Michigan Lottery

The "Play It Again ^TM" program offers players the opportunity to enter eligible non-winning lottery tickets into a second chance drawing to win a $1,000,000 annuitized grand prize. Players who are registered members of the Michigan Bureau of State Lottery's (Bureau) Internet-based VIP club, Player's Club, can enter Eligible Tickets in the "Play It Again" program. Every $10 worth of eligible non-winning lottery tickets entered from August 4, 2012 through August 2, 2013 earns one (1) entry into the drawing.

Immediately following the Promotional Period one (1) finalist drawing will be conducted. In the finalist drawing, three (3) winners will be selected to receive entry into the grand prize drawing. In September 2013, the grand prize drawing will be conducted and will award a $1,000,000 annuitized grand prize. The pool for the grand prize drawing will include the three (3) finalists selected in the "Play It Again" finalist drawing conducted on August 7, 2013.

1. DEFINITIONS - as used in this directive.
   1. Bureau - means the Michigan Bureau of State Lottery.
   2. Commissioner - means the Commissioner of the Bureau or any person to whom the Commissioner's authority is lawfully delegated.
   3. Draw Game Ticket - means a Lottery game ticket printed at a Lottery terminal that meets all of the requirements determined by the individual online game directive.
   4. Eligible Ticket - means a Michigan Lottery instant game or draw game ticket that satisfies all of the following criteria:
   If an instant game ticket:
   1. The ticket is not a prize winning ticket.
   2. The ticket has not expired, per the "prizes claimed by" date printed on the back of the ticket, at the time of entry during the Promotional Period.
   3. The ticket is in activated or settled status at the time of entry.
   If a draw game ticket:
   1. The ticket is not a prize winning ticket.
   2. If a multi-draw ticket, the ticket has been played and is non-winning for all drawings which it was eligible for.
   3. The ticket is produced in an authorized manner at a licensed retailer location from an authorized lottery ticket issuing machine on official lottery-issued ticket stock and meets all of the ticket requirements set forth in the individual game directive.
   4. The last game drawing for which the ticket was originally purchased was conducted before August 2, 2013.
   5. The ticket was purchased not more than 365 days prior to the time of entry during the Promotional Period.
   5. Cash Option Payment Definitions -
   1. Cash option payment under Internal Revenue Code 26 USC 451 (h) means the eligible person who has won a qualified prize who has a 60-day option to elect to receive a discounted single cash payment in exchange for the right to receive future installment payments. The election must be exercised within sixty (60) days of the filing of a claim.
   2. Eligible person means an individual taxpayer on the cash receipt and disbursements method of accounting; including partnerships or other pass-through entities consisting entirely of individual taxpayers as described in this paragraph.
   3. Installment prize or annuitized prize means a qualified prize.
   4. Cash option payment means a one time payment where the full face value of a series of installment payments is reduced to present cash value.
   5. Discounted single cash payment means the discounted rate used by the Bureau in determining cash option payment and reflects bond market conditions.
   6. Present cash value is the annuitized prize discounted to present value using the discount rate. This is the amount paid to the winner selecting the cash option payment.
   6. Player's Club - means the Bureau's Internet-based VIP Club.
   7. Play It Again – means the Bureau's program where Player's Club members can enter eligible tickets into a second chance drawing to win a $1,000,000 annuitized grand prize.
   8. Promotional Period – means the period of time between August 4, 2012 and August 2, 2013 during which Player's Club members may enter Eligible Tickets.
   9. Reward Points – means Points assigned to an individual Player's Club member account which can be accrued by performing eligible actions or purchases as prescribed by the Bureau. Reward Points have no cash value.
   10. Valid Entry – means an entry of eligible tickets, totaling $10 or an entry made by redeeming forty (40) Reward Points.
2. GENERAL RULES
   1. To be eligible to enter the "Play It Again" participants must be a qualified, registered Player's Club member.
   2. Each valid entry will earn one (1) entry during the "Play It Again" Promotional Period.
   3. All entrants must be at least 18 years old and a current resident of the State of Michigan.
   4. A player may only be selected one (1) time during this "Play It Again" Promotional Period.
   5. The deadline to enter Eligible Tickets during this Promotional Period is August 2, 2013 at 11:59 pm Eastern Standard Time.
3. HOW TO ENTER
   Instant game ticket:
   1. For each Eligible Ticket submitted, participants must enter the three (3) digit game number found on the front or back of the ticket along with the eight (8) digit validation code found underneath the latex portion of the ticket.
   2. Each three (3) digit game number and eight (8) digit validation code may only be submitted once.
   Draw game ticket:
   1. Participants must enter the 19-digit ticket control number for each Eligible Ticket submitted. The ticket control number is found at the bottom-center of the ticket, under the ticket's unique barcode. Participants may be required to wait forty-eight (48) hours after the final draw date on the ticket to enter.
   2. The ticket control number from each Eligible Ticket may only be submitted once.
   For instant game and draw game tickets:
   3. A Player's Club Member will earn two (2) Reward Points for every one dollar ($1) in Eligible Tickets submitted.
   4. Entries will be eligible only for the Promotional Period in which they are submitted. After the finalist drawing, entries will be destroyed.
   5. Eligible Tickets submitted into other Bureau's second chance promotions are also eligible for entry into this "Play it Again" Promotional Period.
   6. The Bureau reserves the right to limit the number of entries any one (1) individual may enter during a given time period.
   7. A Michigan Lottery Player's Club member will be considered ineligible and his or her entries and associated Reward Points voided if the Bureau determines that the member provided false ticket or membership information.
   8. The Bureau will contact each finalist by phone at the contact information specified in the finalist's Player's Club account profile.
   9. Entries may only be submitted online at the "Play It Again" program entry page accessible from michiganlottery.com. Mail-in and hand-delivered entries will not be accepted.
   Rewards Catalog
   1. An entry using this method must be submitted via the Internet by a qualified, registered Player's Club member, at least eighteen (18) years of age, with a valid address, within the State of Michigan, who has logged in with his or her account log-in information while in the State of Michigan, has accumulated sufficient Rewards Points to redeem for an entry, and has clicked on the hyperlink specifically developed for the purpose of recording the entry.
   2. To submit an entry, a qualified, registered member of the Player's Club must redeem forty (40) of his or her current Reward Points. The forty (40) Reward Points will be automatically deducted from the Player's Club member's current Reward Points total.
   3. A Player's Club member may enter as many times as his or her accumulated Reward Points will allow.
4. ELIGIBILITY

