Tri-State Rules

Tri-State Lotto Commission Policies

1. Expense Reimbursement
2. Contingency Fund(s)
3. Standing Committees with the Tri-State Commission
4. Drawings Monitored Via a Tri-State Representative
5. Ownership of Tri-State Annuities and/or Investments
6. Prize Verification
7. Request for Jackpot Winners List
8. Jackpot Payments Made Within 5 Business Days
9. No Cancel Policy
10. Annual Budget includingState-Specific Advertising Dollars
11. Tri-State BusinessOffice
12. Conflict of Interest
13. Out-of-Balance Condition
14. Minimum Testing Standards Checklist
15. Standards for Sales Promotions
16. Authorization to Hire Tri-State Employees
17. Retailer Incentive Prize
18. Departure of Party Lottery or Termination of Tri-State Compact
19. Funding Promotional Raffle Games

POLICY NO. 1:
TRI-STATE LOTTO COMMISSION
EXPENSE REIMBURSEMENT POLICY

(Amended 4/6/99)

Definitions:

Expense Reimbursement: The term shall apply to either:

Reimbursements of monies advanced out-of-pocket for Tri-State expenses authorized under this policy.

Tri-State expenses authorized under this policy and charged to a Tri-State credit card account.

Receipt: Shall mean an actual receipt obtained representing goods or services purchased. If the goods or services are charged to a Tri-State credit card, a receipt that includes anitemized detail of the purchase, as well as the purchaser's copy of the credit card charge is required. Amounts of individual expenditures less than $5.00 do not require a receipt. Notwithstanding the above, a detailed explanation of the expenditure, signed by the purchaser, may be used in case of a lost or misplaced receipt that can not be obtained or reconstructed.

Tri-State Business is defined to include regular monthly Tri-State committee meetings and commission meetings, special committee or commission meetings, industry conferences such as NASPL, media presentations and workshops. Other types of meetings not covered in this definition may be sanctioned by the commission for purposes of payment of per diems when the meeting is held for Tri-State business purposes.

Expense Reimbursement:

1. All Commission members, staff, and/or Directors shall be reimbursed for all necessary and reasonable expenses incurred for Tri-State operations providing they are generally consistent with the intent of the expense reimbursement policies of the Tri-State Commission. When a Commission member, a Director or staff is accompanied by a guest or spouse when traveling on lottery business or attending a lottery meeting, no expenses of the guest or spouse shall be charged to the Tri-State Commission. The guest or spouse will be personally responsible for all travel, meals and incidental expenses. If there is a differential between single and double occupancy hotel rates, the spouse or guest will be responsible to pay the difference between the single and double occupancy rate.
   
   Due to the special nature of the Tri-State meetings, meals which are held for the convenience of Tri-State and where business is transacted will be reimbursed in full when a receipt is submitted. Meals, lodging or other expenses incurred by vendors, spouses and guests will not be paid or reimbursed by Tri-State unless specified in a vendor contract with Tri-State.

2. Prior to submission to the Tri-State Business Office for reimbursement, each respective state's lottery Executive Director, or designee, shall have approved said expenses thereby certifying compliance with this Tri-State Expense Policy. The Tri-State Business Office expense reimbursement requests shall be approved by a Tri-State Commissioner or a Director.

3. Each Commissioner shall have the authority to approve any business expense forms, except their own, in keeping with this policy. It is prohibited for a person to approve their expense voucher; therefore, a Tri-State Commissioner, Director, or designee, can sign an expense reimbursement voucher for the other.

Expense Guidelines:

1. No liquor charges will be reimbursed as an expense nor become part of any hotel or restaurant bill.

2. Meal expenses not accompanied by a receipt shall not exceed on a per person basis:
   a. Dinner: $25.00
   b. Lunch: 12.00
   c. Breakfast: 10.00

3. Mileage shall be at the business reimbursement rate as determined by each party member not to exceed the reimbursement rate as determined from time to time by the Internal Revenue Service.

