PURPOSE: This rule sets the amount of prizes for parimutuel games.

1. (1) The total amount of prize money allocated to the winnings pool for on-line games shall be a minimum of forty-five percent (45%) of the total gross on-line sales. Any unfunded portion of the guaranteed first prize may be funded from the Lottery Prize Reserve Fund.
2. (2) The allocation of the on-line winnings to the prize categories shall be announced by the executive director at least one (1) week prior to the effective date of this rule and one (1) week prior to any future changes in the allocation.
3. (3) The prize money allocated to each of the winning prize categories will be divided equally by the number of plays determined to be winning plays for that prize. The executive director may establish a maximum or minimum prize allocation to each of the winning categories.
4. (4) In an on-line game, if no winning ticket qualifies for any of the prize categories, the amount allocated for prize shall be carried over and added to the prize pool of the next drawing for that particular game or will be allocated to other prize levels according to the rules of that game.
5. (5) The amount allocated to the first prize may be used to purchase securities or an annuity for each winning play. The first prize will be payable to winning tickets by an initial cash payment plus equal payments as established by the executive director. Any winning ticket owned in shares by multiple owners shall be funded as outlined above to the owners as declared on the claim form for claiming the on-line prizes. As established by the executive director, the first prize may be payable to winning ticket holder(s) in a lump sum cash payment equal to the cash value of the first prize annuity or a percentage of the first prize. The decision to accept a lump sum payment must be unanimously agreed to by all owners of the ticket.

AUTHORITY: sections 313.220, RSMo Supp. 1999 and 313.230, RSMo 1994.* Original rule filed July 15, 1986, effective July 25, 1986. Amended: Filed May 14, 1987, effective Aug. 13, 1987. Amended: Filed Aug. 4, 1988, effective Oct. 27, 1988. Amended: Filed Sept. 15, 1997, effective March 30, 1998. Amended: Filed May 25, 2000, effective Nov. 30, 2000.

*Original authority: 313.220, RSMo 1985, amended 1988, 1993, 1995; and 313.230, RSMo 1985, amended 1988, 1990, 1993.