48:03:02:04.  On-line retailer's duties. Specific duties of an on-line retailer are as follows:

 

          (1)  Pay all costs associated with providing a regular use telephone located near the terminal to allow use of both the telephone and the terminal for operation assistance;

 

          (2)  Provide dedicated AC power to within approximately five feet of the terminal. Dedicated AC power means that there is no other equipment on the line except the on-line terminal. The retailer is responsible for all costs associated with providing the dedicated AC power;

 

          (3)  Provide space for the operation of the on-line terminal at a location approved by the lottery. An on-line retailer may not move an on-line terminal without permission of the lottery and shall reimburse the lottery for any telephone charges associated with the change of location, unless the change was required by the lottery;

 

          (4)  Conduct and promote the sale of on-line tickets authorized in this article during all of the retailer's business hours in which the on-line system is functioning;

 

          (5)  Maintain on-line ticket sales levels as established by the lottery;

 

          (6)  Promote and sell instant game tickets;

 

          (7)  Be financially responsible and personally liable to the lottery for all revenues derived from the sale of lottery tickets and all tickets cashed that are presented to the lottery for payment;

 

          (8)  Post winning numbers prominently where tickets are sold as soon as possible following the drawing;

 

          (9)  Prominently post point-of-sale materials, exterior signs, displays, and promotional and informational materials supplied by the lottery;

 

          (10)  Attend all training sessions and notify the lottery of new employees who need training for the operation of on-line terminals;

 

          (11)  Exercise diligence in the operation and care of the on-line terminal and immediately notify the lottery call center of any on-line terminal malfunction;

 

          (12)  Provide secure areas for the storage of terminal supplies and placement;

 

          (13)  Be personally liable for any loss or damage to the on-line terminal;

 

          (14)  Permit a representative of the lottery to conduct on-site inspections of lottery property and on-line ticket sales accounting records during the retailer's normal hours of operation;

 

          (15)  Permit the removal of lottery property by a representative of the lottery during the retailer's normal hours of operation;

 

          (16)  Provide for the cashing of on-line tickets and pay all claims in cash or business check up to a maximum of $100, regardless of where the winning on-line lottery ticket was purchased;

 

          (17)  Replace ticket stock as required in the on-line terminal;

 

          (18)  Perform no mechanical or electrical maintenance on the on-line terminal;

 

          (19)  Notify the lottery in writing of a change of address or a change of ownership interest in the business at least 30 days before the change. On-line tickets may not be sold at a location other than the address listed on the on-line retailer's license;

 

          (20)  Notify the lottery in writing 14 days in advance of a change of the bank account maintained for the deposit of on-line revenues pursuant to § 48:03:02:11;

 

          (21)  Prominently display the on-line retailer license in the area of the on-line terminal so that it is clearly visible to the public; and

 

          (22)  Monitor the sale of lottery tickets to ensure no person under 18 years of age purchases a ticket.

 

          Source: 17 SDR 51, effective October 8, 1990; 30 SDR 52, effective October 28, 2003; 39 SDR 100, effective December 5,2012.

          General Authority: SDCL 42-7A-21(3)(13)(14)(17).

          Law Implemented: SDCL 42-7A-8(9), 42-7A-10, 42-7A-11, 42-7A-12, 42-7A-21(13)(17), 42-7A-32.