DEPARTMENT OF REVENUE
Lottery Commission

1 CCR 206-1 RULES AND REGULATIONS

Rule 6.UM General Rules and Regulations
Basis and Purpose For Rule 6.UM Cherry Twist Game Number 388
6.UM.1  Purpose and Statutory Authority
These Rules and Regulations are adopted by the Colorado Lottery Commission governing the establishment and operation of the Colorado Lottery pursuant to the authority provided by Part 2, Article 35, Title 24, C.R.S. 24-35-208 (1)(a) and (2), 24-35-212 and 24-35-212.5, Rule 5 and under such further instructions and directives as the Lottery Director may issue in furtherance thereof.
6.UM.2  Definitions
In addition to the definitions provided by Rule 1 and Rule 5, and unless these Rules and Regulations for Colorado Lottery Game Number 388 otherwise require, Play Symbols, Prize Symbols, Legends, Identifiers, Play Symbol Captions, Prize Symbol Captions, and Retailer Validation Codes are as set forth in Paragraph 6.UM.9 and Exhibits A through C of this Rule 6.UM.

6.UM.3  Determination of Instant Prize Winners
An instant prize-winner for Colorado Lottery Game Number 388 shall be determined as follows and as set forth in Exhibit A: 
a) 	The holder of a ticket on which any three (3) of the nine (9) Play Symbols with corresponding caption in the same horizontal row, vertical column or diagonal (top left to bottom right or top right to bottom left) match shall be entitled to the dollar amount of the "Prize" Play Symbol with corresponding caption appearing in the ”Prize Box” on the ticket. 
b)	The holder of a ticket on which any three (3) of the nine (9) Play Symbols with corresponding captions in the same horizontal row, vertical column or diagonal (top left to bottom right or top right to bottom left) is a "" Play Symbol with corresponding caption shall be entitled to the dollar amount of the "Prize" Play Symbol with corresponding caption appearing in the “Twist” Prize Box on the ticket.
c)	Players may win up to one (1) time on a ticket in Colorado Lottery Game Number 309.

d)	In all events, the determination of prizewinners shall be subject to the general ticket validation requirements set forth in Paragraph 5.17 of Rule 5, Paragraph 6.UM.8, and the requirements set out on the back of each instant ticket.
6.UM.4  Claim Period and Payment of Prizes
a)	All instant "cash" prizes must be claimed within 180 days after the announced end of the game.

b)	The holder of any $1, $2, $4, $5, $10, $20 or $50 prize-winning ticket may take it to any Lottery retailer location, mail it to Lottery Headquarters as provided on the ticket back or deliver the ticket to any Lottery Claims Center for validation and subsequent payment.  The holder of any $100 or $500 prize-winning ticket may mail it to Lottery Headquarters or deliver the ticket to any Lottery Claims Center for validation and subsequent payment.  Lottery retailers, at their option, may accept $100 or $500 prize-winning tickets for validation and payment.

c)	The holder of a $1,000 prize-winning ticket shall fill out a claim form and send the completed form and the ticket to the Lottery for validation and payment pursuant to instructions on the back of the ticket or deliver the ticket to any Lottery Claims Center for validation and subsequent payment.

d)	Any prize from a winning ticket that is not claimed within the period specified herein and in the manner specified on the back of each ticket shall remain the property of the Lottery.
6.UM.5  Price of Tickets 
The purchase price of each ticket for Colorado Lottery Game Number 388 shall be $1.00.  However, a licensed retailer may be permitted, upon prior approval of the Director, to make gifts of tickets as a means of promoting the sale of goods or services to the public.
6.UM.6  Numbers and Sizes of Prizes 
The numbers (plus five percent or minus three percent [+5% or -3% based upon pool level]) and sizes of instant prizes are as set forth in Exhibit B attached to this Rule 6.UM and incorporated by reference as though fully set forth herein.  Overall odds of winning include break-even prizes.
6.UM.7  Manner of Selecting Winning Tickets
The winning of any cash prizes in the amounts set forth in Paragraph 6.UM.6 results from ticket purchases by the public and removal by the ticket holder of the rub-off area revealing a winning combination of play symbols with corresponding captions as set forth in Paragraph 6.UM.3.  In addition, to be a valid instant cash winning ticket, all of the requirements of Paragraph 5.17 of Rule 5 and 6.UM.8 must be satisfied.
6.UM.8  Ticket Validation Requirements 
In addition to meeting all of the requirements in these Rules and Regulations, Paragraph 5.17 of Rule 5, and those printed on the back of each ticket, to be a valid instant winning ticket, the number and placement of Play Symbols and Prize Symbols on the ticket must conform precisely to those in Exhibit A and the Play Symbols, Prize Symbols, Captions, Legends, Identifiers, and Retailer Validation Codes must be present in their entirety and must conform to those in Exhibit C attached to this Rule 6.UM and incorporated by reference as though fully set forth herein.
6.UM.9  Play Symbols, Prize Symbols, Legends, Identifiers, Play Symbol Captions, Prize Symbol Captions, and Retailer Validation Codes 
Play Symbols, Prize Symbols, Play Symbol Captions, Prize Symbol Captions, Legends, Identifiers and Retailer Validation Codes are as set forth in Exhibit C attached to this Rule 6.UM and incorporated by reference as though fully set forth herein. 

