(a) Sale of scratch tickets.
  (1) Only retailers who have been licensed by the commission are authorized to sell scratch tickets, and tickets may be sold only at a licensed location.
  (2) Each scratch ticket shall sell for the retail sales price authorized by the executive director and stated in the individual game procedures; provided that, the purchase price for promotional groups of tickets shall be determined by the executive director.
  (3) Each scratch ticket shall state the overall estimated odds of winning a prize of any kind, including a break-even prize.
(b) Game procedures.
  (1) The director may approve and publish individual game procedures prior to each scratch ticket game being introduced for sale to the public. Game procedures shall be published in the Texas Register and shall be made available upon request to the public.
  (2) At a minimum, the game procedures for each game shall contain the following information:
    (A) confirming captions;
    (B) game name;
    (C) game number;
    (D) prize structure;
    (E) play style;
    (F) play symbols;
    (G) ticket order quantity;
    (H) retail sales price;
    (I) dollar amount of prizes that may be paid by retailers; and
    (J) eligibility requirements for a prize or promotional drawing, if any.
  (3) The play style for an individual game shall be fully described in the game procedures and may take the form of one of the following methods of play:
    (A) match up;
    (B) add up;
    (C) three in a line;
    (D) key number/symbol match;
    (E) yours beats theirs;
    (F) prize legend;
    (G) cards;
    (H) bingo;
    (I) directional arrows through maze;
    (J) bonus game features; or
    (K) any other approved play style or bonus game feature developed by the commission.
(c) Determination of prize winner.
  (1) The play symbols shall be used by a player to determine eligibility for prizes. Qualifying play symbols are stated in the game procedures.
  (2) A player's eligibility to win a prize is subject to the ticket validation requirements provided in subsection (d) of this section.
  (3) For each individual game, the player shall reveal the play symbols according to the play instructions for the game. Eligibility to win a prize is based on the approved play style as follows.
    (A) Match up. If the designated number of identical play symbols is revealed on the ticket, the player shall win the prize indicated.
    (B) Add up. If the player adds up all of the play symbols printed on the ticket and the amount is greater than or equal to the required total amount printed on the ticket, the player shall win the prize indicated.
    (C) Three in a line. If the player reveals three identical play symbols, either diagonally, vertically, or horizontally, on the same ticket, the player shall win the prize indicated.
    (D) Key number/symbol match. If the player reveals a play symbol that matches the designated key play symbol, the player shall win the prize indicated.
    (E) Yours beats theirs. If the player reveals a play symbol designated as yours that is greater than the play symbol(s) designated as theirs, the player shall win the prize indicated.
    (F) Prize legend. If the player reveals the designated number of play symbols, the player wins the prize amount that corresponds to the legend.
    (G) Cards. If the player reveals the play symbol needed for that particular card game in a winning combination, the player shall win the prize indicated.
    (H) Bingo. If the player matches their Bingo card numbers with all of the Caller's Card numbers and reveals certain patterns as specified on the ticket, the player shall win the prize indicated for that Bingo card and pattern.
    (I) Directional arrows through maze. If the player follows the directional arrows to make a path or paths through a maze and the path(s) leads to a prize amount, the player shall win that prize.
    (J) Bonus game features. These features are added to the game for extra play value and entertainment. The specific variants, as described below, are used for a particular game and are described in the individual game procedures:
      (i) Doubler. If the player reveals the designated play symbol as part of the winning combination of the game, the player doubles their prize. The player may also reveal the "doubler" play symbol in a prize box, in which case the prize amount that the player won is doubled.
      (ii) Wild card. The player may use this designated play symbol as part of the winning combination of the game.
      (iii) Double and Double Doubler. If the player reveals one of these designated play symbols as part of the winning combination of the game, the player either doubles or quadruples their prize respectively, as stated in the game card itself. The player may also reveal the "double" or "double doubler" play symbols in a prize box, in which case the prize amount that the player won is either doubled or quadrupled respectively, as stated in the game card itself.
      (iv) Tripler. If the player reveals the designated play symbol as part of the winning combination of the game, the player triples their prize. The player may also reveal the "tripler" play symbol in a prize box, in which case the prize amount that the player won is tripled.
