8 Colo. Code Regs. § 1505-2-5

Current through Register Vol. 47, No. 22, November 25, 2024

Rule 8 CCR 1505-2-5 - Sale and use of Pull Tabs

5.1 Pull tabs

5.1.1 Price. A licensee may not sell a pull tab ticket for a price different than the price stated on the deal's flare.

5.1.2 Pull tab construction. A licensee may not sell a pull tab ticket unless it has a pull tab or seal to be opened by the purchaser.

5.1.3 Reservation of pull tabs. A licensee may not reserve pull tabs for any person.

5.1.4 Prohibition against information to players. No person selling pull tabs or managing or working at any bingo game or other place where pull tabs are sold may state, imply, or in any way indicate to the purchaser the number or type of tickets that have been redeemed or that remain in the container.

5.1.5 Defective pull tabs. A licensee may not permit the display, sale, or operation of a defective pull tab.

(a) The following are types of defective pull tabs:

(1) A pull tab that is marked, defaced, tampered with, or otherwise placed in a condition that may deceive the public;

(2) A series or deal of pull tabs that consists of more than one serial numberor ticket name; and

(3) A pull tab that contains printer or manufacturer mistakes or misstatements that adversely affect the gross receipts and/or profit of the pull tab series or deal.

(b) The licensee must immediately remove a defective pull tab deal or series from display and refund the purchase price of all presented winning tickets and all unopened tickets in the players' possession.

(c) The licensee must notify the Secretary of State in writing within 72 hours of discovering a defective series or deal of pull tabs.

(d) The licensee must return the defective pull tabs in the licensee's possession, including all returned, redeemed, and unopened tickets, to the manufacturer no earlier than the 30^th day after discovery or the inspection of the defective deal or series by the Secretary of State, whichever comes first.

5.1.6 No commingling. A licensee may not commingle pull tab deals or display, or sell a commingled deal. A commingled series or deal of pull tabs is one containing two or more serial numbers of the same form number.

5.1.7 Identical form and serial numbers. A licensee may not knowingly obtain or allow a deal of pull tabs, or portion thereof, with the same serial number and form number as another deal of pull tabs, or portion thereof, in the possession or on the premises of the licensee.

5.1.8 Removal of deal from play. A licensee may not remove any deal or series of pull tab tickets or any unsold portion thereof from display or sale after the first ticket from the deal or series is sold unless the Secretary of State or any law enforcement authority orders the removal or when the deal is unsalable.

(a) A ticket or portion of a pull tab deal or series is unsalable if it was displayed and openly offered throughout the duration of at least two consecutive bingo occasions at the same location. Pull tabs at bar and clubrooms are unsalable if they were displayed and offered for sale for a two-week period without any pull tab tickets from that deal or series being sold.

(b) The licensee must keep any unsold or unsalable pull tab tickets unopened for a period of six months following the end of the quarter in which the tickets were removed from sale unless the pull tabs were removed from sale because of defects.

(c) The licensee must destroy, after the time specified in Rule 5.1.8, all pull tabs that were removed from sale.

5.1.9 Defacing winning pull tabs. Before the end of the bingo occasion, the licensee must ensure that the winning combination of every winning pull tab ticket is defaced so that the winning ticket combination is identifiable but cannot be altered or used again.

(a) A licensee that conducts pull tabs only on its premises must deface the winning pull tab tickets daily.

(b) The licensee must keep all redeemed winning tickets of $20 or more and all opened flares and sign-up sheets for seal pull tabs for six months following the end of the quarter in which the tickets were redeemed.

5.1.10 Paying pull tab prizes

(a) The licensee may not redeem a ticket from a seal or pull tab for any other prize than the prize on the flare for the symbol combination on the winning ticket.

(b) The licensee must award a prize only upon presentation, verification, and redemption of a ticket showing a winning combination, except when the deal of pull tabs is a last sale deal as designated by the manufacturer of the pull tab deal.

(c) If pull tab tickets are sold at a bar or clubroom, the licensee may maintain a separate cash fund in a secure container on the premises to track proceeds and pay out pull tab prizes. This cash fund may not exceed $2,000.

5.2 Seal pull tab operations

5.2.1 Number of deals in play. A licensee may not operate, sell, or put into play more than one seal pull tab deal of the same game name, form number, and serial number at one time.