Exhibit A – Ticket Front Covered/Uncovered

Exhibit A – Ticket Back

Ticket Back Language:

OVERALL PROBABILITY OF WINNING IS APPROXIMATELY 1 IN 4.51 INCLUDING BREAK-EVEN PRIZES.
Claim winners up to and including $50 at any Lottery retailer; winners up to and including $599 may be claimed at participating retailers or mail signed ticket with your name and address to Colorado Lottery, P.O. Box 7, Pueblo, CO 81002-0007 for payment.  Retailers have the option of paying up to $599.  Claim prizes of more than $599 by mailing signed ticket and filled out claim form obtainable at Lottery retailers to P.O. Box 7, Pueblo, CO 81002-0007 or claim at the Lottery Office.  Tickets must be received at the Lottery within 180 days of the announced end of game.  Ticket purchasers must be at least 18 years old.  All cash prizes not claimed within 180 days after end of game are forfeited.  All tickets, transactions, and winners are subject to Lottery Rules and State Law.  Tickets are void and not entitled to prize payment if they fail to meet requirements of game rules or are irregular in any manner.  Liability for a void ticket is limited to replacement of ticket or refund of retail sales price.  Availability of prizes subject to prior sale.  

Become a MyLottery member to receive exciting Colorado Lottery news.  
Visit coloradolottery.com for more details.
Your ticket to a more beautiful Colorado

Exhibit B – Prize Structure

Exhibit C – Image Fonts

Exhibit C – Validation Codes

Exhibit C – Validation Codes
RULE 6.UN General Rules and Regulations for Game 389 "Aladdin’s Lamp"
BASIS AND PURPOSE OF RULE 6.UN 
The purpose for Rule 6.UN is to provide specific game details and requirements for Colorado Lottery Game Number 389, "ALADDIN’S LAMP," such as numbers and sizes of prizes, the manner of selecting and validating winning tickets and the allocation of total revenues amongst prizes and costs.  The statutory basis for Rule 6.UN is found in C.R.S. 24-35-208 (1)(a) and (2), 24-35-212 and 24-35-212(5).
6.UN.1   Purpose and Statutory Authority
These Rules and Regulations are adopted by the Colorado Lottery Commission governing the establishment and operation of the Colorado Lottery pursuant  to the authority provided by Part 2, Article 35, Title 24, C.R.S. 24 – 35-208 (1)(a) and (2), 34-35-212 and 24-35-212.5 Rule 5 and under such further instructions and directives as the Lottery Director may issue in furtherance thereof.
6.UN.2  Definitions 
In addition to the definitions provided by Rule 1and Rule 5, and unless these Rules and Regulations for Colorado Lottery Game Number 389 otherwise require, Grid Coordinates Play Symbols, Fixed Symbols and Retailer Validation Codes are as set forth in Paragraph 6.UN.9 and Exhibits A through C of this Rule 6.UN.

