Senate panel approves rule letting Idaho Lottery retailers pay cash up to $100 and issue prize-payment cards for larger small prizes

The Senate State Affairs Committee on Friday approved a proposed rule change from the Idaho Lottery that will allow licensed retail sellers to pay winning tickets in cash up to $100 and to issue a no-fee prize-payment card for prizes above $100 and up to $499.

Andrew Rulanandam, director of the Idaho Lottery, told the committee the change responds to requests from retail partners — especially convenience stores — that typically carry limited cash to lower theft risk and enhance employee safety. "By law, lottery prizes from $1 to $599 must be paid in cash by a licensed lottery retailer," the director said, adding that retailers have adopted policies to carry less cash. He said the new rule will formally allow retailers to keep less cash on-site while still providing winners a way to receive funds.

Rulanandam said retailers currently earn a nominal fee of about 1 percent for cashing small prizes. Under the change, winners may receive up to $100 in cash at the store; amounts over $100 up to $499 will be paid via a prize-payment card that the retailer issues. "Leaving $100 in the till limits criminal activity and potential bodily harm to their employees," he said. He added the card carries no transaction fees and can be used at any store; it may also be deposited at a bank.

The director said the card would be provided by the retailer that issues it and is not limited for use only at the issuing store. Tony Pitts, the Idaho Lottery’s security director, was present to answer security questions.

Senators moved and seconded approval of docket number 52-0103-2401; after a voice vote the committee gave the docket a due-pass recommendation to the Senate.

Ending note: The change was presented as a safety improvement for retailers and a convenience for winners; it now moves to the full Senate for review.