4. Per diem shall be paid to Tri-State Commissioners for each day Tri-State business is conducted as defined above, or for meetings not defined above, but designated as meetings eligible for per diem by the Tri-State Commission. One day's per diem will be paid for travel to and from a business meeting unless travel time can be reasonably accomplished on the same day as the business meeting.

5. With the exception of the recording secretary provided by Vermont, each state's delegation for overnight accommodations and meals will not exceed five people unless unanimous consent is granted by the Tri-State Commission.

6. Reimbursement for Travel:
   
   Authorized persons may elect to travel by personal automobile or commercial carrier at their option. However, expense reimbursement may not exceed the least cost method of travel, including consideration for in-transit hotels and meals.
   
   When automobile travel is utilized, authorized reimbursement for transportation shall be limited to the amount of the round trip coach air fare. Expenses for any additional travel days beyond those which would have been incurred had regular air travel been utilized are not compensable. This is interpreted to mean that if travel could be accomplished in one day by air and it would take two or more days by auto, the meal and hotel expenses of the first and subsequent days cannot be claimed. However, the transportation costs of the first and second days, etc. including mileage, tolls, and parking are reimbursable up to the amount of the regular coach airfare. Persons electing to travel by auto should obtain airfare quotes from their travel agency to base the reimbursement on. It is expected that a good faith attempt will be made to obtain the lowest cost commensurate with schedule and service convenience.
7. General:
   
   The Tri-State credit card may be used only for expenses authorized under this policy or explicitly voted by the Commission.
   
   All expenses authorized under this policy will be submitted on an appropriate expense reimbursement form and sent to the Executive Director, or designee, of the respective state for approval. The Executive Director, or designee, will then forward the approved expense reimbursement form to the Tri-State Business Office. Expense reimbursement forms must be signed by the person requesting reimbursement and the state's Executive Director, Tri-State Commissioner or designee.
   
   If the respective state's Executive Director, or designee, determines that the expense reimbursement request is inappropriate under the terms of this policy, the entire expense reimbursement request will be returned to the requestor for further clarification.
   
   NOTE: Credit card charges may be included on the same form as reimbursable expenses.  The appropriate credit card receipt shall include the actual receipt of goods tendered as well as a copy of the credit card charge and be attached to the form.
   
   This policy requires that all Tri-State expenses, whether credit card or reimbursement, is explained in full on the expense form.
   
   Any expense reimbursement request which is either not in accordance with this policy or not covered in this policy will be submitted to the Commission by the Director of a party state or the Chair of the Finance Committee for consideration of approval.

POLICY NO. 2:
TRI-STATE LOTTO COMMISSION
CONTINGENCY FUND(S)

(Amended 6/2/00)

Monies constituting the difference between the calculated prize pooland the actual prizes awarded, whether annuitized or cash,shall be placed each week in a Contingency Fund, per the game rules, which will be allowed to accumulate. Thesefunds shall be used to pay off guaranteed jackpots, if needed, but arenot restricted solely to this disbursement.

No one bank account or investment shall represent any one contingency fund. Monies shall be pooled in order to maximize interest earned.

No contingency fund will be negative at fiscal year end. Expired, unclaimed prizes will be used to offset negative contingencies.

Disbursement of Designated Prize Reservesshall be determined by a unanimous vote of the Commission.

POLICY NO. 3:
TRI-STATE LOTTO COMMISSION
STANDING COMMITTEES WITH THE TRI-STATE COMMISSION

(Amended July 11, and ratified August 1, 2008)

Tri-State shall have four standing committees: Marketing & Development, Draw, Finance, and Operations. Each committee will be appointed annually by the directors at the Commission's July meeting. With the exception of the Marketing & Development Committee, whose chairperson shall be from the state of the current Tri-State Commission Chairperson, each of the other committees shall select its own chairperson from its membership.