6.UN.3  Determination of Instant Prize Winners 
An instant prize-winner for Colorado Lottery Game Number 389 shall be determined as follows and set forth in Exhibit A:
a)	In order to win instant prizes, players shall remove the latex from the "Aladdin’s Lamp Grid" portion of the ticket, beginning at coordinate A1, to reveal the thirty-six (36) "Grid Coordinates" shown on the "Aladdin’s Lamp Grid".  Each coordinate consists of one (1) letter between A and F and one (1) number between 1 and 6.  Players shall then remove the latex from sections of the "Aladdin’s Lamp Grid" following the "Go To" directions. 
b)	The holder of a ticket on which three (3) like (the same) symbols are revealed on the "Aladdin’s Lamp Grid" prior to uncovering three (3) "" symbols shall be entitled to the prize amount shown in the "Legend" for that symbol. 
c)	The holder of a ticket who matches three (3) like symbols and reveals a "" play symbol with corresponding caption in any of the thirty-six coordinates shall be entitled to win double the amount of the prize shown for the three (3) like symbols.
d)	Players may win up to one (1) time on a ticket.
e)	In all events, the determination of prize winners shall be subject to the general ticket validation requirements set forth in Paragraph 5.17 of Rule 5, Paragraph 6.UN.8, and all of the specific requirements set out in the back of the ticket as set forth in Exhibit A.
6.UN.4   Claims Period and Payment of Prizes 
a)	All instant cash prizes must be claimed within 180 days after the announced end of the game. 
b)	The holder of any $3, $5, $6, $10 or $30 prize-winning ticket may take it to any Lottery retailer location, mail it to Lottery Headquarters as provided on the ticket back or deliver the ticket to any Lottery Claims Center for validation and subsequent payment.  The holder of any $60, $100, $200 or $500 prize-winning ticket may mail it to Lottery Headquarters or deliver the ticket to any Lottery Claims Center for validation and subsequent payment.  Lottery retailers, at their option, may accept any $60, $100, $200 or $500 prize-winning tickets for validation and payment.
c)	The holder of a $1,000 or $25,000 prize-winning ticket shall fill out a claim form and send the completed form and the ticket to the Lottery for validation and payment pursuant to instructions on the back of the ticket or deliver the ticket to any Lottery Claims Center for validation and subsequent payment.
d)	Any cash prize from a winning ticket that is not claimed within the period specified herein and in the manner specified on the back of each ticket shall remain the property of the Lottery.
6.UN.5  Price of Tickets 
The purchase price of each ticket for Colorado Lottery Game Number 389 shall be $3.00.  However, a licensed retailer may be permitted, upon prior approval of the Director, to make gifts of tickets as a means of promoting the sale of goods or services to the public.
6.UN.6  Numbers and Sizes of Prizes 
The numbers (plus five percent or minus three percent [+5% or -3%based upon pool level]) and sizes of instant prizes are as set forth in Exhibit B attached to this Rule 6.UN and incorporated by reference as though fully set forth herein.  Overall probability of winning includes break-even prizes.
6.UN.7  Manner of Selecting Winning Tickets 
The winning of any cash prizes in the amounts set forth in Paragraph 6.UN.6 results from ticket purchases by the public and removal by the ticket holder of the rub-off area revealing a winning combination of play symbols as set forth in Paragraph 6.UN.3.  In addition, to be a valid instant cash winning ticket, all of the requirements of Paragraph 5.17 of Rule 5 and 6.UN.8 must be satisfied.
6.UN.8  Ticket Validation Requirements 
In addition to meeting all of the requirements in these Rules and Regulations, Paragraph 5.17 of Rule 5, and those printed on the back of each ticket, to be a valid instant winning ticket, the number and placement of Grid Coordinates Play Symbols on the ticket must conform precisely to those in Exhibit A.  Grid Coordinates Play Symbols, Fixed Symbols and Retailer Validation Codes must be present in their entirety and must conform to those in Exhibit C attached to this Rule 6.UN and incorporated by reference as though fully set forth herein.
6.UN.9  Play Symbols, Fixed Symbols and Retailer Validation Codes 
Play Symbols, Fixed Symbols and Retailer Validation Codes are as set forth in Exhibit C attached to this Rule 6.UN and incorporated by reference as though fully set forth herein.

Exhibit A – Ticket Front - Covered/Uncovered

Exhibit A – Ticket Back

Ticket Back Language:
OVERALL PROBABILITY INCLUDEING BREAK-EVEN PRIZES 1 IN 3.44
Claim winners up to and including $50 at any Lottery retailer; winners up to and including $599 may be claimed at participating retailers or mail signed ticket with your name and address to Colorado Lottery, P.O. Box 7, Pueblo Co 81002-0007 for payment.  Retailers have the option of paying up to $599.  Claim prizes of more than $599 by mailing signed ticket and filled out claim form obtainable at Lottery retailers to P.O. Box 7, Pueblo, CO 8102-0007, or claim at a Lottery Office.  Tickets must be received at the lottery within 180 days of the announced end of game.  Ticket purchasers must be at least 18 years old.  All cash prizes not claimed within 180 days after end of game are forfeited.  All tickets, transactions and winners are subject to Lottery Rules and State Law.  Tickets are void and not entitled to prize payment if they fail to meet requirements of game rules or are irregular in any manner.  Liability for a void ticket is limited to replacement of ticket or refund of retail sales price.  Availability of prizes subject to prior sale.

