# Title 10 — Attorney General

## Article 10-16 — Multi-State Lottery

## Chapter 10-16-02 — Retailer

### § 10-16-02-01. License application and fee.

1. An applicant shall initially apply for a license for a site on a form prescribed by the lottery and
remit an application fee of fifty dollars that is not refundable. The licensing fiscal year is
October first through September thirtieth. An applicant may apply for a license for more than
one site. A separate application is required for each site. Approval of an applicant is within the
sole discretion of the lottery. Only one retailer may have a license for a specific site. A retailer
shall apply for a renewal license for a site before October first of each year.
2. If the lottery approves an applicant for licensure for a site, the applicant shall remit a license
fee of five hundred dollars for the applicant's first year for that site within fourteen days of
when the applicant is notified by the lottery of its pending licensure. This fee is not prorated or
refundable unless an applicant is disqualified according to section 10-16-02-03 before the
applicant sells a ticket or a new owner purchases or leases a site and applies for a license
before the former owner sells a ticket. After the first partial or full year of licensure, the annual
license renewal fee for the site is one hundred fifty dollars and is not prorated or refundable on
or after October first.
3. If a licensed alcoholic beverage establishment and an organization that is licensed under
North Dakota Century Code chapter 53-06.1 to conduct a game of chance at that site both
apply for a license for the site, the establishment has the first privilege. If the establishment
does not apply and the organization does apply for a license, the organization shall obtain
written authorization from the establishment and provide the authorization with the application.
If the organization is issued a license, the establishment's authorization is valid as long as the
organization is licensed to conduct a game of chance at that site.
4. A license allows a retailer to sell a ticket for all authorized games.
5. The lottery may license a retailer on a seasonal or temporary basis for a special event or
lottery promotion. A special event is an infrequent, significant, and identifiable activity in the
community, such as a fair. The director of the lottery may waive the application or license fee,
or both, for a temporary site for a presently licensed or new retailer that sells a ticket on a
temporary basis at the site for a special event or lottery promotion.
6. The lottery may issue a conditional license to an applicant, shall designate the time period for
which the license is valid, and may impose any conditions related to:
a. Determining whether an applicant or retailer is eligible for a license;

b. Issuing a license to an applicant or retailer whose regular license has been relinquished,
suspended, or revoked;
c. Applying a minimum sales quota on an applicant or retailer;
d. Requiring an applicant or retailer to reimburse the lottery for the lottery's net cost of
installing and maintaining the terminal and telecommunications equipment at a business
if the applicant or retailer does not meet or maintain a mutually agreed minimum sales
quota; or
e. Accessibility of a retailer to an individual who is disabled.
7. A license is a privilege and an applicant or retailer does not have a vested or legal right to the
license.
8. Except as provided by subsection 5, an applicant's site must be a permanent business
location.
9. The lottery may require a security deposit from an applicant or retailer.
10. If required by law, an applicant must be currently registered with the secretary of state.
11. A license may not be sold, transferred, assigned, pledged, or otherwise conveyed from a
retailer to another person.
12. A retailer shall provide the lottery a thirty-day written notice of the retailer's intent to sell or
otherwise transfer ownership of the retail business to another person. The acquiring person
shall apply for a new license for that site if the person desires to be a retailer.
13. If a license becomes lost or destroyed, a retailer shall apply for a duplicate license and explain
to the lottery what happened to the original license.
14. If a license is revoked and reinstated within the same licensing fiscal year, no additional
license fee is due.
History: Effective February 1, 2004; amended effective April 1, 2006; April 1, 2008; January 1, 2026.
General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-06, 53-12.1-07, 53-12.1-13
### § 10-16-02-02. Criteria for selecting an applicant.

The lottery shall consider criteria in selecting an applicant for licensure or relicensure as a retailer,
including:
1. Geographic or strategic location of a business in a town or city, and its location in relation to
population, highways, and traffic patterns;
2. Accessibility of a business to the public and an unrestricted public access policy;
3. Regular contact with a significant number of individuals and the average number of customer
sales transactions per day;
4. Normal business hours and days of the week that the business is open;
5. Number of years the business has been operating at its present location;
6. Historical gross sales of nonlottery products or expected gross sales of lottery tickets of a
business, or both;

