MEMORANDUM - Colorado



Memorandum [pic]

DATE: May 8, 2013

TO: Lottery ComMission

Abel Tapia, Director

Jane Biglin, Deputy Director

FROM: MARI BOYD

_____________________________________________________________________

Repeal of General Rule 10.E MatchPlay

BASIS AND PURPOSE OF AMENDED RULE 10.E

The basis and purpose of Rule 10.E is to provide specific game details and requirements for the Colorado Lottery Online Game "COLORADO MATCHPLAY" such as type of play, prizes, method of selecting winning numbers, drawings, and the allocation of revenues. The statutory basis for Rule 10.E is found in C.R.S. 24-35-208 (1) (a) and (2), 24-35-212 and 24-35-212.5.

MatchPlay history:

• Rule 10.E – Colorado Lottery Jackpot Game “MatchPlay” was adopted by Lottery Commission March 8, 2006.

• Sales began February 21, 2010.

• Sales ended June 29, 2012.

• Validations ended December 29, 2012.

• Request to repeal Rule 10.E submitted to Lottery Commission May 8, 2013

DEPARTMENT OF REVENUE

LOTTERY COMMISSION

1 CCR 206-1 RULES AND REGULATIONS

RULE 10.E - COLORADO LOTTERY JACKPOT GAME “MATCHPLAY”

BASIS AND PURPOSE FOR AMENDED RULE 10.E

The purpose of Rule 10.E is to provide specific game details and requirements for the Colorado Lottery Jackpot Game “MATCHPLAY” such as type of play, prizes, method of selecting winning numbers, drawings, and the allocation of revenues. The statutory basis for Rule 10.E is found in C.R.S. 24-35-208 (1) (a) and (2), 24-35-212 and 24-35-212.5.

10.E.1

A Colorado Lottery Jackpot game to be known as “MatchPlay” is authorized to be conducted by the Director under the following Rules and Regulations and under such further instructions and directives as the Director may issue in furtherance thereof. If a conflict arises between Rule 10 and this Rule 10.E, Rule 10.E shall apply.

10.E.2 Definitions

In addition to the definitions provided in Paragraph 1.2 of Rule 1 and Rule 10, and unless the context in this Rule 10.E otherwise requires:

a. “Board” means a field of the 38 numbers found on the play slip.

b. “Combined Play” refers to play style of matching any combination of numbers in the three (3) Lines, each of six (6) numbers. Combined Play matches result in prizes for matching in combination 5, 6, 7, 8, 9, 10 or more numbers from 18.

c. "Line" means one (1) set of six (6) numbers in a straight, horizontal row that are part of the three (3) sets of six (6) numbers that comprise one (1) Play.

d. "Line Play” " refers to a Play style consisting of three (3) Lines, of six (6) numbers each. The player matches numbers in one straight horizontal row.

e. "Matrix" means the grid of numbers comprised of 38 numbers (1 - 38) from which MatchPlay game numbers are selected.

f. “Number” means any play integer from 1 through 38 inclusive.

g. "Pari-mutuel prize" means the total amount of prize money allotted to the top prize, divided by the number of winners of that prize.

h. A "Play" shall consist of three (3) Lines of six (6) numbers per Line that are printed on the ticket.

i. "Play Slip" means a mark-sense game card used by players of Colorado MatchPlay to select Plays. There shall be ten (10) game boards on each Play Slip identified as A, B, C, D, E, F, G, H, I and J. A Play Slip has no pecuniary value and shall not constitute evidence of ticket purchase or of numbers selected.

j. "Prize Category Contribution" means and refers to contributions for each drawing to the prize categories from the prize pool.

k. "Roll-over" means the amount from the direct prize category contribution from previous drawing(s) in the first prize (Jackpot) category that is carried forward to the first prize category (Jackpot) for the next drawing. The incremental jackpot increase per draw will be $10,000 or 11.4 percent of the cumulative sales whichever is greater.

