CHAPTER 871. POWERBALL

 (a)  Powerball is a five out of 49 plus one out of 42 on-line lottery game which pays the grand prize on an annuitized, parimutuel basis. Except as provided in this chapter, all other prizes are paid on a set cash basis.

 (b)  The purpose of the Powerball game is to determine winners from ticket holders matching five numbers from 1 through 49, and matching the separately drawn Powerball number, or a designated combination thereof, within a single play, with the five winning numbers and the Powerball number to be randomly drawn. Drawings will be conducted twice a week or as publicly announced by the Secretary.

 (c)  The object of the game is for a player to select, in a single play on a ticket, five numbers and the Powerball number that match the numbers and the Powerball number drawn for the game in which the ticket is participating. Correctly matching the six winning numbers consisting of the five numbers drawn plus the Powerball number drawn, and meeting other validation criteria, entitles the ticket holder to the grand prize identified in §  871.8 (relating to expected prize payout percentages).

 The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

   Apparent winning ticket—A ticket which has not been validated by the Lottery.

   Basic play—Each set of six numbers consisting of five numbers from 1 through 49 and the Powerball number on a ticket purchased without the selection of any promotion, representing a single entry for a Powerball drawing and designated by a letter from A to E on a Powerball ticket.

   Cash election—A method of payment that the player selects, within 60 days of the date the Lottery determines the player is entitled to the Powerball grand prize, to receive a parimutuel share of the prize money allocated to the grand prize category as a one-time, lump-sum cash payment rather than as an annuity.

   Drawing—The process of selecting winning numbers that determines the winners for each prize category of the game.

   First set numbers—The first group of numbers, from 1 through 49, appearing in the top grid of a Powerball game panel.

   Grand prize winnings pool—An amount constituting 29.1942% of gross sales from all participating states for a particular Powerball game drawing for the purpose of paying winning grand prizes in that drawing. The grand prize winnings pool includes prize money allocated to the grand prize category from prior Powerball game drawings in which there were no winning grand prize tickets. A portion of this pool is used to fund prize reserve accounts until those accounts achieve maximum balances.

   Gross sales—The total amount of sales from all participating states for a particular Powerball game drawing for the purpose of determining the grand prize winnings pool and the set prize winnings pool in that drawing.

   MUSL—The Multi-State Lottery Association.

   MUSL Board—The governing body of the MUSL which is comprised of the chief executive officer of each party lottery.

   MUSL Powerball Product Group—The group of lotteries that have joined together to offer the Powerball lottery game under the terms of the MUSL agreement and MUSL Powerball Product Group rules.

   On-line retailer—A person who is properly licensed and authorized by the Lottery to sell Powerball tickets.

   Panel or game panel—One of five areas of the Powerball bet slip that contains two number grids. The upper grids (first set numbers) contain 49 squares, each numbered 1 through 49 and the lower grids (second set numbers) contain 42 squares, each numbered 1 through 42. Each panel is lettered either A, B, C, D or E, and when used to purchase a ticket, corresponds to the numbers selected and printed on the ticket adjacent to that letter.

   Party lottery—A State lottery or lottery of a political subdivision or entity which has joined the MUSL and, in the context of the Powerball Group Rules, which has joined in selling the Powerball game.

   Powerball bet slip—A card having five game panels labeled A through E, used by a player to select numbers to play the game.

   Powerball number or second set number—The number selected from the second group of numbers, from 1 through 42, appearing in the lower grid of a Powerball game panel.

   Promotion—A method used by the Lottery to aid in the sale of its products; for example, an option a player may exercise by purchase to increase the prize paid on a winning ticket or to increase the chance of winning a prize.

   Quick pick—The random selection by the Lottery’s computer system of five numbers from 1 through 49 and a Powerball number from 1 through 42 that appear on a ticket in the Powerball game.

   Second set numbers—The second group of numbers, from 1 through 42, appearing in the lower grid of a Powerball game panel.

   Set prize tiers—All prizes except the grand prize that are advertised to be paid by a single lump-sum payment and, except in instances outlined in this chapter, will be equal to the prize amount established by the MUSL Board for the prize level.

   Set prize winnings pool—An amount constituting 20.8058% of gross sales for the current drawing and any monies carried forward from previous draws.

   Terminal—A device which is authorized by the Lottery to function in an on-line, interactive mode with the Lottery’s computer system, for the purpose of issuing lottery tickets and entering, receiving and processing lottery transactions, including making purchases, validating tickets and transmitting reports.

   Ticket—A Powerball ticket, produced by an on-line terminal from a licensed on-line retailer in an authorized manner, containing a letter prefix followed by five selected numbers from 1 through 49 and a single selected Powerball number from 1 through 42 for each basic play, ticket validation number data, drawing date, amount bet and any applicable promotion exercised by the player. Each set of five numbers and the Powerball number constitutes a basic play of which there may be one or more, up to five on a ticket.

   Winning numbers—Six numbers, the first five numbers from 1 through 49, and the Powerball number from 1 through 42, selected at a Powerball drawing and subsequently validated by the MUSL, which shall be used to determine the winning Powerball plays.

   Winnings pool—Constitutes 50% of each prize drawing period gross sales. A portion of the pool is contributed to the grand prize winnings pool. The remainder constitutes the set prize winnings pool. Moneys carried forward from previous draws are combined with the pool as directed in the MUSL rules.

 (a)  Powerball game ticket sales may only be made through licensed on-line retailers the Director will appoint and contract with as provided in §  815.42 (relating to ticket sales agents).

 (a)  For each basic play the player shall select, or request quick pick selection by the computer, five numbers and a single Powerball number, in one or more of the game panels on a Powerball bet slip. Powerball bet slips shall be available at no cost to the player. The minimum entry is $1. For $1, play game A; for $2, play games A and B; for $3, play games A, B and C; for $4, play games A, B, C and D; for $5, play games A, B, C, D and E. Players are also given the option to select a promotion verbally or on the bet slip at the time of purchase for an additional $1 for each play. Game panels shall be played in alphabetical order in accordance with the instructions printed on the Powerball bet slip. A Powerball bet slip has no pecuniary or prize value and does not constitute evidence of the purchase of a ticket or the numbers selected.

