Oregon Revised Statutes
Chapter 461 — Oregon State Lottery
75 sections
Unless the context requires otherwise, the definitions contained in this chapter shall govern the construction of this chapter.
“Commissioner” means one of the members of the lottery commission appointed by the Governor pursuant to the Constitution of the State of Oregon and this chapter to oversee the state lottery.
“Director” means the Director of the Or…
This chapter shall be known as the Oregon State Lottery Act of 1984.
The people of the State of Oregon declare that the purpose and intent of this chapter is to provide additional moneys for the public purpose described in section 4, Article XV of the Constitution of the State of Oregon through the operation of a state lottery without the imposition of additional or increased taxes.
This chapter shall be applicable and uniform throughout the state and all political subdivisions and municipalities therein, and no local authority shall enact any ordinances, rules or regulations in conflict with the provisions hereof.
Any other state or local law or regulation providing any penalty, disability or prohibition for the manufacture, transport…
Nothing contained in this chapter shall be construed to repeal or modify existing state laws with respect to gambling, except that the state-operated lottery established by the Constitution of the State of Oregon and this chapter shall not be subject to such laws.
The Oregon State Lottery shall have its principal offices in the capital city.
ADMINISTRATION
(Oregon State Lottery Commission)
The Oregon State Lottery Commission is hereby created in state government.
The Oregon State Lottery Commission shall consist of five members appointed by the Governor and confirmed by the Senate who shall serve at the pleasure of the Governor.
The members shall be appointed for terms of four years.
Vacancies shall be filled within 30 days by the Governor,…
Upon the request of the Oregon State Lottery Commission or the Director of the Oregon State Lottery, the office of the Attorney General and the Oregon State Police shall furnish to the director and to the Assistant Director for Security such information as may tend to ensure security, integrity, honesty and fairness in the operation and administration of the…
Except as otherwise provided by law, the provisions of ORS 279.835 to 279.855 and ORS chapters 279A, 279B, 279C, 282 and 283 do not apply to the Oregon State Lottery Commission unless otherwise provided by this chapter.
Officers and employees of the Oregon State Lottery Commission are in the exempt service for purposes of ORS chapter 240 and other related s…
Whenever a power is granted to the commission, the power may be exercised by such officer or employee within the Oregon State Lottery as is designated in writing by the commission. Any such designation shall be filed in the office of the Secretary of State.
The commission shall contract with the Department of State Police to obtain necessary security servic…
The Oregon State Lottery Commission shall:
Prepare and provide an annual report on the state lottery budget to the Governor, the Legislative Fiscal Officer and the Legislative Revenue Officer in a manner and within a time frame established by the Legislative Fiscal Officer.
Furnish the Legislative Assembly with any further information about the state lotte…
The Governor shall appoint a Director of the Oregon State Lottery, subject to confirmation by the Senate, who shall serve at the pleasure of the Governor. The director shall implement and operate a state lottery pursuant to the rules, and under the guidance, of the commission.
The director shall be qualified by training and experience to direct the operatio…
Under the rules of the commission, the Director of the Oregon State Lottery may contract with any state agency or political subdivision for the performance of such duties, functions and powers as the director considers appropriate.
The Director of the Oregon State Lottery shall confer as frequently as necessary or desirable, but not less than monthly, with the commission, regarding the operation and administration of the Oregon State Lottery. The director shall make available for inspection by the commission, upon request, all books, records, files and other information and documents o…
The Director of the Oregon State Lottery shall make an ongoing study of the operation and the administration of the lotteries which may be in operation in other states or countries, of available literature on the subject, of federal laws which may affect the operation of the Oregon State Lottery and of the reaction of citizens of the state to existing or pro…
The Assistant Director for Security appointed pursuant to the Constitution of the State of Oregon and this chapter shall be responsible for a security division to assure integrity, security, honesty and fairness in the operation and administration of the Oregon State Lottery, including but not limited to, an examination of the background of all prospective e…
The Oregon State Lottery must be operated so as to produce the maximum amount of net revenues to benefit the public purpose described in Article XV, section 4, of the Oregon Constitution, commensurate with the public good. To achieve this mission, in the operation of the Oregon State Lottery, the Oregon State Lottery Commission shall balance its obligation t…
Devices for playing lottery games, including video lottery game terminals, operated under the authority of the Oregon State Lottery Commission are exempted from the provisions of 15 U.S.C. 1172.