10.E.3 Price of MatchPlay Ticket

The price of each MatchPlay Play shall be $2.00. A player may use a Play Slip to purchase up to ten Plays as follows:

1 Play: $ 2 - One Line +Two Quick Picks

2 Plays: $ 4 - Any Two Lines+ Four Quick Picks

3 Plays $ 6 - Any Three Lines+ Six Quick Picks

4 Plays $ 8 - Any Four Lines+ Eight Quick Picks

5 Plays $10 - Any Five Lines +Ten Quick Picks

6 Plays $12 - Any Six Lines+ Twelve Quick Picks

7 Plays $14 - Any Seven Lines+ Fourteen Quick Picks

8 Plays $ 16 - Any Eight Lines+ Sixteen Quick Picks

9 Plays $ 18 - Any Nine Lines+ Eighteen Quick Picks

10 Plays $ 20 - Any Ten Lines + Twenty Quick Picks

10. E.4 Play for MatchPlay

a. Type of play:

A single MatchPlay shall consist of three (3) Lines that comprise one (1) Play.

b. Method of play:

1. The player may select six (6) numbers from a field of numbers, 1 – 38 inclusive, in the first Line. The Jackpot Game gaming system will select two (2) additional sets of six (6) numbers each, 1 - 38 inclusive, called “Quick Picks.”

2. The player may use Play Slips to make number selections. The Jackpot Game terminal will read the Play Slip and issue ticket(s) with corresponding Plays plus two additional Lines of Quick Picks. If a Play Slip is not available, the Jackpot Game retailer may enter the selected numbers via the keyboard. A player may leave all or a portion of his/her play selections to a random number generator operated by the computer, commonly referred to as “Quick Pick” or “partial Quick Pick.”

3. MatchPlay tickets may not be cancelled.

c. Methods of winning

1. Line Play: A winning Play is achieved when a player matches 3, 4, 5 or 6 of the six (6) winning numbers drawn by the Lottery in any one (1) Line. All three (3) Lines in each Play are eligible.

2. Combined Play: A winning Play is achieved when a player matches 5, 6, 7, 8, 9,10 or more of the six (6) winning numbers drawn by the Lottery in any of the three (3) Lines in one (1) Play. Numbers in each Line may be used to obtain a winning combination in a single Play.

3. A player may win by matching the winning numbers drawn by the Lottery in a Line Pay and/or a Combined Play.

10.E.5 Prizes For MatchPlay

a. MatchPlay prize amounts, for each drawing, are paid to those players who select a matching combination of numbers from the six (6) numbers selected by the Lottery in a random drawing. The prize amounts for each prize category and odds of winning are as follows:

|LINE PLAY MATCHING COMBINATIONS |PRIZE |ODDS OF WINNING |

| |CATEGORY |(ONE PLAY) |

|6 |Jackpot |1:2,760.681 |

|5 |$500.00 |1:14,378.5 |

|4 |$10 |1:371.1 |

|3 |$2 |1:27.8 |

|COMBINED PLAY MATCHING COMBINATIONS |PRIZE |ODDS OF WINNING |

| |CATEGORY |(ONE PLAY) |

|Ten or more numbers match in one Play (three |First Prize |1: 51,112.2 |

|Lines) |$1,000.00 | |

|Any nine, but not ten or more matching numbers in |Second Prize |1: 5,418.1 |

|one Play (three Lines) |$250.00 | |

|Any eight, but not nine, ten or more matching |Third Prize |1:731.0 |

|numbers in one Play (three Lines) |$50.00 | |

|Any seven, but not eight, nine or ten or more |Fourth Prize |1: 134.2 |

|matching numbers in one Play (three Lines) |$10.00 | |

|Any six, but not seven, eight, nine, ten or more |Fifth Prize |1: 33.5 |

|matching numbers in one Play (three Lines) |$5.00 | |

|Any five, not but six, seven, eight, nine, ten or |Sixth Prize |1: 11.5 |

|more matching numbers in one Play (three Lines) |$2.00 | |

b. The MatchPlay Jackpot prize is pari-mutuel and shall be evenly distributed among the number of winners who match all six (6) numbers drawn in a Line Play by the Colorado Lottery.

