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REGULATIONS
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Southeastern Lottery Regulations

Current Version

§ 1. Lottery Commissioner

The administration of the Southeastern Lottery shall be handled by a Lottery Commission which shall be headed by a Lottery Commissioner, who shall be appointed by the Governor to serve at his pleasure. When the office of Lottery Commissioner is vacant, its duties shall be performed by the Lieutenant Governor. When the office of Lieutenant Governor is also vacant, the duties of the Lottery Commissioner shall be performed by the Governor.

§ 2. Types and Manner of Games

There shall be three games conducted by the Lottery Commission: Three Strikes, Five Star, and Dixie Lotto. No other games shall be permitted. Sales of tickets for the games of the Southeastern Lottery shall be conducted by independent contractors who shall receive a commission of no more than five percent of the sale price of each ticket as their sole recompense. Such contractors shall pay the Lottery Commission rental fees for ticket sales terminals and necessary supplies at a rate to be set by the Commission, but no more than that which covers the costs to the Commission of providing the necessary equipment and supplies. The Three Strikes drawing shall be conducted daily, the Five Star drawing on Mondays, Wednesdays, and Fridays, and the Dixie Lotto drawing on Saturday. No tickets shall be sold between 10pm and midnight (central Time) on any day. Drawings shall be held as soon after 10:30 pm as practicable and shall be available for public viewing in such manner as the Lottery Commission may direct.

§ 3. Three Strikes

(a) Three Strikes Fund
A Three Strikes Fund shall be established. This fund shall receive all monies paid for tickets to the Three Strikes game. It shall be used to pay the independent contractors described in section 2 of these regulations such commission as has been agreed to, to fund the prizes specified by the game, and to transfer on a timely basis funds to the Lottery General Fund. At the end of each calendar month, all monies in the Three Strikes Fund in excess of $500 times the average number of tickets sold per drawing shall be transferred to the Lottery General Fund.

(b) Three Strikes Rules
The Three Strikes game shall use three machines which shall each generate with equal probability eleven different results. Ten shall be the digits "0" through "9" and the eleventh shall be a "strike". A player may per $1 ticket pick either a sequence of three digits, one strike, two strikes, or three strikes. If the a ticket bearing a sequence of digits matches the result of a given drawing, the holder of the ticket shall receive $500. If a ticket bearing one strike is bought for a drawing that has a strike selected on any of the three machines, the holder of the ticket shall receive $3. If a ticket bearing two strikes is bought for a drawing that has any two or all three of the machines having a strike, the winner shall receive $27. If a ticket bearing three strikes is bought for a drawing that has all three machines having a strike, the winner shall receive $162 and a free ticket for a future Five Star drawing to paid for by the Three Strikes Fund.

§ 4. Five Star

(a) Five Star Fund
A Five Star Fund shall be established. This fund shall receive all monies paid for tickets to the Five Star game. It shall be used to pay the independent contractors described in section 2 of these regulations such commission as has been agreed to, to pay for celebrity endorsements as described below, to fund the prizes specified by the game, and to transfer on a timely basis funds to the Lottery General Fund. At the end of each calendar month, all monies in the Five Star Fund in excess of $1000 times the average number of tickets sold per drawing shall be transferred to the Lottery General Fund.

(b) Five Star Rules
The Five Star game shall use one machine which shall generate a combination of five choices of twenty-five different results. These results shall be associated with various celebrities who have agreed to be associated with the game in a manner as described below. A player may per $2 ticket pick any five celebrities. A ticket shall pay $50,000 if all five of the celebrities on the ticket are drawn.

(c) Five Star Celebrities
The Lottery Commission may compensate a celebrity for the use of his name no more than one cent per ticket sold including the celebrity among the choices thereon. In selecting celebrities, the Commissioner shall consider the moral character, connections to the Southeastern region, and other characteristics likely to cause a person to wish to buy a ticket bearing the celebrity's name and/or image. No single contract for the use of a celebrity's persona shall be made for a period to exceed thirteen weeks. No officer or employee of the Southeastern Region may be granted an endorsement contract.

§ 5. Dixie Lotto

(a) Dixie Lotto Fund
A Dixie Lotto Fund shall be established. This fund shall receive half of all monies paid for tickets to the Dixie Lotto game. It shall be used to pay the independent contractors described in section 2 of these regulations such commission as has been agreed to, to fund the prizes other than the jackpot specified by the game, and to transfer on a timely basis funds to the Lottery General Fund. On each Monday, all monies in the Dixie Lotto Fund in excess of those required to pay commissions and prizes already committed to shall be transferred to the Lottery General Fund.

(b) Dixie Lotto Jackpot Fund
A Dixie Lotto Jackpot Fund shall be established. This fund shall receive half of all monies paid for tickets to the Dixie Lotto game. It shall be used to pay the jackpot prize of the Dixie Lotto by transferring all funds in the Dixie Lotto Jackpot Fund when a jackpot is drawn to a special fund established to pay that jackpot prize as described below.

(c) Dixie Lotto Rules
The Dixie Lotto shall use one machine which shall generate with equal probability combinations of five results out of a number of different results. The results will be numbered from 1 to the number of different results. The number of different results shall initially be forty and shall never be less than thirty-two. A second machine shall generate one result which shall be chosen by equal probability from thirty different results identified by the combination of one of the colors red, white, or blue, and one of the States of the Southeastern Region. A player may per $5 ticket pick any five results from the first machine and and one result from the second machine. The jackpot prize shall be awarded when a ticket exactly matching the drawing has been sold. The Lottery Commission shall adjust the number of results to picked from by the first machine each quarter, with the objective of having one successful jackpot per quarter. Secondary prizes shall be set by the Lottery Commission in a manner such that the secondary prizes for each drawing total no greater than 20% of the ticket sales for that drawing.

