Ohio Lottery Instant Tickets: Consignment, Sales, and Security, Study notes of Business

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RETAILER REFERENCE GUIDE Revised January 2017 2 Contents BEING A RETAILER ......................................................................................................................................... 4 An Introduction to Your LSR and CSR........................................................................................................ 4 Consignment and Issuing of Instant Tickets.............................................................................................. 4 Security ..................................................................................................................................................... 4 Equipment Relocation ............................................................................................................................... 4 Insurance of Lottery Equipment ............................................................................................................... 4 Amber Alert ............................................................................................................................................... 4 TELEPHONE NUMBERS .................................................................................................................................. 5 Draw Game Schedule .................................................................................................................................... 6 Carrier Stations and Draw Times .................................................................................................................. 7 Ohio Lottery Game Descriptions ................................................................................................................... 8 MANAGING YOUR LOTTERY ACCOUNT/FINANCIALS .................................................................................. 15 License Renewals .................................................................................................................................... 15 Bond Renewals ........................................................................................................................................ 15 Sale of Business ....................................................................................................................................... 15 Reconciliation .......................................................................................................................................... 15 Deposits .................................................................................................................................................. 15 Remitting Payment ................................................................................................................................. 15 Floating Instant Tickets ........................................................................................................................... 16 Instant Game Final Settlement and Mark-Sold ....................................................................................... 16 Retailer Request for Reimbursement ..................................................................................................... 16 Cash Advance .......................................................................................................................................... 16 Changing Your Bank Account .................................................................................................................. 16 Incident Reports ...................................................................................................................................... 16 Credit ....................................................................................................................................................... 17 Sight Validation ....................................................................................................................................... 17 Redeemed Tickets ................................................................................................................................... 17 If Faced With A Theft .............................................................................................................................. 17 TERMINAL MALFUNCTION ADJUSTMENT ................................................................................................... 18 COMMISSIONS AND BONUSES ................................................................................................................... 19 Instant Tickets and Game Show Selling Bonuses .................................................................................... 19 Rolling Cash 5 .......................................................................................................................................... 