Upon recommendation of the Director of the Oregon State Lottery, the Oregon State Lottery Commission shall adopt rules specifying the types of lottery games to be conducted by the Oregon State Lottery, provided:
Each lottery game shall contain security measures that are designed to prevent the redemption of fraudulent tickets. Every lottery ticket or stub p…
The Oregon State Lottery Commission may initiate a game or games using video devices, the proceeds from which shall be transferred to the Administrative Services Economic Development Fund for allocation as provided by law.
In the approval and purchase of video lottery games, game terminals and equipment, the lottery commission and any game operator, distrib…
As used in this section, “video lottery game retailer” means a contractor under contract with the Oregon State Lottery to place video lottery game terminals on premises authorized by the contract.
A video lottery game terminal that offers a video lottery game authorized by the Director of the Oregon State Lottery:
May be placed for operation only in or on …
Upon recommendation of the Director of the Oregon State Lottery, the Oregon State Lottery Commission shall adopt rules that specify the number and value of prizes for winning tickets or shares in each lottery game including, without limitation, cash prizes, merchandise prizes, prizes consisting of deferred payments or annuities and prizes of tickets or share…
Upon recommendation of the Director of the Oregon State Lottery, the Oregon State Lottery Commission shall adopt rules that specify the method for determining winners in each lottery game.
If a lottery game utilizes a manual drawing of winning numbers, a manual drawing among entries or a manual drawing among finalists:
The drawing must be open to the publi…
Upon recommendation of the Director of the Oregon State Lottery, the Oregon State Lottery Commission shall adopt rules specifying the retail sales price for each ticket or share for each lottery game. However, no ticket or share shall be sold for more than the retail sales price established by the commission.
Notwithstanding subsection (1) of this section, …
Upon recommendation of the Director of the Oregon State Lottery, the Oregon State Lottery Commission shall adopt rules to establish a system of verifying the validity of tickets or shares claimed to win prizes and to effect payment of such prizes, provided:
For the convenience of the public, lottery game retailers may be authorized by the commission to pay …
For the purpose of complying with section 4009 of the Agricultural Act of 2014, P.L. 113-79, within seven days after paying a prize of $1,250 or more, the Director of the Oregon State Lottery shall notify the Department of Human Services of the name of the prize recipient, the Social Security number of the recipient, any other available identifying informati…
Payment of a prize may be made to any person pursuant to a voluntary assignment of the right to receive future periodic prize payments, in whole or in part. Payment of a prize pursuant to an assignment made under this section must be made to a person designated as assignee under an appropriate judicial order of the circuit court for the county in which the a…
Notwithstanding ORS 461.250 (8) or 461.253, if it is ever determined that prize winners who do not seek to assign their prize payments are subject to immediate income taxes on the prize payments just as if those prize winners had so assigned their prizes, the Oregon State Lottery Commission may intervene in a proceeding commenced under ORS 461.253 in order t…
Upon recommendation of the Director of the Oregon State Lottery, the commission shall adopt rules specifying the manner of distribution, dissemination or sale of lottery tickets or shares to lottery game retailers or directly to the public, and the incentives, if any, for Oregon State Lottery employees, if any, engaged in such activities.
LOTTERY GAME RETAI…
The Oregon State Lottery Commission shall adopt rules specifying the terms and conditions for contracting with lottery game retailers so as to provide adequate and convenient availability of tickets or shares to prospective buyers of each lottery game as appropriate for each such game. Nothing in this subsection is intended to preclude the lottery from selli…
Upon recommendation of the Director of the Oregon State Lottery, the commission shall determine the compensation to be paid to lottery game retailers for their sales of lottery tickets or shares. Until the commission shall otherwise determine, the compensation paid to lottery game retailers shall be five percent of the retail price of the tickets or shares p…
No lottery tickets or shares shall be sold by a lottery game retailer unless the lottery game retailer has on display on the premises a certificate of authority signed by the Director of the Oregon State Lottery to sell lottery tickets or shares.
