Arkansas Administrative Code

23 CAR § 370-101. Definitions. As used in this part: (1) “Act” means the Arkansas Scholarship Lottery Act, Acts 2009, No. 606; (2) "Applicant" means a natural person, corporation, partnership, unincorporated association, or other legal entity applying for a contract with the Offi…

23 CAR § 370-102. General policies. (a) Application. (1) This part shall apply to the administration of the statewide network of lottery retailers as licensed and regulated by the Office of the Arkansas Lottery. (2) In any decision made under this part, the office shall take into…

23 CAR § 370-103. Authority of director. The Director of the Office of the Arkansas Lottery may: (1) Contract with retailers for the sale of lottery games and shares; (2) Establish a communication or line fee if determined to be a necessary business expense; (3) Investigate and c…

23 CAR § 370-201. General. Retailers must meet the statutory and regulatory requirements for licensing, the security and integrity standards of the Office of the Arkansas Lottery, and promote the best interest of the Arkansas Scholarship Lottery.

23 CAR § 370-202. Application. (a) A person interested in obtaining a license must submit an application to the Office of the Arkansas Lottery on a form supplied for that purpose by the office. (b) The retail sales application shall be designed to solicit sufficient relevant info…

23 CAR § 370-203. Application fee. An applicant for a retailer license shall be charged the following fees: (1) Initial application fee: one hundred dollars ($100); (2) Change of ownership fee: one hundred dollars ($100); (3) Additional store location fee: twenty-five dollars ($2…

23 CAR § 370-204. Disclosure. (a)(1) The Director of the Office of the Arkansas Lottery may require any degree or type of disclosure necessary of the applicant or any other person in order to ensure the security and integrity of the lottery including: (A) The source of funds, fin…

23 CAR § 370-205. Prohibitions. An applicant shall not provide a gift or compensation to: (1) The Director of the Office of the Arkansas Lottery; (2) An Office of the Arkansas Lottery member; (3) An office employee; or (4) The immediate family member of: (A) The director; (B) An …

23 CAR § 370-206. Background check. (a) An applicant for a retailer license is subject to a background check including a credit check and a criminal history check conducted by the Division of Arkansas State Police and the Federal Bureau of Investigation. (b) Issuance of a retaile…

23 CAR § 370-207. Waiver. (a) In submitting an application, the applicant expressly waives any claim against the State of Arkansas, its agents, officers, employees, representatives, and the Office of the Arkansas Lottery, the Director of the Office of the Arkansas Lottery, agents…

23 CAR § 370-301. Nontransferability of license. (a)(1) A retailer license is not transferable and shall not be sold, given, or assigned to any person. (2) In the event of the proven incapacity, death, receivership, bankruptcy, or assignment for benefit of creditors of any retail…

23 CAR § 370-302. License term and renewal. (a) A retailer’s license remains in full force and effect until the termination date indicated upon the license, but in no case more than two (2) years from the date of the issuance of the license. (b) The Director of the Office of the …

23 CAR § 370-303. Inspection. A license grants the Office of the Arkansas Lottery the irrevocable authority to inspect the location where games may be sold or any other location under the control of the retailer where the Director of the Office of the Arkansas Lottery may have go…

23 CAR § 370-304. Retailer loss coverage. (a) A retailer shall be assessed an annual fee of up to one hundred dollars ($100) per sales location to be deposited into the Office of the Arkansas Lottery’s fidelity fund. (b)(1) A retailer is required to post an appropriate bond as de…

23 CAR § 370-305. Change in application information. (a) A license is valid only for the information contained in the application. (b) Any change to the information submitted in the application including change of business name, change of location, change of ownership, or change …

23 CAR § 370-306. Provisional license. (a) A provisional license temporarily authorizes a lottery retailer to conduct the sale of tickets pending processing of the general license or application renewal. (b)(1) The Director of the Office of the Arkansas Lottery may issue a provis…

23 CAR § 370-307. Promotional license. (a) The Director of the Office of the Arkansas Lottery may issue a promotional license for a marketing promotion for a period not exceeding ninety (90) days for lottery games. (b) The director may establish financial and criminal history or …

23 CAR § 370-308. Chain retailers. (a) The Office of the Arkansas Lottery may treat more than one (1) retail location with identical owners as one (1) chain retailer. (b) Each retail location shall be issued a separate retailer number or numbers and a unique retailer license. (c)…

23 CAR § 370-309. Retailer compensation. A retailer shall receive commissions as compensation from the Office of the Arkansas Lottery as follows: (1) Base instant and online games commission: five percent (5%) of each one dollar ($1.00) sold; (2) Cashing commission: one percent (…

23 CAR § 370-401. Lottery couriers. (a) In the sole discretion of the Director of the Office of the Arkansas Lottery, the Office of the Arkansas Lottery may authorize a duly licensed office retailer to enter a contract with a third-party (nonlottery licensed) entity for the purpo…

23 CAR § 370-501. Generally. (a) This subpart contains duties to be performed by the retailer in addition to any duties and responsibilities that may be described in the retailer contract. (b) The duties herein are not meant to be exclusive. (c) Other duties and requirements for …

23 CAR § 370-502. Notices. The retailer must notify the Office of the Arkansas Lottery if the following occurs: (1) As soon as practicable, but no later than ten (10) days of a material change in the qualifications of an applicant; (2) Immediately for loss, theft, or destruction …

23 CAR § 370-503. Games. The retailer must perform the following duties as a condition of their license: (1)(A) Stock equipment. (B) Keep all lottery equipment on the retailer’s premises stocked with a variety of tickets, play slips, computer-generated tickets, and any other Offi…