   A ticket or share shall not be purchased by and a prize shall not be paid to an officer or employee of the Bureau or to any spouse, child, brother, sister or parent residing as a member of the same household in the principal place of abode of an officer or employee.

5. DETERMINATION OF FINALIST DRAWING WINNERS
   1. One (1) Play It Again program finalist drawing will be held according to the following schedule:

   Drawing	Promotional Period	Drawing Date	Winners Selected	Alternates Selected	Prize
   Finalist	August 4, 2012 through August 2, 2013 at 11:59 p.m. EST	August 7, 2013	3	6	Entry into $1,000,000 Grand Prize Drawing

   2. Entry deadlines and drawing dates are subject to change. Changes will be announced by the Bureau at least seven (7) days prior to the drawing.
   3. In the finalists drawing, three (3) finalists will be randomly selected from the pool of valid entries received during the Promotional Period. Once a finalist is confirmed by the Bureau, he or she will be placed in the drawing pool for the $1,000,000 grand prize drawing.
   4. A Player's Club member may be selected as a finalist only one (1) time during the Promotional Period.
   5. In accordance with the Bureau's procedures, alternate entries will be drawn, and if necessary, will be substituted for a disqualified finalist
   6. All Valid Entries in a drawing will have an equal chance of being selected.
   7. The odds of being selected as a finalist depends on the number of Valid Entries received for the drawing.
   8. The Bureau will contact finalists by telephone within three (3) business days of the Promotional Period Finalist drawing. Finalists will be contacted using the contact information provided in their Player's Club account. If all attempts to locate a finalist fail within ten (10) business days from the drawing date, excluding weekends and State of Michigan holidays, an alternate will be selected in accordance with the Bureau's established procedures.
   9. Once confirmed, the finalists' name will be posted on the Winner's page within the community section of Player's Club website.
   10. In accordance with Bureau procedures, the drawing process to select finalists may utilize multiple drawing pools that group entries into units that meet standards for Random Number Generator limits that the Lottery has passed through an independent certification firm.
6. DETERMINATION OF THE GRAND PRIZE WINNER
   1. The Grand Prize drawing will be conducted from a pool of three (3) finalists selected in the "Play It Again" finalist drawing conducted on August 7, 2013. The grand prize drawing will be conducted according to the following schedule:

   Drawing	Drawing Date	Winners Selected	Prize
   Grand Prize	September, 2013 (Exact date to be announced.)	1	$1,000,000

