Statutes, codes, and regulations
Maine Administrative Code
Department 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICESDivision 553 - BUREAU OF ALCOHOLIC BEVERAGES AND LOTTERY OPERATIONS (BABLO)Chapter 40 - MEGA MILLIONS RULES
Part II - Mega Millions Game Rules
Section 553-40-II-4.0 - Mega Millions Prize Pool

18- 553 C.M.R. ch. 40, § II-4.0

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Current through 2024-51, December 18, 2024
Section 553-40-II-4.0 - Mega Millions Prize Pool
4.1Mega Millions Prize Pool. The prize pool for all prize categories offered by the Party Lotteries shall consist of up to fifty-five (55%) percent of each drawing period's sales, inclusive of any specific statutorily-mandated tax of a Party Lottery to be included in the price of a lottery MM Play, and inclusive of contributions to the prize pool accounts and prize reserve accounts but may be higher or lower based upon the number of winners at each prize level, as well as the funding required to meet a guaranteed Annuity Grand Prize as may be required by Rule 6.1.
4.2 Mega Millions Prize Pool Accounts and Prize Reserve Accounts

The Product Group shall set the contribution rates to the prize pool and prize reserve accounts established by this rule.

4.2.1 The following prize reserve accounts for the Mega Millions game are hereby established:
4.2.1.1 The Prize Reserve Account (PRA) which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason, to fund deficiencies in the Set-Aside Pool, and to fund pari-mutuel prize deficiencies as defined and limited in Sections 4.4.1 and 17.2.1 of these Rules.
4.2.2 The following prize pool accounts for the Mega Millions game are hereby established:
4.2.2.1 The Grand Prize Pool (GPP), which is used to fund the current Grand Prize;
4.2.2.2 The Set Prize Pool (SPP), which is used the fund the Set Prizes. The SPP shall hold the temporary balances that may result from having fewer than expected winners in the Set Prize (aka low-tier prize) categories. The Source of the SPP is the Party Lottery's weekly prize contributions less actual Set Prize liability; and
4.2.2.3 The Set-Aside Pool (SAP) which is used to fund the payment of the awarded minimum starting annuity Grand Prizes and the minimum annuity Grand Prize increase, if necessary (subject to the limitations in these rules), as may be set by the Product Group. The source of the SAP funding shall accumulate from the difference between the amount in the Grand Prize Pool at the time of a Grand Prize win and the amount needed to fund Grand Prize payments as determined by the Mega Millions lotteries.
4.2.3 The above prize reserve accounts shall have maximum balance amounts or balance limiter triggers that are set by the Product Group.

The maximum balance amounts and balance limit triggers are subject to review by the MUSL Board Finance and Audit Committee. The Finance and Audit Committee shall have two weeks to state objections, if any, to the approved maximum balance amounts or balance limiter triggers. Approved maximum balance amounts or balance limiter triggers shall become effective no sooner than two weeks after notice is given to the Finance and Audit Committee and no objection is stated or sooner if the Committee affirmatively approves the maximum balance amounts or balance limiter triggers. The Group may appeal the Committee's objections to the full Board. Group approved changes in the maximum balance amounts or balance limiter triggers set by the Product Group shall be effective only after the next Grand Prize win.

4.2.4 The contribution rate to the GPP from MM Plays shall be 37.6509% of sales.

An amount up to five percent (5%) of a Party Lottery's sales, including any specific statutorily mandated tax of a Party Lottery to be included in the price of a lottery play, shall be added to a Party Lottery's Mega Millions Prize Pool contribution and placed in trust in one or more prize pool and prize reserve accounts held by the Product Group at any time that the Party Lottery's share of the PRA is below the amounts designated by the Product Group. Details shall be noted in the Comments to this Rule.