 (b)  To purchase a ticket, players shall, in addition to the purchase price, submit a completed Powerball bet slip, or request number selections either by quick pick or manual terminal entry to an on-line retailer to have a ticket issued. The ticket shall contain five selected numbers and a single selected Powerball number for each play, ticket validation number data, drawing date, amount bet and any applicable promotion exercised by the player. This ticket shall be the only valid receipt for claiming a prize. The ticket shall only be valid for the drawing date or dates printed on the ticket. Retailers are not permitted to allow the attachment of any remote devices to a lottery terminal to enter plays except as otherwise provided in the MUSL rules.

 (c)  If Powerball bet slips are unavailable, number selections may be given to an on-line retailer in groups of five number selections and one Powerball number selection per game section for each $1 wagered as a basic play. The retailer shall manually enter the selections into the computer terminal.

 (d)  A Powerball ticket may not be canceled or voided once printed by the Lottery terminal, even if the ticket is printed in error.

 (e)  It shall be the sole responsibility of the player to verify the accuracy of the game play or plays and other data printed on the ticket. The placing of plays is done at the player’s own risk through the on-line retailer who is acting on behalf of the player in entering the play or plays.

 (f)  A player may select numbers for up to 26 drawings, specifically the next drawing and the 25 subsequent drawings.

 (a)  Time of drawing. A Powerball drawing will be held twice a week or as publicly announced by the Secretary.

 (b)  Place of drawing. A Powerball drawing will be conducted in a location selected by the MUSL in West Des Moines, Iowa, or other location selected by the MUSL for promotional or other reasons.

 (c)  Manner of conducting drawings. The MUSL will draw at random five numbers from a set of balls numbered 1 through 49 and one Powerball number from a set of balls numbered 1 through 42 with the aid of mechanical drawing equipment. All drawings will be observed by security personnel and independent auditors and the validity of a drawing will be solely determined by the MUSL.

 (a)  Determination of expected prize payout percentages is as follows:

 * Indicates a set prize.

 ** Fifty percent of Powerball gross sales are allocated to the winnings pool for the payment of prizes.

 (b) Prize money allocated to the grand prize category will be paid on a parimutuel basis, divided equally by the number of plays determined by the MUSL to be the winners of the grand prize.

 (c)  The number of plays determined by the MUSL to be winners of the second through ninth prize categories will be paid as set cash prizes, except as provided in paragraphs (1) and (2).

   (1)  If the total of the set prizes awarded in a Powerball drawing exceeds the set prize pool which is 20.8058% of gross sales, the amount needed to fund the set prizes shall be drawn from the following sources in the following order:

     (i)   The amount allocated to the set prize tiers and carried forward from previous draws, if any.

     (ii)   An amount from the MUSL set prize reserve account, if available, not to exceed $25,000,000 per Powerball drawing.

   (2)  If the sources set forth in paragraph (1) are depleted and there still are not sufficient funds to pay the set prizes for a particular Powerball drawing, the highest set prize shall become a parimutuel prize. If the amount of the highest set prize, when paid as a parimutuel prize, is less than or equal to the next highest set prize and there are still not sufficient funds to pay the remaining set prizes, the next highest set prize shall become a parimutuel prize. If necessary, and under the same test conditions set forth in the preceding sentence, each succeeding set prize level shall be converted to a parimutuel prize, in order, until all set prizes become parimutuel. If all set prizes are converted to parimutuel prizes, the money available from the funding sources listed in paragraph (1) shall be divided among the winning plays in proportion to their respective prize percentages.

   (3)  If all, or any portion of the set prize pool is not awarded in the current Powerball drawing, that portion of the set prize pool shall be carried forward to subsequent Powerball drawings.

 (a)  Individual ticket prize payments will be paid entirely in cash with the exception of the grand prize category.

 (b)  A grand prize shall be paid by an annuity except that a player may elect to receive the grand prize in a single cash payment provided the cash election is made by the player within 60 days of the date the Lottery determines that a grand prize winning ticket has been sold and that a player is entitled to the prize.

   (1)  An election to receive the grand prize by annuity or cash made by the player after the player becomes entitled to the prize is final and cannot be revoked, withdrawn or otherwise changed.

   (2)  Shares of the grand prize shall be determined by dividing the cash available in the grand prize pool equally among all winners of the grand prize. A winner who elected cash payment shall be paid the share in a single cash payment.

   (3)  The annuitized prize shall be determined by multiplying a winner’s share of the grand prize by the MUSL annuity factor.

 (c)  The MUSL annuity factor is determined by the best total securities price obtained through a competitive bid of qualified, preapproved brokers made after it is determined that the prize is to be paid as an annuity prize or after the expiration of 60 days of the date that the player becomes entitled to the prize.

 (d)  Neither the MUSL nor the Lottery shall be responsible or liable for changes in the advertised or estimated annuity prize from the time the drawing occurs and the date that the player makes the election regarding method of prize payment.

 (e)  All annuitized prizes shall be paid in 25 annual payments with the initial payment being made in cash, to be followed by 24 equal payments funded by the annuity. The initial payment of an annuitized prize may be made by the Lottery upon validation of the winning ticket.

 (f)  If the individual shares of the cash held to fund an annuity is less than $250,000, the MUSL Powerball Product Group, in its sole discretion, may elect to pay the winners their share of the cash held in the grand prize pool as a lump sum.

 (g)  If more than one winning ticket for the grand prize is determined, upon meeting the requirements of § §  871.12 and 871.13 (relating to ticket validation requirements; and procedures for claiming and payment of Powerball prizes), each is entitled to a prorated payment share of the total grand prize category.

 (h)  A winning Powerball play is entitled only to the highest prize won by those numbers.

 (i)  The number of prize categories, the allocation of prize money among the prize categories and the annuity term may be changed at the discretion of the MUSL and the change will be announced by public notice. These changes will only apply prospectively to Powerball drawings as of the date specified in the public notice.

 (j)  Retailer incentive and marketing promotion programs, including the use of funded free tickets, may be implemented at the discretion of the Secretary. Funds for the programs, if needed, will be drawn from the Lottery fund.

 (k)  If the grand prize is not won in a drawing, the prize money allocated for the grand prize shall roll over and be added to the grand prize pool for the following drawing.

 (l)  Prize claims shall be submitted within 1 year of the drawing date.