Become a MyLottery member to receive exciting Colorado Lottery news.  
Visit coloradolottery.com for more details.
Your ticket to a more beautiful Colorado
Enter grid at A1-START.  Follow instructions to each GO TO coordinate revealed.  Collect 3 like symbols and win prize shown in legend.  Game ends when the third SWORD symbol appears "."  Find a "" symbol in any coordinate and double the prize for the 3 like symbols revealed.

Exhibit B – Prize Structure

Exhibit C - Image Fonts

Exhibit C – Retailer Codes

Exhibit C – Retailer Codes
Amended Rule 2 - Licensing General Rules and Regulations

BASIS AND PURPOSE FOR AMENDED RULE 2
The purpose of Rule 2 is to establish and provide the specific factors required for determining eligibility of an applicant desiring to obtain a license for the sale of Lottery tickets to the public; to specify certain duties of the licensees; to authorize the Director to establish bonding protection for the State of Colorado; to describe the types of limitations which may be placed upon licenses issued by the Director; to provide for the circumstances upon which the Director may terminate licenses and issue duplicate licenses; to specify certain terms, conditions and duties required of licensees authorized to sell Lottery game tickets; to specify the rights of the licensee, as well as the detailed operation of the Lottery at the retail sales level. The provisions of Rule 2 are necessary in order to promote the public interest, as well as the security and efficient operation of the Lottery. The statutory basis for Rule 2 is found in C.R.S. 24-35-206 and 24-35-208(1)(a) and (2).2.1  Application for License to Sell Lottery Tickets
2.1  Application for License to Sell Lottery Tickets
Any person may apply to the Lottery for a license to sell Lottery tickets as a licensee by filing an “Application for Lottery Retail License.”  Such application shall be completed under penalty of perjury on a form approved by the Director.
2.2  Licensee's Commission
A fee in an amount to be determined by the Director shall be paid by the applicant to the Lottery. This fee shall be paid at the time of the issuance of the license.
2.3  Eligibility for License
a.	The Director shall issue annual licenses for the sale of Lottery tickets in accordance with the provisions of C.R.S. 24-35-206 and these Rules and Regulations. The Director shall license only such persons who, in the Director's opinion, will best serve the public interest and trust in the Lottery and promote the sale of Lottery tickets. Prior to issuing any license, the Director shall consider the following factors:
	1.	The moral character and reputation of the applicant.
	2.	The financial responsibility and security of the applicant and its business or activity.
	3.	The accessibility of the public to the licensed premises proposed by applicant.	
	4.	The number and sufficiency of existing licenses to serve the public interest.	
	5.	The volume of applicant's expected Lottery ticket sales.
	6.	The security and efficient operation of the Lottery.
	7.	 Whether the applicant is ineligible under the provisions of C.R.S. 24-35-206(4).
b.	In addition, the Director shall consider the following factors:
	1.	Business and security considerations which include but are not limited to:
i.)	past security problems;
ii.)	credit history of owners, officers and the business entity;
iii.)	history of administrative or regulatory actions.
	2.	Marketing considerations which include but are not limited to:
i.)	projected sales of Lottery products 
ii.)	willingness to promote lottery products.
c.	The Director shall determine the total number of On-Line terminals to be installed throughout the state and establish procedures for On-Line site selection. In determining the order in which On-Line terminals will be installed, a Marketing Survey will be completed in which the factors considered may include but not be limited to:
	1.	Trade style of proposed site;
	2.	Store hours;
	3.	Estimated On-Line sales;
	4.	Instant weekly sales;
	5.	Instant/Scratch game sales history;
	6.	Instant/Scratch game accounts receivable record;
	7.	Nearest On-Line retailers;
	8.	The number of licensed outlets in an area;
	9.	The potential for revenue generation;
	10.	Demographics;
	11.	Public accessibility within that area;
	12.	The availability of telecommunications service to the area;
	13.	Territory Sales Manager's assessment;
	14.	District Sales Manager's assessment;
	15.	Sales Manager's assessment;
	16.	Such other factors or conditions as determined by the Director to best serve the public convenience; to promote the sale of Lottery tickets; to protect the security and integrity of the Lottery games; or as may be otherwise necessary or desirable for the efficient and economical operation and administration of the Lottery.
2.4  Duties of Licensees
In order to promote the public interest and the security and efficient operation of the Lottery, each applicant shall agree, if granted a license, to perform the following terms, conditions and duties:
a.	To be bound by and comply with all lawful provisions of Part 2, Article 35, Title 24, C.R.S. and the Rules and Regulations adopted pursuant thereto; as well as with any lawful instructions or directives issued by the Director.
