(a) No sales agent may distribute or sell lottery game tickets from a lottery ticket vending machine, except those lottery ticket vending machines supplied and placed by the commission. For purposes of this section lottery ticket vending machine is defined as a ticket dispensing machine that dispenses lottery game tickets without the assistance of a sales agent's personnel.
(b) Lottery ticket vending machines may be placed by the commission in a sales agent's location based upon criteria established by the executive director. The criteria may include consideration of the location of the sales agent, the type of the sales agent's location, e.g., grocery store, the size of the sales agent's location, and minimum sales criteria that shall be provided to the sales agents prior to implementation of such criteria.
(c) A lottery sales agent must maintain the minimum sales criteria established by the executive director in order to obtain and retain a lottery ticket vending machine. A sales agent who does not maintain minimum sales in accordance with such sales criteria may be placed in a sales review period unless good cause exists as determined by the executive director. After the sales agent's sales review period has expired, the sales agent's sale of lottery game tickets shall be reviewed. If the sales agent has not maintained the minimum sales in accordance with the minimum ticket sales criteria during such sales review period, the commission or commission's designated representative may remove the lottery ticket vending machine.
(d) The minimum sales criteria established by the executive director shall be provided to the sales agents at least 30 days prior to imposition of such minimum sales criteria.
(e) Lottery ticket vending machines may only be placed within the sales agent's location in a site approved by the commission.
(f) A lottery sales agent may redeem any lottery prize of less than $600.
(g) Every lottery sales agent location equipped with a lottery ticket vending machine(s) will be provided a remote shut off device to allow for the control of sales transactions.
(h) A lottery sales agent shall keep the lottery ticket vending machine stocked with printer supplies and tickets.
(i) A lottery sales agent shall provide designated sales reports to the commission or the commission's designated representative(s).
(j) A lottery sales agent shall undergo required training relating to the use and maintenance of lottery ticket vending machines prior to ticket sales from the lottery ticket vending machine.
(k) A lottery sales agent shall allow commission designated service technicians access to the lottery ticket vending machine to allow service and repair of the lottery ticket vending machine.
(l) A sales agent is expected to make every reasonable effort to provide player resolution at the retail location if a player's lottery purchase, or attempted purchase, from a lottery vending machine results in a need to refund the player's money. The sales agent is to contact the Lottery Operations Division for service to resolve a mechanical error and the commission to request any refund due to player reimbursement. Resolution due to player errors or requests for ticket cancellations must follow the specific lottery game rule for the game played.

Source Note: The provisions of this §401.368 adopted to be effective January 4, 1995, 19 TexReg 10097; amended to be effective September 19, 1996, 21 TexReg 8658; amended to be effective May 20, 2001, 26 TexReg 3489; amended to be effective June 18, 2015, 40 TexReg 3645; amended to be effective August 30, 2020, 45 TexReg 5908