   2. The date and location of the $1,000,000 Grand Prize drawing will be announced to the public by the Bureau at least thirty (30) days prior to the Grand Prize drawing date.
   3. The grand prize winner's name will be posted on both the Bureau and Player's Club websites
7. CLAIMING PRIZES/REDEMPTION
   1. The $1,000,000 prize must be claimed at the Bureau's Lansing office. The claimant must contact the Bureau Public Relations office for instructions. The claimant must complete a Ticket Receipt Form and present the Ticket Receipt Form in person to the Bureau for payment.
   2. The $1,000,000 prize must be claimed no later than one (1) year after the drawing date. If the $1,000,000 prize is not claimed within one (1) year after the drawing date the prize shall be forfeited.
   3. The $1,000,000 prize will be paid in one of two methods--Cash Option Payment based on the Bureau's discount rate at the time of the drawing or an annuitized future value paid in annual installments over a twenty (20) year period.
   4. This program and all participants are subject to Michigan law, rules, directive, and procedures and any prospective and uniform changes thereof.
8. CASH OPTION PAYMENT

   On October 21, 1998, the Tax and Trade Release Extension Act of 1998 was signed into law creating a new provision in the Internal Revenue Code (26 USC 451) which changed the constructive receipts doctrine. Section 451 (h) allows a lottery to offer qualified lottery prizewinners a period of time to elect whether to take major lottery prize payments in a single lump sum or in installment payments. It is the intent and purpose of the Bureauto offer the cash option payment in a revenue neutral manner.

   Application of Cash Option Payment

   Formal notice of the Internal Revenue Code 26 USC 451(h) option will be given at the time a prize winner files a claim.

   The formal notice will remain valid for a period of sixty (60) days after the date of the notice or until the option (cash or annuity) is exercised, whichever is earlier. Unless the cash option is exercised within sixty (60) days of the formal notice, the prize will be paid in installments.

   The cash option payment once elected is irrevocable and will be allowed for the entire prize amount only.

   A partnership or other pass through entity whose members otherwise qualify as eligible persons will be considered to be the eligible person.

   A representative of the partnership or other pass through entity, who is legally identified by the entity, will be deemed authorized to act for the partnership or other pass through entity for purposes of electing a cash option payment.

   The eligible person or the representative of the partnership or other pass-through entity will make the election based on the discount rate in effect at the time of the drawing. An eligible person will have no claim against the Bureau or the State of Michigan because of the discount rate.

9. PRIZE SHALL BE PAID AS FOLLOWS:

   # of Winners	Prize Amounts
   1	$1,000,000 annuitized prize

   1. Prize units/share will be truncated to whole dollars.
   2. The grand prize winner who elects the Cash Option Payment method of receiving the grand prize will be paid a lump sum amount. The cash option value for the annuitized $1,000,000 prize is approximately $735,492.
   3. The grand prize winner who elects the annuity will be paid in annual installments over twenty (20) years. The first payment will be made at the time the prize is claimed; subsequent installments will be paid each year on or about the fifteenth day of the anniversary month of the prize drawing for the next nineteen (19) years.
   4. The value of the annuitized grand prize is $1,000,000.
   5. The amount of the prize and the manner of payment of prize may be changed at the discretion of the Commissioner and such changes shall be announced by public notice.
10. INCOME TAX REQUIREMENTS

    Prizes over $5,000 are subject to federal tax withholding for U.S. residents and state income tax withholding at the current rate. Special federal rules apply to withholding for non-resident aliens. Any money withheld in compliance with these requirements will be deposited with the state and federal treasuries under the winner's federal identification number. At the time of the prize payment, the winner that claims a prize of more than $600 will receive a tax statement of gambling winning (W2-G) which identifies the full amount of the prize awarded and the tax withheld if any.

11. WINNER LIABILITY

    In accordance with 1994 PA 11, as amended, before payment of a cash prize of $1,000 or more, the Bureau is obligated to determine if the Michigan Department of Treasury knows of any liability of the Lottery winner to the State of Michigan, including but not limited to, delinquent accounts of amounts due and owing to a court that have been assigned to the state for collection, or a support arrearage. If a liability is identified, the Bureau shall first apply the amount of the prize to the liability, and the excess, if any, shall be paid to the Lottery winner.

12. DISPUTES

    In the event a dispute between the Bureau and the person who has submitted an entry into this Promotional Period occurs and the dispute involves whether the entry is valid, the rules of this program, the conduct of the drawing, or for any other reason: the Commissioner's decision will be final.

13. GOVERNING LAW

    Michigan law will govern this program.

14. DISCLAIMER

    The only basis for a valid claim is compliance with the Michigan law statute, rules and directives. No claim may be premised on human, electronic, or other error in the communication, display or transmission of data, however recorded, displayed, or transmitted. No claim can be premised upon any intentional human, electronic or other form of communication or transmission of data that has not been authorized by the Commissioner.

15. PROGRAM CHANGES AND TERMINATION

    The Bureau reserves the right to change the "Play It Again" Promotional Period in any way and at any time, and to terminate the program subject to appropriate public notification.