b.	To actively promote the sale of Colorado Lottery tickets and make them available for sale at all times the system is available and at the times that are consistent with the business hours of operation.
c.	To pay to Instant/Scratch game ticket bearer's prizes of up to and including $599.00 for any tickets validated by the retailer. All tickets validated by a retailer must be paid by that retailer. These prizes shall be paid during all normal business hours of the licensee or hours approved by the Director, provided the validation system is operational and claims can be validated. The licensee shall not charge the claimant any fee for payment of a prize or for cashing a business check drawn on the licensee's account.
d.	To maintain authorized displays, notices, and other materials used in connection with the sale of Lottery tickets in accordance with reasonable instructions or directives issued by the Director.
 e.	To maintain and make available upon reasonable notice a complete and accurate set of books of account, correspondence and records of all Lottery transactions and operations, including but not limited to the receipt, sale, handling, inventory, and returns for credit for all Lottery game tickets received by licensee, and any books of account, correspondence, reports and records that may be required for Lottery game tickets.
f.	To make available during normal business hours, with or without prior notice of any kind, to any duly authorized representative of the Lottery, said books of account, correspondence and records for inspection and audit by an auditor selected by the Commission or Director.
g.	To allow inspections of the licensed premises by duly authorized representatives of the Division during normal business hours, to determine compliance with the provisions of the Act, Rules and Regulations, instructions and directives of the Lottery Director.
h.	To indemnify and hold the State of Colorado, the Colorado Lottery and the Colorado Lottery Commission harmless from any and all liabilities, claims, actions, and judgments of any kind or nature arising from or relating to the licensee's acts or omissions in the operation and conducting of the sale of Lottery tickets.
i.	To provide, as may be required by the Director, a certificate of insurance insuring the State of Colorado with respect to any liability which may arise from or relate to the licensee's acts or omission in the operation and conducting of the sale of Lottery tickets.
j.	To pay an administrative fee of 20% of the retail value of any unactivated Lottery tickets that are lost due to negligence of the licensee.
k.	To provide confirmation that the licensee is not an employee, agent or representative of the State of Colorado, Commission, or Lottery and shall not represent or hold himself out to be other than a licensee thereof.
l.	To agree that all Lottery tickets shall be deemed to have been purchased by the licensee as of the date each book of Instant/Scratch tickets is activated, at the price, less applicable commission, established by the Commission; and that the licensee shall make payment to the Lottery by electronic funds transfer (EFT) for any and all Lottery Instant/Scratch tickets which are activated and offered for sale to the public including tickets that have been sold, but not activated.
m.	To pay an administrative fee, if required, at the discretion of the Director in an amount to be determined by the Director to cover operational costs to the Lottery in servicing said retailer account.
n.	To file with the Division, as may be required by the Director, upon forms provided, reports of the licensee's receipts, sales, and other transactions relating to the disposition of Lottery tickets.
o.	To maintain in a safe place records of claims filed upon forms provided by the Director, and unsold Lottery tickets for delivery to the Field Representative upon instruction or directive by the Director.
p.	To prominently display its license in an area visible to the general public. Each licensee shall maintain and display Lottery point-of-sale promotional material only as approved by the Director.
q.	 To agree that all unclaimed prizes as set forth by each game rule shall remain the property of the State of Colorado, subject to being claimed by the person entitled thereto within one hundred eighty (180) days after the announced end of the Scratch/Instant Lottery game or the drawing for which the On-Line ticket was purchased.
r.	 To fully and timely pay the Division for all Lottery tickets received.
s.	 To display any promotional advertising indicating the odds of winning and the average return on the dollar in prize money to the public. This information shall be displayed on:
	1.	All printed promotional and advertising materials for a specific lottery game, including, but not limited to, brochures, posters, billboards, placards, and point-of-sale displays;
	2.	A placard to be located on the licensed premises in close proximity to the display location of the license;
	3.	Instructions to licensees for the conduct of a specific game.
t.	The disclosure required hereunder shall not apply to:
	1.	Generic promotional and advertising materials publicizing the Colorado Lottery which do not promote a specific lottery game; and
	2.	Electronic advertising for a specific lottery game or non-printed advertising media for a specific lottery game, for which a printed disclosure is not feasible or practicable.
