{"data":{"id":"us-ky/krs-154a.400","jurisdiction":"us-ky","citation":"KRS 154A.400","heading":"Statewide network of lottery retailers -- Criteria for selection -- Uniform","body":"fees -- Suspension, revocation or termination of contract -- Purchase or lease of\non-line equipment -- Contracts not transferable or assignable -- Certificates --\nGeneral Assembly members not prohibited from being retailers -- Payment of\nprize -- Sales tax exemption.\n(1) (a) The General Assembly hereby recognizes that to conduct a successful lottery,\nthe corporation must develop and maintain a statewide network of lottery\nretailers that will serve the public convenience or promote the sale of tickets,\nwhile insuring the integrity of the lottery.\n(b) To govern the selection of lottery retailers, the board shall, by administrative\nregulation, develop a list of objective criteria upon which the selection of\nlottery retailers shall be based. Separate criteria shall be developed to govern\nthe selection of retailers of instant tickets and on -line retailers. In developing\nthese criteria the board shall consider such factors as the appl icant's financial\nresponsibility, security of the applicant's place of business or activity,\nintegrity, and reputation; however, the board shall not consider political\naffiliation, activities, or monetary contributions to political organizations or\ncandidates for any public office. The criteria shall include, but not be limited\nto the following:\n1. The applicant shall be current in payment of all taxes, interest and\npenalties owed to any taxing subdivision where the lottery retailer will\nsell lottery tickets;\n2. The applicant shall be current in filing all applicable tax returns and in\npayment of all taxes, interest and penalties owed to the Commonwealth\nof Kentucky, excluding items under formal appeal pursuant to applicable\nstatutes;\n3. No person, partnership, unincorporated association, corporation, or other\nbusiness entity shall be selected as a lottery retailer for the sale of instant\ntickets or on-line games who:\na. Has been convicted of a felony related to the security or integrity\nof the lottery in thi s or any other jurisdiction, unless at least ten\n(10) years have passed since satisfactory completion of the\nsentence or probation imposed by the court for each felony;\nb. Has been convicted of any illegal gambling activity in this or any\nother jurisdiction, unless at least ten (10) years have passed since\nsatisfactory completion of the sentence or probation imposed by\nthe court for each conviction;\nc. Has been found to have violated the provisions of this chapter or\nany administrative regulation adopted hereunder, unless at least ten\n(10) years have passed since the violation;\nd. Is a vendor or an employee or agent of any vendor doing business\nwith the corporation;\ne. Resides in the same household as an officer of the corporation; or\nf. Has made a statement  of material fact to the corporation, knowing\nsuch statement to be false, unless at least ten (10) years have\npassed since the statement was made.\n4. Retailers shall be afforded the same exceptions to disqualification as\nprovided for vendors in KRS 154A.600(4)(a) and (b) or (c).\n5. In addition to the provisions of subsection (3) of this section, no person,\npartnership, unincorporated association, corpor ation, or other business\nentity shall be selected as an on-line lottery retailer who:\na. Has been denied a license to sell instant tickets on the basis of\nobjective criteria established by the board, or any provision of this\nchapter; or\nb. Has failed to se ll sufficient instant tickets to indicate that the\nlocation of an on -line game at his outlet would be of economic\nbenefit to him or the lottery corporation.\n6. The applicant shall not be engaged exclusively in the sale of lottery\ntickets. However, this par agraph does not preclude the corporation from\ncontracting for the sale of lottery tickets with nonprofit, charitable\norganizations or units of local government in accordance with the\nprovisions of this chapter.\n(c) Persons applying to become lottery retail ers shall be charged a uniform\napplication fee for each lottery outlet. Retailers chosen to participate in on-line\ngames shall be charged a uniform annual fee for each on-line outlet.\n(d) Any lottery retailer contract executed pursuant to this section may,  for good\ncause, be suspended, revoked, or terminated by the president if the retailer is\nfound to have violated any of the objective criteria established by the board as\nprovided in subsection (1) of this section. Review of such action shall be in\naccordance with the procedures outlined in KRS 154A.090. All lottery retailer\ncontracts shall be renewable annually after issuance unless sooner canceled or\nterminated.\n(2) (a) A retailer who has been denied an on -line game for reasons other than\nfinancial responsibility, security, or integrity shall be permitted to purchase or\nlease the equipment necessary to operate such a game from the corporation in\na manner consistent with the corporation's manner of acquisition. A retailer\nneed not file an appeal before bein g permitted to purchase or lease on -line\nequipment.\n(b) After one (1) year of operation, any retailer who purchased or leased on -line\nequipment pursuant to paragraph (a) of this subsection and whose sales are\nequal to or greater than the statewide average of sales of on-line retailers, shall\nbe reimbursed the cost of the purchase or lease by the corporation. The board\nmay purchase the terminals of other retailers who purchased their equipment if\nthe board determines that such purchase is in the best interest of the lottery.\n(3) No lottery retailer contract awarded under this section shall be transferable or\nassignable. No lottery retailer shall contract with any person for lottery goods or\nservices except with the approval of the board.\n(4) Each lottery reta iler shall be issued a lottery retailer certificate which shall be\nconspicuously displayed at the place where the lottery retailer is authorized to sell\nlottery tickets. Lottery tickets shall only be sold by the retailer at the location stated\non the lottery retailer certificate.\n(5) A member of the General Assembly who meets the same requirements as any other\napplicant to be a retailer may be granted a retail contract to sell lottery tickets or\nparticipate in any other lottery game operations. No member of  the General\nAssembly shall be entitled to preference over any other applicant for a contract.\n(6) For the convenience of the public, all retailers shall be authorized to pay winners up\nto six hundred dollars ($600) after the retailer performs validation p rocedures\nappropriate to the lottery game involved. Lottery tickets shall be exempt from the\nKentucky sales tax.","path":["KRS Chapter 154A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3025","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:58Z","sha256":"9d73ba6184d30f856c53c9c9dfb118eb6b37d27c0818019603c94f9d39fa9442","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154a.160","next":"us-ky/krs-154a.410"},"notice":"GroundRules: Original legal text. Not legal advice."}