* See Tri-State minutes dated July 15, 2005 for description and duties of the Development Committee.

POLICY NO. 4:
TRI-STATE LOTTO COMMISSION
DRAWINGS MONITORED VIA A TRI-STATE REPRESENTATIVE

(Adopted 8/6/87)

(Amended 4/6/99)

A Tri-State representative shall monitor all on-line drawings and the Tri-State Commission shall compensate those monitors on a per diem basis.

POLICY NO. 5:
TRI-STATE LOTTO COMMISSION
OWNERSHIP OF TRI-STATE ANNUITIES AND/OR INVESTMENTS

Tri-State jackpot annuities or other investments remain the property of Tri-State.

POLICY NO. 6:
TRI-STATE LOTTO COMMISSION
PRIZE VERIFICATION

(Amended 11/2/99)

No one may claim a prize without presentation of a valid ticket issued and authenticated by a state and/or Tri-State, along with the proper identification as required by the individual states for all tickets worth $500.00or more or as required by the individual party states.

POLICY NO. 7:
TRI-STATE LOTTO COMMISSION
REQUEST FOR JACKPOT WINNERS LIST

(Adopted 1/8/93)

(Amended 4/6/99)

Requests for a listing of jackpot winners' names will be honored upon a written request.  Such a list would includewinner's name, home town and amount won (designated as either cash or annuity payment).

POLICY NO. 8:
TRI-STATE LOTTO COMMISSION
JACKPOT PAYMENTS MADE WITHIN 5 BUSINESS DAYS

(Adopted 2/5/93)

(Amended 4/6/99)

The Business Office will issue payment for the second through the twenty-fifth Megabucks jackpot payments within five business days of the anniversary of the draw date on which the jackpot was won unless the jackpot winner instructs the Business Office to the contrary in writing. This policy applies only to jackpot payments issued by the Tri-State Lotto Commission Business Office.

For jackpots payable on a monthly basis, the Tri-State Business Office may choose to make payment on or around the 1^st of each month, but no later than the 5^th business day of each month.

POLICY NO. 9:
TRI-STATE LOTTO COMMISSION
NO CANCEL POLICY

(Adopted 6/10/94)

(Amended 6/1/01)

A ticket may be canceled by returning the ticket to the selling agent/retailer, provided, that the ticket is returned to the agent/retailer on the same day that it was purchased, and, if purchased on the drawing day for the ticket, in time to permit cancelling to be fully completed prior todraw breakof that day’s drawing(s).

POLICY NO. 10:
TRI-STATE LOTTO COMMISSION
ANNUAL BUDGET INCLUDING STATE-SPECIFIC ADVERTISING DOLLARS

(Adopted 3/3/95)

(Amended 4/6/99)

The Finance Committee Chair, or designee, shall submit an annual budget for Tri-State, broken out by state, for Commission approval by the July Tri-State meeting. This budget will include the advertising dollars for each state. The Commission will vote to accept or deny the budget request. This budget shall be revised if necessary at least once in the course of a fiscal year with the approval of the Commission.

The participant states may expend their advertising dollarsat their own discretion provided that these monies are expended only for the promotion of Tri-State products.

Monies budgeted to each state which remain unexpended at period end will remain with that state as an addition to its profit.

POLICY NO. 11:
TRI-STATE LOTTO COMMISSION
TRI-STATE BUSINESS OFFICE

(Amended 4/6/99)

(This policy was formerly Megabucks Rule 11 (b))

The Commission shall establish a Tri-State BusinessOffice for the purpose of managing prize disbursements and expenditures. The location of the BusinessOffice shall be determined by the Commission and may be changed at the direction of the Commission.