19 5 TELEPHONE NUMBERS Touch the [PHONE NUMBERS] icon from the Admin Menu. The telephone numbers window displays with contact information for retailers and players. Intralot Hotline 1-866-710-4262 Monday through Saturday 7:00 A.M. -11:00 P.M. Sunday 7:00 A.M. – 9:00 P.M. OLC Customer Service (toll free) 1-800-686-4208 Monday through Friday 8:00 A.M. – 5:00 P.M. Lottery Security 1-216-774-5757 Monday – Friday 5:45 A.M. – 12:00 A.M. Ohio Problem Gambling Helpline 1-800-589-9966 Winning Numbers Information Line 1-800-589-6446 (24/7) When you have questions that have not been addressed by calling the numbers above, you can also contact your Lottery Regional Office. Cleveland (216) 774-5671 1100 Resource Dr, Brooklyn Heights, 44131 Toledo 1-800-589-6442 315 Arco Drive, Toledo, 43607 Dayton 1-800-589-6463 7462 Webster Street, Dayton, 45414 Cincinnati 1-800-589-9883 10840 Kenwood Rd, Cincinnati 45242 Columbus 1-800-589-6445 780 Morrison Rd, Columbus, 43230 Athens 1-800-589-6466 170 W. Union Street, Athens 45701 Akron-Canton 1-800-589-6467 5926 Mayfair Road, North Canton, 44720 Youngstown 1-800-589-6468 242 Federal Plaza West, Youngstown, 44503 Lorain 1-800-589-6469 300 West Erie & Broadway, Lorain 44052 6 Draw Game Schedule KENO drawings are held every 4 minutes from 6:04 a.m. to 2:28 a.m., daily. Ohio Lottery drawings are aired Monday through Friday at 7:29 p.m., and on Saturday during the game show. Cash Explosion is aired on Saturday’s at 7:30 pm. Saturday Night Pool Closings and draws are as follows:  Pool Closes at 7 pm for Rolling Cash 5, Classic Lotto and Kicker.  Kicker is drawn immediately after the pool closes. Rolling Cash 5 and Classic Lotto are drawn at approx. 7:05  Pick 3, Pick 4 and Pick 5 are drawn after 7:45 at a commercial break during the show. 7 Carrier Stations and Draw Times Cincinnati WCPO ABC - Channel 9 Cleveland WEWS ABC - Channel 5 Columbus WTTE FOX - Channel 28 WSYX ABC - Channel 6 Dayton WHIO CBS - Channel 7 Huntington, WV WSAZ NBC - Channel 3 Lima ELIO FOX - Channel 9 EOHL CBS - Channel 11 WOHL ABC - Channel 12 Steubenville WTOV NBC - Channel 9 Toledo WTVG ABC - Channel 13 Youngstown WFMJ NBC - Channel 21 Zanesville WHIZ NBC - Channel 18 Classic Lotto and Rolling Cash 5 are shown exclusively online at ohiolottery.com. Drawings for the other Ohio Lottery games are held seven days a week, at 12:29 p.m. and 7:29 p.m., (except Saturday evenings). Monday through Friday evening drawings are broadcast statewide. Saturday evening drawings occur during the Cash Explosion® television show, which airs from 7:30 p.m. to 8:00 p.m. The exact times during the show may vary. Mid-day and Sunday drawings are not aired. Mega Millions/Megaplier drawing are held at 11:00 p.m. on Tuesdays and Fridays. To view the Mega Millions drawings go to the Official Mega Millions site. Powerball drawings are held every Wednesday and Saturday at 10:59 p.m. eastern time. To view the Powerball drawings go to the Official Powerball website. Lucky for Life drawings are held every Monday and Thursday, at approximately 10:35 pm eastern time. To view the Lucky for Life drawings go to the Official Lucky for Life website. 10  Players can add Megaplier® for an extra $1 per board per draw.  MEGAPLIER will multiply any non-jackpot prize won by 2X, 3X, 4X, or 5X.  Match 5+0 prize with on Megaplier for $1,000,000. POWERBALL®  Jackpot begins at $40,000,000 and rolls based on sales.  Each wager costs $2.00 per play.  Players select 5 numbers from a field of numbers 1 through 69 and 1 number from a second field of numbers from 1 through 26.  Customers may purchase up to 10 consecutive drawings.  A bet card is available allowing the multi-draw feature to be utilized.  Players can play up to ten times on a single bet card.  Advanced wagering is not available.  Customers can also request an Auto Pick.  Tickets cannot be cancelled.  Numbers are drawn Wednesday and Saturday approximately 11:00 pm.  Power Play® - Power Play is an add-on game that is played only with the Powerball game.  Players can add Power Play for an extra $1 per board per draw.  A Power Play purchase increases all non-jackpot prizes by 2x, 3x, 4x, 5x or 10x(on all advertised jackpots of $150 million and below).  The Match 5+0 prize with Power Play now pays $2,000,000 for 2x, 3x, 4x, 5x or 10x. Monitor Games KENO™  KENO features multiple spots (numbers) for players to play from 1 – 10.  Players select 1 through 10 numbers from a field of numbers 1 through 80.  Advanced wagering is not an option for the game.  Players can wager $1, $2, $3, $4, $5, $10, & $20 per spot (number).  Players can play up to 20 consecutive drawings.  Players can use KENO bet slip or Auto Pick option.  Cancellations are permitted before the first drawing for that particular ticket.  Players can watch the KENO drawing on a monitor, OLC website, or the mobile app.  Winning KENO numbers are drawn by RNG (Random Number Generator).  The first KENO drawing is 6:04am and ending with the last drawing at 2:28 am. Booster®  Booster is only offered with the purchase of KENO.  Booster costs an extra dollar for every dollar wagered.  The Booster number is a computer generated number; players cannot select their own number. Booster may increase by 2x, 3X, 4X, 5X, or 10X.  The 1X Booster does not boost a player's winnings.  Booster number applies to all prize levels, including the top prize.  The Booster number will be displayed before every KENO draw show. 11 For Life Games Lucky for Life™  Top prize is $1,000 a Day for Life.  Each wager will cost $2.00 per play.  