7. Physical security of a business, safety of the money derived from selling a ticket, and whether
the business has a video surveillance or alarm system;
8. Financial condition, financial responsibility, and creditworthiness of the business;
9. Criminal history record, character, and reputation of the applicant's agent;
10. Sufficiency of an existing retailer to serve the public convenience in an applicant's town or city;
11. Anticipated or proven capability of a business to best serve the public interest by actively
promoting the sale of a ticket, including displaying or providing point-of-sale promotional items
to the public;
12. Initial or incremental cost of installing and maintaining a terminal and telecommunications
equipment at a business or difficulty of using preferred telecommunications equipment;
13. Type of business and type of product, service, or entertainment offered at a site and whether it
is acceptable to the general public and does not adversely impact the credibility, reputation, or
image of the lottery. An applicant's primary retail business may not be to sell a lottery ticket. An
eligible applicant may not be a pawnbroker, bank, check cashing or cash advance outlet,
currency exchange business, credit union, consumer finance company, collection agency, or
mortgage broker;
14. Recommendation of the lottery's online gaming system vendor;
15. Accessibility of a business to an individual who is disabled;
16. Type of building housing the business; and
17. Site inspection.
History: Effective February 1, 2004; amended effective April 1, 2006; April 1, 2008; July 1, 2019;
January 1, 2026.
General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-06, 53-12.1-07, 53-12.1-13
### § 10-16-02-03. Record and credit checks.

1. An applicant for a license shall request the lottery to do a North Dakota record check on the
applicant's agent. The record check is to determine whether the individual has a criminal
history record that would disqualify the applicant for a license according to subdivision d of
subsection 3 of North Dakota Century Code section 53-12.1-07. The lottery may require
fingerprints of the individual. After the initial licensure of an applicant, the retailer shall request
the lottery to do a North Dakota record check and, if necessary, an out-of-state record check,
on a new applicant's agent within thirty days of when the change occurred. The lottery may
periodically do a followup record check on an applicant's agent and charge a fee.
2. If the applicant's agent resides or has resided in a state other than North Dakota during the
previous five years, the lottery shall do an out-of-state record check on that individual through
the other state. The individual shall procure any necessary fingerprint card or special
authorization form, or both, which is or are required by the other state from the lottery and
return the completed card or form, or both, to the lottery within ten days after receiving it or
them from the lottery.
3. An applicant shall request a record check on the applicant's agent by submitting a "lottery
record/credit check" form for the applicant's agent and remit a nonrefundable fee in the
amount prescribed by North Dakota Century Code section 12-60-16.9 for a North Dakota

record check and, if an out-of-state record check is required, remit the nonrefundable fee that
is charged by the other state, to the lottery. The applicant shall remit the fee with the license
application or form. However, if the individual has had a record check done within one year of
when the applicant applied for a license or renewal license and provides with the application a
copy of the "lottery record/credit check" or similar form and, if applicable, a copy of the bureau
of criminal investigation's criminal history record information the lottery may waive the
requirement for a record check on that individual.
4. An individual's information on a criminal record may be disseminated only according to North
Dakota Century Code chapter 12-60.
5. If an applicant's agent pleads guilty to or has been found guilty of a felony or misdemeanor
offense as defined by the laws of this state, another state, or the federal government, the
retailer shall immediately notify the lottery. Upon notification of a felony offense to the lottery:
a. If the applicant's agent is a general manager, the retailer shall terminate the general
manager from employment;
b. If the applicant's agent is a partner of a partnership, the retailer shall terminate the
partnership agreement with the affected partner;
c. If the applicant's agent is an officer or director who is primarily responsible for financial
affairs of a corporation, the retailer shall delegate that responsibility away from the
affected officer or director;
d. If the applicant's agent is a shareholder of a corporation, the retailer shall arrange for the
shareholder to sell shares of stock to reduce the stock holding to less than ten percent of
the common stock; or
e. The lottery shall suspend or revoke the retailer's license or take any other appropriation
action.
6. The lottery shall do a credit check on an applicant that is a sole proprietorship, partnership, or
corporation through a credit-reporting company or other reliable source to determine the
applicant's financial condition and whether the applicant is financially responsible and credit
worthy. The lottery shall prescribe the fee for a credit check. The fee is nonrefundable. The
lottery may periodically do a followup credit check on a retailer and charge the fee.
7. A retailer shall retain a copy of the "lottery record/credit check" form for three years from the
date it submitted the form to the lottery.
History: Effective February 1, 2004; amended effective April 1, 2006; July 1, 2019.
General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-06, 53-12.1-07, 53-12.1-13
### § 10-16-02-04. Change in business location, ownership, or name.

1. If a retailer changes its business location, the lottery may reissue a license to the retailer to
sell a ticket at the new location provided:
a. The retailer notifies the lottery, in writing, thirty days before the change is to occur;
b. The retailer stops selling a ticket at the old business location before it begins selling a
ticket at the new business location; and
c. The lottery determines that reissuing a license to the retailer for the new business
location would best serve the public convenience.