1. In the event Colorado Lottery MatchPlay game is ended and there are no jackpot winners for the final draw, the jackpot pool will be added to the highest winning line play matching combination win level.

c. All prizes levels are fixed as indicated in 10.E.5 a., with the exception of the jackpot prize.

1. In the event Colorado Lottery MatchPlay game is ended and there are no jackpot winners for the final draw, the highest winning line play matching combination winners will be awarded the amount of the prize category plus the jackpot pool awarded on a pari-mutuel basis.

d. The prize fund for Colorado MatchPlay is fifty-eight Percent (58%).

e. Additional Lottery prizes may be awarded as authorized by the Director

10.E.6 Payment of Prizes

The holder of a winning ticket may win by matching any of the six (6) winning numbers drawn as indicated in 10.E.5 a. and shall be entitled to the highest line play and/or combined play prize won by those numbers.

10.E.7 Ticket Purchases

a. MatchPlay tickets may be purchased only from a Lottery retailer authorized by the Director to sell Jackpot Game tickets.

b. MatchPlay tickets shall show, at a minimum, the numbers selected, the boards played, drawing date and validation and reference numbers.

c. The Lottery shall not directly and knowingly sell a combination of tickets to any person or entity that would guarantee such purchaser a First Prize (Jackpot) win.

d. Plays may be entered manually using the Jackpot Game terminal keypad or by means of an original Play Slip provided by the Lottery. Facsimiles of Play Slips, copies of Play Slips, or other materials that are inserted into the Jackpot Game terminal’s Play Slip reader and that have not been printed or approved by the Lottery shall not be used to enter a Play. No device shall be connected to an Jackpot Game terminal to enter Plays, except as may be approved by the Lottery. Unapproved Play Slips or other devices may be seized by the Lottery.

10.E.8 Drawings

a. MatchPlay drawings shall be held as schedule by the Director, and as indicated in the Drawing Guidelines. In the event of force majeure the drawing shall be rescheduled at the Director’s, or the Director’s designee, discretion.

b. The drawings will be conducted by Lottery officials and comply with Colorado Revised Statutes.

c. Each drawing shall determine, at random, six winning numbers in accordance with Drawing Guidelines. Any numbers drawn are not declared winning numbers until the drawing is certified by the Lottery in accordance with paragraph 10.E.8 b). The winning numbers shall be used in determining all Colorado MatchPlay winners for that drawing. If a drawing is not certified, another drawing will be conducted to determine actual winners.

d. The drawing shall not be invalidated based on the liability of the Lottery.

10.E.9 Licensee Commission

a. In addition to the six percent (6%) Commission set forth in Paragraph 10.13 of Rule 10, the Director may provide such additional compensation to licensees as is deemed appropriate by the Director to further the sale of MatchPlay tickets, so long as such additional compensation is made equally available to all licensees and does not exceed a total of ninety-six hundredths of one percent (0.96%) of the total amount received by the Division from all MatchPlay tickets sold or disbursed as of the date the Director determines to provide such additional compensation. The ninety-six hundredths of one percent (0.96%) described above shall consist of the following:

1. Forty-six hundredths of one percent (0.46%) of sales from all MatchPlay tickets lawfully sold or disbursed by an Jackpot Game retailer shall be accrued to pay Jackpot Game retailers a one percent (1%) cashing bonus for each Colorado MatchPlay prize redeemed by Jackpot Game retailers up to and including $599.99.

2. One-half of one percent (0.5)% of sales from all MatchPlay tickets lawfully sold or disbursed by an Jackpot Game retailer shall be accrued to pay Jackpot Game retailers a performance bonus as detailed in the current program for Colorado Lottery retailers.

b. In the event there is a residual resulting from the accrual of the ninety-six hundredths of one percent (0.96%) of sales after the bonuses described in 10.E.9.a. 1.and 2. have been expensed, the Director may provide additional compensation to licensees as described in 10.E.9 a) or may revert the excess amount thereby decreasing the bonus expense.

10.E.10 Advance Play

Advance Play provides the opportunity to purchase MatchPlay tickets for more than one drawing. Advance Play tickets shall be available for purchase in variable increments. The Advance Play feature shall be available at the discretion of the Lottery Director.

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