Players will select 5 numbers from a field of numbers 1 through 48 & 1 Lucky Ball from a second field of numbers 1 through 18.  Players can play a maximum of 10 consecutive drawings.  Players can play up to 5 times on a single bet card.  A bet card is available allowing the multi-draw feature to be utilized.  Customers may request an Auto Pick.  Numbers will be drawn on Monday and Thursday at approximately 10:35 pm eastern time. Raffle Games OHIO 50/50  The top prize is based on sales. 50% of every purchase is designated to the top prize. There are also ten winners of $10,000 and twenty-five winners of $500 every draw.  Each wager is $1 per play and for every 5 plays purchased, a 6th play is generated for free.  Each ticket will contain a unique 7-digit number printed on the ticket.  Drawings will be held every Saturday at 10:00pm Eastern Time.  There is no multi-draw option for this game.  Pools close at 9:59 pm, Eastern Time. Tickets can be purchased until 9:59pm Eastern Time.  There cannot be more than one jackpot winner. One top prize winner will be selected out of all of the Ohio 50/50 numbers sold. Instant / Online Hybrid Games EZPLAY® Games This game category was introduced in 2008. Every EZPLAY® Game ticket is generated at time of purchase with a set of numbers/symbols. Players simply match their play numbers/symbols to the draw numbers/symbols to see if they have won. Upon winning, retailers will simply validate the winning ticket through the lottery terminal just like any other Ohio Lottery game. EZPLAY Games ticket expires 180 days from the date of purchase and EZPLAY Games cannot be cancelled. EZPLAY® Progressive Games In January of 2013, EZPLAY® Progressive Games were launched. These games play the same way a traditional EZPLAY game plays; however, the top prize is a progressive jackpot. Each games jackpot has a set starting jackpot and grows based on sales. The first EZPLAY Progressive game was introduced in January 2013 with the launch of $2 Prefect Game 300. At this time, we offer $1 Rock’n 77s, $2 Perfect Game 300 and $5 Going Pro. 12 EZPLAY® Countdown Series In January of 2014 the EZPLAY® Countdown Series games were launched. These new and exciting games were created as “neighborhood” games and are only offered at Ohio Lottery with a Multi-Play Station (MP). These Retailers have been assigned to a “Group” of retailers in geographic proximity. Each group has its own game pools, which will run independently of every other group. For example, if there are 3 games in each group and 100 groups, there will be 300 games running simultaneously. When someone in that group wins a top prize, we reset the game and the ticket quantities, and then we begin the count down again! Convenience Features Bundle Play  Bundle Play features Powerball / Power Play, Mega Millions / Megaplier, Classic Lotto / KICKER.  Players will receive a free Rolling Cash 5.  Players cannot select their own numbers.  Each ticket will be an Auto Pick selection.  The terminal will produce four separate tickets and the tickets are numbered “1 of 4”, “2 of 4”, etc.  Tickets cannot be cancelled.  Each ticket is for the next scheduled drawing.  Play It Again will only reproduce the particular ticket scanned; the entire Bundle Play package will not be duplicated. Play It Again  A second barcode is printed on all online tickets (except EZPLAY) above the Game logo.  Play It Again does not cost extra.  Retailers scan the ticket to duplicate the exact wager.  For KICKER, a different six-digit KICKER number will appear on the new ticket.  Using Play It Again on a Bundle Play ticket will only reproduce the particular ticket information scanned. The entire Bundle Play package will not be duplicated. 15 MANAGING YOUR LOTTERY ACCOUNT/FINANCIALS License Renewals Your initial license is valid for one year and must be renewed on an annual basis. A license renewal package will be mailed to you 30 days prior to the license expiration date. Bond Renewals The Lottery must receive the renewed lottery bond 14 days prior to the bond cancellation date. If you require assistance obtaining a bond, the Lottery has a list of providers. You can contact the Lottery’s office of Licensing and Bonding for this information. Sale of Business If you intend to sell your business, you should give the Lottery 60 days notice. This will give the Lottery time to obtain and process a new application from the buyer of your business. The notification should be sent in writing to your regional Lottery office. Reconciliation The Lottery business week runs from 12:00 a.m. Sunday to 11:59 p.m. Saturday, with wager processing capability 24 hours a day. You are required to make weekly deposits of Online and Instant game proceeds into your designated Lottery account. This account is electronically debited or credited on a weekly basis. The Lottery terminal provides many reports to help retailers reconcile lottery activity. The Lottery suggests that you reconcile during a shift change and on a daily basis. At the end of the week, each retailer must print and verify the Weekly Invoice Report which provides a record of lottery activity for the previous week and the amount due the Lottery (see the following examples). This report can be taken after 6 a.m. on Sunday. Deposits Your weekly