2. If a retailer changes the type of its business ownership, it shall notify the lottery in writing and
apply for a new license thirty days before the change is to occur.
3. If a retailer changes the name of the business, it shall notify the lottery in writing thirty days
before the change is to occur.
History: Effective February 1, 2004; amended effective April 1, 2006.
General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-06, 53-12.1-07, 53-12.1-13
### § 10-16-02-05. Training.

An employee of a retailer who is responsible for and who has no previous experience operating a
terminal must be trained on how to properly operate the terminal by the retailer or lottery representative
before the employee may sell or redeem a ticket. The lottery shall provide the retailer with a placard
containing the relevant provisions of the law and rules for employees to read and reference.
History: Effective February 1, 2004; amended effective April 1, 2006.
General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-07, 53-12.1-13
### § 10-16-02-06. Duties.

A retailer shall:
1. Comply with the lottery law, rules, promotional rules, and terms of a license agreement
prescribed by the lottery;
2. Display a lottery license in an area visible, but not accessible, to the public where a ticket is
sold and redeemed. A retailer shall prominently display signage and promotional and
point-of-sale items provided by the lottery. A retailer may advertise and use, display, or make
available other appropriate promotional and point-of-sale items. On request of the lottery, a
retailer shall discontinue an advertisement or promotion that the lottery determines is in
noncompliance with subsections 2 and 3 of section 10-16-01-02;
3. Display a problem gambling helpline telephone number;
4. Provide a secure operating space for a terminal at a location approved by the lottery or its
online gaming system vendor. A retailer may not move the terminal to a different location at a
site without written authorization from the lottery. If the retailer desires to have the terminal
relocated at the site, only a qualified representative of the lottery's online gaming system
vendor may relocate the terminal;
5. Provide dedicated alternating current to a duplex electrical receptacle for lottery equipment,
including a terminal. Only lottery equipment may be on the circuit. A retailer shall pay the
installation cost of the receptacle and monthly costs of electricity to operate the lottery
equipment. The lottery shall provide the retailer with a schematic of the required amperage,
voltage, and wiring of the receptacle;
6. As requested by the lottery, have an employee attend a training session sponsored by the
lottery, review training material, complete a terminal-based eLearning training, or notify the
lottery if a new employee needs training on operating a terminal;
7. Exercise care in operating a terminal and immediately notify the lottery's online gaming
system vendor of a terminal malfunction, including the issuance of an invalid ticket, inability to
sell or redeem a ticket, and nonissuance of a ticket. Except to clear a paper jam, the retailer
may not perform mechanical or electrical maintenance on the terminal. Unless approved by

the lottery, a retailer may not attach or adhere any stickers, decals, or advertisements on a
terminal;
8. Replace ticket stock and clear a paper jam as necessary in a terminal;
9. Monitor the supply of game brochures, point-of-sale items, ticket stock, and play slips and
notify the lottery or its online gaming system vendor when an item is in short supply;
10. Actively promote and sell a ticket and redeem a winning ticket during the retailer's core
business hours on the days the retailer is open and when a terminal is operating. If the
retailer's core business hours are earlier or later, or both, than the hours that the terminal is
operating, the retailer shall post the hours during which an individual may redeem a winning
ticket;
11. Prohibit an individual under age eighteen from buying a ticket or redeeming a winning ticket;
12. Not extend credit to a player or accept a credit card from a player for the purchase of a ticket
or accept a supplemental nutrition assistance program or electronic benefits transfer as
consideration for a ticket. A player shall pay for a ticket when the ticket is bought from a
retailer. If a retailer delivers a ticket to a player's residence, the player shall prepay or pay for
the ticket upon delivery. A retailer may not loan money to or accept a postdated check from a
player;
13. Accept debit cards or mobile payment services through the lottery system or the retailer's
point-of-sale system. If a retailer chooses to use its point-of-sale system, the retailer is
responsible for related processing fees;
14. Maintain a level of ticket sales set by the lottery based on a minimum sales program;
15. Be financially responsible and personally liable to the lottery for money derived from the sale
of a ticket, less money related to a sales commission and money paid on a redeemed winning
ticket. The retailer shall allow money from the sale of a ticket that is deposited by the retailer in
a bank account to be transferred to the lottery by electronic funds transfer on a weekly basis
or other period prescribed by the lottery;
16. Store ticket stock, supplies, terminal, and related equipment in a safe place to prevent loss,
theft, or damage;
17. Redeem a winning ticket and may pay a prize of up to five hundred ninety-nine dollars in cash
or by business check, regardless of which retailer sold the ticket. The retailer may not charge
a fee for redeeming a ticket and may not refuse to redeem a winning ticket sold by another
retailer;
18. File a claim for credit for a printed defective ticket as prescribed by the lottery;
19. Permit an employee or agent of the lottery who has first shown proper identification to the
retailer to review the retailer's accounting records and inspect, maintain, replace, or remove
lottery equipment, supplies, ticket stock, or a record or recorded video from the site without
prior notice during the retailer's normal hours of operation;
20. Notify the lottery in writing thirty days before there is a change of the bank account maintained
for electronic funds transfer;
21. Make it convenient for the public to buy and redeem a ticket. A retailer may sell a ticket
through a drive-up window;
22. Incur the loss from theft of a ticket or gift certificate;