23 CAR § 370-504. Financial — Lottery proceeds. (a) Fiduciary duty. (1) All proceeds from the sale of tickets or shares constitute a trust fund until paid to the Office of the Arkansas Lottery either directly or through the office’s authorized representative. (2) A retailer and o…

23 CAR § 370-601. Sale of tickets of shares. (a) Tickets and shares shall be sold only by the retailer at the location address stated on the retailer license issued by the Office of the Arkansas Lottery. (b) Tickets may not be sold for more or less than the amount set by the offi…

23 CAR § 370-602. Prizes. (a) A retailer may not charge a player to either play a lottery game, nor charge any fees or impose any requirements to redeem a valid winning ticket. (b) A retailer must not pay to the winner a prize amount more than the prize established by the game.…

23 CAR § 370-603. Retailer conduct. (a) A retailer may not exchange books, lottery tickets, or paper ticket stock with any other retailer. (b) A retailer must sell tickets in book, page, or numerical order and may not play instant lottery tickets using any other method other than…

23 CAR § 370-604. Inducements to play. A retailer shall not induce persons to play lottery games by extending credit or by providing: (1) Financial assistance; (2) Alcohol; or (3) Any other compensation.

23 CAR § 370-605. Trademark. A retailer may not use the logo, trademark, or other advertising materials of the Office of the Arkansas Lottery without prior written permission or authorization of the office unless the materials have been provided to the retailer by the office.…

23 CAR § 370-606. False promises. A retailer must not conduct false or misleading advertising in any form about the Office of the Arkansas Lottery or lottery games including but not limited to claiming the odds of winning a lottery game are different at the retailer's business th…

23 CAR § 370-607. Contracting for goods or services. A retailer shall not contract with any person other than the Office of the Arkansas Lottery for Arkansas Scholarship Lottery products or services except with the written approval of the office.

23 CAR § 370-608. Gifts. A retailer shall not provide a gift or compensation to: (1) The Director of the Office of the Arkansas Lottery; (2) An Office of the Arkansas Lottery member; (3) An office employee; or (4) The immediate family member of: (A) The director; (B) An office me…

23 CAR § 370-701. Generally. If upon approval of the Office of the Arkansas Lottery, the Director of the Office of the Arkansas Lottery or his or her designee determines that cancellation, denial, revocation, suspension, or rejection of renewal of a retailer license is in the bes…

23 CAR § 370-702. Temporary suspension. The retailer license may be temporarily suspended by the Director of the Office of the Arkansas Lottery or his or her designee without prior notice pending a hearing.

23 CAR § 370-703. Reasons. A retailer license may be suspended, revoked, or terminated by the Director of the Office of the Arkansas Lottery or his or her designee for any one (1) or more of the following reasons: (1) Commission of a violation of the act or a rule of the Office o…

23 CAR § 370-704. Removal of office material. If a retailer fails to meet any of the objective criteria established by the Office of the Arkansas Lottery, the Director of the Office of the Arkansas Lottery or his or her designee may remove instant tickets, online ticket stock, an…

23 CAR § 370-705. Administrative hearing. (a) Any retailer or applicant aggrieved (aggrieved party) by an administrative decision by the Director of the Office of the Arkansas Lottery may appeal that decision. (b) Time for filing. The aggrieved party must file a notice of appeal …

23 CAR § 370-801. Business closure. (a) Arkansas Code § 23-115-607 authorizes the Director of the Office of the Arkansas Lottery to close the business of a retailer if the retailer fails to comply with Arkansas Code § 23-115-605(b) and 23 CAR § 370-804(e) three (3) times within a…

23 CAR § 370-802. Avoiding closure. A retailer may avoid closure of the business by: (1) Remitting the delinquent lottery proceeds; or (2) Entering into a written payment agreement approved by the Director of the Office of the Arkansas Lottery to satisfy the lottery proceeds deli…

23 CAR § 370-803. Administrative hearing. (a) A retailer may request an administrative hearing concerning the decision of the Director of the Office of the Arkansas Lottery to close the retailer's business. (b) Within five (5) business days after the delivery or attempted deliver…

23 CAR § 370-804. Judicial relief. (a) If the decision of the hearing officer under this subpart is to affirm the closure of the business, the decision shall be submitted in writing and delivered by the United States Postal Service or by hand to the retailer. (b) The retailer may…

23 CAR § 370-805. Procedure for closure. (a) If a retailer fails to timely seek administrative or judicial review of a business closure decision or if the business closure decision is affirmed after administrative or judicial review, the Director of the Office of the Arkansas Lot…

23 CAR § 370-806. Revocation and suspension of business license. (a) The closure of a business under this subpart shall be grounds for the suspension or revocation of any business license granted under the laws of the State of Arkansas, excluding professional licenses. (b) After …

23 CAR § 371-101. Definitions. As used in this part: (1) "Act" means the Arkansas Scholarship Lottery Act, Acts 2009, No. 606; (2) "Administrative order" means the final disposition of the Office of the Arkansas Lottery in any matter other than a claim in contract or tort, includ…

23 CAR § 371-102. Authority of director. Notwithstanding the authority and duties listed in Arkansas Code § 23-115-302 or other such responsibilities and duties designated by the Department of Finance and Administration, the Director of the Office of the Arkansas Lottery may: (1)…

23 CAR § 371-103. Use of office/Arkansas Scholarship Lottery trademarks. (a) Lottery retailers may use and display the lottery logo, trademark, and other advertising materials without charge to the user or compensation to the Office of the Arkansas Lottery for its use. (b) Any us…

23 CAR § 371-104. Draw integrity. (a)(1) Subject to the approval of the Director of the Office of the Arkansas Lottery, the Office of the Arkansas Lottery’s Director of Security shall designate an office Draw Coordinator to develop and maintain responsibility for the drawing acti…