1. (a) Each licensed lottery retailers shall electronically transfer the funds due to the lottery commission on a weekly basis.

2. (b) Failure to make payment when due shall result in the commission taking the following actions:

   1. (1) If no other failures have occurred within the previous 12-months, the licensee shall submit payment in full within 2 business days of receiving notice from the commission that the payment was not made;
   2. (2) If the licensee fails to submit payment as required by (1) above, or if the failure to submit payment is the second occurrence within a 12 month period, the commission shall immediately shut down electronic lottery sales equipment and suspend the sale of lottery games until payment is made in full;

   3. (3) If a third failure occurs within a 12-month period, the commission shall:

      1. a. Immediately shut down electronic lottery sales equipment and suspend the sale of lottery games until the licensee posts a bond in the amount of $20,000, naming the commission as the obligee, and conditioned upon the licensee’s compliance with payment obligations; or
      2. b. Immediately revoke the license and remove all lottery games and equipment; and
   4. (4) If a fourth failure occurs within a 12-month period, the commission shall immediately revoke the license, remove all lottery games and equipment, and collect the bond.

Source. #14474, eff 1-7-26, EXPIRES 1-7-36