23. Defend, indemnify, and hold harmless the lottery and state of North Dakota from any claim of
any nature, including all costs, expenses, and attorney's fees, that may result from or arise out
of an agreement with the lottery, except for a claim that results from or arises out of the state's
sole negligence;
24. Upon revocation, relinquishment, or nonrenewal of a license, immediately return all
lottery-related equipment and supplies, including unused ticket stock. The retailer is liable for
money still owed the lottery; and
25. Maintain complete and accurate records and retain them for one year related to the sale and
redemption of a lottery ticket. Records must include weekly terminal-issued reports of
electronic funds transfers transactions.
History: Effective February 1, 2004; amended effective April 1, 2006; April 1, 2008; July 6, 2014;
July 1, 2019; July 1, 2025; July 29, 2025; September 28, 2025; January 1, 2026.
General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-08, 53-12.1-13
### § 10-16-02-07. Sales commission and bonus.

(Effective through February 21, 2026)
1. The lottery shall credit a retailer's account for:
a. A sales commission of five percent of the retail price of a ticket sold or otherwise issued
by the retailer; and
b. A sales bonus for selling a ticket with a winning play, for a game as stated below.
However, the retailer must be licensed currently when a draw is conducted which results
in the winning play of a ticket. If the winning play for POWERBALL® has the Power Play
option, or the winning play for LOTTO AMERICA® has the All Star Bonus® option, the
retailer's account also must be credited for an additional bonus as stated below:
Prize Bonus Additional Bonus
Grand prize $50,000 Additional $50,000 with Power Play
$1,000,000 $5,000 Additional $5,000 with Power Play
$50,000 $1,000 Additional $1,000 with Power Play
Base Prize
(before multiplier)
Grand prize $100,000
$1,000,000 $10,000
$10,000 $1,000
$7,000/week for life $25,000
$25,000/year for life $2,500
$5,000 $250
2BY2®
Grand prize

$22,000 $500
$44,000* $1,000
*Tuesday draw double grand prize winning play on a qualifying multi-draw ticket.
Grand prize $5,000 Additional $5,000 with All Star Bonus
$20,000 $500 Additional $500 with All Star Bonus
2. The lottery may credit a retailer's account for a fixed or graduated sales commission or bonus
for a special promotion, including Power Play and All Star Bonus, which the lottery conducts for
a certain period of time based on parameters set by the lottery.
Sales commission and bonus. (Effective after February 21, 2026)
1. The lottery shall credit a retailer's account for:
a. A sales commission of five percent of the retail price of a ticket sold or otherwise issued
by the retailer; and
b. A sales bonus for selling a ticket with a winning play, for a game as stated below.
However, the retailer must be licensed currently when a draw is conducted which results
in the winning play of a ticket. If the winning play for POWERBALL® has the Power Play
option, or the winning play for LOTTO AMERICA® has the All Star Bonus® option, the
retailer's account also must be credited for an additional bonus as stated below:
Prize Bonus Additional Bonus
Grand prize $50,000 Additional $50,000 with Power Play
$1,000,000 $5,000 Additional $5,000 with Power Play
$50,000 $1,000 Additional $1,000 with Power Play
Base Prize
(before multiplier)
Grand prize $100,000
$1,000,000 $10,000
$10,000 $1,000
$1,000,000/year for life $50,000
$100,000/year for life $10,000
$7,500 $500
2BY2®
Grand prize
$22,000 $500

$44,000* $1,000
*Tuesday draw double grand prize winning play on a qualifying multi-draw ticket.
Grand prize $5,000 Additional $5,000 with All Star Bonus
$20,000 $500 Additional $500 with All Star Bonus
2. The lottery may credit a retailer's account for a fixed or graduated sales commission or bonus
for a special promotion, including Power Play and All Star Bonus, which the lottery conducts for
a certain period of time based on parameters set by the lottery.
History: Effective February 1, 2004; amended effective January 1, 2006; January 3, 2008; January 31,
2010; January 15, 2012; October 19, 2013; July 6, 2014; October 4, 2015; February 25, 2016;
October 29, 2017; May 14, 2018; July 1, 2019; April 5, 2025; July 29, 2025; September 28, 2025;
January 1, 2026.
General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-13
### § 10-16-02-08. Bank account and electronic funds transfer.

