This compact shall be known and may be cited as the “Tri-State Lotto Compact.”

66 Del. Laws, c. 183, §  1;  69 Del. Laws, c. 446, §  17;  77 Del. Laws, c. 219, §  21; 

The State of Delaware is hereby authorized to enter into the following compact with the states of Vermont, Maine and New Hampshire subject to the terms and conditions stated in the Compact.

66 Del. Laws, c. 183, §  1;  69 Del. Laws, c. 446, §  17;  77 Del. Laws, c. 219, §  21; 

(a) Statement of policy and purpose. — The State of Delaware enters this compact to implement the operation of Tri-State Lotto, for the purpose of raising additional revenue for each of the party states. Tri-State Lotto is not intended to replace any existing lottery game in the party states but, rather, to be run in addition to these games. Tri-State Lotto tickets will be sold in each area to be determined by the Commission. Fifty percent of the gross sales from each state will be aggregated in a common prize pool, and operating costs will be charged proportionally to the sales made by each of the party states. The remaining revenues generated within each state will remain in that particular state.

(b) Definitions. — (1) “Commission” means the Tri-State Lotto Commission or its successor, created and established by this Compact;

(2) “Concurrent legislation” means legislation enacted by one of the party states which is concurred in by the other party states in the form of enactments having like effect;

(3) “Lotto” means a game of lotto as prescribed by the Commission;

(4) “Party states” means the states of New Hampshire, Maine, Vermont, and Delaware; and

(5) “Tri-State Lotto” means a combined lotto game for all member states, with common tickets, common advertising and a common prize pool.

66 Del. Laws, c. 183, §  1;  69 Del. Laws, c. 446, §  17;  77 Del. Laws, c. 219, §  21; 

(a) Creation of the Tri-State Lotto Commission. — The party states, for the purpose of operating Tri-State Lotto, establish the Tri-State Lotto Commission.

(b) Nature of the Commission. — The Commission shall be an interstate body, both corporate and politic, serving as a common agency of the party states and representing them both collectively and individually in the exercise of its powers and duties.

(c) Organization of the Commission. — The Commission shall be composed of one member from each of the party states. Each party state Lottery Director, Sweepstakes Commission or State Lottery Commission shall appoint one of its members to serve the Tri-State Lotto Commission. Each member shall hold office at the pleasure of the appointing authority. The Commission shall elect a chairperson from among its members annually.

(d) Functioning of the Commission. — (1) The Commission’s functions shall be performed and carried out by its members and by advisory committees or panels as the Commission may establish, and by officers, independent contractors, agents, employees and consultants as may be appointed by the Commission. All officers, independent contractors, agents, consultants and employees shall hold office at the pleasure of the Commission, unless the Commission otherwise decides, and the Commission shall prescribe their powers, duties and qualifications and fix their compensation and other terms of their employment.

(2) No action of the Commission shall be effective or binding unless there is a unanimous decision by all of the representatives of the various party states.

(3) The members of the Commission shall receive compensation for their services pursuant to this Compact and in accordance with the policies of the respective states, and they shall be reimbursed for the expenses they naturally and necessarily incur in the performance of their duties.

(4) No member of the Commission who is otherwise a public officer or employee shall suffer a forfeiture of office or employment, or any loss or diminution in the rights and privileges pertaining to office or employment, by reason of membership on the Commission.

(e) Powers and duties of the Commission. — (1) The Commission shall have the power and it shall be its duty to operate and administer Tri-State Lotto and to promulgate rules and regulations governing the establishment and operation of the lotto, including but not limited to the following topics:

a. The design of the game;

b. The price of the tickets;

c. The number and size of the prizes on the winning tickets;

d. The manner of selecting the winning tickets and paying the prizes;

e. The frequency of the drawings;

f. The type or types of locations at which tickets may be sold;

g. The method to be used in selling tickets;

h. The compensation required to be paid to Tri-State Lotto sales agents in order to assure adequate availability of tickets and public convenience in purchasing tickets; and

i. The development of an internal security plan designed to prevent player fraud.