POLICY NO. 12:
TRI-STATE LOTTO COMMISSION
CONFLICT OF INTEREST

(Adopted 4/6/99)

The Tri-State Commission shall not issue a contract for services for products to a company or person who employs, or is, a family member of a lottery employee that has an administrative responsibility over any of the duties specified in the contract, or who may be involved in the decision to award the contract. A family member is defined as a person living in the same primary residence as the lottery employee. A lottery employee is defined as an employee of the Maine, New Hampshire or Vermont lotteries, or the Tri-State Commission.

POLICY NO. 13:
TRI-STATE LOTTO COMMISSION
OUT-OF-BALANCE CONDITION

(Adopted 6/2/00)

For any out-of-balance condition for any game which requires jackpot management on draw nights, the jackpot management coordinator shall be notified as soon as possible.

If any state’s ICS staff determines there is an out-of-balance condition in total prizes up to $9,999 for that night’s drawing, the ICS staff shall contact that state’s director and continue working on the problem until the problem is identified and the out-of-balance condition is brought back into balance. An out-of-balance condition report shall be forwarded to the other states the next business day.

Should any state’s ICS staff determine an out-of-balance condition in total prizes is greater than or equal to $10,000 and is not the jackpot winning ticket for that night’s drawing, the ICS staff shall notify that state’s director who shall then suspend sales and validations for the game affected in the state in which the problem occurred until the problem is identified and the out-of-balance condition is brought back into balance. The other two directors shall be notified as soon as possible. An out-of-balance condition report shall be forwarded to the other states the next business day.

Should the ICS staff determine an out-of-balance condition involves a jackpot winning ticket, all three state directors shall be notified immediately, and sales and validations in all three states shall be suspended until the problem is identified and the out-of-balance condition is brought back into balance. If one or more directors cannot be located, this policy will still apply.

POLICY NO. 14:
TRI-STATE LOTTO COMMISSION
MINIMUM TESTING STANDARDS CHECKLIST

(Adopted 6/2/00)

The Systems Operations Committee shall develop a minimum testing standards checklist. The minimum standards shall be completed by each state prior to implementing any new Tri-State game change, enhancement, or promotion that requires system testing.

POLICY NO. 15:
TRI-STATE LOTTO COMMISSION
STANDARDS FOR SALES PROMOTIONS

(Adopted 10/5/01)

The Tri-State Lotto Commission or a party state(s) may enact a promotion for the explicit use of encouraging an increase in Tri-State ticket sales.

A party member state shall have the privilege to conduct a state promotion with the use of individual advertising monies. The Marketing Director of a party state, or designee, will, out of common courtesy prior to the promotion commencement, provide the Commission with details concerning the promotion. This would include, but is not limited to, timeframe of promotion, what the promotion consists of and what the party state hopes to achieve. Following the promotion, an analysis of the promotion will be presented by the party state.

Per game rules, at least once a year the Commission is required to make a decision as to the disbursement of expired unclaimed prize money. The Chair of the Marketing Committee or Development Committee, in concurrence with the Finance Committee Chair, shall request a sum of expired unclaimed prizes to be allocated to each of the member states proportional to each states total sales for the most recent fiscal year ended to be used for promotions or promotional games. This request shall be made by the July Tri-State Lotto Commission meeting. Unused (not awarded to a player) expired unclaimed prizes shall be forfeited at fiscal year end.

Promotions that involve the use of expired, unclaimed prize money shall not exceed the approved allocation of expired unclaimed prizes for any state. Any state wishing to use expired unclaimed prize money for a promotion must provide the Development Committee with the details of the promotion in a timely manner in order to allow the other states to also participate in the promotion. The Chair of the Marketing Committee orProduct, Development Committee, or designee, will review the promotion during a commission meeting, and provide the Commission with details concerning the promotion. This would include, but is not limited to, the timeframe of the promotion, what the promotion consists of and what the Commission hopes to achieve. This type of promotion shall be brought to the attention of the Tri-State Lotto Commission for a vote of approval. Following the promotion, an analysis of the promotion will be presented by the Chair of the Marketing and Product Development Committee, or designee.