Invoice Report will show the total amount due to the lottery. The funds need to be available for withdrawal prior to noon on Monday. Any time funds are not available for transfer the retailer will receive a Strike and be charged a fee. If you have questions or have been notified of an NSF on your Lottery account, please call your regional office. Remitting Payment When a book of tickets is completely sold, it needs to be marked sold through the terminal. Proceeds from the sale of lottery tickets are due to the Lottery upon their sale. It is your responsibility to ensure that those funds are in your lottery account at the time the Lottery conducts its Electronic Funds Transfer. All books activated for 65 days, or a period set by the Ohio Lottery, will be automatically settled by the Lottery. At that time, the Lottery will charge the total book value, minus the 5.5 percent commission, to your invoice. To ensure additional inventory, please mark all outstanding books as sold. The number of books a retailer is consigned is based on the store’s sales. 16 Floating Instant Tickets Retailers should mark sold books according to Lottery Policy and Procedures. Any book that is not marked sold at the correct time is considered in a “float” condition. If this occurs, your LSR will ask for the books(s) in question to be processed as sold. Only retailers are permitted to process book(s) as sold. A float situation must be resolved before more tickets can be issued. Instant Game Final Settlement and Mark-Sold Each Instant game has a defined sales cycle. At the end of this sales cycle, the Lottery performs a final settlement. During this period, called final settlement, you are offered an opportunity to return all unsold inventory of the game. You will receive the dates and games included in final settlement on a regular basis. At the end of final settlement, all inventory in your possession will be processed as marked sold and payment will be due to the Lottery. Retailer Request for Reimbursement Retailers may pay prizes on tickets that generate a Cash/Pay receipt only. Retailers who mistakenly pay customers on winning tickets that generate any of the other payment receipts may submit a request for reimbursement. The retailer must submit the receipt and original ticket along with the necessary paper work and a $25 processing fee (paid by money order or EFT) for all reimbursements. Cash Advance A retailer can receive a cash advance if the store’s cashes exceed sales by $1,000 or more on the week-to-date report. Notify your regional office before 10 a.m. to receive the cash advance. The money will be credited to your account the same day. Changing Your Bank Account Contact your regional office when you want to change the location of your Lottery bank account, or www.ohiolottery.com to download an EFT form. The regional office will notify you when the new account can be used for Lottery transactions. Incident Reports Within 24 hours of an incident, report lost, stolen or destroyed tickets or equipment to the local police department and your regional office. When a portion of a book is reported stolen, lost or destroyed, immediately discontinue selling the book until the Lottery authorizes the sale of the remaining tickets. In case of a fire, file a report within 24 hours with the local fire department and provide the Lottery with a copy of the fire department report. 17 Credit Retailers may receive credit for stolen tickets provided they are un-cashed and/or were deactivated. Sight Validation Sight validation is prohibited. All tickets must be validated through the Lottery terminal. No prize may be paid if a ticket is stolen, altered, torn or mutilated. Non-conforming or defective tickets should be returned to your lottery sales representative for credit. Tickets that do not have an intact barcode should not be cashed If you have a question about cashing damaged instant tickets contact the lottery hotline. Redeemed Tickets All redeemed tickets must be destroyed or defaced immediately after balancing on the Lottery ticket system. If Faced With A Theft Immediately follow the steps below: Deactivate the affected book(s). Record the name of anyone you speak with for future reference concerning your incident report. Contact the local police department and complete a police report. Write down your report number. Complete a Stolen or Destroyed Ticket Report and Statement of Retailer Affidavit provided by your LSR. Write down your report number. Obtain a copy of the police report and give it to your LSR within 30 days. Late police reports justify denial of stolen ticket credit. Notify your regional office and the Lottery’s Office of Security as soon as possible. Call the Customer Call Center immediately if you experience a terminal problem while generating or validating tickets. Retailers can submit Retailer Requested Adjustment forms for investigation of Online ticket questions, and possible credit. These forms are provided by your sales representative, regional office, or www.ohiolottery.com. Below are guidelines to follow when requesting credit. If misprinted or defective Instant tickets are discovered, contact your Lottery Sales Representative or Regional Office for further assistance. 