1. (1) General: This rule contains duties to be performed by a Lottery retailer beyond those duties described in the Lottery retailer contract. The duties listed herein are not meant to be exclusive. Other duties and requirements for retailers may be contained elsewhere in OAR Division 177, ORS Chapter 461, or in the Lottery retailer contract.

2. (2) All Retailers: All Lottery retailers shall:

   1. (a) Stock Equipment: Keep all Lottery equipment on the retailer’s premises stocked with a variety of Scratch-it tickets, play slips, computer-generated tickets, and any other Oregon Lottery® product required to be sold. Unless exempted by the Lottery, if a Lottery retailer fails to stock or replenish these items as they are made available for sale by the Lottery, or as they are depleted because of purchase or use, the Lottery may remove the equipment.
   2. (b) Perform Minor Maintenance: Replace ticket stock and clear paper jams as may be required for any of the equipment provided by the Lottery for the sale of Lottery tickets or shares.
   3. (c) Maintain Paper Stock: Install and use only approved Lottery-provided paper stock which has been specifically assigned to the selling retailer when selling Lottery tickets and shares.
   4. (d) Obtain Permits: Be required to arrange for and obtain all necessary permits required by federal, state, and local governments for electrical installation, electrical power, telephone service, fiber optic lines and connections, and coaxial cable and connections required to sell Lottery tickets or shares at the retail site.
   5. (e) Pay Amounts Due: Pay the amount due to the Lottery for the sale of Lottery tickets or shares by the use of an electronic funds transfer (EFT). In most instances, this EFT shall occur at the end of the fourth day after the close of each Lottery business week. When an applicant operates multiple Lottery retail sites before the effective date of this rule, the routine date of the EFT collection may be set beyond the fourth day after the close of the business week in order to accommodate the needs of the combined sites.

3. (3) Traditional Lottery Game Retailers: A Lottery retailer authorized to sell traditional Lottery games is required to:

   1. (a) Scratch-It Tickets:

      1. (A) Activate Scratch-it tickets prior to sale.
      2. (B) Validate Scratch-It tickets presented to the retailer by a player through equipment provided by the Lottery connected to the Lottery’s central computer system.
      3. (C) Destroy winning tickets after validation and payment of the prize; (Any Lottery retailer who does not destroy a winning ticket after validation and payment of the prize is liable for a prize paid by another Lottery retailer who subsequently pays the ticket.)
      4. (D) Return non-winning tickets to the player.
   2. (b) Draw Game Validation: Validate a Draw game ticket through the Draw game terminal before paying a Draw game prize.
   3. (c) Underage Play: Monitor Lottery player-operated vending machines, as defined in OAR 177-045-0000, to prevent underage play.

4. (4) Video Retailers: A Video Lottery game retailer is required to:

   1. (a) Cash Slip Validation: Validate any Video Lottery cash slip presented for payment that was issued at the retailer’s location, through the Lottery’s on-site video validation terminal before paying a Video Lottery prize, except for those cash slips required to be validated and paid by the Lottery.
   2. (b) Restrict Visibility: Restrict Video Lottery game terminals from visibility from areas outside of the business and from view of dining areas or other areas where minors are permitted to linger.
   3. (c) Age-Posted Area: Maintain Video Lottery game terminals in an area of the business that is prohibited to minors. The area must be posted as such by the Oregon State Lottery or the Oregon Liquor and Cannabis Commission. This restriction against minors does not apply to minors who qualify under the exceptions permitted by the Oregon Liquor and Cannabis Commission for access to areas normally prohibited to minors.

5. (5) Video Retailers Classified as an LMR or CSE:

   1. (a) A Video Lottery game retailer classified by the Lottery as a limited-menu retailer (LMR) or café/small eatery (CSE) under subsection (b) of this section shall meet the following minimum food and alcohol service requirements:

      1. (A) The establishment shall have a menu that is visible to the public that offers at least five different meals (if classified as an LMR) or 10 different meals (if classified as an CSE). To meet this requirement, the establishment must have the space, food preparation area, inventory, equipment, and staff to serve the menu items during all hours of operation. The food must be prepared by the business.
      2. (B) The establishment must have at least eight dining seats available. Seats at bars or seats designated for a VLT do not qualify as a dining seat.
      3. (C) The establishment may not discourage or attempt to discourage a person from ordering food. Examples of discouraging food service include but are not limited to: A failure to take, prepare, cook, or deliver a food order in a timely manner; clearly over-pricing food; offering or serving unpalatable food; and failing to provide food service.