If any state inadvertently or otherwise exceeds their approved allocation of expired unclaimed prizes, state specific advertising dollars will be used to supplement the promotion.

POLICY NO. 16:
TRI-STATE LOTTO COMMISSION
AUTHORIZATION TO HIRE TRI-STATE EMPLOYEES

(Adopted 11/02/01)

The executive director, or the director’s designee, of each party lottery is authorized to hire and terminate personnel for positions within that director’s state, for games authorized by the Tri-State Commission.

POLICY NO. 17:
TRI-STATE LOTTO COMMISSION
RETAILER BONUS PRIZE

(Adopted 7/11/02)

In addition to any retailer bonus prize authorized by the Commission on any Tri-State game, a member lottery may establish additional bonus prizes for other lower tier prize levels, in accordance with a member lottery’s rules and regulations. The cost for these lower tier bonus prizes shall be borne by the paying member lottery.

POLICY NO. 18:
TRI-STATE LOTTO COMMISSION
DEPARTURE OF PARTY LOTTERY OR TERMINATION OF TRI-STATE COMPACT

(Adopted 2/4/05)

The Commission, on unanimous vote of the Party Lotteries, may terminate the Compact, effective on a date established by the Commission, in conformance with applicable law. Likewise, a Party Lottery may withdraw from the Compact with due notice to the Commission and in accordance with applicable law and Commission policy. However, the Compact or a Party Lottery’s membership in the Compact shall terminate no sooner than the latest date of an advanced play bet on a terminated Party Lottery’s gaming system. A full financial external audit shall be performed prior to distribution of any funds to any Party Lotteries.

Termination of the Tri-State Compact.

Upon termination of the Tri-State Lotto Compact, any assets acquired by the Tri-State Lotto Commission (the Commission) shall be liquidated, with the exception of the designated reserve fund, the operational accounts essential to support residual post-termination Commission operations, and investment and deposit fund contracts held for lottery payments to jackpot winners. Party Lotteries that have valid subscriptions shall refund to their players the value of remaining draws following the termination date. The Commission shall provide the Tri-State Business office with reasonable funds to perform the duties required of it until such time as all Tri-State assets are liquidated and jackpot payments are transferred to the respective lotteries in accordance with this policy.

On termination of the Tri-State Compact, the distribution of any assets shall be as follows:

CLAIMED JACKPOT PAYMENTS. The responsibility of claimed lottery payments to jackpot winners, and the required funds or investments to make those payments, shall be transferred to the Party Lottery of the State where the claim originated. In the event that an insurer defaults on an investment fund contract and the designated reserve account is not adequate to pay the jackpot winner, all three Party Lotteries shall be responsible for their pro rata shares of liability to the jackpot prize winner based on their respective average sales for the game at issue over the 12 month period preceding and up to the date of termination.

DESIGNATED PRIZE RESERVE. The Commission shall use one half of the designated prize reserve fund balance as a reserve fund for investment fund contracts. This reserve fund shall be placed in an interest-bearing escrow account until such time as all investment fund contracts, and insurer obligations thereunder, expire. Once all insurer obligations under applicable investment fund contracts have been fulfilled, the escrow account shall be distributed to the Party Lotteries pro rata based on the Party Lotteries proportional average sales over the 12 month period preceding and up to the date of termination. On termination and after the requisite financial audit, the remaining half of the designated prize reserve fund shall be distributed to the Party Lotteries pro rata based on the Party Lotteries’ proportional average sales over the 12 month period preceding and up to the date of termination. Before receiving its pro rata share of either half of the designated prize reserve fund, the Party Lottery must first execute a Memorandum of Understanding or equivalent agreement with the other Party Lotteries committing it to expend its pro rata share as prizes to its lottery players and for no other purpose.