20 The Ohio Lottery records commissions and bonuses earned by retailers in separate line items on the Invoice Report. Each January, you will receive a 1099 Miscellaneous for tax filing purposes. The statement shows your Lottery income for the previous year. Sales Commission - A 5.5 percent commission is paid on the sale of Lottery tickets. Cashing Commission - A 1 percent cashing commission is paid for tickets cashed weekly. If the cash-to-sales ratio is 49.5 percent or greater, an additional 0.5 percent bonus commission is paid. The lottery account must show sales in order to receive a cashing bonus. This is automatically calculated on the weekly invoice report. Claim Bonuses - A $5 claim bonus is paid for validating and assisting a customer with a winning ticket that produces a Pay To Bearer or File Claim receipt. The Retailer assists the customer with completion of the claim form and directions for the nearest bank cashing location for a Pay To Bearer receipt or with a File Claim receipt directs the customer to the nearest Regional Office for claim processing. The claims bonus is reflected on the weekly invoice report. Liability Limit Alerts When a Keno Agent reaches a Limit 1 which is 75 percent of their weekly liability limit: 1) Sales Management will email all Limit 1 Alert Notifications during normal business hours to local Regional management and the LSR detailing the limit(s) reached and the balance remaining. 2) The local Regional Office or the LSR during normal business hours will call the location explaining that they have reached limit 1 which is 75 percent of their weekly online sales, less weekly online cashes and weekly online cancels. They will inform them that if they hit limit 2 which is 100 percent of their weekly liability limit their terminal(s) will automatically suspend sales however they will still be able to cash tickets and that cashing tickets will in-turn lower their liability, which will allow the terminal(s) to resume selling. They will also inform them that to avoid a Terminal Suspension other than cashing tickets they can increase their liability deposit amount by increments of $250.00 during normal Lottery business hours. This can be done by contacting their Lottery Sales Representative or local Regional Office. When a Keno Agent reaches a Limit 2 which is 100 percent of their weekly liability limit: 1) Sales Management will email all Limit 2 Alert Notifications during normal business hours to local Regional management and the LSR detailing the limit(s) reached and the balance remaining. 2) The local Regional Office or the LSR during normal business hours will call the location explaining that they are still be able to cash tickets and that cashing tickets will in-turn lower their liability, which will allow the terminal(s) to resume selling. They will also inform them that to avoid a Terminal Suspension other than cashing tickets they can increase their liability deposit amount by increments of $250.00 during normal Lottery business hours. This can be done by contacting their Lottery Sales Representative or local Regional Office. 21 INVOICE REPORT To access your Invoice Report:  Touch the admin icon on the main game screen. You’ll be taken to the administrative menu.  Touch the Managers Reports icon. You will be prompted by a screen to enter your [manager ID] (enter six-digit retailer number), and then asked to enter your terminal pass code (the same one you are currently using).  Touch [current weekly invoice] or [previous weekly invoice] so you know how much money you need to have in your Lottery bank account.  The Lottery sweeps your account for both Instant and Online activity every Tuesday at noon.  Net Due - Get a summary of what you owe, for both Instant and Online, at the top of the report. The third line from the top shows the total net due for the weekly deposit into the lottery account.  Sales/Cashes by game - Get a detailed breakdown of sales and cashes by Online game here.  Online game sales summary - View gross and net sales for Online games here.  The Lottery collects a $12 communications fee every week. The license fee is collected only once, when you first get a license. The license fee is billed on the first invoice of the newly licensed location.  Details on instant games - Note sales, book settlements, cashes, bonuses and other adjustments to determine Instant net due. 22 CUSTOMER RELATIONS/FINANCES Sales of Lottery Products to Minors Lottery Retailers are prohibited from selling lottery tickets to minors. When a Ticket Will Not Validate The terminal will display information regarding the problem. Typical messages include, but are not limited to, previously cashed or drawings not held. Previously Cashed The ticket was already cashed. Do not pay the customer. Ticket validated at another terminal This message indicates the ticket presented was cashed by another retailer. Call the Customer Call Center for further instructions. Do not pay the customer. A retailer cannot be reimbursed for proceeds paid on a ticket that could not be validated on the Lottery terminal, or without the assistance of Lottery Customer Call Center. If A Customer Disputes Your Findings Give the person the ticket back and provide a claim form. The customer needs to complete the claim form and