      (v) Auto win. If the player reveals the designated play symbol, the player wins the corresponding prize automatically.
      (vi) Entry ticket. If the player reveals the designated play symbol, the player may use the ticket as a means of entering a drawing, subject to the game procedures for each game.
    (K) Any other approved play style or bonus game feature developed by the commission. If the player reveals the designated play symbols or bonus play features, the player shall win the prize(s) as indicated.
(d) Ticket validation requirements.
  (1) Each scratch ticket shall be validated according to validation procedures prior to payment of a prize.
  (2) A scratch ticket shall comply with all of the following.
    (A) The ticket shall not be stolen or appear on any list of omitted tickets on file with the commission.
    (B) The ticket shall not be counterfeit or forged, in whole or in part.
    (C) The ticket shall not be mutilated, altered, unreadable, reconstituted, or tampered with in any manner.
    (D) The ticket shall have been issued by the commission in an authorized manner.
    (E) The ticket shall have been received or recorded by the commission by applicable deadlines.
    (F) The ticket shall pass all the confidential validation and security tests appropriate to the applicable play style.
    (G) The validation number of an apparent winning ticket shall appear on the commission's official list of validation numbers of winning tickets for the particular game and pack. A ticket with that validation number shall not have been paid previously.
  (3) The commission may pay the prize for a ticket that is partially mutilated or not intact if the ticket can still be verified as a valid ticket and validated by the other validation requirements and procedures.
  (4) Any ticket not passing all of the validation tests and requirements is void and ineligible for any prize and shall not be paid. The executive director may, at his/her exclusive determination, reimburse the player for the cost of the void ticket.
  (5) If a defective ticket is purchased and is void, the sole remedy available against the commission and the commission's sole liability shall be, at the executive director's sole discretion, reimbursement for the cost of the void ticket, or replacement of the defective ticket with another unplayed ticket in that scratch ticket game (or a ticket of equivalent sales price from any other current scratch ticket game).
(e) Payment of low-tier and mid-tier prizes.
  (1) Any prize less than $600 may be paid by any retailer.
  (2) Retailers may pay prizes in cash. If acceptable to the claimant, retailers may also pay cash prizes by business check, certified check, cashier's check, money order, gift card, stored-value card, or store merchandise. If a retailer decides to pay with anything other than cash, it is the responsibility of the retailer to ensure the claimant has voluntarily agreed to the non-cash prize payment.
Cont'd...
(3) Retailers may pay claims for prizes, if the commission's validation system is operational.
  (4) Before paying a prize, retailers shall validate the winning ticket according to established validation requirements and procedures.
  (5) Payment of a prize by a retailer will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification, if appropriate.
  (6) If a low- or mid-tier claim is presented to the commission, the claimant shall follow all procedures of the commission related to claiming a prize, including but not limited to filling out a claim form, presenting appropriate identification if required, completing the back of the ticket, and submitting these items including the apparent winning ticket to the commission by mail or in person. If the ticket is determined to be a non-winning ticket, the claim shall be denied and the claimant shall be promptly notified. Tickets will not be returned to the claimant.
(f) Payment of high-tier prizes.
  (1) High-tier prizes must be presented for payment to the commission. For purposes of this provision, the term "commission" includes claim centers located throughout Texas. In connection with certain scratch ticket games, the top-level prizes must be claimed at commission headquarters.
  (2) If a high-tier claim is presented to the commission, the claimant shall follow all procedures of the commission related to claiming a prize, including but not limited to filling out a claim form, presenting appropriate identification as required, completing the back of the ticket, and submitting these items including the apparent winning ticket to the commission by mail or in person. Upon validation of the ticket as a winning ticket, the commission shall pay the claimant the amount due in accordance with commission procedures. If the ticket is determined to be a non-winning ticket, the claim shall be denied and the claimant shall be promptly notified. Tickets will not be returned to the claimant.
  (3) Before paying any prize, claim center personnel shall validate the winning ticket according to established validation requirements and procedures.
  (4) All prizes shall be subject to tax withholding, offsets, and other withholdings as provided by law.