 (m)  Annuitized payment of the grand prize or a share of the grand prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized grand prize win shall be added to the first cash payment to the winner or winners. Prizes other than the grand prize, which under this chapter may become single-payment, parimutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

 The MUSL Powerball Product Group may offer guaranteed minimum grand prize amounts or minimum increases in the grand prize amount between drawings or make other changes in the allocation of prize money where the MUSL Powerball Product Group finds that it would be in the best interest of the game. If a minimum grand prize amount or a minimum increase in the grand prize amount between drawings is offered by the Product Group, the grand prize shares shall be determined as follows:

   (1)  If there are multiple grand prize winners during a single drawing, each selecting the annuitized option prize, then a winner’s share of the guaranteed annuitized grand prize shall be determined by dividing the guaranteed annuitized grand prize by the number of winners.

   (2)  If there are multiple grand prize winners during a single drawing and at least one of the grand prize winners has elected the annuitized option prize, the best bid submitted by the MUSL’s preapproved qualified brokers shall determine the cash pool needed to fund the guaranteed annuitized grand prize.

   (3)  If no winner of the grand prize during a single drawing has elected the annuitized option prize, the amount of cash in the grand prize pool shall be an amount equal to the guaranteed annuitized amount divided by the average annuity factor of the most recent three best quotes provided by the MUSL’s preapproved qualified brokers submitting quotes.

   (4)  Quotes will not be used which are more than 2 weeks old, and if less than three quotes are submitted, the MUSL shall use the average of all quotes submitted.

 (a)  A ticket is a bearer document deemed to be owned by the person holding the ticket, except that if a signature is contained on the ticket, the person so named will, for all purposes, be considered the owner of the ticket.

 (b)  The Commonwealth will not be responsible for lost or stolen tickets.

 (c)  The purchaser of the ticket has the sole responsibility for checking the accuracy and condition of the data printed on the ticket.

 (a)  Valid tickets. To be a valid ticket, the following conditions shall be met:

   (1)  The ticket validation number shall be present in its entirety and shall correspond, using the computer validation file, to the selected numbers printed on the ticket for the date printed on the ticket.

   (2)  The ticket shall be intact.

   (3)  The ticket may not be mutilated, altered, reconstituted or tampered with.

   (4)  The ticket may not be counterfeit or an exact duplicate of a winning ticket.

   (5)  The ticket shall have been issued by the Lottery through a licensed on-line retailer.

   (6)  The ticket may not have been stolen.

   (7)  The ticket shall be validated in accordance with §  871.13 (relating to procedures for claiming and payment of Powerball prizes).

   (8)  The player-selected or computer-selected numbers on the ticket shall be in individual groups of five first set numbers and one second set number each associated with a single letter, A, B, C, D or E. The numbers and the associated letter shall constitute a single play.

   (9)  The ticket data shall have been recorded on the Lottery’s central computer system prior to the drawing and the ticket data shall match this computer record in every respect.

   (10)  The player-selected or computer-selected numbers, promotion selection, if applicable, the validation number data and the drawing date of an apparent winning ticket shall appear on the official file of the winning tickets; and a ticket with that exact data may not have been previously paid.

   (11)  The ticket may not be misregistered, defectively printed or printed or produced in error.

   (12)  The ticket shall pass other confidential security checks of the Lottery.

   (13)  By submitting a ticket for validation, the player agrees to abide by this chapter.

   (14)  There may not be another violation of this part in relation to the ticket.

 (b)  Invalid or defective tickets—disputes. A ticket not passing the validation checks in subsection (a) will be considered invalid and will not be paid.

   (1)  In cases of doubt, the determination of the Secretary is final and binding. The Secretary may replace an invalid ticket with a ticket of equivalent sale price from a current Lottery game.

   (2)  If a defective ticket is purchased or if the Secretary determines to adjust an error, the sole and exclusive remedy will be the replacement of the defective or erroneous ticket with a ticket of equivalent sale price from a current Lottery game.

   (3)  If a ticket is not paid by the Lottery and a dispute occurs as to whether the ticket is a winning ticket, the Lottery may replace the ticket as provided in paragraph (2). This is the sole and exclusive remedy of the holder of the ticket.

 (a)  Pennsylvania Powerball prizes shall be claimed only through a licensed on-line Pennsylvania Lottery retailer beginning on the day following the drawing. The Lottery is not authorized to accept claims or pay prizes for Powerball tickets purchased in other jurisdictions.

 (b)  An on-line retailer is authorized and required to make payment of a prize of $2,500 or less on an individual Powerball winning ticket, if the ticket is presented within a designated time period as announced by the Secretary and if the retailer has sufficient funds available for payment.

 (c)  The holder of an apparent winning Powerball ticket containing one or more winning lettered play selections representing combined prizes of $2,500 or less will be paid by participating on-line retailers as provided in subsection (b), if the ticket validation requirements in §  871.12 (relating to ticket validation requirements) have been met, a proper validation pay ticket has been issued by the retailer’s computer terminal and other retailer procedures have been met.

 (d)  The holder of an apparent winning Powerball ticket containing one or more winning lettered play selections representing combined prizes in excess of $2,500, with the exception of the grand prize category, shall first validate the apparent winning ticket at the participating Pennsylvania Lottery on-line retailer to receive a validation receipt, complete a claim form and display appropriate identification and then surrender the winning ticket and the original claim form to the retailer for transmittal to Lottery Headquarters for payment under Chapter 811 (relating to prizes).

 (e)  The holder of an apparent winning Powerball ticket containing one or more winning lettered play selections representing a grand prize category prize shall present, in person, the apparent winning ticket to the Pennsylvania Lottery Headquarters for validation under Chapter 811.

 (f)  In the event of the death of a Powerball grand prize winner and upon petition of the estate of the prize winner, the MUSL Powerball Product Group may accelerate payment of all remaining proceeds from the winning ticket to the estate of the winner by transferring to the estate the securities or cash, or both, being held to satisfy the prize requirements, or paying the estate the present value of the remaining payments of the winner’s prize. The valuation of the securities and determination of the present value of the accelerated lottery payments shall be at the sole discretion of the MUSL Powerball Group. The payment of a set prize to a person who dies before receiving any or all of a particular prize and to a person under 18 years of age will be paid under § §  811.16 and 811.27 (relating to prizes payable after death of prize winner; and payment of prizes to persons under 18 years of age).