4.2.5 The Product Group may determine to expend all or a portion of the funds in the prize pools (except the GPP) and the prize reserve accounts:
4.2.5.1 for the purpose of indemnifying the Party Lotteries in the payment of prizes to be made by the Selling Lotteries; and
4.2.5.2 for the payment of prizes or special prizes in the game, limited to prize pool and prize reserve contributions from lotteries participating in the special prize promotion, subject to the approval of the Board's Finance & Audit Committee or that Committee's failure to object after given two weeks' notice of the planned action, which actions may be appealed to the full Board by the Product Group.
4.2.6 The prize reserve shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and sales percentage shares of the Party Lotteries.
4.2.7 A Party Lottery may contribute to its sales percentage share of prize reserve accounts over time, but in the event of a draw down from a reserve account, a Party Lottery is responsible for its full sales percentage share of the prize reserve account, whether or not it has been paid in full.
4.2.8 Any amount remaining in the Mega Millions prize pool accounts or prize reserve accounts when the Product Group declares the end of the game shall be returned to the lotteries participating in the prize pool and prize reserve accounts after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game, or otherwise expended in a manner at the election of the individual Members of the Product Group in accordance with jurisdiction statute.
4.3 Expected Prize Payout Percentages.The Grand Prize payout shall be determined on a pari-mutuel basis. Except as otherwise provided in these rules, all other prizes awarded by Party Lotteries shall be paid as single payment prizes. All prize payouts are made with the following expected prize payout percentages which does not include any additional amount contributed to or held in prize reserves, although the prize payout percentages per draw may vary:

Number of Matches Per MM Play

Prize Payment

MM Prize Pool Percentage Allocated to Prize

MM Sales Percentage Allocated to Prize

All five (5) of first set plus one (1) of second set.

Grand Prize

75.3018%*

37.6509%

All five (5) of first set and none of second set.

$1,000,000.00

7.9319% 3.9659%

Any four (4) of first set plus one (1) of second set.

$10,000.00

1.0742%

0.5371%

Any four (4) of first set and none of second set.

$500.00

1.2889%

0.6445%

Any three (3) of first set plus one (1) of second set.

$200.00

1.3749%

0.6875%

Any three (3) of first set and none of second set

$10.00

1.6498%

0.8249%

Any two (2) of first set plus one (1) of second set.

$10.00

1.4436%

0.7218%

Any one (1) of first set plus one (1) of second set.

$4.00

4.4752%

2.2376%

None of first set plus one (1) of second set.

$2.00

5.4597%

2.7298%

* The Grand Prize shall include the MM Prize Pool percentage allocated to the Grand Prize combined with JJ Prize Pool percentage allocated to the Grand Prize.

4.3.1 The Grand Prize amount shall be divided equally by the number of MM Plays and JJ Plays winning the Grand Prize.
4.3.2 The SPP (for payment of single payment prizes of one million dollars ($1,000,000.00) or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.
4.4Pari-Mutuel Prize Determinations. Except as otherwise provided for in Section 4.4.3:
4.4.1 If the total of the Mega Millions Set Prizes (as multiplied by the respective Megaplier multiplier if applicable) awarded in a drawing exceeds the percentage of the prize pool allocated to the Mega Millions Set Prizes, then the amount needed to fund the Mega Millions Set Prizes, including Megaplier prizes, awarded shall be drawn from the following sources, in the following order:
4.4.1.1 the amount available in the SPP and the Megaplier Prize Pool, if any;
4.4.1.2 an amount from the PRA, if available, not to exceed forty million ($40,000,000.00) per drawing.
4.4.2 If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes, including Megaplier prizes, then the highest Set Prize shall become a pari-mutuel prize. If the amount of the highest Set Prize, including Megaplier prizes, when paid on a pari-mutuel basis, drops to or below the next highest Set Prize and there are still not sufficient funds to pay the remaining Set Prizes awarded, then the next highest Set Prize shall become a pari-mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this Section shall be divided among the winning MM Plays in proportion to their respective prize percentages. Mega Millions and Megaplier prizes will be reduced by the same percentage.
4.4.3 By agreement with the Mega Millions Lotteries, the Mega Millions Lotteries shall independently calculate their set pari-mutuel prize amounts. The Party Lotteries and the Mega Millions Lotteries shall then agree to set the pari-mutuel prize amount for all lotteries selling the game at the lesser of the independently-calculated prize amounts.
4.4.4 Except as may be required by Rule 6.1, the official advertised Grand Prize annuity amount is subject to change based on sales forecasts and/or actual sales.
4.4.5 Subject to the laws and rules governing each Party Lottery, the number of prize categories and the allocation of prize fund among the prize categories may be changed at the discretion of the Mega Millions Lotteries, for promotional purposes. Such change shall be announced by Mega Millions Lotteries.

18- 553 C.M.R. ch. 40, § II-4.0