UNEXPIRED UNCLAIMED LOW-TIER PRIZES. Low-tier Tri-State game prize amounts unclaimed but not yet expired at time of termination of the compact shall be returned to the Party Lottery that sold the ticket. The Party Lottery to whom funds are returned, shall have sole responsibility for payment of any subsequent claims on the returned low-tier prize amounts. After the period of one year any unclaimed prize amounts shall be awarded to the Party Lottery’s players. A prerequisite to any Party Lottery receiving its pro rata share of the unclaimed prize amounts is that the terminating Party Lottery must execute a Memorandum of Understanding or equivalent agreement with the Commission committing it to expend its pro rata share as prizes to its state lottery players and for no other purpose.

UNCLAIMED JACKPOT PRIZE. Upon termination of the compact, the cash value of any unclaimed jackpot prize will remain with the Tri-State Business Office until claimed. If upon termination there are any unclaimed jackpots, contingency funds shall be withheld from distribution to member states in an amount to allow the Business Office to purchase an investment to fund an annuity payment if necessary to pay such jackpot. If after a period of one year from draw date the jackpot prize is not claimed, the pertinent funds, including interest, shall be distributed to each Party Lottery pro rata based on their respective average sales for the game at issue over the 12 month period preceding and up to the date of termination. The jackpot prize values shall be awarded to each Party Lottery’s players.

EXPIRED UNCLAIMED LOW-TIER PRIZES. Any expired unclaimed low-tier prizes shall be distributed to each member state pro rata based on their respective average sales for the game at issue over the 12 month period preceding and up to the date of termination. These prize values shall be awarded to each member state’s players.

PRIZE CONTINGENCY FUNDS. The prize contingency funds shall be maintained by the Commission in an interest-bearing escrow account for one year following the date of termination at which time the remaining funds shall be distributed to the Party Lotteries pro rata based on the Party Lotteries’ proportional average sales over the 12 month period preceding and up to the date of termination.

REMAINING ASSETS. Any remaining assets held in equity, except for retained operational funds, shall be distributed to each member state pro rata based on the Party Lotteries’ proportional average sales over the 12 month period preceding and up to the date of termination. Upon termination, and after wind-up operations of the Tri-State Lotto Compact have concluded, any net profit or loss and any interest earned shall be distributed to each member state. For any income or expenses normally apportioned based upon percentage of sales, such percentage shall be pro rata based on the Party Lotteries’ proportional average sales over the 12 month period preceding and up to the date of termination.

Termination by a Party Lottery of its Participation in the Tri-State Compact

If a Party Lottery terminates its membership in the Compact, the Compact shall continue pertaining to the remaining Party Lotteries. The respective rights and obligations of the Party Lotteries shall be as follows.

LOW TIER PRIZES. All unclaimed low-tier prize amounts pertaining to tickets sold in the terminating Party Lottery’s state, shall be returned to that Party Lottery within 30 days after the full financial audit. The terminating Party Lottery shall have sole responsibility for payment of any subsequent claims on the returned low-tier prize amounts. A prerequisite to receiving its pro rata share of the prize amounts is that the terminating Party Lottery must execute a Memorandum of Understanding or equivalent agreement with the Commission committing it to expend its pro rata share as prizes to its state lottery players and for no other purpose.

JACKPOT PRIZES. The Commission shall retain responsibility for payment of jackpot annuities and shall retain the investment and deposit fund contracts held for lottery payments to jackpot winners. In the event that an insurer defaults on an investment fund contract issued prior to the date of withdrawal of the terminating Party Lottery, the terminating Party Lottery shall be responsible for its pro rata share of liability to the jackpot prize winner based on the respective Party Lottery average sales for the game at issue over the 12 month period preceding and up to the date of termination.