 (g)  The Commonwealth will be discharged of liability after payment of prizes as provided in §  811.26 (relating to discharge of State liability upon payment).

 (h)  The Lottery may delay payment of the prize pending a final determination by the Secretary if a dispute occurs, or it appears likely that a dispute may occur, regarding the prize; if there is any question regarding the identity of the claimant; if there is any question regarding the validity of the ticket presented for payment; or if the claim is subject to any setoff for delinquent debts owed by the claimant under Pennsylvania statute. The Lottery may delay payment of a grand prize pending a claimant election of payment method as provided under §  871.9(b) (relating to Powerball prize payments). The Lottery may delay payment of a grand prize for up to 15 days as permitted by the MUSL rules.

 (a)  The prize pool for all prize categories shall consist of 50% of each drawing period’s sales after the prize reserve accounts are funded to the amounts set by the MUSL Powerball Product Group. Any amount remaining in the prize pool at the end of the game shall be carried forward to a replacement game or expended in a manner as directed by the MUSL Powerball Product Group in accordance with State law.

 (b)  An amount equal to up to 2% of a party lottery’s sales shall be deducted from a party lottery’s grand prize pool and placed in trust in one or more prize reserve accounts until the party lottery’s share of the prize reserve accounts reaches the amounts designated by the MUSL Powerball Product Group. Once the party lottery’s share of the prize reserve accounts exceeds the designated amounts, the excess shall become part of the grand prize pool. The MUSL Powerball Product Group, with the approval of the Finance and Audit Committee, may establish a maximum balance for the prize reserve accounts. The shares of a party lottery may be adjusted with refunds to the party lottery from the prize reserve accounts as may be needed to maintain the approved maximum balance and shares of the party lotteries. Any amount remaining in a prize reserve account at the end of this game shall be carried forward to a replacement prize reserve account or expended in a manner as directed by the MUSL Powerball Product Group in accordance with State law.

 Prize money on a winning Powerball play may be retained by the Secretary for payment to the person entitled to it. If within 1 year of the drawing date on the ticket, no claim is made on a winning play, as determined by the Secretary, the right to claim prize money terminates. For set prizes, the prize money will be paid into the State Lottery Fund and used for purposes otherwise provided for by statute. Unclaimed grand prize funds will be distributed among all MUSL Lotteries in proportion to each lottery’s sales for the grand prize drawing.

 (a)  A Powerball ticket may not be purchased in this Commonwealth by, and a prize will not be paid to, an officer or employee of the Pennsylvania Lottery or any of the Lottery’s professional services contractors or subcontractors who are involved in the operation of the on-line lottery games system or its associated drawings, or to a spouse, child, brother, sister or parent residing in the same household as these individuals.

 (b)  In addition to the individuals identified in subsection (a), the following persons are not eligible to purchase a Powerball ticket and are ineligible to be paid a prize for a Powerball ticket:

   (1)  An employee, officer or director of the MUSL.

   (2)  A person under contract with the MUSL to conduct a financial or security audit of the MUSL.

   (3)  An employee, partner, shareholder or owner of an independent accounting firm under contract with the MUSL to observe drawings and site operations.

   (4)  A relative living in the same household of a person described in paragraph (1), (2) or (3).

 (c)  Except as provided in subsection (b), the individuals identified in subsection (a) are not prohibited from purchasing a ticket or winning a prize from a MUSL member lottery other than the Pennsylvania Lottery.

 (a)  In purchasing a ticket, the purchaser agrees to comply with and abide by applicable laws, this part, instructions, conditions, final decisions of the Secretary and procedures established by the Director or by the MUSL for the conduct of Powerball.

 The probability of winning is as follows:

 (a)  The power play promotion shall be available in association with the Powerball game and will continue until the Secretary publicly announces a suspension or termination thereof. The power play promotion will be conducted in accordance with the Powerball rules except that players may purchase the power play option for the chance to multiply set prizes won as a result of a Powerball drawing by a number ranging from 1 to 5. The Powerball grand prize will not be eligible for multiplication under the power play promotion.

 (b)  At the time of purchasing a Powerball ticket from an on-line Lottery retailer, a player may choose the power play option for one additional $1 per play for each play on the Powerball ticket. If a player chooses the power play promotion feature for any play on a ticket, every play on that ticket must participate in the promotion.

 (c)  At the time of each Powerball drawing, the MUSL shall conduct a power play drawing under the supervision of security and an independent auditor which shall result in the selection of the power play number from among the following series of numbers: 1, 1, 2, 2, 3, 3, 4, 4, 5, 5, 5 and 5.

 (d)  Powerball tickets that contain the power play option and one or more plays eligible for Powerball set prizes (but not the grand prize) identified in §  871.8(a) (relating to expected prize payout percentages) shall be entitled to a total set prize calculated by multiplying each Powerball set prize by the power play number.

 (e)  The prize pool for power play set prizes shall consist of up to 48.5% of power play sales after Powerball prize reserve accounts are funded to the amounts set by the MUSL. The prize pool percentage allocated to power play set prizes shall be carried forward to subsequent power play drawings if all or a portion of the percentage is not required to pay the set prizes for the current power play drawing.

 (f)  An additional 1.5% of power play sales may be collected and placed in prize reserve accounts until the prize reserve accounts meet the amounts designated by the MUSL. Any amount remaining in prize reserve accounts at the end of the power play promotion shall be carried forward to a replacement prize reserve account or expended in a manner as directed by the MUSL Powerball Product Group in accordance with State law.

 (g)  If, with respect to a single Powerball drawing and associated power play drawing, the total of the Powerball set prizes without the power play option and the Powerball set prizes multiplied by the power play number exceeds the percentage of the prize pools allocated to the set prizes, the amount needed to fund those combined set prizes shall be drawn from the following sources in the following order:

   (1)  The amount allocated to the set prizes and carried forward from previous Powerball drawings and power play drawings, if any.

   (2)  An amount from the Powerball set prize reserve account, if available, not to exceed $25,000,000 per drawing.