  (5) If a person is indebted or owes delinquent taxes to the state, other than those specified in paragraph (4) of this subsection, the winnings of a person shall be withheld until the debt or taxes are paid.
  (6) When paying a prize of $600 or more, the commission shall file the appropriate income reporting form with the Internal Revenue Service.
  (7) Payment of a prize will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification.
  (8) The director shall recognize only one person as claimant of a particular prize. A claim may be made in the name of a person other than an individual only if the person possesses a federal employer identification number (FEIN) issued by the Internal Revenue Service and such number is shown on the claim form. Groups, family units, clubs, organizations, or other persons without an FEIN shall designate one individual in whose name the claim is to be filed. If a claim is erroneously entered with multiple claimants, the claimants shall designate one of them as the individual recipient of the prize, or, if they fail to designate an individual recipient, the director may designate any one of the claimants as the sole recipient. In either case, the claim shall then be considered as if it were originally entered in the name of the designated individual and payment of any prizes won shall be made to that single individual. Once a ticket is submitted as a claim, it will not be returned to the winner.
  (9) The executive director has discretion to set a maximum total cash amount or maximum payment time period for each prize level.
(g) Payment of prize awarded to minor.
  (1) A person 18 years of age or older may purchase a ticket to give as a gift to another person, including a minor.
  (2) If a minor is entitled to a cash prize of less than $600, the commission shall deliver to an adult member of the minor's family or to the minor's guardian a check or warrant in the amount of the prize payable to the order of the minor.
  (3) If a minor is entitled to a cash prize of $600 or more, the commission shall deposit the amount of the prize in a custodial bank account, with an adult member of the minor's family or the minor's guardian serving as custodian for the minor.
  (4) If a minor is entitled to a prize other than money, the commission shall pay the cash equivalent of such prize in the manner provided by paragraphs (2) and (3) of this subsection.
  (5) A retailer is not authorized to pay a prize claimed by a minor.
(h) Ticket responsibility.
  (1) A ticket is a bearer instrument until signed on the back by the ticket holder.
  (2) The commission shall not be responsible for lost, stolen, or destroyed tickets.
  (3) The commission shall not be responsible for erroneous or mutilated tickets.
  (4) The commission shall not be responsible for tickets claimed by a player in error for a lower prize at a retailer.
  (5) The commission shall not be responsible for tickets delivered to any address other than that designated by the commission for such purpose.
(i) Disputed ticket. If a dispute arises between the commission and a ticket claimant concerning whether the ticket is a winning ticket and if the ticket prize has not been paid, the executive director may, exclusively at his/her determination, reimburse the claimant for the cost of the disputed ticket. This shall be the claimant's exclusive remedy.
(j) Game closing.
  (1) The executive director or his/her designee shall determine the closing date for an individual scratch ticket game in accordance with a scratch ticket game closing procedure that defines the criteria used to monitor scratch ticket sales performance and that identifies when scratch ticket games should be closed.
    (A) The procedure shall provide for the timely closing of a scratch ticket game after all top-level prizes in the game have been claimed or on an earlier date as determined by the executive director.
    (B) The procedure shall provide for ending ticket sales in a scratch ticket game within 45 days after game closing procedures have been initiated.
  (2) No tickets in a scratch ticket game may be sold after the scratch ticket game closing date.
(k) Governing law. In purchasing a scratch ticket, the lottery player agrees to comply with and abide by Texas law, all rules, procedures, and final decisions of the commission, and all procedures and instructions established by the executive director for the conduct of the scratch ticket game.

Source Note: The provisions of this §401.302 adopted to be effective May 29, 1992, 17 TexReg 3637; transferred effective December 27, 1993, as published in the Texas Register January 4, 1994, 19 TexReg 78; amended to be effective January 4, 1995, 19 TexReg 10097; amended to be effective March 14, 1996, 21 TexReg 1756; amended to be effective August 31, 1999, 24 TexReg 6971; amended to be effective November 29, 2001, 26 TexReg 9589; amended to be effective June 10, 2007, 32 TexReg 2986; amended to be effective December 31, 2017, 42 TexReg 7385; amended to be effective August 30, 2020, 45 TexReg 5908; amended to be effective November 2, 2023, 48 TexReg 6353