Section 65IAC1-7-4. Promotional drawings

   (a) "Promotional drawing" means, for purposes of this section, a drawing or other event involving the random selection of winners that either:

(1) does not require participants to purchase or hold a lottery ticket in order to win; or

(2) may be entered into for the chance to win consolation or supplemental prizes by holders of scratch-off game or draw game tickets, whether or not such tickets are otherwise eligible for prizes.

  (b) "Authorized vendor" means, for purposes of this section, a commission vendor authorized to conduct promotional activities under 65 IAC 1-7-1(c).

  (c) The director or an authorized vendor shall establish written internal controls and procedures consistent with this section for a promotional drawing or drawings conducted under this section. The internal controls and procedures shall include at least the following:

(1) Eligibility requirements for participation.

(2) Method and mode of entry.

(3) Date, time, and location of the promotional drawing.

(4) Procedure for randomly selecting winners from qualified entries.

  (d) The director or an authorized vendor may amend or alter the written internal controls and procedures for any promotional drawing without notice prior to the time that the promotional drawing is conducted.

  (e) All promotional drawings involving a prize with a fair market value greater than:

(1) five hundred ninety-nine dollars ($599) shall be witnessed by a representative of the commission's security division; and

(2) five thousand dollars ($5,000) shall be witnessed by a representative of the commission's security division and an independent certified public accountant.

  (f) The liability of the commission, the director, and the commission's employees for failure to enter any person into a promotional drawing, for any improper operation or conduct of any promotional drawing, or for the failure of any person to win a prize in a promotional drawing is limited to entry of the aggrieved person in another promotional drawing with prizes of similar value and each participant in a promotional drawing agrees by the act of participating in the promotional drawing to this limitation of liability.

  (g) Disputes regarding dates, times, requirements, or procedures shall be resolved by the director in the exercise of the director's sole discretion. All participants in a promotional drawing shall be deemed to have agreed to all internal controls and procedures by their participation in the promotional drawing or any proceedings in connection with the promotional drawing. (State Lottery Commission; 65 IAC 1-7-4; filed Aug 19, 2010, 3:33 p.m.: 20100915-IR-065100240FRA; emergency rule filed Jun 28, 2013, 1:11 p.m.: 20130710-IR-065130296ERA)