(2) The Commission, or its designee, shall also have the power and it shall be its duty to license sales agents to sell Tri-State Lotto tickets, in accordance with subsection (g) of this section. The Commission may require a bond from any licensed agent, in an amount to be determined by the Commission.

(3) The Commission shall make monthly and year-end reports to the state Lottery Director, Sweepstakes Commission or State Lottery Commission of the party states, which shall include a complete statement of Tri-State Lotto revenues, prize disbursements and other expenses, and any other information the party states may require.

(4) All Tri-State Lotto accounts and transactions shall be subject to annual post-audits conducted by independent auditors retained by the Commission for this purpose.

(5) In addition to the powers enumerated above, the Commission shall have the power to adopt a corporate seal and enter into contracts, including but not limited to contracts with other governments or agencies, to hire, lease, acquire and dispose of property to the extent necessary to carry out its functions, powers and duties as set forth in this section, and to expend or authorize expenditures of moneys for the purpose of operating Tri-State Lotto pursuant to this Compact. The party states each shall have the right to require an audit as a party state may from time to time consider proper.

(6) The Commission shall also have additional powers, incidental to the express powers granted to it by this Compact, as may be necessary or proper for the effective performance of its functions.

(f) Cooperation and assistance of other agencies. — To avoid duplication of effort and in the interest of economy, the Commission may make use of existing studies, plans, data and other materials in the possession of the governmental agencies of the party states and their respective political subdivisions. Each agency is authorized to make these materials available to the Commission and otherwise to assist it in the performance of its functions. The officers and personnel of these agencies, and of any other government or agency, may serve at the request of the Commission upon advisory committees and panels as the Commission creates; and the officers and personnel may serve upon the committees and panels without forfeiture of office or employment and with no loss or diminution in the status, rights and privileges which they otherwise enjoy.

(g) Licensing of Tri-State Lotto sales agents. — (1) The Commission or its designee may license as agents to sell Tri-State Lotto tickets those persons as in its opinion will best serve the public convenience except that no license shall be issued to any person to engage in business exclusively as a sales agent.

(2) For purposes of this section the term “person” shall be construed to mean and include an individual, partnership, association, organization, club, company, corporation, trust, estate, society, joint stock company, receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals. “Person” shall also be construed to mean and include agencies and instrumentalities of the State, and counties, cities, towns and villages.

(3) Before issuing a license to any person, the Commission shall consider with respect to the person:

a. Financial responsibility and the security of the business or activity in which the person is engaged;

b. Accessibility of the place of business or activity to the public;

c. Sufficiency of existing licenses to serve public convenience;

d. Whether the place of business or activity is predominantly frequented by persons under the age of 18 years;

e. Volumes of expected sales; and

f. The possession of a valid party state lottery license.

(h) Suspension and revocation of license. — (1) The Commission may suspend or revoke, after notice and hearing, any license issued pursuant to this Compact. The license may, however, be temporarily suspended by the Commission without prior notice, pending any prosecution, investigation or hearing. A license may be suspended or revoked by the Commission for just cause, including but not limited to 1 or more of the following reasons:

a. Failure to account for tickets received or the proceeds of the sale of tickets or to file a bond if required by the Commission or to comply with instructions of the Commission concerning the licensed activity;

b. Conviction of any criminal offense;

c. Failure to file any return or report, to keep records, or to pay any tax;

d. Engaging in fraud, deceit, misrepresentation or conduct prejudicial to public confidence;

e. Insufficiency of the number of tickets sold by the sales agent; and

f. A material change since issuance of the license with respect to any of the matters required to be considered by the Commission under paragraph (g)(3) of this section.

(2) Any suspension or revocation of a state license to sell lottery tickets shall automatically result in suspension of the Tri-State Lotto license.

(i) Inapplicability of conflicting statutes. — (1) Any law providing for any penalty or disability for the sale of lottery tickets or any acts done in conjunction with a lottery which conflicts with the provisions of the Compact shall not apply to the sale of tickets or acts performed pursuant to this Compact.