The director may require a bond or an irrevocable letter of credit issued by an insured institution as defined i…
The Oregon State Lottery Commission may grant a temporary letter of authority for a period not to exceed 90 days on change of ownership applications for certificates of authority granted under this chapter if the applicant pays the fee prescribed by the commission for a temporary letter of authority. A temporary letter of authority issued under this section …
Notwithstanding other provisions of law, the Director of the Oregon State Lottery may purchase or lease such goods or services as are necessary for effectuating the purposes of this chapter. The commission may not contract with any private party or nongovernmental entity for the operation and administration of the Oregon State Lottery established by this cha…
In order to allow an evaluation by the Oregon State Lottery of the competence, integrity, background, character and nature of the true ownership and control of lottery vendors, any person who submits a bid, proposal or offer as part of a procurement for a contract for the printing of tickets used in any lottery game, any goods or services involving the recei…
No contract for a major procurement with any lottery vendor shall be entered into if any control person of that lottery vendor has been convicted of a crime, unless, after investigation, the finding of the commission determines that the crime bears no relationship to the lottery vendor’s ability to perform honestly in carrying out the contract.
A lottery contractor shall perform its contract consistent with the laws of this state, federal law, and laws of the state or states in which the lottery contractor, in whole or in part, performs services or produces goods required by the contract.
At the time specified in the contract, a lottery contractor shall post performance security with the Oregon St…
Subject to rules adopted by the commission, the Director of the Oregon State Lottery may enter into all contracts necessary to accomplish the purposes of this chapter. The rules shall cover contracts for materials, supplies, equipment, services and professional services and to the extent that is reasonable shall follow the public policy of open competitive p…
In establishing its schedule of payments to contractors, the Oregon State Lottery Commission shall undertake to develop a system that maximizes the net revenue to the state for the public purpose consistent with providing a reasonable rate of return for contractors.
Note: 461.445 was enacted into law by the Legislative Assembly but was not added to or made …
Except for such moneys as are necessary to temporarily fund the start-up of the state-operated lottery established by the Constitution of the State of Oregon and this chapter, the Oregon State Lottery shall operate as a self-supporting revenue-raising agency of state government and appropriations, loans or other transfers of state funds may not be made to it…
All money payable to the commission shall be deposited in a fund known as the State Lottery Fund. The State Lottery Fund shall receive all proceeds from the sale of lottery tickets or shares, the temporary loan for initial start-up costs and all other moneys credited to the Oregon State Lottery from any other lottery-related source. The State Lottery Fund is…
For purposes of this section:
“Dedicated fund” means a fund in the county treasury, or a separate account in the county treasury, that is dedicated, appropriated or set aside for purposes that further economic development.
“Furthering economic development” has the meaning given that term in ORS 461.540.
When a county receives moneys that are derived eithe…
The Director of the Oregon State Lottery is authorized to establish in the State Treasury checking accounts as may be required to disburse by check the payment of any disbursement authorized by ORS 461.510 (2) from the State Lottery Fund as well as any transfer to the State Lottery Fund as may be required.
Notwithstanding the provisions of ORS 461.510 (1), …
There is hereby created within the General Fund the Oregon State Lottery Fund which is continuously appropriated for the purpose of administering and operating the commission and the Oregon State Lottery.
The Intercollegiate Athletic Fund is created separate and distinct from the General Fund. The fund shall consist of revenues credited to the Sports Lottery Account under ORS 461.543 (4) and any other revenues available to the fund.
There is established in the General Fund of the State Treasury the Administrative Services Economic Development Fund. All moneys transferred from the State Lottery Fund, interest earnings credited to this fund and other moneys authorized to be transferred to this fund from whatever source are appropriated continuously for any of the following public purposes…
Except as otherwise specified in subsection (5) of this section, the Sports Lottery Account is continuously appropriated to and shall be used by the Higher Education Coordinating Commission to fund sports programs at public universities listed in ORS 352.002. Seventy percent of the revenues in the fund shall be used to fund nonrevenue producing sports and 30…
All net proceeds from video lottery games shall be allocated to the Administrative Services Economic Development Fund.
Note: 461.544 to 461.549, 461.555, 461.725 and 461.740 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 461 or any series therein by legislative action. See Preface to Oregon Revised Stat…
The Oregon State Lottery Commission shall transfer an amount equal to 2.5 percent of the net receipts from video lottery games allocated to the Administrative Services Economic Development Fund to counties for economic development activities. Ninety percent of the moneys shall be distributed to each county in proportion to the gross receipts from video lotte…
Notwithstanding any other provision of law, the Oregon State Lottery Commission shall meet the constitutional requirements for prizes and administrative costs separately for video and all other lottery games. The lottery commission shall not intermingle the results of video lottery games for the purpose of calculating the allowable limit on administrative ex…
The Legislative Assembly finds that emotional and behavioral problems related to gambling may impose additional costs on state government and on the state economy, such as additional mental health expenditures, increased law enforcement costs and lost economic output. The use of a portion of the net receipts from video lottery games to pay the costs of preve…
All expenditures from the State Lottery Fund or the fund established by the Legislative Assembly to disburse net lottery proceeds are exempt from any state expenditure limitation.