check the box at the top for Inquiry. The completed claim form and the ticket in question needs to be mailed for review by the lottery using the address on the back of the form. 180 Day Validation Period Winning tickets must be validated and presented for payment within (a) 180 days from the announced closing date of the game for Instant tickets, (b) 180 days from the draw date for all Online tickets or (c) 180 days from the day the EZ Play ticket was printed. Remind customers that the period of 180 calendar days is not equal to six months. Instant game closing dates are available on the web site at www.ohiolottery.com. Prize Tax Withholdings The Ohio Lottery is required to notify both the Internal Revenue Service (IRS) and the State of Ohio for any individual winning wager of $600 or more. The winner will receive a W-2G for federal and state tax filing purposes for any individual prize of $600 and up. Ohio Lottery prizes of more than $5,000 are subject to state and federal tax withholdings. Winners should check with their local municipality to find out if local taxes apply to Lottery winnings. Group Claims/ Non Resident Groups have a number of options for claiming prizes. Have them contact the Lottery’s Customer Call Center or the nearest regional office. Non-Resident Alien/Foreign Winner A non-resident winner cannot use the bank cashing program and must go to a regional office to claim a prize. 25 CASH/PAY RECEIPTS The Cash/Pay receipt is the only type of receipt that permits a retailer to pay cash prizes directly to a winner. All other payment receipts require a claim form and additional processing steps. The retailer is required to pay the customer the amount of the winning ticket, up to $599 for each winning wager. That means that the maximum value of this type of receipt could be as high as $5,990 if the ticket had 10 winning wagers of $599 each. Refer to the Cash Advance section under Managing Your Lottery Account in this handbook. You can contact your regional office to secure a cash advance for these higher payouts. A retailer must ensure that funds are available to pay the winner prior to validation. The Lottery terminal is equipped with a cash confirmation screen that will verify whether you wish to proceed with cashes over a certain dollar amount. The default setting is $50. The retailer retains both the ticket and the Cash/Pay receipt until the retailer’s internal accounting procedures are satisfied. At that time, the ticket and receipt should be defaced and discarded. 26 Pay to Bearer Receipt File Claim Form Receipt  A winning wager of $600 to $5,000 will generate a Pay to Bearer receipt. This receipt allows the winner to receive payment from an authorized Lottery bank cashing location.  Bank Cash Payment - The customer completes a notarized claim form, and submits the form, the original bet ticket and signed Pay to Bearer receipt for payment at an authorized bank cashing location. Most banks offer the ability to notarize claims. The winner must have proper identification (valid driver’s license or State I.D. with a current address and proof of the social security number). For a complete list of acceptable forms of identification, go to www.ohiolottery.com. The banks charge customers a processing fee for each claim filed.  Lottery Check Payment (Warrant) - The customer completes a claim form and mails these three items to the Lottery for check payment processing: (1.) the notarized claim form, (2.) the signed Pay to Bearer receipt and (3.) the original bet ticket. The Lottery will process payment within 3 weeks. State Issued Check  Any individual wager winning more than $5,000 will generate a File Claim receipt. The winner must complete a claim form and attach the signed original ticket and signed File Claim receipt. This information must then be sent to the Lottery Claims Department or filed at one of the Lottery’s regional or central offices. The winner will receive a check for the prize minus any required tax withholdings. Until you borrow money. Until all you think about is gambling. Until you lie about it. Until you hurt friends and family. Take controt of problem gambling, before until. For free, confidential help 24/7, call the Ohio Problem Gambling Helpline at 1-800-589-9966. 27  30 amount of tickets remain unsold or when the redemption value of a book reaches 90 percent, whichever is less. 5. Float – The Lottery requires Retailers to “MARK-SOLD” through the gaming terminal any book of instant tickets issued to them when the book has been sold and is no longer in the Retailer’s ticket inventory. Failure by a Lottery Retailer to “MARK-SOLD” any book of tickets is considered “FLOAT,” and is a violation of Lottery policy. This violation may result in suspension and/or revocation of the Retailer’s Lottery License. 6. Accessibility – Retailers shall use their best efforts to make tickets easily available and accessible to the public and to encourage their sale. 7. Equipment – The Lottery shall provide wager processing equipment to the Retailer. The Retailer shall be responsible for the security of that equipment. 8. Marketing – The Director will initiate marketing and promotional programs and will provide Retailers with such sales materials as deemed appropriate. Retailers shall use all such materials in accordance with the instructions of the Lottery. 