(2) The provisions of this Compact shall apply and take precedence in the event of any conflict between the provisions contained in this Compact and the provisions of other laws of any of the party states.

(j) Sale of tickets prohibited. — (1) No tickets shall be sold at a price greater than those fixed by the Commission; nor shall a sale be made to any person other than a licensed sales agent. Any person who violates any of these provisions shall be subject to the sanctions of each respective party state’s lottery statutes.

(2) No ticket shall be sold to any person under the age of 18 years, but this shall not be deemed to prohibit the purchase of a ticket for the purpose of making a gift by a person 18 years of age or older to a person less than that age. Any licensee or the employee or agent of any licensee who sells or offers to sell a ticket to any person under the age of 18 shall be subject to the sanctions of each respective party state’s lottery statutes.

(3) No ticket shall be sold to and no prize shall be paid to any of the following persons:

a. Any member, officer or employee of the Commission; or

b. Any spouse, child, brother, sister or parent residing as a member of the same household in the principal place of abode of any of the foregoing persons.

(k) Collection and disposition of revenue. — (1) All moneys received by any and all Tri-State Lotto sales agents from the sales of Tri-State Lotto tickets, less the amount, if any, retained pursuant to paragraphs (e)(1)g. and (e)(1)h. of this section shall be delivered weekly to the state Lottery Director, Sweepstakes Commission or State Lottery Commission of the party state in which sales were made.

(2) Within 1 week after a Tri-State Lotto drawing has been held, the party states shall pay the Commission, who in turn shall promptly pay to an account known as the Tri-State Lotto Prize Account, moneys as are necessary for the payment of prizes, less actual prizes paid by the respective party state in the preceding week, but not to exceed 50 percent of the total amount for which tickets have been sold.

(3) Interest earned by the Tri-State Lotto Prize Account shall accrue to the party states in direct proportion to their contribution to the account. Distribution shall be made at least semi-annually.

(4) The withdrawals, pursuant to subsection (l) of this section, of moneys from the Tri-State Lotto Prize Account deposited by the Commission shall be subject to a check signed by a member of the Commission or such officer, employee or agent of the Commission as the Commission may designate. The moneys in the Prize Account shall be paid out of the account on vouchers certified or approved by the Commission or its designated officer, agent or employee.

(5) The Commission shall receive from party states, within 1 week after a Tri-State Lotto drawing, an additional sum of moneys not to exceed 15 percent of the total amount for which tickets have been sold. The moneys shall be deposited in a bank, banking house or trust company selected by the Commission in an account to be named the Tri-State Lotto Operations Account. The operations account shall be used to pay Tri-State Lotto current operating costs which shall be charged proportionally to the sales made by each of the party states. If operating costs exceed or fall short of the amount obtained in the account, appropriate adjustments shall be made on a quarterly basis within 30 days at the end of each quarter.

(6) Interest earned by the Tri-State Lotto Operations Account shall accrue to the party states in direct proportion to their contribution to the account. Distribution shall be made at least semi-annually.

(l) Certification of prize winners and payment of prizes. — (1) All prizes over $5,000 shall be awarded to holders of winning tickets provided in this section. Within 1 week after any drawing selection of prize winning tickets, the Commission shall deliver to each of the party states a certified list of the tickets to which the prizes are awarded and amount of each prize. Upon delivery of the certified list and voucher of the Commission, moneys sufficient for the payment of the prizes may be withdrawn from the prize account established in paragraph (k)(2) of this section. The Commission shall each month provide each party state with a record of all withdrawals. Payment of prizes shall be made by the Commission, or its designee, to holders of the tickets to which prizes are awarded, except that a payment of any prize drawn may be paid to the estate of a deceased prize winner, and except that any person pursuant to an appropriate judicial order may be paid the prize to which the winner is entitled. The Commission, its officers, agents and employees shall be discharged of all further liability upon payment of a prize pursuant to this subsection.