1. A retailer shall maintain a bank account at a financial institution that is insured by the federal
deposit insurance corporation, federal credit union association, or federal savings and loan
insurance corporation, located in North Dakota, and that is capable of electronic funds
transfer. This account may be a special or general account used for deposit of money derived
from selling a ticket. The amount deposited must be sufficient to cover the amount due the
lottery. This amount is generally computed as gross sales, less the retailer's sales commission
and value of validated redeemed winning tickets. The retailer shall deposit the amount in the
account within one banking day after the date of the sale by the retailer. The lottery may
transfer the amount due to the lottery on a weekly basis or on demand by electronic funds
transfer on a day specified by the lottery. If the day specified for the transfer is on a federal or
state holiday, the transfer will be done on the following business day. The lottery may establish
a payment term with a retailer to address a situation unique to that retailer. The retailer shall
hold the money derived from selling a ticket in trust and in a fiduciary capacity for the lottery.
The retailer is personally liable for the money owed the lottery and may not pledge the money
in the account as collateral for a loan.
2. The lottery shall notify a retailer of the amount that is to be transferred from the bank account
to the lottery before the electronic funds transfer occurs. A retailer shall notify the lottery of an
error or dispute of the amount twenty-four hours before the transfer occurs.
3. A retailer shall pay the amount of a nonsufficient electronic funds transfer immediately by a
certified or cashier's check or money order. If a nonsufficient funds transfer is not immediately
covered, the lottery may assess the retailer a monetary fine, service charge, disable the
terminal until the amount is paid, and suspend or revoke the retailer's license.
History: Effective February 1, 2004; amended effective April 1, 2006.
General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-13
### § 10-16-02-09. Recordkeeping.

Repealed effective April 1, 2006.

### § 10-16-02-10. Denial, suspension, or revocation of a license.

The lottery may deny, suspend, or revoke a license if the applicant's agent has a disqualifying
criminal history record or an applicant or retailer:
1. Obtained a license by failing to complete, failing to disclose information, or misrepresenting
data on an application;
2. Violated a lottery law, rule, or term of a license agreement;
3. Failed to meet or maintain eligibility criteria for licensure;
4. Failed to file a required security deposit;
5. Changed the location of a retail business;
6. Failed to demonstrate financial responsibility or maintain a reasonable financial condition of
the business, a check issued for payment of a prize on a winning ticket or an electronic funds
transfer of money from a retailer's bank account to the lottery was dishonored for any reason,
or is delinquent in remitting money owed to the lottery;
7. Filed for, or was involuntarily placed in, bankruptcy or receivership;
8. Acted in a manner or is involved in an activity at a site that is harmful to the public confidence
in the integrity, reputation, or image of the lottery;
9. Experienced recurring theft or other negative incidents at the site that endangers the security
of the lottery;
10. Failed to produce for review a record, document, or other item required by a lottery law, rule,
or term of a license agreement;
11. Knowingly sold a ticket to or redeemed a winning ticket from an individual under age eighteen;
12. Failed to properly redeem or pay a player the proper prize for a winning play;
13. Failed to actively promote sales of tickets or properly display and provided point-of-sale
promotional items to the public;
14. Failed to sell a minimum number of tickets as set by the lottery and another retailer
adequately serves the public convenience;
15. Failed to maintain an active federal employer identification number and, if necessary, North
Dakota sales tax permit number; or
16. Participated in retailer fraud.
History: Effective February 1, 2004; amended effective April 1, 2006; April 1, 2008; July 1, 2019.
General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-06, 53-12.1-07, 53-12.1-09, 53-12.1-13
### § 10-16-02-11. Monetary fine.

The lottery may impose a monetary fine on a retailer for failure to comply with a lottery law, rule, or
term of a license agreement. The fine for each violation is a minimum of twenty-five dollars and may be
in addition to or in place of a license suspension or revocation.
History: Effective February 1, 2004.
General Authority: NDCC 53-12.1-13

Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-13