 u.	In addition to the requirements listed in the previous sub-paragraphs of 2.4, a licensee authorized to sell Lottery tickets shall agree to the following terms, conditions and duties:
	1.	To pay, without reimbursement, all electricity charges in conjunction with the operation of the terminal equipment related to the sale of Lottery tickets;
	2.	To sell all Lottery games, including Scratch/Instant game tickets offered by the Lottery;
	3.	To provide adequate staffing to maximize Lottery revenues;
	4.	To attend Lottery training sessions and provide staff training;
	5.	To use signage identifying the location as a Lottery retailer. Nothing herein shall require retailer to install signage which is in violation of any state, local, or municipal code;
 	6.	To maintain authorized displays, and other materials used in conjunction with the sale of Lottery tickets in accordance with reasonable instructions or directives issued by the Director;
	7.	To provide authorization for an account with EFT (Electronic Funds Transfer) capability to be used for weekly billing of all Lottery products;
	8.	To maintain a balance in the account sufficient to cover moneys due the Lottery for the established billing period. The Lottery shall withdraw by EFT the amount due the Lottery on the day specified by the Director. In the event the day specified for withdrawal occurs on a legal holiday, withdrawal shall occur on the following business day.
	9.	To sell Scratch tickets in consecutive, numerical order.  
	10.	Licensee shall sell Lottery tickets for cash only, inclusive of checks and money orders, and shall not sell Lottery tickets on a credit or any other non-cash basis.  Licensee shall not exchange Lottery tickets and/or books with any other person, including other licensees.
 v.	Licensees are prohibited from playing Lottery games by using any method other than random, fair chance, or by any method contrary to the principle that every Lottery ticket has an equal and random chance of winning.
w.	 In addition to the requirements listed in the previous sub-paragraphs of 2.4, a licensee authorized to sell On-Line game tickets shall agree to the following terms, conditions and duties:
	1.	To maintain sufficient funds to pay all On-Line prize claims of $150.00 or less by cash, check, or money order;
	2.	To pay to an On-Line game ticket bearer prizes of $599.00 or less for any tickets validated by the retailer. All tickets validated by a retailer must be paid by that retailer. These prizes shall be paid during all normal business hours of the licensee or hours approved by the Director, provided the validation system is operational and claims can be validated. The licensee shall not charge the claimant any fee for payment of prize or for cashing a business check drawn on the licensee's account;
	3.	To print On-Line tickets only on the specific ticket stock issued by the Lottery to the specific retail outlet and not transfer ticket stock to any other outlet;
	4.	To replace ribbons and On-Line ticket stock, and clear paper jams as required for the On-Line terminal per instructions provided by the Lottery; and
	5.	To acknowledge that the On-Line terminal and supplies issued by the Lottery or the On-Line vendor remain the property of Lottery or On-Line vendor. The licensee shall exercise due diligence in the operation of the On-Line terminal and immediately notify the Lottery and the central computer facility of any equipment, telephone line or On-Line systems malfunction, such as the issuance of an invalid On-Line ticket, or the inability to generate or redeem an On-Line ticket. The licensee shall not perform any mechanical or electrical maintenance on the On-Line terminal.
	6.	To provide without reimbursement the full cost of terminal installation and hookup charges any and all charges related to the sale of Lottery tickets, as specified by the Lottery.
	7.	To provide, without reimbursement, any requirement the Lottery deems necessary for terminal installation and maintenance of equipment related to the sale of Lottery tickets;
 	8.	To pay, without reimbursement, all communication charges in conjunction with the operation of the terminal equipment related to the sale of Lottery tickets, unless otherwise specified by the Director.
2.5  Licensing Disqualifications 
The following shall not be granted a license:
a.	Any person who will engage in business exclusively as a Lottery sales agent, unrelated to any other commercial business activity.
b.	Any person who has been convicted of a gambling-related offense, notwithstanding the provisions of C.R.S. 24-5-101.
c.	A person who is or has been a professional gambler or gambling promoter. A professional gambler is a person whose profession is, or whose major source of income derives from, playing games of chance for profit. A gambling promoter is one whose profession is, or whose major source of income derives from, encouraging games of chance for profit. Notwithstanding any provisions contained herein to the contrary, a professional gambler or gambling promoter shall not be deemed to include any of the following persons:
	1.	Any person who has been licensed by the State of Colorado to promote or conduct any lawful gambling operation of any kind within the State of Colorado, including, but not limited to the promoting and conducting of pari-mutuel wagering at any race meet held pursuant to Article 60, of Title 12, C.R.S.
