§ 23-115-207. Rulemaking

(a) The Office of the Arkansas Lottery may adopt rules regulating the conduct of lotteries in general, including without limitation rules specifying:

1. (1) The types of lotteries to be conducted;

2. (2)

   1. (A) The sale price of tickets or shares and the manner and method of sale.

   2. (B) [Repealed.]

3. (3) The number and amount of prizes;

4. (4) The method and location of selecting or validating winning tickets or shares;

5. (5) The manner and time of payment of prizes, including without limitation lump-sum payments or installments over a period of years;

6. (6)

   1. (A) The manner of payment of prizes to the holders of winning tickets or shares.

   2. (B) Winners of five hundred dollars ($500) or less may claim prizes from any of the following:

      1. (i) A retailer; or

      2. (ii) The office.

   3. (C) Winners of more than five hundred dollars ($500) but a dollar amount less than the threshold for federal tax withholding on gambling winnings may claim prizes from:

      1. (i) The office; or

      2. (ii) A super retailer.

   4. (D)

      1. (i) Winners of a dollar amount that exceeds the threshold for federal tax withholding on gambling winnings shall claim prizes from the office.

      2. (ii) The office may establish claim centers throughout the state;

7. (7) The frequency of lotteries and drawings or selection of winning tickets or shares;

8. (8) The means of conducting drawings;

9. (9)

   1. (A) The method to be used in selling tickets or shares.

   2. (B) The selling of tickets or shares may include the use of electronic or mechanical devices.

   3. (C) If the office elects to use electronic or mechanical devices to sell tickets or shares, the office shall provide by rule:

      1. (i) Specifications and required features for electronic or mechanical devices that may be used to sell tickets or shares; and

      2. (ii) Procedures and requirements to prevent the use of electronic or mechanical devices by an individual under eighteen (18) years of age.

   4. (D) A retailer who knowingly allows a person under eighteen (18) years of age to purchase a lottery ticket from an electronic or mechanical device is subject to the penalties under § 23-115-901.

   5. (E) The office shall publish a notice on the office’s public website that provides the location, including without limitation the street address, of each self-service lottery ticket vending machine in operation in this state;

10. (10) The manner and amount of compensation to retailers; and

11. (11) Any other matters necessary, desirable, or convenient toward ensuring the efficient and effective operation of lotteries, the continued entertainment and convenience of the public, and the integrity of the lotteries.

(b) The office may adopt rules requiring the publication on a ticket or share of the odds of winning a particular lottery game.

(c)

1. (1)

   1. (A) Except as provided in subdivision (c)(1)(B) of this section, the promulgation of rules under this chapter shall comply with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

   2. (B) The office is not required to file rules under § 10-3-309.

2. (2)

   1. (A) The promulgation of rules by the office is exempt from § 10-3-309.

   2. (B) The office shall file its rules with the Legislative Council for review and approval at least thirty (30) days before the expiration of the public comment period.