 (h)  If the sources set forth in subsection (g) are depleted and there still are not sufficient funds to pay the set prizes for a particular Powerball drawing and associated power play drawing, the highest set prize, including the multiplied set prize, shall become a parimutuel prize. If the amount of the highest set prize, when paid as a parimutuel prize, is less than or equal to the next highest set prize and there are still not sufficient funds to pay the remaining prizes, the next highest set prize, including the multiplied set prize, shall become a parimutuel prize. If necessary under the same test set forth in the preceding sentence, each succeeding set prize level shall be converted to a parimutuel prize, in order, until all set prizes become parimutuel. If all set prizes are converted to parimutuel prizes, the money available from the funding sources listed in subsection (g) shall be divided among the winning plays in proportion to their respective prize percentages.

 (i)  Power play set prizes which become parimutuel may be rounded down so that they can be paid in multiples of whole dollars. Funds remaining after rounding shall be carried forward to the prize pool for the next power play drawing.

 (j)  Except as otherwise provided, all power play set prizes shall be paid in single, lump-sum payments determined by multiplying the Powerball set prize by the number selected in the power play drawing as follows:

 (k) When the Powerball set prizes become parimutuel, the Powerball set prize amounts will be less than the amount shown and the power play set prizes shall be a multiple of the new Powerball set prize amount.

 (l)  The odds of various power play numbers being selected in a power play drawing are:

 (a)  The MUSL reserves the right to modify the Powerball game in order to address changes in player participation or population of member states. If the MUSL decides to make a change, it will be publicly announced by the Secretary at least 30 days before the change takes effect.

 (b)  The Secretary will publish notice of the change in the Pennsylvania Bulletin and the change will be codified in §  871.22 (relating to changes to Powerball).

   The provisions of this §  871.21 amended under section 303 of the State Lottery Law (72 P. S. §  3761-303).

 Any change to the Powerball regulations, announced by the Secretary by way of a notice published in the Pennsylvania Bulletin, will be codified as a new paragraph in this section.

   (1)  Changes effective for Powerball tickets sold on or after October 6, 2002:

     (i)   Section 871.2(a) and (b) (relating to game description and purpose); §  871.3 (relating to definitions) definition of ‘‘basic play,’’ ‘‘first set numbers,’’ ‘‘panel or game panel,’’ ‘‘quick pick,’’ ‘‘ticket’’ and ‘‘winning numbers;’’ §  871.7(c) (relating to time, place and manner of conducting drawing). Powerball is a five out of 53 plus one out of 42 on-line game. The first set of numbers are selected from 1 through 53.

     (ii)   Section 871.9(e) (relating to Powerball prize payments). All annuitized prizes shall be paid in 30 annual payments with the initial payment being made in cash, to be followed by 29 equal annual payments funded by the annuity. The initial payment of an annuitized prize may be made by the Lottery upon validation of the winning ticket.

     (iii)   Section 871.15 (relating to unclaimed prize money). Unclaimed grand prize and new bonus prize funds will be distributed among all MUSL Lotteries in proportion to each lottery’s sales for the grand prize drawing.

     (iv)   Section 871.19 (relating to probability of winning). The probability of winning is a follows:

     (v)   Section 871.20(a), (c), (j) and (l) (relating to power play promotion). A player may purchase the power play option for the chance to multiply set prizes won as a result of the Powerball drawing by a number ranging from 2 to 5. The power play number will be selected from among the following series of numbers: 2, 2, 2, 3, 3, 3, 4, 4, 4, 5, 5, 5, 5, 5 and 5. Except as otherwise provided, all power play set prizes shall be paid in single, lump-sum payments determined by multiplying the Powerball set prize by the number selected in the power play drawing as follows:

 The odds of various power play numbers being selected in a power play drawing are:

     (vi) New bonus prize.

       (A)   When the Powerball jackpot is projected to reach a new high annuitized level, the amount of the jackpot prize will be limited, by rule, to increases for each draw of no more than $25 million (annuitized). The prize money collected in excess of the advertised jackpot amount, if any, will be placed into a bonus prize pool and will accumulate until there is a grand prize winner. When there is a grand prize winner, the bonus prize pool will be divided equally among all winners of the second prize. This bonus prize will be paid in one cash lump sum. If there are no second prize winners, the prize pool shall be divided equally among the winners in the next lower prize tier with winners.

       (B)   There may be times when the second prize will be increased from its current set amount of $100,000 to a higher amount. In those cases, the second prize may be increased to $1 million or more. The actual amount of the prize will depend upon the cash available in the new bonus prize pool and the number of prize winners as set forth in clause (A). The trigger jackpot level will naturally increase over time as the new high annuitized jackpot amount continues to climb.

       (C)   The new bonus prize is in addition to any power play prizes that may be won. The new bonus prize is awarded independent of the power play option, and is not multiplied by the power play multiplier. A bonus prize winner who also played the power play option will win the original set prize amounts; the amount paid under the power play multiplier option; and the new bonus prize (if effective).

   (2)  Changes effective for Powerball tickets sold on or after August 28, 2005:

     (i)   Section 871.2(a) and (b); §  871.3 definition of ‘‘basic play,’’ ‘‘first set numbers,’’ ‘‘panel or game,’’ ‘‘quick pick,’’ ‘‘ticket’’ and ‘‘winning number’’; §  871.7(c). Powerball is a five out of 55 plus one out of 42 on-line game. The first set of numbers are selected from 1 through 55.

     (ii)   Section 871.9(e). Annuitized prizes shall be paid in 30 graduated payments, an initial followed by 29 annual graduated payments increasing each year at a rate determined by the MUSL Powerball Product Group. This rate, once determined, will not change over the life of the payments. The 30 payments will equal 100% of the annuitized prize. Prize payments may be rounded down to the nearest $1,000.

