3770-4-06 Return and settlement of tickets and collection of lottery sales revenues.

(A) Ticket settlement cycles. The sales agent is solely responsible for the safety and security of all tickets issued to the agent. The sales agent must account for such tickets and transfer the proceeds from their sale, less authorized deductions, to the lottery by means of procedures established by the director for the deposits of proceeds from game sales. Upon the closing of a game, unsold full books of lottery tickets, must be returned to the lottery for the purpose of settlement, on the dates and in the manner set out in these regulations or in the management regulations and directives of the director. Any tickets that are not returned or properly accounted for on the specified date will be deemed to have been sold by the sales agent. The director may decide not to issue subsequent books of tickets to a sales agent who has not fully accounted for tickets previously issued.

(B) Management directives. The director will, in management regulations or directives, prescribe the forms for sales agents to use in all lottery transactions.

(C) Consignment property. Lottery games are issued to a sales agent on a consignment basis and remain the property of the state of Ohio. All equipment and supplies provided to a sales agent by the lottery remain the property of the state of Ohio.

(D) Director's authority to collect lottery sales revenues.

(1) The director shall collect the revenues received from the sale of games by sales agents at intervals established by the director. The director shall designate a day or days during any interval time period on which sales agents shall be required to deposit to the credit of the lottery fund, in accounts which shall be used exclusively for lottery-related transactions at lawfully designated banking institutions, all moneys due the lottery by such sales agents from the sale of games, less an amount retained as compensation for sale of such games. The director may further order that sales agents deduct the amounts they pay in authorized prize payments and any commissions or bonuses to which agents are entitled from the amounts received in gross game sales prior to their deposit in accounts.

(2) The director may arrange for any banking institution to perform the functions and services necessary to collect the revenues received from the sales of lottery games by sales agents, and may arrange the compensation for such performance as deemed necessary and advisable. The director may also rely on the treasurer of state to perform this function. The director shall establish detailed record keeping and operating procedures to be followed by such banking institutions to carry out the purposes of the Lottery Act and these rules.

(E) Penalties for non-transfer of funds. The director may impose penalties for the failure of a sales agent to transfer funds to the lottery in a timely manner. Penalties may include, but are not limited to; monetary penalties, modification of license, immediate suspension, or revocation. The director may adopt internal management regulations elaborating on any terms regarding the collection of sales revenues from the sales agents.

Eff 9-11-78; 5-27-93; 12-27-96; 5-4-00; 3-23-03; 2-13-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 3770.03
Rule amplifies: RC 3770.01 , 3770.02 , 3770.03 , 3770.04 , 3770.05 , 3770.06 , 3770.07 , 3770.08
R.C. 119.032 review dates: 02/24/2009 and 02/24/2014