9. Wager Processing – Each Retailer shall always serve any customer waiting in line before accepting any large block orders for tickets. Retailers may not accept mail orders, phone orders, or bulk delivery of orders. Retailers may not accept automated bet slips from any customers playing an Ohio Lottery on-line game. Retailers may only accept original Ohio Lottery bet slips that have been completed by hand. 10. Security – Each Retailer is responsible for the security of Lottery products and equipment and the proceeds from the sale of Lottery products as detailed in EXSE 00-02 A.2 Ticket Theft Policy. 11. Prohibitions – Lottery Retailers are prohibited from: a. Selling lottery products to minors. b. Selling lottery products issued by other states - SA-00-02 A.3 Ticket Sales – Other Jurisdictions. c. Selling games not authorized by the Ohio Lottery Commission. Revision History Replaces SA-00-01 Ticket Sales Replaces SA-00-04 Ticket Float Revised December 2012 31 Ticket Theft Policy Security LOT-SE-0001 Effective: August 24, 2016 PURPOSE: This policy addresses the manner in which the Ohio Lottery Commission (OLC) will handle lost, stolen or destroyed instant ticket reporting and reimbursement. POLICY: Instant Ticket Management In accordance with OAC § 3770-4-07, Lottery retailers are responsible for all tickets issued to them. Retailers are expected to maintain the inventory in a secure location as required by the Ohio Revised Code. Retailers will not be reimbursed for money stolen out of any Ticket Vending Machine (TVM) or cash register. PROCEDURES: When a retailer is aware of lost, stolen or destroyed tickets, they should conduct an immediate inventory to assess the extent of the loss. If individual tickets are missing from a book, the retailer must immediately deactivate the remaining tickets within that book. If full books of tickets are missing, the retailer should attempt to identify the Game and Serial Number of the missing books. For their protection, retailers are required to deactivate all instant tickets at the end of the business day if they are sold over the counter. Deactivation of instant tickets would help prevent stolen tickets from being cashed. REPORTING LOST, STOLEN OR DESTROYED TICKETS TO THE LOTTERY: Retailers must report lost, stolen, or destroyed tickets, within 24 hours of detection, to their OLC Regional Office, which will then notify the OLC Office of Security. Retailers should be prepared to provide their retailer number as well as an inventory of stolen or destroyed tickets and books. When tickets are reported lost, stolen or destroyed, the missing or damaged tickets are placed in a holding status pending investigation. Any tickets that are already marked and placed in a Sold Status, cannot be placed into a holding status pending an investigation. The Office of Security Administrative Professional 4 will place the reported stolen tickets into the appropriate status in the stolen ticket database. The AP4 should check the retailer’s information to confirm the books were in the retailer’s inventory as well. The Investigator assigned the stolen ticket report will, upon receiving the report; verify that the reported tickets have been placed into the appropriate status. The retailer 32 will be unable to activate, deactivate or mark sold the book until the investigation is completed. Once the stolen-ticket report has been made, the remaining tickets in the book can be sold. The retailer may activate other books of the same game by contacting the Office of Security for assistance. The Office of Security will contact the retailer when the investigation is completed. REPORTING STOLEN TICKETS TO THE AUTHORITIES: Retailers must file a report with the police or fire department concerning the lost, stolen or destroyed tickets within 24 hours of the incident. In the event that the responsible party is arrested, the retailer will be expected to assist with the prosecution of a criminal case. The OLC Office of Security will assist the retailer, local law enforcement, and the prosecutor to prosecute the case as well. The OLC Office of Security must be provided with a copy of the Law Enforcement Report within 30 days of the incident. The Director or his/her designee may determine whether reasonable exceptions to the 24 hour and 30 day reporting requirements should be granted. INVESTIGATION OF LOST, STOLEN OR DESTROYED TICKET REPORTS: Upon receiving a Lost/Stolen Ticket Report, an OLC Sales Representative will visit the retailer location to verify the inventory and to complete a Stolen or Destroyed Ticket Affidavit. The OLC Office of Security will assign an investigator to review the Affidavit and Law Enforcement reports. REIMBURSEMENT FOR LOST, STOLEN OR DESTROYED TICKETS: In accordance with OAC § 3770-4-07, retailers are financially responsible for all tickets issued to them. If the OLC Office of Security investigation determines that the retailer is not responsible, the retailer may not be charged for the lost, stolen or destroyed tickets. When tickets are stolen and the police report is titled as a “THEFT,” credit will be determined based on the individual circumstances of the crime. A retailer