 For example:

 If the MUSL Powerball Product Group arrived at a 4% rate of increase for a $30 million annuitized jackpot the payment schedule would be as follows:

     (iii)   Section 871.8(a) (relating to expected prize payout percentages). Determination of expected prize payout percentages is as follows:

     (iv)   Section 871.19. The probability of winning is as follows:

     (v)   Section 871.20(a), (c), (j) and (l). A player may purchase the power play option for the chance to multiply set prizes won as a result of the Powerball drawing by a number ranging from 2 to 5. The power play number will be selected from among the following series of numbers: 2, 2, 2, 2, 3, 3, 3, 3, 4, 4, 4, 4, 5, 5, 5 and 5. Except as otherwise provided, power play set prizes shall be paid in single, lump-sum payments determined by multiplying the Powerball set prize by the number selected in the power play drawing as follows:

 The odds of various power play numbers being selected in a power play drawing are:

   (3)  Changes effective for Powerball tickets sold on or after January 4, 2009:

     (i)   Section 871.2(a) (relating to game description and purpose). Powerball is a five out of 59 plus one out of 39 on-line lottery game which pays the grand prize on an annuitized, parimutuel basis. Except as provided in this chapter, all other prizes are paid on a set cash basis.

     (ii)   Section 871.2(b) The purpose of the Powerball game is to determine winners from ticket holders matching five numbers from 1 through 59, and matching the separately drawn Powerball number, or a designated combination thereof, within a single play, with the five winning numbers and the Powerball number to be randomly drawn. Drawings will be conducted twice a week or as publicly announced by the Secretary.

     (iii)   Section 871.3 (relating to definitions).

   Basic play—Each set of six numbers consisting of five numbers from 1 through 59 and the Powerball number on a ticket purchased without the selection of any promotion, representing a single entry for a Powerball drawing and designated by a letter from A to E on a Powerball ticket.

   First set numbers—The first group of numbers, from 1 through 59, appearing in the top grid of a Powerball game panel.

   Grand prize winnings pool—An amount constituting 32.5288% of gross sales from all participating States for a particular Powerball game drawing for the purpose of paying winning grand prizes in that drawing. The grand prize winnings pool includes prize money allocated to the grand prize category from prior Powerball game drawings in which there were no winning grand prize tickets. A portion of this pool is used to fund prize reserve accounts until those accounts achieve maximum balances.

   Panel or game panel—One of five areas of the Powerball bet slip that contains two number grids. The upper grids (first set numbers) contain 59 squares, each numbered 1 through 59 and the lower grids (second set numbers) contain 39 squares, each numbered 1 through 39. Each panel is lettered either A, B, C, D or E, and when used to purchase a ticket, corresponds to the numbers selected and printed on the ticket adjacent to that letter.

   Powerball number or second set number—The number selected from the second group of numbers, from 1 through 39, appearing in the lower grid of a Powerball game panel.

   Quick pick—The random selection by the Lottery’s computer system of five numbers from 1 through 59 and a Powerball number from 1 through 39 that appear on a ticket in the Powerball game.

   Second set numbers—The second group of numbers, from 1 through 39, appearing in the lower grid of a Powerball game panel.

   Set prize winnings pool—An amount constituting 17.4712% of gross sales for the current drawing and any moneys carried forward from previous draws.

   Ticket—A Powerball ticket, produced by an on-line terminal from a licensed on-line retailer in an authorized manner, containing a letter prefix followed by five selected numbers from 1 through 59 and a single selected Powerball number from 1 through 39 for each basic play, ticket validation number data, drawing date, amount bet and any applicable promotion exercised by the player. Each set of five numbers and the Powerball number constitutes a basic play of which there may be one or more, up to five on a ticket.

   Winning numbers—Six numbers, the first five numbers from 1 through 59, and the Powerball number from 1 through 39, selected at a Powerball drawing and subsequently validated by the MUSL, which shall be used to determine the winning Powerball plays.

 Editor’s note: This is a partial listing of the definitions applicable to Powerball. See §  871.3 (relating to definitions) for additional definitions.

     (iv)   Section 871.7(c) (relating to time, place and manner of conducting drawing). Manner of conducting drawing. The MUSL will draw at random five numbers from a set of balls numbered 1 through 59 and one Powerball number from a set of balls numbered 1 through 39 with the aid of mechanical drawing equipment. The drawings will be observed by security personnel and independent auditors and the validity of a drawing will be solely determined by the MUSL.

     (v)   Section 871.8(a) (relating to expected prize payout percentages). Determination of expected prize payout percentages is as follows:

 * Indicates a set prize.

 ** Fifty percent of Powerball gross sales are allocated to the winnings pool for the payment of prizes.

     (vi)   Section 871.8(c)(1) (relating to expected prize payout percentages). If the total of the set prizes awarded in a Powerball drawing exceeds the set prize pool which is 17.4712% of gross sales, the amount needed to fund the set prizes shall be drawn from the following sources in the following order:

       (i)   The amount allocated to the set prize tiers and carried forward from previous draws, if any.

       (ii)   An amount from the MUSL set prize reserve account, if available, not to exceed $25,000,000 per Powerball drawing.

     (vii)   Section 871.19 (relating to probability of winning). The probability of winning is as follows:

   (4)  Changes effective for Powerball tickets sold on or after May 28, 2011:

     (i)   Section 871.20(a) (relating to power play promotion). The power play promotion shall be available in association with the Powerball game and will continue until the Secretary publicly announces a suspension or termination thereof. The power play promotion will be conducted in accordance with the Powerball rules except that players may purchase the power play option for the chance to multiply or increase the third through the ninth category set prizes won as a result of a Powerball drawing by a number ranging from 2 to 5. The Powerball grand prize, the second category prize and the Match 5 Bonus prizes will not be eligible for multiplication under the power play promotion. The Secretary will on occasion announce, as a special promotion, multipliers greater than 5 or a greater second category prize amount. The second category prize shall be $1,000,000 unless a higher promotional dollar amount is announced by the Secretary.

     (ii)   Section 871.20(d). Powerball tickets that contain the power play option and one or more plays eligible for Powerball third through ninth category prizes identified in §   871.8(a) (relating to expected prize payout percentages) shall be entitled to a total set prize calculated by multiplying each Powerball third through ninth category prize by the power play number. Powerball tickets that contain the power play option and one or more plays eligible for a Powerball second category prize shall be entitled to a prize of $1,000,000 unless a higher limited promotional dollar amount is announced by the Secretary.

     (iii)   Section 871.20(g). If, with respect to a single Powerball drawing and associated power play drawing, the total of the Powerball set prizes without the power play option and the Powerball set prizes increased by the power play option exceeds the percentage of the prize pools allocated to the set prizes, the amount needed to fund those combined set prizes shall be drawn from the following sources in the following order:

   (1)  The amount allocated to the set prizes and carried forward from previous Powerball drawings and power play drawings, if any.

