OAR 177-040-0051: Designated Employees and Payment of Prizes

(1) Designated Employees: A traditional Lottery retailer must designate employees authorized to redeem winning Lottery tickets and shares. A Video Lottery retailer must designate employees authorized to redeem Video Lottery cash slips as defined in OAR 177-200-0005(1). (2) Traditional Lottery Retailers: A traditional Lottery retailer must redeem winning Lottery tickets and shares during all of the retailer’s designated hours of redemption. (3) Video Lottery Retailers: Except for those cash slips required to be validated and paid by the Lottery, during all business hours of operation a Video Lottery retailer must redeem any Video Lottery cash slip presented for payment that was issued at that retailer’s location, except as follows: (a) In the event of exceptional circumstances, a retailer may delay validation and payment of a cash slip for a period of time not to exceed 24 hours from the time the cash slip is initially submitted to the retailer for payment. “Exceptional circumstances” means rare and unforeseen circumstances beyond the reasonable control of the retailer; and (b) Within 48 hours from the time the cash slip is initially submitted to the retailer for payment, the retailer must submit to the Lottery a written report of the delay of payment and the exceptional circumstances that required the delay. (c) The Director may review claims of exceptional circumstances and determine whether delayed payment was appropriate under the circumstances. Upon the Director’s request, the retailer must provide the Director with evidence supporting a claim of exceptional circumstances. If a retailer fails to comply with a request or fails to adequately support a claim of exceptional circumstances, the Director shall find that the delay was not appropriate. (d) If the Director finds that the delay was not appropriate, the retailer’s delay of payment shall be considered a failure to perform contract duties or requirements, and the Lottery may take appropriate action including termination of the retailer contract. The Director’s decision is final. (4) Payment: Except as provided in section (3) of this rule, a retailer must immediately pay prizes in cash or by check, or any combination thereof, when a winning Lottery ticket or share meeting the requirements of these rules is presented for payment, including a Video Lottery cash slip. A retailer must not pay prizes in tokens, chips, or merchandise or charge a fee for paying a prize or for issuing payment. (5) A retailer and their employees may not purchase winning tickets or cash slips from players or provide misinformation to players about prize claim requirements or aid a prize claimant in avoiding tax withholding or debt offsets required by law. (6) Validation: Notwithstanding section (3) of this rule, once a Lottery retailer validates a winning ticket or share, including a Video Lottery cash slip, the retailer must immediately pay it. The Lottery’s terminal will not validate a cash slip issued for a Jackpot Prize.