(a) Texas Two Step® . The executive director is authorized to conduct a game known as "Texas Two Step." The executive director may issue further directives for the conduct of Texas Two Step that are consistent with this rule. In the case of conflict, this rule takes precedence over §401.304 of this title (relating to Draw Game Rules (General)).
(b) Definitions. In addition to the definitions provided in §401.301 of this title (relating to General Definitions), and unless the context in this rule otherwise requires, the following definitions apply.
  (1) Play--The selection of four different numbers from 1 to 35 and the selection of an additional number from 1 to 35 for one opportunity to win in Texas Two Step, and the purchase of a ticket evidencing that selection.
  (2) Playboard--Two fields found on the playslip, with each field containing 35 numbers from 1 to 35.
  (3) Roll cycle--A series of one or more drawings that ends when there is a drawing for which one or more tickets are sold that match, in accordance with the provisions of subsection (e)(1)(A) of this section, the numbers drawn in the drawing. A new roll cycle begins with the next drawing after a drawing for which one or more jackpot tickets are sold that match, in accordance with the provisions of subsection (e)(1)(A) of this section, the numbers drawn in the drawing.
(c) Plays and tickets.
  (1) A ticket may be sold only by a retailer and only at the location listed on the retailer's license. A ticket sold by a person other than a retailer is not valid.
  (2) The price of a play is $1.
  (3) A player may use a single playslip, or other commission-approved method of play, to purchase the same play(s) for up to 10 consecutive drawings, to begin with the next drawing after the purchase.
  (4) A retailer shall issue a ticket as evidence of one or more plays. A ticket must show the numbers selected for each play, the number of plays, the draw date(s) for which the plays were purchased, the cost of the ticket, and the security and transaction serial numbers. Tickets must be printed on official Texas Lottery paper stock, or, for third-party point-of-sale systems approved by the commission, printed on paper stock or otherwise issued in a manner approved by the commission to provide tangible evidence of participation in a lottery game.
  (5) An unsigned winning ticket is payable to the holder or bearer of the ticket if the ticket meets all applicable validation requirements.
(d) Drawings.
  (1) Texas Two Step drawings shall be held each week on the days and at times specified by the executive director.
  (2) At each Texas Two Step drawing, the commission shall draw four different numbers from a set of numbers from 1 to 35, and the commission shall draw a single number from a separate set of numbers from 1 to 35.
  (3) Numbers drawn must be certified by the commission in accordance with the commission's draw procedures.
  (4) The numbers selected in a drawing shall be used to determine all winners for that drawing.
  (5) Each drawing shall be witnessed by an independent certified public accountant. All drawing equipment used shall be examined by a lottery drawing representative and the independent certified public accountant immediately before each drawing and immediately after each drawing.
(e) Prizes.
  (1) Jackpot prize (first prize).
    (A) A person who holds a valid ticket for a Texas Two Step play is entitled to a share of the jackpot prize (first prize) for a drawing if:
      (i) the four numbers the player selected from a field of 35 numbers match (in any order) the four numbers selected from a set of 35 numbers at the drawing; and
      (ii) the single number the player selected from a field of 35 numbers matches the single number selected from a set of 35 numbers at the drawing.
    (B) The jackpot prize for a Texas Two Step drawing is the amount the commission establishes and authorizes vendors to publicize for the drawing.
    (C) If 23.78 percent of Texas Two Step sales proceeds for a roll cycle are not sufficient to pay a jackpot prize, the commission shall use funds from other authorized sources, including the State Lottery Account established by Government Code §466.355, to pay the prize.
  (2) Second prize.
    (A) A person who holds a valid ticket for a Texas Two Step play is entitled to a share of the second prize for a drawing if:
      (i) the four numbers the player selected from a field of 35 numbers match (in any order) the four numbers selected from a set of 35 numbers at the drawing; and
      (ii) the single number the player selected from a field of 35 numbers does not match the single number selected from a set of 35 numbers at the drawing.
    (B) The second prize consists of 2.79 percent of the proceeds from Texas Two Step ticket sales for the drawing and any amounts carried forward under subparagraph (D) of this paragraph.
    (C) A payment made to a person for a share of the second prize for a drawing shall be rounded to the closest whole dollar amount. An amount of exactly fifty cents shall be rounded up to the nearest whole dollar amount.
    (D) Any part of the second prize for a drawing that is not paid in prizes shall be carried forward and shall become part of the second prize for the next drawing.
  (3) Third prize.
    (A) A person who holds a valid ticket for a Texas Two Step play is entitled to a share of the third prize for a drawing if:
      (i) three of the four numbers the player selected from a field of 35 numbers match (in any order) three of the four numbers selected from a set of 35 numbers at the drawing; and
      (ii) the single number the player selected from a field of 35 numbers matches the single number selected from a set of 35 numbers at the drawing.
    (B) The third prize consists of 0.34 percent of the proceeds from Texas Two Step ticket sales for the drawing and any amounts carried forward under subparagraph (D) of this paragraph.