	2.	Any person who has been employed by any government-operated Lottery.
d.	Any person who has engaged in bookmaking or any other form of illegal gambling.
e.	Any person who is not of good character and reputation, notwithstanding the provisions of C.R.S., 24-5-101, in the community in which he resides.
f.	Any person who has been convicted of a crime involving fraud or misrepresentation, notwithstanding the provisions of C.R.S. 24-5-101.
g.	Any firm or corporation in which a person defined in sub-paragraph b), c), d, e. or f. of this Section 2.5 has a proprietary, equitable, or credit interest.
h.	Any organization in which a person defined in sub-paragraph b), c), d), e) or f) of this Section 2.5 is an officer, director, or managing agent, whether compensated or not; or
i.	Any organization in which a person defined in sub-paragraph b), c), d), e) or f). of this Section 2.5 is to participate in the management or sales of Lottery tickets or shares.
j.	Any person who has provided false or misleading information to the Lottery.
k.	Any person who is not financially responsible to purchase and sell Lottery tickets. A person shall be deemed “not financially responsible”  when, upon a review of said person's financial statement or other information required by the Director, a reasonable person holding the position of Director would hesitate to extend any credit to the applicant for the purpose of applicant's engaging in the purchase and sale of Lottery tickets to the public.
l.	Any person whose proposed licensed premises is either a residence or, by reason of its location is not accessible to a sufficient number of persons so as to reasonably justify the Lottery's expenditure of public monies to provide and deliver Lottery tickets, services, and supplies to such a location. In making such a determination, the Director shall consider the possible economic benefit to the State and the convenience to the public to be gained from licensing such person.
m.	Any person whose volume of Lottery ticket sales projected or anticipated is such as not to reasonably justify the Lottery's expenditure of public monies to provide and deliver Lottery tickets, services, and supplies to such a location, when considering the possible economic benefit and convenience to the public to be gained there from. For the purpose of initial licensing, a projected or anticipated volume of instant game Lottery ticket sales must meet the current minimum sales requirement as determined by the Lottery Director.
n.	Any sole proprietor who is not a resident of the State of Colorado.
o.	Any corporation, that is neither incorporated in, nor authorized to do business in, the State of Colorado
p.	Any Limited Liability Company (L.L.C.), that is neither incorporated in, nor authorized to do business in, the State of Colorado.
q.	Any partnership, or association, or other type of business entity, none of whose general partner(s), member(s), or representative(s) is a resident of the State of Colorado.
r.	A Lottery license may be denied if the applicant has been convicted, within ten years of an application, of a felony crime, including but not limited to, robbery, burglary, theft, trespass, criminal mischief, forgery, computer crime, bribery, perjury, offenses related to judicial and other proceedings, telecommunications crimes, racketeering, or the distribution, sale, manufacturing, dispensation or possession of drugs or drug paraphernalia. Other convictions, whether felony or misdemeanor, may relate to a determination that the person is not of good character and reputation and may lead to the denial of a license.
2.6  On-Line Game Licensee Disqualifications 
a.	The Director may, after an On-Line terminal has been in operation for six months, order the removal of such terminal from a location after considering factors which include but are not limited to:
	1.	Sales volume which does not meet established standards;
	2.	Significant changes to On-Line site selection survey items which alter the scoring of the location;
	3.	Failure to generate sufficient sales volume to cover the Lottery's administrative costs.
b.	The Director may immediately suspend an On-Line terminal's operation, order removal of an On-Line terminal from a retail location, or take any other action necessary in the event the On-Line licensee:
	1.	Fails to comply with any rule established by the Commission or any instruction issued by the Director.
	2.	Tampers with or attempts to tamper with the On-Line terminal or On-Line system.
	3.	Fails to make payment of a validated prize or makes payment and the payment is dishonored for any reason.
	4.	Fails to make payment to the Lottery or makes payment to the Lottery and the payment is dishonored for any reason.
 	5.	A licensee who issues payment for a prize with a check that is dishonored is subject to licensee suspension or revocation.
2.7  Bonding Requirement 
No license shall be issued or renewed by the Director, unless the applicant or licensee is first bonded in such an amount and type as may be required by the Director to protect the State against any monetary loss that may arise from the licensee's purchase and sale of Lottery tickets. Such bonding may take the form of any instrument that is determined by the Director to satisfy the requirements of C.R.S. 24-35-206(1) and C.R.S. 24-35-219.
