(a) Fiduciary duty.

1. (1) All proceeds from the sale of tickets or shares constitute a trust fund until paid to the Office of the Arkansas Lottery either directly or through the office’s authorized representative.
2. (2) A retailer and officers of a retailer's business have a fiduciary duty to preserve and account for retail lottery proceeds, and retailers are personally liable for all lottery proceeds.
3. (3) Sales proceeds and unused instant tickets must be delivered to the office or its authorized collection representative upon demand.

(b) Deposits/accounts.

1. (1)

   1. (A) All retailers are required to place all lottery proceeds due to the office in accounts in institutions insured by the Federal Deposit Insurance Corporation not later than the close of the next banking day after the date of their collection by the retailer until the date they are paid to the office.
   2. (B) At the time of the deposit, lottery proceeds are the property of the office.

2. (2) Retailers shall establish a single separate electronic funds transfer account for the purpose of:

   1. (A) Receiving moneys from ticket or share sales;
   2. (B) Making payments to the office; and
   3. (C) Receiving payments for the office.

3. (3)

   1. (A) Unless authorized in writing by the office, each retailer shall establish a separate bank account for lottery proceeds that shall be kept separate and apart from all other funds and assets and shall not be commingled with any other funds or assets.
   2. (B) Failure to comply. If the office determines that a retailer failed to comply with subdivision (b)(1) of this section three (3) times within any consecutive twenty-four-month period, the office may pursue business closure against the retailer under 23 CAR § 370-801 et seq.