(2) If the person entitled to a prize on any winning ticket is under the age of 18 years, and the prize is less than $5,000, the Commission may make payment by delivery to an adult member of the minor’s family or a guardian of the minor of a check or draft payable to the order of the minor. If the person entitled to a prize of any winning ticket is under the age of 18 years and if the prize is $5,000 or more, the Commission may make payment to the minor by depositing the amount of the prize in any bank to the credit of an adult member of the minor’s family or a guardian of the minor as custodian for the minor. The Commission shall be discharged of all further liability upon payment of a prize to a minor pursuant to this subdivision.

(3) Prizes may be paid in such manner as the Commission may direct in its rules and regulations as long as the rules and regulations are not inconsistent with this Compact.

(m) Unclaimed prize money. — Unclaimed prize money for the prize on a winning ticket shall be retained by the Commission for payment of the person entitled for 1 year after the drawing in which the prize was won. If no claim is made for the prize within 1 year from the date of the drawing, the prize money shall be credited to the prize pool. Upon the expiration of 1 year from the drawing date, the ticket holder shall forfeit any claim or entitlement to the prize moneys.

(n) Duration of Commission and Tri-State Lotto. — The Commission and Tri-State Lotto shall continue in existence until this Compact is revoked by all of the party states. The withdrawal of 1 party state shall not render the Compact invalid between the remaining states.

(o) Interpretation. — This Compact shall be construed liberally to accomplish its purpose.

(p) Amendments. — Amendments and supplements to this Compact may be adopted by concurrent legislation of the party states.

(q) Immunity. — The Commission and the party states shall be immune from:

(1) Any claim based upon an act or omission of an employee exercising due care, in the execution of a statute or regulation, whether or not the statute or regulation is valid, or based upon the exercise or performance or failure to exercise or perform a discretionary function or duty on the party of the employee whether or not the discretion involved is abused;

(2) Any claim arising in respect to the assessment or collection of any fee or commission or the levy upon or detention of any goods or merchandise by a law-enforcement officer;

(3) Any claim for damages caused by the fiscal operations of the Commission;

(4) Any claim arising out of alleged assault, battery, false imprisonment, false arrest, malicious prosecution, abuse of process, libel, slander, misrepresentation, deceit, fraud, interference with contractual rights or invasion of the right of privacy; or

(5) Any other claim for which a remedy is provided or which is governed specifically by other statutory enactment.

(r) Fiscal year. — The fiscal year of the Tri-State Lotto Commission shall be from July 1 of 1 calendar year to June 30 of the succeeding calendar year.

(s) State tax exemption. — The prizes received pursuant to this Compact shall be exempt from all state, county, municipal and local taxes within the party states.

66 Del. Laws, c. 183, §  1;  69 Del. Laws, c. 446, §  17;  70 Del. Laws, c. 186, §  1;  77 Del. Laws, c. 219, §  21; 

(a) No person shall sell a ticket or share in a ticket at a price greater than that fixed by the Commission. No person other than a lottery agent can sell lottery tickets. Nothing in this section shall be construed to prevent any individual purchaser from giving lottery tickets or shares to another as a gift. Any person convicted of violating this subchapter may be punished by imprisonment for 6 months and a fine of $1,000.

(b) Any person who falsely or fraudulently makes, forges, alters or counterfeits, or causes or procures to be made, forged, altered or counterfeited, any Commission ticket or any part thereof, or any person who knowingly and wilfully utters, publishes, passes or tenders as true, any forged, altered or counterfeited Commission lottery tickets may be punished by imprisonment for 6 months and a fine of $5,000.

(c) Any subsequent offense may be punished by imprisonment for 2 years and $20,000 fine for each offense.

66 Del. Laws, c. 183, §  1;  69 Del. Laws, c. 446, §  17;  77 Del. Laws, c. 219, §  21; 

The profits received by the State of Delaware through the sale of Tri-State Lotto tickets shall be deposited in the General Fund in accordance with § 4815 of this title.

66 Del. Laws, c. 183, §  1;  69 Del. Laws, c. 446, §  17;  77 Del. Laws, c. 219, §  21;