    (C) A payment made to a person for a share of the third prize for a drawing shall be rounded to the closest whole dollar amount. An amount of exactly fifty cents shall be rounded up to the nearest whole dollar amount.
    (D) Any part of the third prize for a drawing that is not paid in prizes shall be carried forward and shall become part of the third prize for the next drawing.
  (4) Fourth prize.
    (A) A person who holds a valid ticket for a Texas Two Step play is entitled to a share of the fourth prize for a drawing if:
      (i) three of the four numbers the player selected from a field of 35 numbers match (in any order) three of the four numbers selected at the drawing from a set of 35 numbers; and
      (ii) the single number the player selected from a field of 35 numbers does not match the single number selected from a set of 35 numbers at the drawing.
    (B) The fourth prize consists of 4.60 percent of the proceeds from Texas Two Step ticket sales for the drawing and any amounts carried forward under subparagraph (D) of this paragraph.
    (C) A payment made to a person for a share of the fourth prize for a drawing shall be rounded to the closest whole dollar amount. An amount of exactly fifty cents shall be rounded up to the nearest whole dollar amount.
    (D) Any part of the fourth prize for a drawing that is not paid in prizes shall be carried forward and shall become part of the fourth prize for the next drawing.
  (5) Fifth prize.
    (A) A person who holds a valid ticket for a Texas Two Step play is entitled to a share of the fifth prize for a drawing if:
      (i) two of the four numbers the player selected from a field of 35 numbers match (in any order) two of the four numbers selected from a set of 35 numbers at the drawing; and
      (ii) the single number the player selected from a field of 35 numbers matches the single number selected from a set of 35 numbers at the drawing.
    (B) The fifth prize consists of 3.04 percent of the proceeds from Texas Two Step ticket sales for the drawing and any amounts carried forward under subparagraph (D) of this paragraph.
    (C) A payment made to a person for a share of the fifth prize for a drawing shall be rounded to the closest whole dollar amount. An amount of exactly fifty cents shall be rounded up to the nearest whole dollar amount.
    (D) Any part of the fifth prize for a drawing that is not paid in prizes shall be carried forward and shall become part of the fifth prize for the next drawing.
  (6) Sixth prize.
    (A) A person who holds a valid ticket for a Texas Two Step play is entitled to a $7 prize for a drawing if:
Cont'd...
(i) one of the four numbers the player selected from a field of 35 numbers matches one of the four numbers selected from a set of 35 numbers at the drawing; and
      (ii) the single number the player selected from a field of 35 numbers matches the single number selected from a set of 35 numbers at the drawing.
    (B) If 6.87 percent of sales proceeds for the drawing are not sufficient to pay all of the sixth prizes for that drawing, the commission shall use funds from other authorized sources, including the State Lottery Account established by Government Code §466.355, to pay the prize.
    (C) To the extent that the total amount of sixth prizes for a Texas Two Step drawing is less than 6.87 percent of the proceeds from ticket sales for the drawing, the difference shall be carried forward to fund future sixth prize payments.
  (7) Seventh prize.
    (A) A person who holds a valid ticket for a Texas Two Step play is entitled to a $5 prize for a drawing if:
      (i) none of the four numbers the player selected from a field of 35 numbers match any of the four numbers selected from a set of 35 numbers at the drawing; and
      (ii) the single number the player selected from a field of 35 numbers matches the single number selected from a set of 35 numbers at the drawing.
    (B) If 8.58 percent of sales proceeds for the drawing are not sufficient to pay all of the seventh prizes for that drawing, the commission shall use funds from other authorized sources, including the State Lottery Account established by Government Code §466.355, to pay the prize.
    (C) To the extent that the total amount of seventh prizes for a Texas Two Step drawing is less than 8.58 percent of the proceeds from ticket sales for the drawing, the difference shall be carried forward to fund future seventh prize payments.
  (8) A person may win only one prize per play per drawing. A player who holds a valid ticket for a winning play is entitled to the highest prize for that play.
  (9) A share of a prize is determined by dividing the prize by the number of winning plays for that prize.
  (10) A Texas Two Step prize payment shall be made upon completion of commission validation procedures.
  (11) A claimant is not entitled to interest or other earnings on a prize, regardless of when a claim is actually presented and regardless of when payment is made.
(f) Jackpot information on commission website. After the commission has approved an advertised estimated jackpot under subsection (e) of this section, the commission shall post the following information on the agency website:
  (1) the amount of ticket sales, if any, for previous drawings in the roll cycle; and
  (2) the amount of projected ticket sales for the upcoming drawing.

Source Note: The provisions of this §401.312 adopted to be effective May 26, 2008, 33 TexReg 2949; amended to be effective September 17, 2015, 40 TexReg 6101; amended to be effective December 31, 2017, 42 TexReg 7385; amended to be effective August 30, 2020, 45 TexReg 5908; amended to be effective March 4, 2021, 46 TexReg 1378; amended to be effective April 28, 2022, 47 TexReg 2131