Ariz. Admin. Code § R19-3-201 - Definitions

In this Article, unless the context otherwise requires:

1. "Act" means A.R.S. Title 5, Chapter 5.1, Article 2.

2. "Activated" means the process taken by retailers to make a pack of instant scratch tickets valid for sale to the general public.

3. "Age-restricted retailer" means a licensed provider of sales and redemptions services for Lottery products that also holds a series 06 or 14 liquor license issued by the Arizona Department of Liquor Licenses and Control.

4. "Chapter" means Arizona Administrative Code, Title 19, Chapter 3.

5. "Charitable Organization" means an organization including not more than one auxiliary, to which the United States Internal Revenue Service has issued a letter of determination of the organization's tax-exempt status, and the organization has operated for charitable purposes in Arizona for at least two years.

6. "Controlling agent" means a stockholder, director, officer, managerial employee, or other person directly or indirectly controlling or operating the retailer's business.

7. "Controlling person" means a person at least 21 years of age accountable for the Lottery license.

8. "Chain account retailer" means a group of stores in a retail chain utilizing one central bank account.

9. "Debit card" means an open loop bank card backed by a national financial entity with no diminishing value over time and that shall be honored by any retailer or bank with no fees to the card holder.

10. "Draw game ticket" or "On-line ticket" means a ticket purchased through a network of Lottery-authorized equipment linked to a central computer that records the wagers.

11. "Endorsement" means written approval and certification by the Lottery for a retailer with a general product license to provide additional games or services in accordance with specialized requirements.

9 12. "Flare" means the board or placard that accompanies each package of instant tab tickets and that has printed on or affixed to it the following information:

a. Game name,

b. Serial number,

c. Ticket count,

d. Prize structure, and

e. Cost per play.

13. "Fraternal Organization" means any organization within this state, except college and high school fraternities, not for pecuniary profit, which is a branch or lodge or chapter of a national or state organization and exists for the common business, brotherhood or other interests of its members and which national or state organization has so existed for two years in Arizona prior to making application for a license under this Article. Fraternal organization shall also include not more than one auxiliary of such organization.

14. "Guarantor" means a person who promises to pay the Licensee's debt to the Arizona Lottery in the event that the Licensee defaults on any payment obligation. A Licensee may act as their own guarantors, by pledging personal assets to ensure payment of debts.

10 15. "Instant scratch ticket" or "Scratchers^®" means an instant game ticket where the protective covering is made of latex or another substance that is scratched off.

11 16. "Instant tab ticket" or "instant pull tab" means an instant game ticket where the protective covering is a perforated paper tab that is opened. Instant tab ticket is the brand name for Arizona Lottery pull tabs.

12 17.

a. "Full product license" means a license to sell the products authorized by the Lottery.

b. "Charitable organization license" means a license issued to a qualified charitable organization to sell only instant tab tick-

c. "Instant tab license" means a license to sell only instant tab tickets.

d. "Limited license" means a license issued by the Lottery that restricts the duration of the license, the type of Lottery products sold, methods of selling, methods of validating Lottery products, or the type of applicant that qualifies for a Lottery license.

13 18. "Local premise manager" means a person who resides in Arizona that manages or is responsible for the operation of a premise or a number of premises.

14 19. "Minor" means an individual under the age of 18.

15. "On-line ticket" means a ticket purchased through a network of Lottery-authorized equipment linked to a central computer that records the wagers.

16 20. "Partial pack of tickets" means less than a complete pack of consecutively numbered and connected instant scratch tickets.

17 21. "Premise manager" means the contact representative for a specific premise of a business or charitable organization.

18. "Pull tab" means an instant game ticket where the protective covering is a perforated paper tab that is opened to reveal the predetermined winning and non-winning symbols.

22. "Person" means an individual, association, corporation, club, trust, estate, society, company, joint stock company, receiver, trustee or referee, any other person acting in a fiduciary or representative capacity who is appointed by a court, or any combination of individuals. Person includes any department, commission, agency or instrumentality of this state, including any county, city or town and any agency or instrumentality of this state or of a county, city or town.

19 23. "Raffle" means the selling of numbered tickets, where each ticket has an equal chance of winning a prize in a random drawing held after the completion of all ticket sales.

24. "Redemption Agent" means a retailer licensed to sell Lottery products in accordance with this Article and provide prize redemption services up to $4,999 as authorized by Arizona Revised Statutes § 5-569.

20 25. "Retailer" means a person licensed to sell Lottery products in accordance with this Article and provides prize redemption services up to $599.

21 26. "Retailer bonus" means a sum of money credited to the retailer in addition to the retailer commission for specific actions or efforts in selling or validating Lottery products.

22 27. "Retailer commission" means a retailer incentive designed to maximize the sale of Lottery products by establishing a specific percent of the sales price of each ticket sold as payment for services in selling Lottery tickets.

23 28. "Retailer compensation" means all types of cash and noncash compensation to the retailer for selling Lottery tickets.

24 29. "Retailer compensation profile" means the written document in which the Lottery Commission authorizes the Director to issue an order that contains all the fundamentals required by these rules for retailer compensation including commission, bonus, and incentive compensation to be credited to Lottery retailers.

25 30. "Retailer incentive" means cash and non-cash methods to motivate action by the Lottery retailer to stimulate sales.

26 31. "Sales benchmark" means sales objectives established by the Lottery based upon previous performance.

27 32. "Ticket" means one or more Lottery game plays.

28 33. "Validation" means confirmation of a winning Lottery ticket.

34. "Veterans' Organization" means any congressionally chartered organization within this state, or any branch, lodge or chapter of a national or state organization within this state, not for pecuniary profit, the membership of which consists of individuals who were members of the armed services or forces of the United States, which has been in existence for two years prior to making application for a license under this Article. Veterans' organization shall also include not more than one auxiliary of such organization.

Notes

Ariz. Admin. Code § R19-3-201

Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Section R4-37-201 adopted effective August 17, 1981 (Supp. 81-4). Amended subsection (A) effective September 14, 1983 (Supp. 83-5). Amended subsection (E) and added subsection (F) effective January 6, 1987 (Supp 87-1). Amended effective September 12, 1989 (Supp. 89-3). R19-3-201 recodified from R4-37-201 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Former R19-3-201 renumbered to R19-3-202 ; new R19-3-201 made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.