The ODAS Economic Development Distributions Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned on the moneys in the ODAS Economic Development Distributions Fund shall be credited to the fund. The fund consists of lottery bond proceeds appropriated to the Oregon Department of Administrative Services for fur…
There is established in the State Treasury a Capital Construction Trust Fund separate and distinct from the General Fund. Interest on the fund shall accrue to the fund.
The fund shall consist of amounts allocated to it from the Administrative Services Economic Development Fund.
The fund is to be used to meet capital construction costs.
Note: See note unde…
The DOT Economic Development Distributions Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned on the moneys in the DOT Economic Development Distributions Fund shall be credited to the fund. The fund consists of lottery bond proceeds appropriated to the Department of Transportation for further distribution …
On December 31 in each odd-numbered year, all amounts remaining unspent by a state agency from statutory allocations made from the Administrative Services Economic Development Fund to that agency for the prior biennium shall revert to the Administrative Services Economic Development Fund.
Subsection (1) of this section does not apply to allocations for debt…
State or local taxes may not be imposed upon the sale of lottery tickets or shares of the Oregon State Lottery established by this chapter or any prize awarded by the state lottery established by this chapter that does not exceed $600. A prize awarded by the state lottery that is greater than $600 shall be subject to any tax imposed upon or measured by net i…
Tickets or shares in lottery games, including tickets or shares sold from vending machines or other devices, may not be sold to a person under 18 years of age.
Video lottery game terminals may not be operated by a person under 21 years of age.
The Oregon State Lottery Commission shall establish safeguards to ensure that lottery game retailers comply with t…
Subject to subsection (2) of this section, a person may not:
Sell, or offer to sell, a winning ticket or share;
Purchase, or offer to purchase, a winning ticket or share; or
Claim, or offer to claim, a winning ticket or share for another person for compensation.
This section does not apply to any prize that the Oregon State Lottery Commission authorizes …
Any person required to submit disclosure information under this chapter, in addition to the requirements specifically listed in this chapter, shall also submit for each individual the true name, as well any other name used, date of birth, place of birth, Social Security number, current residence address, and residence address for the last 10 years, current m…
The Oregon State Lottery Commission, by rule, shall develop procedures whereby:
Before paying any portion of a lottery prize in excess of $600, the lottery commission shall check the name and Social Security number of the person entitled to payment against a computer database containing the names and Social Security numbers of obligors who are delinquent in…
As used in this section, “assistance” includes:
Medical assistance as defined in ORS 414.025.
Public assistance as defined in ORS 411.010.
Supplemental nutrition assistance provided under ORS 411.806 to 411.845.
Any other benefit, aid or assistance for which the Department of Human Services or Oregon Health Authority is authorized to issue a final order …
Out of the funds available to the Oregon State Lottery Commission to meet the administrative expenses of the Oregon State Lottery, the lottery commission shall employ or contract for at least three undercover enforcement officers to enforce the prohibition on gray machines imposed by ORS 162.305, 164.377, 166.715, 167.117, 167.164, 167.166, 461.210, 461.215,…
It is the policy of the State of Oregon that any firm receiving benefit from state lottery-funded programs should undertake a good faith effort to hire and retain as employees low-income individuals who have received job training assistance from publicly funded job training providers.
The Oregon Business Development Department may require any firm receiving…
ORS 461.800 to 461.820 shall be known as and may be cited as the Oregon State Lottery Responsible Gambling Code of Practices Act.
As used in ORS 461.800 to 461.820:
“Problem gambling” means playing lottery games in a manner that is characterized by difficulty in limiting money or time spent on gambling, which leads to adverse consequences for the gambler, the gambler’s family or the community.
“Responsible gambling” means the provision of safe, socially responsible and supportive gam…
The Oregon State Lottery Commission shall operate the Oregon State Lottery, in compliance with the Oregon State Lottery Responsible Gambling Code of Practice described in ORS 461.200:
In environments that:
Encourage responsible gambling practices; and
Discourage problem gambling.
In a manner that:
Empowers individuals to make informed decisions about pl…