5.2.2 Flare. The licensee must post the flare for the deal with the deal's serial number at the location of the seal game. The flare must be posted out of reach but fully visible to any player, and must contain a correct and accurate record of all holders of redeemed tickets that offer a chance on the seal tab prizes, as well as the potential winning combination of each ticket redeemed.

5.2.3 Hold tickets. The licensee must deface and return to the purchaser those tickets redeemed for a chance to win the seal pull tab prize.

5.2.4 Sign-up sheet. The licensee must maintain a separate list of redeemed ticket holders' addresses to contact them if they are not present when the winning combinations are revealed.

5.2.5 Small deals

(a) The licensee is not required to maintain a list of names and addresses of those winners entitled to a chance to win the seal pull tab prize if the game consists of 600 or fewer tickets and is reasonably anticipated to sell out in the course of a single bingo occasion or in one day at a licensee's bar or club room.

(b) Small deals, sign-up sheet required. The licensee must prepare a complete and accurate sign-up sheet and address record for any small deal pull tab game that does not sell out as anticipated in a single occasion or day.

5.2.6 Opening seal tab. A player who is eligible to win the seal tab prize must break or tear open the seal tab for the deal in plain view of all individuals present when tickets from a seal pull tab deal are sold or when the deal is declared unsalable.

5.2.7 Announcements and postings. The licensee must announce the winning combination(s), the specific form number, the name of the game, the serial number of the deal, and the date the seal tab was opened and must post the information at the game. The licensee must record the name and license number of the licensee on the flare.

5.2.8 Unsold deals. The licensee must announce and post the game name, form number, and serial number of any seal pull tab deal that is not sold out before the end of a bingo occasion or the closing time for a bar or clubroom where the deal was offered for sale. The licensee shall also announce and post the date, time, and place of the next scheduled pull tab operation and advise the players to retain potential winning tickets until the flare is opened.

5.2.9 Notification of winner. If the winning ticket is not redeemed upon the opening of the seal, the licensee must, within 15 days of seal opening, send written notice to the holder of the winning ticket at the address shown on the sign-up sheet. The notification must give the game name, form number, and serial number of the deal, and state that the winner must present the winning ticket for verification to receive the prize.

5.2.10 Unclaimed prizes. The licensee may retain a seal pull tab prize if the prize goes unclaimed for 15 days after sending notification to the winner.

5.2.11 Redemption of pull tabs. The licensee must redeem and retain seal flare prize winning tickets in the same manner as other winning pull tab tickets.

5.3 Last sale pull tab operations

5.3.1 Upon opening a last sale deal of pull tabs for sale, a licensee must display and make available for sale all pull tabs contained in the deal. If the pull tab deal exceeds 5,000 tickets, the licensee is not required to display all pull tabs but must post a conspicuous notice upon the receptacle indicating whether all unsold tickets in the deal are contained in the receptacle.

5.3.2 If the licensee uses a mechanical pull tab dispensing device, the licensee must post a conspicuous notice upon the machine indicating whether all unsold tickets in the deal are loaded in the machine.

5.3.3 A licensee may sell or pay in full any pull tab deal that offers a prize for the last sale in the deal if the licensee:

(a) Completes the forms required by the Secretary of State for last sale pull tab prizes and retains the forms for four months after the end of the quarter in which the prize was paid.

(b) Verifies the identification of the winner of the last sale pull tab prize, regardless of amount, including name, address, and driver's license number or government-issued identification card number. No last sale prize may be paid without such verified information.

5.4 Progressive pull tab operations. A licensee may conduct a progressive pull tab game if it complies with all rules and regulations concerning the sale and operation of pull tabs in general and the following specific requirements:

5.4.1 Number allowed. A licensee may not offer, put into play or have in play more than one progressive pull tab deal at any time. A licensee may open the next deal in the pull tab game if a winner is not immediately discovered. The licensee must announce the winner of the deal twice and allow a reasonable amount of time for the winner to claim their prize. If no winner comes forward, the licensee must display the flare card for at least 15 days to allow time for the winner to claim their prize.

5.4.2 Continuous play. Once a progressive pull tab game starts, it must continue until a jackpot winner is determined.

5.4.3 Offered for play. Once a progressive pull tab game starts at a bingo occasion, a licensee must offer the game at each succeeding bingo occasion sponsored by the licensee until the jackpot is won. If a progressive pull tab game starts on the licensee's premises, the licensee must offer the game on each successive day that the premises are open. A licensee may suspend play of progressive pull tab games only while operating a pari-mutuel bingo occasion. Once the pari-mutuel occasion has ended, the progressive pull tab game must continue during the next regular bingo occasion.

