A.
Evidence the applicant is of good character and
reputation. The Lottery may find that a person lacks good character and
reputation if it determines the person has committed any act which, if
committed by a licensed retailer, would be grounds for suspension or revocation
of a license granted by the state of Arizona.
B.
An applicant, a director or officer of a
corporation, partner, or member of a limited liability company, or charitable
organization shall not have had a business license required by statute in
Arizona or any other state suspended or revoked within the last 12
months.
C.
An applicant, a director or officer of a
corporation, partner, or member of a limited liability company, or charitable
organization shall not have had a Lottery license denied or revoked at the
address and location of the applicant's place of business for reasons other
than noncompliance with the Americans with Disabilities Act, and shall not have
sold Lottery products without being licensed within one year of the person's
date of application.
D.
An applicant for a license other than an instant tab
license or charitable organization license shall have demonstrated financial
solvency based on the information obtained through the application, credit
check, or pending litigation, if any, or tax liens, if any.
E.
An applicant shall be one of the following to
fulfill residency requirements:
1. A resident of
Arizona;
2. A corporation incorporated in
Arizona or authorized to do business in Arizona;
3. A limited liability company
authorized to do business in Arizona in which a member or manager resides in
Arizona, or if none of the members or managers resides in Arizona, the
applicant shall provide a personal guarantor who is an Arizona
resident;
4. A partnership in which at least
one of the general partners resides in Arizona;
5. A limited liability partnership
in which at least one of the partners resides in Arizona; or
6. A charitable organization
authorized to do business in Arizona.
F.
As a condition of licensure, each retailer shall
agree to release, indemnify, defend, and hold harmless, the Lottery, its
commissioners, officers, and employees, from and against any and all liability,
damage, cost, claim, loss, or expense, including, without limitation,
reasonable attorney's fees and disbursements, resulting from or arising by
reason of loss of use, temporary or permanent cessation of Lottery equipment,
or terminal operations. This should not be construed in any way to affect the
rights of the retailer to recover for losses caused by any third
party.
A. Lottery retailers
shall hold a general product license in addition to any qualifying
endorsements. Retailers who qualify for specific license endorsements may
submit the additional required information when applying for a general product
license, or at a later date.
B. A
retailer with a license endorsement may voluntarily relinquish the endorsement
in writing at any time. Relinquishment of an endorsement will not automatically
terminate the general product license.
C. General Product License
1. A general product license permits a
retailer to sell all Lottery products that do not require a specific license
endorsement under this section.
2.
Retailers selling Lottery products or providing Lottery services prior to
receiving applicable license endorsements are in violation of this
Article.
3. Retailers with a
general product license shall refer prizewinners of prizes greater than $599 to
an official Lottery office for validation and redemption.
D. Charitable. A charitable endorsement
permits the licensed retailer to sell Lottery products in accordance with
A.R.S. §
5-554(H).
Applicants for a charitable endorsement must provide documentation of the
following:
1. Recognition by the United States
Internal Revenue Service of the licensee's tax-exempt status,
2. Operation within the state of Arizona for
at least two years.
E.
Keno
1. A Keno endorsement permits the
licensed retailer to offer Keno in accordance with A.R.S. §
5-554(J) and (K). Applicants for a Keno endorsement
must provide documentation of one of the following:
a. Fraternal organization auxiliary
location,
b. Veterans' organization
auxiliary location, or
c. Racetrack
enclosure or additional wagering facility where pari-mutuel wagering on horse
races is conducted.
2.
Applicants for a Keno endorsement must demonstrate to the Lottery that the
physical location of the retail facility is located at least five miles from an
Indian gaming facility.
F. Redemption Agent
1. A Redemption Agent endorsement permits the
licensed retailer to validate and pay winning Lottery tickets up to
$4,999.
2. Applicants for a
Redemption Agent endorsement must demonstrate the ability to pay prizes up to
$4,999 in accordance with this Article.
3. A retailer with a Redemption Agent
endorsement shall provide a separate accounting of Lottery monies upon request
by the Lottery.
4. A retailer with
a Redemption Agent endorsement is responsible for verification of identity and
social security number and shall require prizewinners to provide acceptable
identification and documentation.
5. Payment for any prizewinners who cannot
provide required documentation shall be referred to an official Lottery
office.
6. The confidentiality of
all player data shall be maintained at all times. Disclosing any personal
information to anyone other than the Lottery or as required by law is
prohibited. Any known or suspected loss of protected data must be reported to
Lottery within one hour.
7. For
prizes over $599, retailers with a Redemption Agent endorsement shall
determine, through the Lottery provided terminal and prior to paying the prize,
whether the holder of a winning lottery ticket is subject to Arizona debt
set-off requirements under A.R.S. §
5-575.
Prizewinners shall be referred to an official Lottery office if Retailer is
notified as such through the claim redemption process.
8. Retailers with a Redemption Agent
endorsement shall provide claim documentation and original tickets for each
validation to Lottery at the end of each week.
G. Route Services
1. Applicants for a Route Services
endorsement must have sufficient space for installation of Lottery equipment as
close to the front of the store as reasonably possible. Equipment shall be
close to the checkout area and/or entry/exit door and in regular view of retail
staff.
2. Retailer shall deposit
Lottery cash receipts on behalf of the Lottery and timely return any adjustment
forms and/or request for credit.
3.
Lottery may compensate a retailer with a Route Services endorsement with a
periodic rental fee for the space occupied by each vending machine.
H. The Lottery may issue a limited
license with regard to duration, type of products, methods of selling or
validating products, or qualification requirements.