   (2)  An amount from the Powerball set prize reserve account, if available, not to exceed $25,000,000 per drawing.

     (iv)   Section 871.20(h). If the sources set forth in subsection (g) are depleted and there still are not sufficient funds to pay the set prizes for a particular Powerball drawing and associated power play drawing, the highest set prize, including the prize increased by the power play option, shall become a parimutuel prize. If the amount of the highest set prize, when paid as a parimutuel prize, is less than or equal to the next highest set prize and there are still not sufficient funds to pay the remaining prizes, the next highest set prize, including the prize increased by the power play option, shall become a parimutuel prize. If necessary under the same test set forth in the preceding sentence, each succeeding set prize level shall be converted to a parimutuel prize, in order, until all set prizes become parimutuel. If all set prizes are converted to parimutuel prizes, the money available from the funding sources listed in subsection (g) shall be divided among the winning plays in proportion to their respective prize percentages.

     (v)   Section 871.20(j). Except as otherwise provided, all power play set prizes shall be paid in single, lump-sum payments. Power play prizes for the third through the ninth category prizes shall be determined by multiplying the Powerball set prize by the number selected in the power play drawing. The power play prize for the second category prize level shall be paid $1,000,000. Power play prize levels shall be paid as follows:

     (vi)   Section 871.20(k). When the Powerball set prizes become parimutuel, the Powerball set prize amounts will be less than the amount shown and the power play prizes for the third through the ninth category prizes shall be a multiple of the new Powerball set prize amount and the power play prize for the second category prize shall be reduced as announced by the MUSL Powerball Product Group.

   (5)  Changes effective for Powerball tickets sold on or after January 15, 2012:

     (i)   Section 871.2(a) (relating to game description and purpose). Powerball is a five out of 59 plus one out of 35 on-line lottery game which pays the grand prize on an annuitized, parimutuel basis. Except as provided in this chapter, all other prizes are paid on a set cash basis.

     (ii)   Section 871.3 (relating to definitions).

   Grand prize winnings pool—An amount constituting 31.9756% of gross sales from all participating states for a particular Powerball game drawing for the purpose of paying winning grand prizes in that drawing. The grand prize winnings pool includes prize money allocated to the grand prize category from prior Powerball game drawings in which there were no winning grand prize tickets. A portion of this pool is used to fund prize reserve accounts until those accounts achieve maximum balances.

   Panel or game panel—One of five areas of the Powerball bet slip that contains two number grids. The upper grids (first set numbers) contain 59 squares, each numbered 1 through 59 and the lower grids (second set numbers) contain 35 squares, each numbered 1 through 35. Each panel is lettered either A, B, C, D or E.

   Powerball number or second set number—The number selected from the second group of numbers, from 1 through 35, appearing in the lower grid of a Powerball game panel.

   Quick pick—The random selection by the Lottery’s computer system of five numbers from 1 through 59 and a Powerball number from 1 through 35 that appear on a ticket in the Powerball game.

   Second set numbers—The second group of numbers, from 1 through 35, appearing in the lower grid of a Powerball game panel.

   Set prize winnings pool—An amount constituting 18.0244% of gross sales for the current drawing and any monies carried forward from previous draws.

   Ticket—A Powerball ticket, produced by an on-line terminal from a licensed on-line retailer in an authorized manner, containing a letter prefix followed by five selected numbers from 1 through 59 and a single selected Powerball number from 1 through 35 for each basic play, ticket validation number data, drawing date, amount bet and any applicable promotion exercised by the player. Each set of five numbers and the Powerball number constitutes a basic play of which there may be one or more, up to five on a ticket.

   Winning numbers—Six numbers, the first five numbers from 1 through 59, and the Powerball number from 1 through 35, selected at a Powerball drawing and subsequently validated by the MUSL, which shall be used to determine the winning Powerball plays.

 (Editor’s Note: This is a partial listing of the definitions applicable to Powerball. See §  871.3 (relating to definitions) for additional definitions.)

     (iii)   Section 871.5 (relating to ticket price). A Powerball ticket shall cost $2 per play. The power play option may be exercised, at the discretion of the player, for an additional $1 per play.

     (iv)   Section 871.6(a) (relating to Powerball bet slip and ticket characteristics and restrictions). For each basic play the player shall select, or request quick pick selection by the computer, five numbers and a single Powerball number, in one or more of the game panels on a Powerball bet slip. Powerball bet slips shall be available at no cost to the player. The minimum entry is $2. For $2, play one game; for $4, play two games; for $6, play three games; for $8, play four games; for $10, play five games. Players are also given the option to select a promotion verbally or on the bet slip at the time of purchase for an additional $1 for each play. Game panels shall be played in alphabetical order in accordance with the instructions printed on the Powerball bet slip. A Powerball bet slip has no pecuniary or prize value and does not constitute evidence of the purchase of a ticket or the numbers selected.

     (v)   Section 871.6(b). To purchase a ticket, players shall, in addition to the purchase price, submit a completed Powerball bet slip, or request number selections either by quick pick or manual terminal entry to an on-line retailer to have a ticket issued. To purchase a ticket at a Lottery self-service terminal that dispenses terminal-based Lottery tickets, the player shall designate the drawing date or dates for which the ticket is entered, number selections and may exercise the power play promotion for an additional $1 per play. The player may use a bet slip or the Quick Pick option at a Lottery self-service terminal that dispenses terminal-based Lottery tickets. The ticket shall contain five selected numbers and a single selected Powerball number for each play, ticket validation number data, drawing date, amount bet and any applicable promotion exercised by the player. This ticket shall be the only valid receipt for claiming a prize. The ticket shall only be valid for the drawing date or dates printed on the ticket. Retailers are not permitted to allow the attachment of any remote devices to a lottery terminal to enter plays except as otherwise provided in the MUSL rules.

     (vi)   Section 871.6(c). If Powerball bet slips are unavailable, number selections may be given to an on-line retailer in groups of five number selections and one Powerball number selection per game section for each $2 wagered as a basic play. The player may exercise the power play promotion for an additional $1 per play. The retailer shall manually enter the selections into the computer terminal.