may receive credit for lost, stolen or destroyed tickets when they have not been cashed and they have been properly placed into an inquiry status before any cashing activity occurs. If the OLC Office of Security investigation determines that the retailer is responsible for lost, stolen or destroyed tickets that have not been cashed, the retailer will be charged 80 percent of the street value of the tickets, for all missing books. Missing partial books will be charged at 100 percent of the street value. The street value of the tickets is the face value of the ticket times the number of tickets in the book, or partial book reported lost, stolen or destroyed less the retailer commission. If the OLC Office of Security investigation determines that the retailer is responsible for lost, stolen or destroyed tickets that have been cashed, the retailer will be charged 100 percent for the street value of the tickets, less the retailer commission. Reasons why a retailer may not receive credit for lost, stolen or destroyed tickets include, but are not limited to, the following: 1. Improper inventory of the original amount of alleged reported lost, stolen or 35 Strike Period: Strikes shall remain in the system six months from the bank return date. Once the six- month period has expired, the previous NTF strikes will be removed. Non-Sufficient Funds (NSF) Fee: In an NTF situation, the Retailer will be assessed a fee for every bank return (NTF). Payment Terms: Upon notification of an NTF, payment must be made in full by a cash deposit or wire transfer at any National City Bank/PNC location into the Lottery’s account. The wire or cash deposit must be done by 2:00 p.m. on the day of the NTF Return. The retailer is to send a faxed copy of the wire or cash receipt showing the deposit by 2:00 p.m. to Regional Office’s or Retailer Accounts @ (216)787-3281. If the retailer can demonstrate that a cash deposit or wire transfer cannot be performed, the Lottery will accept an official bank check or money order which is to be hand-delivered to the Regional Office, Lottery Central or sent via overnight mail to: The Ohio Lottery Commission, Attention: Retailer Accounts Department, 615 West Superior Avenue, Cleveland, Ohio 44113-1879. Penalty Period: The time that elapses between the Retailer’s terminal being deactivated and subsequently reactivated due to a NTF condition, as provided in the guidelines below. Any Retailer not making payment of an NTF within ten (10) calendar days of the bank return date may be subject to cancellation. Policy Policy Statement: Retailers who fail to make payment to the Lottery may be charged a fee or have their sales capability suspended. Strike One and Two Notification: A notice of NTF and deactivation are forwarded to the Regional Office. There is no deactivation of the terminal if cash, wire, money order or official check evidence is faxed to a Regional Office or into Lottery Central by 2:00 p.m. of the day of the bank return date; otherwise deactivation will be initiated until the copy of the payment is received. In the case of the Retailer making payment by check, the actual check must be received by the next business day. Strike Three and Four Notification: A notice of NTF and deactivation are forwarded to the Regional Office followed by a certified letter to the Retailer. The Retailer will serve a 24-hour penalty of the disablement of the terminal after the Lottery Central receives the faxed copy of the evidence of cash or wire being deposited or official check. The actual check must be received by the next business day. 36 Note: Any Retailer who has a strike three or four on a Friday will be deactivated that day. If a copy of cash or wire being deposited or official check is faxed to Regional Offices or to Lottery Central by 2:00 p.m. that day, reactivation will be on Saturday. Strike Five Notification: A notification of intent to cancel and right to an adjudication hearing is mailed via a certified letter to the Retailer. The terminal is deactivated upon receipt of the NTF notification from the bank. The Retailer will not be reactivated unless full payment is received by Finance and a written notification is received from the Legal Department indicating that the Sales Retailer prevailed at the hearing or the matter was otherwise resolved. The Lottery reserves the right to deactivate a Retailer’s terminal if payment is not received within 24 hours of the bank return date, regardless of being in receipt of a fax copy of payment. Effective Date: JANUARY 7, 2008 Revision Date: June 2009 37 Retailer License Suspension—Seasonal General Services AD-00-05 A.2 Revised June 2009 PURPOSE The purpose of this policy is to provide uniform and effective guidelines for dealing with those retailers who are only open for business during a specific period of time each year. Amusement parks and racetracks are two examples of seasonal retailers. POLICY The Ohio Lottery will place Seasonal Retailers into an “Inactive” status during their off-season period. The Ohio Lottery will not GUARANTEE immediate placement of Lottery gaming terminals back into the retail location upon receipt of the request to return to an “Active” status. EFFECTIVE DATE—JANUARY 3, 2000 REVISED September 2006 REVISED June 2009