not
apply to any such advertising that has the sole purpose of educating the public
about gambling addiction or available treatments.
(8) All billboard advertising intended to
promote a lottery game, to indicate where tickets may be purchased or to
provide information about prize winners shall include the disclaimer that “Lottery
games should not be played for investment purposes.”
(9) All billboard advertising intended to
publicize projects or programs funded by lottery dollars shall include the
disclaimer that “Lottery games should be played for entertainment only.”
(10) A disclaimer required by this section
to be included in a written advertisement shall be of a size and in a form that
allows an individual to readily notice and read the statement. A disclaimer
required by this section to be included in a television or radio advertisement
shall be spoken aloud and, in the case of television, must also be displayed
visually in a form that allows an individual to readily notice and read the
statement. [1985 c.2 §4(3); 1985 c.302 §4(3); 1985 c.458 §1(3); 1985 c.520 §1(3);
1991 c.63 §1; 1999 c.1069 §1; 2001 c.83 §1]
461.230
Method for determining winners; rules. (1) Upon recommendation of the Director of the Oregon State Lottery,
the Oregon State Lottery Commission shall adopt rules that specify the method
for determining winners in each lottery game.
(2) If a lottery game utilizes a manual
drawing of winning numbers, a manual drawing among entries or a manual drawing
among finalists:
(a) The drawing must be open to the
public;
(b) The drawing must be witnessed by an
independent certified public accountant or a professional representative of an
independent certified public accountancy organization;
(c) Any equipment used in the drawing must
be inspected by the independent certified public accountant or the professional
representative of an independent certified public accountancy organization and
an employee of the lottery both before and after the drawing; and
(d) The drawing and such inspections shall
be recorded on both video and audio tape.
(3)(a) When a drawing is held out of this
state in conjunction with other state lotteries, the Oregon State Lottery shall
conduct periodic studies of the drawing’s security procedures. Any equipment
used in a manual drawing must be inspected both before and after the drawing by
a professional representative of an independent certified public accountancy
organization and a representative of the state lottery designated by the
director.
(b) Any manual drawing and such
inspections shall be recorded on both video and audio tape.
(4) The lottery may use any of a variety
of existing or future methods or technologies in determining winners. [1985 c.2
§4(4); 1985 c.302 §4(4); 1985 c.458 §1(4); 1985 c.520 §1(4); 1991 c.613 §2;
1997 c.146 §1; 1997 c.625 §2; 1999 c.322 §40; 2003 c.59 §1]
461.240
(2) Notwithstanding subsection (1) of this
section, the commission may specify by rule the retail sales price for tickets
or shares that allow a player to manually reveal covered play symbols or may
print the retail sales price on the ticket or share. [1985 c.2 §4(5); 1985
c.302 §4(5); 1985 c.458 §1(5); 1985 c.520 §1(5); 1989 c.418 §2; 2001 c.83 §2]
461.250
Validation and payment of prizes; tabulation of sales and prizes; assignment of
prizes; payment on behalf of deceased winner; claim period; ineligibility of
lottery employees; rules.
Upon recommendation of the Director of the Oregon State Lottery, the Oregon State
Lottery Commission shall adopt rules to establish a system of verifying the
validity of tickets or shares claimed to win prizes and to effect payment of
such prizes, provided:
(1) For the convenience of the public,
lottery game retailers may be authorized by the commission to pay winners of up
to $5,000 after performing validation procedures on their premises appropriate
to the lottery game involved.
(2) A prize may not be paid to a person
under 18 years of age.
(3) A video lottery game prize may not be
paid to a person under 21 years of age.
(4) A prize may not be paid arising from
claimed tickets or shares that are stolen, counterfeit, altered, fraudulent,
unissued, produced or issued in error, unreadable, not received or not recorded
by the Oregon State Lottery by applicable deadlines, lacking in captions that
confirm and agree with the lottery play symbols as appropriate to the lottery
game involved or not in compliance with such additional specific rules or with
public or confidential validation and security tests of the lottery appropriate
to the particular lottery game involved. However, the commission may adopt
rules to establish a system of verifying the validity of claims to prizes
greater than $600 that are otherwise not payable under this subsection due to a
lottery game retailer’s losing, damaging or destroying the winning ticket or
share while performing validation procedures thereon, and to effect payment of
verified claims. A verification system established by the commission shall include
appropriate public or confidential validation and security tests.
(5) A particular prize in any lottery game
may not be paid more than once, and in the event of a binding determination
that more than one claimant is entitled to a particular prize, the sole remedy
of such claimants is the award to each of them of an equal share in the prize.
(6) The commission may specify that
winners of less than $25 claim such prizes from either the same lottery game
retailer who sold the winning ticket or share or from the lottery itself and
may also specify that the lottery game retailer who sold the winning ticket or
share be responsible for directly paying that prize.