     (vii)   Section 871.7(b) (relating to time, place and manner of conducting drawing). Place of drawing. A Powerball drawing will be conducted in a location selected by the MUSL.

     (viii)   Section 871.7(c). Manner of conducting drawing. The MUSL will draw at random five numbers from a set of balls numbered 1 through 59 and one Powerball number from a set of balls numbered 1 through 35 with the aid of mechanical drawing equipment. The drawings will be observed by security personnel and independent auditors and the validity of a drawing will be solely determined by the MUSL.

     (viv)   Section 871.8(a) (relating to expected prize payout percentages). Determination of expected prize payout percentages is as follows:

 * Indicates a set prize.

 ** Fifty percent of Powerball gross sales are allocated to the winnings pool for the payment of prizes.

     (x)   Section 871.8(c)(1). If the total of the set prizes awarded in a Powerball drawing exceeds the set prize pool which is 18.0244% of gross sales, the amount needed to fund the set prizes shall be drawn from the following sources in the following order:

     (i)   The amount allocated to the set prize tiers and carried forward from previous draws, if any.

     (ii)   An amount from the MUSL set prize reserve account, if available, not to exceed $40,000,000 per Powerball drawing.

     (xi)   Section 871.15 (relating to unclaimed prize money). Prize money on a winning Powerball play may be retained by the Secretary for payment to the person entitled to it. If within 1 year of the drawing date on the ticket, no claim is made on a winning play, as determined by the Secretary, the right to claim prize money terminates. For set prizes, the prize money will be paid into the State Lottery Fund and used for purposes otherwise provided for by statute. Unclaimed grand prize funds will be distributed among all MUSL Lotteries in proportion to each lottery’s sales for the grand prize drawing.

     (xii)   Section 871.19 (relating to probability of winning). The probability of winning is as follows:

     (xiii)   Section 871.20(a) (relating to power play promotion). The power play promotion shall be available in association with the Powerball game and will continue until the Secretary publicly announces a suspension or termination thereof. The power play promotion will be conducted in accordance with the Powerball rules except that players may purchase the power play option to increase set prizes won as a result of a Powerball drawing. The Powerball grand prize will not be eligible for an increase under the power play promotion. The Secretary will on occasion announce, as a special promotion, higher promotional prize amounts to be won with the power play promotion.

     (xiv)   Section 871.20(c) is deleted in its entirety.

     (xv)   Section 871.20(d). Powerball tickets that contain the power play option and one or more plays eligible for Powerball second through ninth category prizes identified in §  871.8(a) (relating to expected prize payout percentages) shall be entitled to a total set prize identified in §  871.20(j) (relating to power play promotion), unless a higher limited promotional prize amount is announced by the Secretary.

     (xvi)   Section 871.20(e). The prize pool for power play set prizes shall consist of up to 49.96% of power play sales after Powerball prize reserve accounts are funded to the amounts set by the MUSL. The prize pool percentage allocated to power play set prizes shall be carried forward to subsequent power play drawings if all or a portion of the percentage is not required to pay the set prizes for the current power play drawing.

     (xvii)   Section 871.20(f). An additional 0.04% of power play sales may be collected and placed in prize reserve accounts until the prize reserve accounts meet the amounts designated by the MUSL. Any amount remaining in prize reserve accounts at the end of the power play promotion shall be carried forward to a replacement prize reserve account or expended in a manner as directed by the MUSL Powerball Product Group in accordance with State law.

     (xviii)   Section 871.20(g). If, with respect to a single Powerball drawing, the total of the Powerball set prizes without the power play option and the Powerball set prizes increased by the power play option exceeds the percentage of the prize pools allocated to the set prizes, the amount needed to fund those combined set prizes shall be drawn from the following sources in the following order:

   (1)  The amount allocated to the set prizes and carried forward from previous Powerball drawings, if any.

   (2)  An amount from the Powerball set prize reserve account, if available, not to exceed $40,000,000 per drawing.

     (xix)   Section 871.20(h). If the sources set forth in subsection (g) are depleted and there still are not sufficient funds to pay the set prizes for a particular Powerball drawing, the highest set prize, including the prize increased by the power play option, shall become a parimutuel prize. If the amount of the highest set prize, when paid as a parimutuel prize, is less than or equal to the next highest set prize and there are still not sufficient funds to pay the remaining prizes, the next highest set prize, including the prize increased by the power play option, shall become a parimutuel prize. If necessary under the same test set forth in the preceding sentence, each succeeding set prize level shall be converted to a parimutuel prize, in order, until all set prizes become parimutuel. If all set prizes are converted to parimutuel prizes, the money available from the funding sources listed in subsection (g) shall be divided among the winning plays in proportion to their respective prize percentages.

     (xx)   Section 871.20(j). Except as otherwise provided, all power play set prizes shall be paid in single, lump-sum payments. Power play prize levels shall be paid as follows:

     (xxi)   Section 871.20(k). When the Powerball set prizes become parimutuel, the Powerball set prize amounts will be less than the amount shown and the power play prizes for the second through the ninth category prizes shall be reduced as announced by the MUSL Powerball Product Group.

     (xxii)   Section 871.20(l) is deleted in its entirety.

     (xxiii)   Section 871.22(1)(vi) (relating to changes to Powerball) is deleted in its entirety.

   The provisions of this §  871.22 amended July 12, 2002, effective October 6, 2002, 32 Pa.B. 3396; amended October 11, 2002, and applies to the ticket sales beginning on Sunday, October 6, 2002, for the Powerball drawing on Wednesday, October 9, 2002, 32 Pa.B. 5144; amended July 22, 2005, effective August 28, 2005, 35 Pa.B. 4151; amended November 28, 2008, effective January 4, 2009, 38 Pa.B. 6571; amended May 27, 2011, effective May 28, 2011, 41 Pa.B. 2787; amended December 16, 2011, these changes will affect ticket sales beginning on Sunday, January 15, 2012, for the Powerball drawing on Wednesday, January 18, 2012, 41 Pa.B. 6945. Immediately preceding text appears at serial pages (293495) to (293496), (312713) to (312716), (340127) to (340128) and (357233) to (357236).

   This section cited in 61 Pa. Code §  871.21 (relating to future changes to Powerball).