2.8  Limitations on Licenses 
a.	 Unless otherwise limited or conditioned pursuant to the provisions contained in subparagraph 2.8 c) hereof, each license issued by the Director for the sale of Lottery tickets shall limit the sale thereof solely to the licensed premises; and shall terminate unless timely renewed, one year from the date of issue. The Director may limit a licensee to sale of a particular type of Lottery game.
b.	A license may be renewed on an annual basis upon the timely payment of a renewal fee to be determined by the Director, unless the Director determines to deny the renewal of such license pursuant to the provisions of the Act and these Rules and Regulations.
c.	In order to protect the public interest and trust in the Lottery and to further the sale of Lottery tickets, the Director may, but shall not be required to, issue a license for special events containing reasonable limitations or conditions. Such limitations and conditions may include any one or all of the following:
	1.	The length of license period;
	2.	The hours and days of Lottery ticket sales;
	3.	The location of sale;
	4.	The specific person who may be allowed to sell Lottery tickets;
	5.	The specific sporting, charitable, social, or other special event where Lottery tickets may be sold;
	6.	Such other limitations or conditions of licensing as determined by the Director to best serve the public convenience; to promote the sale of Lottery tickets; to protect the security and integrity of the Lottery games; or as may be otherwise necessary or desirable for the efficient and economical operation and administration of the Lottery.
d.	 For the purpose of 2.8 c), a special event shall mean a specific sporting, charitable, social event, or other specific location or activity, such as a fair, which, by reason of its limited duration or other special character requires the issuance of a license containing such limitations or conditions as described above in order to protect the security and integrity of Lottery games.
2.9  Provisional License
a.	The Director may issue a provisional license to an applicant pending the completion of the processing required under Paragraph 2.3, after receipt of the person's fully completed application and completion of a preliminary background check. The provisional license shall expire at the time of issuance of the general license or ninety (90) days from the date the provisional license is issued, whichever occurs first. The provisional license may be extended by the Director for one additional ninety (90) day period of time.
b.	The Director may issue a provisional license to an applicant for renewal of a general license when a determination has been made and it becomes necessary to authorize a licensee to sell tickets pending approval of the application for general license renewal. The provisional license shall expire at the time of the issuance of the general license renewal or ninety (90) days from the date the provisional license is issued, whichever occurs first.
2.10  Non-Transferability of License
A license issued pursuant to these Rules and Regulations shall not be assignable or transferable. If either the person who has signed the application for licensure is no longer employed by the licensee in the capacity stated on the application or if the ownership of the licensee substantially changes, the Director reserves the right to terminate the license. The licensee shall notify the Director in writing at least thirty (30) days prior to any such proposed change. A substantial change in ownership shall mean a transfer of ten percent (10%) or more of either the equity of such business, or the decision-making authority thereof. In the case of a nonprofit organization, the licensee shall notify the Director in writing within ten (10) days after any such change has taken place.
2.11  Duplicate Licenses
Upon the loss, mutilation or destruction of any license issued by the Director, a duplicate license can be issued by a Lottery Territory Sales Manager or a Lottery Investigator may verbally or in writing request a license reprint after verifying the location's license status. A mutilated license shall be surrendered to the Director upon issuance or denial of a duplicate license. A lost license, when found, must be immediately surrendered to the Director.

Permanent Rule 12   General Rules and Regulations 

Basis and Purpose For Rule 12
The purpose for Rule 12 is to provide specific guidelines as required by C.R.S. 24-35-209(1)(b) to ensure compliance with Colorado Constitutional Article XXIX.  The statutory basis for Rule 12 is found at C.R.S. 24-35-208(1)(a) AND C.R.S. 24-35-208(1)(b).
12.1  Purpose and Statutory Authority
These Rules and Regulations are adopted by the Colorado Lottery Commission governing the establishment and operation of the Colorado Lottery pursuant to the authority provided by Part 2, Article 35, Title 24, C.R.S. 2-35-208 (1)(a) and (2)(II) and under such further instructions and directives as the Lottery Director may issue in furtherance thereof.
12.2 Commission Compensation
Lottery commissioners shall not receive any monthly compensation for their services.  Lottery commissioners shall receive necessary traveling and other reasonable expenses incurred in the performance of their official duties on behalf of the Lottery.