UNCLAIMED JACKPOT PRIZES. If upon termination there are any unclaimed jackpots, contingency funds shall be withheld from distribution to that state in an amount to allow the Business Office to purchase an investment to fund an annuity payment if necessary to pay such jackpot. All other contingency funds shall be distributed in accordance with this policy as described below. If after a period of one year from draw date the jackpot prize is not claimed, the pertinent funds, including interest, shall be distributed to the Party Lotteries pro rata based on their respective average sales for the game at issue over the twelve month period preceding and up to the date of termination. The jackpot prize value shall be awarded to the Party Lotteries’ players.

DESIGNATED PRIZE RESERVE FUND. On termination by a Party Lottery of its participation in the Compact, The Commission shall equally divide the designated prize reserve fund into two separate accounts. The first account will serve as a reserve fund for investment fund contracts issued prior to the date of withdrawal of the terminating Party Lottery. The account shall be placed in an interest-bearing escrow account until such time as all investment fund contracts in place at the time of the Party Lottery’s termination expire. Once all insurer obligations under applicable investment fund contracts have been fulfilled, the Commission shall pay to the terminating Party Lottery its pro rata share of the balance of the first account. The second account will serve as the designated prize reserve for all Tri-State Lotto Commission games. After the requisite Memorandum of Understanding or equivalent is executed as provided in the following paragraph, and on completion of the financial audit required pursuant to the first paragraph of this policy, , the Commission shall pay the terminated Party Lottery its pro rata share of the balance of the second account.

A prerequisite to receiving its pro rata share of the first or second account is that the terminating Party Lottery must execute a Memorandum of Understanding or equivalent agreement with the Commission committing it to expend its pro rata share as prizes to its state lottery players and for no other purpose. A Party Lottery’s pro rata share, pertaining to both accounts, shall be based on the Party Lotteries proportional average sales over the 12 month period preceding and up to the date of the departing Party Lottery’s termination.

EXPIRED UNCLAIMED LOW-TIER PRIZES. Any expired unclaimed low-tier prizes shall be distributed to the terminating Party Lottery pro rata based on its respective average sales for the game at issue over the 12 month period preceding and up to the date of termination. These prize values shall be awarded to the terminating Party Lottery’s players.

CONTINGENCY FUNDS. After the requisite Memorandum of Understanding or equivalent is executed as provided in the following sentence, and on completion of the financial audit required pursuant to the first paragraph of this policy, the Commission shall pay the terminated Party Lottery its pro rata share, as determined in the preceding paragraph, of the various game contingency accounts. A prerequisite to receiving its pro rata share of the contingency account is that the terminating Party Lottery must execute a Memorandum of Understanding or equivalent agreement with the Commission committing it to expend its pro rata share as prizes to its state lottery players and for no other purpose.

A Party Lottery that withdraws prior to termination of the Compact shall be entitled to its pro rata share of the operational account based on the withdrawing Party Lottery’s average sales for the game at issue over the 12 month period preceding and up to the date of termination. However, the withdrawing Party Lottery shall be entitled to its state-specific operational accounts in the amount of its unexpended contribution as of the date of withdrawal. The Party Lottery is not otherwise entitled to any share of the property or assets of the Commission except as provided herein.

POLICY NO. 19:
TRI-STATE LOTTO COMMISSION
FUNDING PROMOTIONAL RAFFLE GAMES

(Adopted 12/28/07)

For the purpose of funding the expenditures associated with Tri-State Lotto Commission Raffle-type promotional games, the Business Office shall first, on a weekly basis, allocate sales associated with a Raffle game to operating expenses directly related to the game (including agent commissions, vendor fees, and weekly contributions for general operating costs) per a predetermined percentage of each state’s sales, as well as to a prize pool for future payment of prizes and agent bonuses up to an amount as determined by game rules. Any excess of sales, after operating expenses, prize pool and agent bonuses have been fully funded, shall remain with the states. After tickets for a particular Raffle are no longer available for sale, any shortfall in a prize pool for a Raffle game shall be supplemented with expired, unclaimed prize money in order to fully fund the prizes.

Updated as of 7/9/10

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