Committee adopts rule letting retailers issue payment cards for small lottery winnings up to $499

Andrew Arulanandam, director of the Idaho State Lottery and the Idaho State Liquor Division, presented rule changes allowing licensed lottery retailers to pay winners by a payment card for prizes above $100 and up to $499. Under the rule as presented, retailers may continue to pay cash for winnings of $1–$100; amounts above $100 and up to $499 may be issued via a payment card that the presenter said is “as good as cash,” has no fees and can be used at any store.

Arulanandam said the proposed change responds to safety and cash-management concerns raised by convenience-store retailers, which often carry minimal cash for security reasons and had been turning away small winners or directing them elsewhere. He said retailers earn a nominal fee for cashing small tickets and that the payment-card option would allow stores to retain that business without increasing their cash on hand. The director and the committee noted that the card is issued by the retailer, not the Lottery, and that the Lottery itself does not charge fees on the card.

The committee approved the temporary rule and then adopted the pending rule by voice votes; the transcript records no roll-call tallies. Representative Crane asked for confirmation that the card is not a debit or transactional credit product issued by the Lottery, and Arulanandam confirmed it is a retailer-issued gift-style payment card. Representative Alfieri confirmed with the presenter that no fees would be charged to winners for card-based payouts.

The adopted rules will allow winners to receive immediate payment in a safer form at retail locations for mid-tier prize amounts, pending final administrative processing of the adopted rules.