(7) Holders of tickets or shares shall
have the right to claim prizes for one year after the drawing or the end of the
lottery game or play in which the prize was won. The commission may define
shorter time periods to claim prizes and for eligibility for entry into
drawings involving entries or finalists. If a valid claim is not made for a
prize payable directly by the lottery commission within the applicable period,
the unclaimed prize shall remain the property of the commission and shall be
allocated to the benefit of the public purpose.
(8)(a) The right of any person to a prize
shall not be assignable, except that:
(A) Payment of any prize may be made
according to the terms of a deceased prize winner’s signed beneficiary
designation form filed with the commission or, if no such form has been filed,
to the estate of the deceased prize winner.
(B) Payment of any prize shall be made to
a person designated pursuant to an appropriate judicial order or pursuant to a
judicial order approving the assignment of the prize in accordance with ORS
461.253.
(b) The director, commission and state
shall be discharged of all further liability with respect to a specific prize
payment upon making that prize payment in accordance with this subsection or
ORS 461.253.
(9) A ticket or share may not be purchased
by, and a prize may not be paid to, a member of the commission, the director,
the assistant directors or any employee of the state lottery or to any spouse,
child, brother, sister or parent of such person.
(10) Payments made according to the terms
of a deceased prize winner’s signed beneficiary designation form filed with the
commission are effective by reason of the contract involved and this statute
and are not to be considered as testamentary devices or subject to ORS chapter
112. The director, commission and state shall be discharged of all liability
upon payment of a prize.
(11) In accordance with the provisions of
the Soldiers’ and Sailors’ Civil Relief Act of 1940 (50 U.S.C.A. app. 525), a
person while in active military service may claim exemption from the one-year
ticket redemption requirement under subsection (7) of this section. However,
the person must notify the commission by providing satisfactory evidence of
possession of the winning ticket within the one-year period, and must claim the
prize or share no later than one year after discharge from active military
service. [1985 c.2 §4(6); 1985 c.302 §4(6); 1985 c.458 §1(6); 1985 c.520 §1(6);
1987 c.268 §1; 1991 c.22 §1; 1991 c.613 §4; 1993 c.206 §1; 1995 c.478 §3; 1997
c.249 §160; 1999 c.203 §1; 2003 c.58 §1]
461.253
Voluntary assignment of prizes; petition for judicial order; issuance of order;
commission intervention in proceeding. (1) Payment of a prize may be made to any person pursuant to a
voluntary assignment of the right to receive future periodic prize payments, in
whole or in part. Payment of a prize pursuant to an assignment made under this
section must be made to a person designated as assignee under an appropriate
judicial order of the circuit court for the county in which the assignor
resides or in which the headquarters of the Oregon State Lottery Commission are
located.
(2) A copy of the petition for an order
described in subsection (1) of this section and copies of all notices of any
hearing in the matter shall be served on the commission not later than 10 days
prior to any hearing or entry of any order. A nonrefundable processing fee of
$500 for each assignee shall be paid to the commission when the copy of the
petition is served on the commission.
(3) The commission may intervene in a
proceeding to protect the interests of the commission but shall not be
considered an indispensable or necessary party. Notwithstanding the failure or
refusal of the commission to appear in any proceeding, the Director of the
Oregon State Lottery, the commission and the state shall be immune from liability
for, and shall be discharged of all further liability with respect to, any
amounts paid according to the terms of an order issued under this section.
(4) A circuit court receiving a petition
may issue an order approving the assignment and directing the commission to pay
to the assignee all future prize payments so assigned upon finding that all of
the following conditions have been met:
(a) The assignment has been memorialized
in writing and executed by the assignor and is subject to
(b) The assignor provides a sworn
declaration to the court attesting that the assignor is represented by
independent legal counsel in connection with the assignment, has had the
opportunity to receive independent financial and tax advice concerning the
effects of the assignment, is of sound mind and is not acting under duress;
(c) The proposed assignment does not and
will not include or cover payments or portions of payments that are subject to
a 30-day hold under ORS 461.715, unless appropriate provision is made in the
order to satisfy the obligations giving rise to the hold; and
(d) The proposed assignment and court
order shall not require the commission to divide any prize payment so that
portions of a single prize payment must be made to more than three persons at a
time.
(5) After receipt of a certified copy of a
court order granted under this section, the commission shall acknowledge in
writing to both the assignor and the assignee the agreement of the commission
to make the prize payments in accordance with the provisions of the order. The
commission shall thereafter make the prize payments in accordance with the
order.
(6) No modification or amendment to any assignment authorized by this section, and no additional or subsequent assignment of any prize, shall be valid or binding on the commiss