(d) Dixie Lotto Jackpots
Upon determining that a jackpot has been drawn, all funds in the Dixie Lotto Jackpot Fund as of the time of the drawing shall be transferred to a special fund that shall be used to pay the prize in a manner to be determined by the Lottery Commission, save that a jackpot winner shall have the option of receiving his prize as a single lump sum. In the event that no one should claim the prize by the 53rd Monday following the drawing, half of said special fund shall be alloted to the Lotto Jackpot Fund and the other half shall be alloted to the Lottery Education Fund. In the event that multiple winners can claim the same jackpot prize, the prize shall be split evenly among all who do claim, with the previous sentence applying only if none of them do claim.

§ 6. Lottery General Fund

A Lottery General Fund shall be established. This Fund shall receive monies from the operation of the games run by Lottery Commission as described above. It shall be used to pay the expenses of administering the games, including promotional expenses. No more than 10% of the monies entered into the Lottery General Fund in any fiscal year may be used for administrative expenses. At the end of each fiscal quarter, 90% of the monies in the Lottery General Fund shall be transferred to the Lottery Education Fund.

§ 7. Lottery Education Fund

A Lottery Education Fund shall be established. This fund shall receive monies from the Lottery General Fund. It shall be used to pay the expenses of administering the scholarships established by the Lottery Initiative and to fund the scholarships themselves. No more than 10% of the monies entered into the Lottery Education Fund in any fiscal year may be used for administrative expenses.

§ 8. Standard Funding Level

The Lottery Commission shall determine a representative tuition level for each public institution of higher education in the Southeastern Region based upon the money required for tuition, academic fees, and study materials for an average student attending as an undergraduate either full time for two academic semesters while taking a total of 30 semester hours of courses or full time for three academic quarters while taking a total of 50 quarter hours of courses. It shall then compute an average (which may be weighted on any combination of total students per institution, Southeastern students per institution, and qualified scholars per institution that the Lottery Commission determines is appropriate) of these levels. The standard funding level for a full scholarship year under the Southeastern Lottery shall be 80% of that average.

§ 9. Qualified Scholar

(a) Definition
A person becomes a qualified scholar upon submitting to the Lottery Commission proof that he graduated with a B average from an accredited secondary school located in the Southeastern Region in the twelve months previous to the date of application.

(b) Individual Scholar Accounts
Each qualified scholar shall have an Individual Scholar Account established for him with the Lottery Commission. A qualified scholar must maintain progress towards a degree and a GPA of 2.5 to receive funds from this account.

§ 10. Funding of Individual Scholar Accounts

On first day of July of each year, the Lottery Commission shall transfer 90% of the monies in the Lottery Education Fund on an equal basis into Individual Scholar Accounts created for persons who became qualified scholars in the preceding fiscal year.

§ 11. GPA Requirements for Scholars

As of June 30th of each year, the GPA of each qualified scholar shall be computed. Courses which the scholar had to withdraw from because of an unanticipated requirement from a commitment to serve in the armed forces (either regular or reserve) of Atlasia shall not be counted against his GPA with respect to this section. If his GPA is less than 2.0, then the account shall be canceled and the funds remaining shall be transferred to the Lottery Education Fund. If the scholar's GPA is less than 2.5, then the account shall be suspended and disbursements shall not be made from the account under section 13 of these regulations until the GPA is 2.5 or greater. Whenever the GPA is 2.5 or greater at the end of calendar quarter, then any suspension previously placed upon that account will be lifted.

§ 12. Forward Progress

A scholar must attempt at least one course each fiscal year unless he spent 91 or more days on active duty in the armed forces of Atlasia in a fiscal year or his account shall be canceled and the funds remaining shall be transferred to the Lottery Education Fund.

§ 13. Funds Disbursed Upon Completion of Courses

Funds from Individual Scholar Accounts shall be disbursed upon completion of courses by the scholar from qualified institutions with a passing grade. Each fiscal year, no more than the standard funding level for that fiscal year may be disbursed from the account. Only funds in the account may disbursed, even though the scholar would be entitled to more if funds were available. One-thirtieth of the standard funding level shall be disbursed to the scholar upon completion of a semester hour of undergraduate course work. One-fiftieth of the standard funding level shall be disbursed to the scholar upon completion of a quarter hour of undergraduate course work. One-fiftieth of the standard funding level shall be disbursed to the scholar upon completion of a continuing education unit. The Lottery Commission may determine what portion of a standard funding level is to be awarded for the completion of educational instruction which does not result in the awarding of either undergraduate credit or continuing education units on the basis of one-five hundredth of the standard funding level per hour of instruction. Hours of instruction may be based upon the number determined to be appropriate for the subject by the Commission or an accrediting agency mentioned in section 14 instead of the actual number of hours of instruction.

§ 14. Qualified Institution

A qualified institution is an institution of tertiary education which is located in the Southeastern Region and is accredited by the Southern Association of Colleges and Schools for undergraduate studies, the International Association of Continuing Education and Training for continuing education studies, or an equivalent accrediting agency as determined by the Lottery Commission.

Promulgation

Adopted on November 5, 2004 by Governor Ernest

Cross-References

Lottery Initiative approved by the voters the third weekend of October, 2004.

A list of Lottery Commissioners may be found on this site's History page.