   2. (b) Classification as an LMR or CSE:

      1. (A) Except as provided otherwise in paragraph (C), the Lottery shall categorize a retailer as a limited-menu retailer (LMR) if the business offers less than 10 different meals and has less than $100,000 in combined gross annual sales of food, non-alcoholic beverages, and alcohol sales.
      2. (B) Except as provided in paragraph (C), the Lottery shall classify a retailer as a café/small eatery (CSE) if the business offers less than 15 different meals and has less than $200,000 in combined gross annual sales of food, non-alcoholic beverages, and alcohol sales.
      3. (C) The Lottery may determine that a business is not an LMR or CSE if the primary activity of the business is the on-premise sale of alcoholic beverages for immediate consumption, as determined by the Lottery based on a visual inspection of the premises and a review of the gross alcohol sales of the business.

   3. (c) Definitions: For purposes of this rule:

      1. (A)  “Bar” means a counter at which the preparation, pouring, serving, sale, or consumption of alcoholic beverages is the primary activity.
      2. (B) “Dining seats” means seating at tables or food counters, at which the primary activity is the consumption of food, located in areas of the establishment open to the public that will accommodate a place setting consisting of a plate or dish, glassware, napkin, and utensils for each seat.
      3. (C) “Different meals” means meals that the Lottery determines differ in their primary ingredients or method of preparation. For example, a turkey sandwich differs from a salami sandwich, a beef burger differs from a turkey burger, a pepperoni pizza differs from a cheese pizza, and fried chicken differs from baked chicken. Different sizes of the same item are not considered different under this rule. For example, a large cheese pizza is not different from a small cheese pizza and a large hot dog is not different from a small hot dog.
      4. (D) “Meal” means a food item, or combination of food items, prepared or cooked on the premises that the Lottery determines is a main course and is a serving of food sufficient to satisfy the appetite of one individual. Food items that are appetizers, snacks, and desserts do not qualify as a meal. Examples include, but are not limited to, popcorn, peanuts, chips, a serving of food that is not sufficient to satisfy the appetite of one individual, and food items offered as other than a meal.
6. (6) Sanctions: The Director may sanction a Lottery retailer for the loss, damage, or destruction of any winning game ticket or share. This includes, but is not limited to: Imposing a requirement for remedial training for the retailer or the retailer’s employees, and any other actions for failure to perform contract duties or requirements as described in the Lottery retailer contract or OAR Chapter 177.

Statutory/Other Authority

Or Const, Art XV, § 4(4)(a), ORS 461.120, 461.217, 461.250, 461.300, 461.715 & 461.719

Statutes/Other Implemented

Or Const, Art. XV, § 4(4), ORS 461.215, 461.560, ORS 461.120, 461.217, 461.250, 461.300, 461.715 & 461.719

History

LOTT 3-2025, amend filed 01/31/2025, effective 02/01/2025
LOTT 11-2021, minor correction filed 08/02/2021, effective 08/02/2021
LOTT 1-2021, amend filed 02/26/2021, effective 03/01/2021
LOTT 4-2017, f. 8-25-17, cert. ef. 9-1-17
LOTT 3-2015, f. 9-25-15, cert. ef. 10-1-15
LOTT 2-2013, f. 6-24-13, cert. ef. 7-1-13
LOTT 1-2013(Temp), f. & cert. ef. 2-1-13 thru 7-27-13
LOTT 9-2010, f. 8-30-10, cert. ef. 9-5-10
LOTT 4-2010(Temp), f. 3-10-10, cert. ef. 3-15-10 thru 9-4-10
LOTT 6-2009, f. 9-28-09, cert. ef. 10-1-09
LOTT 12-2008, f. 12-23-08, cert. ef. 1-1-09
LOTT 6-2004, f. & cert. ef. 5-26-04
LOTT 3-2004(Temp), f. & cert. ef. 4-6-04 thru 10-1-04
LOTT 22-2002, f. & cert. ef. 11-25-02
LOTT 11-2002(Temp), f. 9-6-02, cert. ef. 9-9-02 thru 3-6-03
LOTT 6-2000, f. 7-26-00, cert. ef. 8-1-00
Administrative correction 11-17-99
LOTT 5-1999(Temp), f. & cert. ef. 5-26-99 thru 6-26-99
LC 4-1995, f. 4-27-95, cert. ef. 5-1-95