5.4.4 Award of prizes. A licensee must only award prizes in a progressive pull tab game in accordance with the manufacturer's predesignated prize structure for the game.

5.4.5 Flare

(a) Format. The flare or jackpot card for each deal in a progressive pull tab game must show the amount dedicated to the progressive jackpot prize and the current total of the prize. The jackpot prize amount must be modified on the flare each time a contribution is made to the jackpot from sales of progressive pull tab tickets at the immediately preceding occasion and the sales of progressive pull tab tickets during the current occasion.

(b) Display. The licensee must display or keep available for viewing the flare or jackpot card for each deal in a progressive pull tab game being played or that has been played during the course of a progressive pull tab game. The flare must be available for viewing at all times the game is in play until the progressive jackpot prize is won.

5.4.6 Maximum prize

(a) The maximum jackpot prize for a progressive pull tab is $5,000.

(b) Once the jackpot amount reaches $5,000, the licensee may not make any further contributions to the jackpot amount.

(c) All proceeds from the sale of progressive pull tabs after the jackpot amount reaches $5,000 are considered part of the bingo-raffles licensee's gross proceeds from the progressive pull tab game.

(d) If a jackpot prize reaches $5,000 without a winner:

(1) The licensee must award the prize in accordance with the manufacturer's specifications for determining a winner upon accumulation of the maximum amount; or

(2) If there are no specifications built into the progressive game being conducted, the game must continue in accordance with the manufacturer's specifications until the game is won. The licensee, however, may not make further contributions to the jackpot amount in accordance with Rule 5.4.6(c).

5.4.7 Conditions affecting the award of the final progressive pull tab jackpot prize

(a) If the licensee plans, expects, or otherwise foresees the occurrence of an event listed in (1), (2), or (3) below, the licensee must ensure that it can still determine a winner and award the progressive pull tab jackpot prize before the occurrence of the event on the licensee's last authorized bingo occasion at the location where the progression was started:

(1) Permanent termination of licensee's operations;

(2) Permanent termination of licensee's operations at a particular location; or

(3) Loss of license through expiration, nonrenewal, suspension, revocation, or surrendering.

(b) If an event in Rule 5.4.7(a)(1)-(3) occurs without the licensee's foreknowledge before the date of the last authorized bingo occasion, the licensee must contact the Secretary of State for approval of a means of determining a winner and awarding any jackpot prize.

5.4.8 Serial and form numbers. The licensee may not pay a prize amount unless the serial and form numbers of the winning ticket match the serial and form numbers of a deal contributing to the jackpot amount.

5.4.9 Conclusion of game. A progressive pull tab game must end with the award of the cumulative jackpot prize or, if the jackpot prize is unclaimed, upon expiration of a 15-day period after the determination of the winner. If a jackpot prize is not claimed by the next day or occasion on which the licensee conducts pull tab activities, the licensee may begin a new progressive pull tab game.

5.4.10 Display of winner(s) and notice to winner(s). If a jackpot prize is not claimed upon the determination of a winner, a licensee shall continue to display all flares and jackpot cards for 15 days after such determination. The display must be in plain view of all players at the licensee's bingo occasions or pull tab operations. The licensee shall also provide the winner with the notice prescribed for all winners.

5.4.11 Unclaimed prizes. The licensee may retain a progressive pull tab prize if the prize goes unclaimed for 15 days after a winner is determined.

5.5 Multiple locations. A licensee that conducts bingo occasions at two or more locations may also conduct pull tab operations at each location, if the bingo-raffle licensee uses a different deal of pull tabs at each location and does not use pull tabs with the same name, form number, and serial number at more than one location.

5.5.1 Termination of operations at premises. If the licensee terminates operations at one location, the licensee must display and sell all opened pull tab deals from the terminated location with the pull tabs at one of the remaining locations.

5.5.2 Records. The licensee must maintain the required records for all deals regardless of where the pull tabs were sold and must make those records available to the Secretary of State upon request at the location where the pull tabs were sold.

8 CCR 1505-2-5

Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/14/2014

40 CR 17, September 10, 2017, effective 9/30/2017

44 CR 19, October 10, 2021, effective 11/1/2021

46 CR 05, March 10, 2023, effective 3/31/2023

47 CR 18, September 25, 2024, effective 10/15/2024