Indiana Administrative Code Title 65 - STATE LOTTERY COMMISSIONIndiana Administrative Code Title 65 - STATE LOTTERY COMMISSION
Indiana Administrative Code, Title 65 — State Lottery Commission
Overview
Title 65 of the Indiana Administrative Code governs the operations, rules, and administration of the Indiana State Lottery Commission (ISLC). The code establishes the legal framework for lottery management, ticket sales, prize distribution, regulatory compliance, and enforcement procedures. The Indiana Lottery Commission operates under IC 4-30, the Indiana Code chapter establishing the lottery, with Title 65 providing detailed administrative rules.
1. Key Areas Covered Under Title 65
a. Organizational Structure
The Commission consists of five members appointed by the Governor, with the Governor or a designee as chair.
Responsibilities include overseeing lottery operations, approving game rules, and ensuring compliance with state laws.
b. Lottery Game Authorization
Only games approved by the Commission may be offered.
Game types include:
Scratch-off tickets
Draw games (e.g., Powerball, Hoosier Lotto)
Online or electronic lottery games (as authorized)
The Commission establishes:
Prize structures
Ticket prices
Odds of winning
Distribution methods
c. Retailers
Only licensed retailers may sell lottery tickets.
Retailers must follow rules for sales, commissions, and reporting.
Violations can result in fines, license suspension, or revocation.
d. Prize Claiming and Payments
Prize claim rules:
Claims must be made within a prescribed period (usually 180 days to 1 year).
Minor players may require parental consent.
Lump-sum payments or annuity options are specified.
Fraudulent claims or misrepresentation is prohibited.
e. Security and Integrity
Rules require measures to:
Protect the integrity of drawings and scratch-off games
Prevent ticket theft or fraud
Audit and verify retailers and vendors
f. Advertising and Promotions
Advertising must not be misleading.
Promotions must comply with rules for fairness and clarity.
Special promotions require Commission approval.
g. Enforcement
The Commission has authority to:
Conduct investigations
Suspend or revoke licenses
Issue fines or penalties
Violations can be appealed under administrative hearing procedures.
2. Administrative Procedures
Rulemaking: The Commission may adopt administrative rules under the Indiana Administrative Code procedures.
Hearings: Contested cases (e.g., license suspension) follow procedural rules under IC 4-21 (Indiana Administrative Orders and Procedures Act).
Records: Records of games, prize winners, and audits must be maintained in accordance with state law.
3. Regulatory Principles
Transparency: Game rules and odds must be publicly available.
Fairness: No manipulation of drawings or prize allocations.
Accountability: Financial reporting and auditing of lottery revenues, retailer commissions, and prize payouts.
Legal Compliance: All operations comply with state law and Title 65 regulations.
4. Illustrative Case Examples
Case 1: Fraudulent Retailer Activity
Facts: A licensed retailer attempted to claim prizes for unsold tickets.
Action: The Commission investigated and found violations of ticket security rules.
Outcome: Retailer license revoked; fines imposed. This reinforced the Commission’s authority under Title 65 to maintain integrity in retail sales.
Case 2: Misrepresentation in Lottery Advertising
Facts: A lottery advertisement overstated prize odds for a scratch-off game.
Action: Commission held a hearing to determine if advertising rules were violated.
Outcome: Lottery vendor was required to correct advertisements and pay penalties. Set precedent for truthful promotional rules.
Case 3: Prize Claim Dispute
Facts: A player claimed a winning ticket after the statutory claim period.
Action: The Commission reviewed evidence and rules regarding the claim period.
Outcome: Claim denied, highlighting strict adherence to Title 65 prize claim deadlines.
Case 4: Draw Game Integrity Challenge
Facts: Allegation that the Hoosier Lotto drawing machine was tampered with.
Action: Independent audit conducted under Commission rules.
Outcome: Drawing found compliant; case reaffirmed importance of security and auditing standards.
Case 5: Administrative License Appeal
Facts: A retailer appealed a license suspension due to minor reporting errors.
Action: Administrative hearing under IC 4-21 procedures.
Outcome: Suspension reduced but warnings issued; case demonstrates procedural rights under Title 65 for contested actions.
Case 6: Unauthorized Game Operation
Facts: A private entity attempted to conduct a lottery-style game without Commission approval.
Action: Commission investigated and issued cease-and-desist orders.
Outcome: Legal action taken; reinforced that only Commission-approved games are legal.
5. Key Takeaways
Title 65 ensures that the lottery operates fairly, transparently, and legally.
Retailers and vendors must comply with licensing, ticket security, and reporting rules.
Players’ rights (claim periods, prize payment) are clearly protected.
Commission oversight includes enforcement, audits, and rulemaking authority.
Case law demonstrates the balance between regulatory authority and procedural fairness for retailers and players.
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