(A) Non-compliance with the Lottery Act, rules or contract. In addition to the mandatory grounds for suspension or revocation of a license described in divisions (C)(1) to (C)(5), (D)(1) to (D)(4) and (E)(1) to (E)(2) of section 3770.05 of the Revised Code, the director may suspend or revoke the license of a sales agent who does not comply with the Lottery Act and all terms and conditions of the sales agent's contracts with the state lottery.
(B) Violation of prohibitions. In addition to the prohibitions enumerated in divisions (A) to (E) of section 3770.08 of the Revised Code, the director may suspend or revoke the license of any sales agent who violates one of the prohibitions set out below:
(1) No sales agent shall pay the holder of a winning ticket or game an amount less than the full prize amount for which that ticket or game is redeemable. No sales agent shall submit in its name, or in the name of any of its principals or employees, a prize claim that originally was presented for payment by another holder of the winning ticket or game to whom the sales agent paid a discounted prize amount, or from whom the sales agent received payment in return for making the claim.
(2) No sales agent nor any of its principals or employees shall solicit any person for the purpose of committing an act described in paragraph (B)(1) of this rule.
(C) Grounds relating to the honest and efficient conduct of the state lottery. The director may suspend or revoke a sales agent license for any of the following:
(1) The sales agent has made a fraudulent misrepresentation in connection with the application for or renewal of a license, in any reports, or to any person in connection with a lottery transaction;
(2) The sales agent has failed to maintain the minimum sales levels for the license issued to the sales agent as determined by the director.
(3) The sales agent has failed to take adequate security precautions for the safe handling of tickets or games, lottery materials or game sales proceeds;
(4) The sales agent has failed to promptly and accurately settle the accounts of lottery transactions and pay to the director the amounts due from the sales agent's game sales by not regularly depositing amounts owed to the state lottery into an electronic funds transfer account established by the sales agent for accounting purposes, and to abide by the policies and procedures established by the director concerning the transfer of such funds.
(5) The sales agent has accepted payment for a game sale in the form of anything other than cash, but has failed to insure that funds are readily collectible from the customer to compensate for the sale at the point of purchase;
(6) The sales agent has failed to maintain a surety bond and/or fidelity bond as required by the director, or alternatively has failed to deposit, into a dedicated account for the benefit of the state lottery, an amount as required by the director;
(8) Notwithstanding the exceptions enumerated in paragraph (B) of rule 3770-2-02 of the Administrative Code, the sales agent has been found guilty of any of the offenses enumerated in divisions (C)(1) to (C)(5), (D)(1) to (D)(4) and (E)(1) to (E)(2) of section 3770.05 of the Revised Code.
(D) If at any time after a license has been issued, the director determines that a sales agent no longer meets the standards for the issuance of a license provided in Chapter 3770-2 of these regulations, the director may:
(1) Suspend the sales agent's license until it is shown that the reason for the suspension has abated;
(2) Modify the sales agent's license status; or
(3) Revoke the sales agent's license.
(E) The director may suspend or revoke the license of any sales agent who fails to observe and comply with the procedures provided in Chapter 3770-4 of the Administrative Code or established by the director pursuant to said chapter.
Five Year Review (FYR) Dates: 11/17/2014 and 06/20/2018
Promulgated Under: 119.03
Statutory Authority: 3770.03
Rule Amplifies: 3770.01, 3770.02, 3770.03, 3770.04, 3770.05, 3770.06, 3770.07, 3770.08
Prior Effective Dates: 7/15/74, 7/24/92, 5/27/93, 8/22/93, 12/27/96, 7/3/99, 2/13/2004, 6/20/09