(A) All proceeds from the sale of the lottery game tickets or shares constitute a trust fund until paid to the commission either directly or through the commission’s authorized collection representative. A lottery retailer and officers of a lottery retailer’s business have a fiduciary duty to preserve and account for lottery proceeds, and a lottery retailer is personally liable for all proceeds. Proceeds include unsold instant tickets received by a lottery retailer and cash proceeds of the sale of lottery products, net of allowable sales commissions and credit for lottery prizes sold or paid to winners by a lottery retailer. Sales proceeds and unused instant tickets must be delivered to the commission or its authorized collection representative upon demand.

(B) The commission shall require a lottery retailer to place all lottery proceeds due the commission in accounts in institutions insured by the Federal Deposit Insurance Corporation (FDIC) no later than the close of the next banking day after the date of their collection by the lottery retailer until the date they are paid over to the commission. At the time of the deposit, lottery proceeds are considered the property of the commission, and a lottery retailer is personally liable for those proceeds due the commission. The commission may require a lottery retailer to establish a single separate electronic funds transfer account where available for the purpose of receiving monies from ticket or share sales, making payments to the commission, and receiving payments for the commission. Unless otherwise authorized in writing by the commission, each lottery retailer shall establish a separate bank account for lottery proceeds which must be kept separate and apart from all other funds and assets, and must not be commingled with any other funds or assets. A lottery retailer, upon the deposit of lottery proceeds in excess of insurance coverage by the FDIC, shall furnish an indemnity bond from a responsible surety company authorized to do business in this State in an amount sufficient to protect the State against loss in the event of insolvency or liquidation of the institution or for another cause. A lottery retailer, instead of the indemnity bond, may pledge as collateral for the deposits, obligations of the United States, obligations fully guaranteed both as to principal and interest by the United States, obligations of the Federal National Mortgage Association, the Federal Home Loan Bank, Federal Farm Credit Bank, the Federal Home Loan Mortgage Corporation, or general obligations of this State or a political subdivision of it. The State Treasurer shall exercise prudence in accepting the securities listed as collateral. The surety or collateral must be filed with the State Treasurer at time of deposit.

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Terms Used In South Carolina Code 59-150-190

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Commission: means the South Carolina Lottery Commission. See South Carolina Code 59-150-20
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
  • Fiduciary: A trustee, executor, or administrator.
  • Lottery retailer: means a person who sells lottery game tickets or shares on behalf of the South Carolina Lottery Commission pursuant to a contract. See South Carolina Code 59-150-20
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Person: means an individual, corporation, partnership, unincorporated association, or other legal entity. See South Carolina Code 59-150-20
  • Proceeds: means all lottery revenue derived from the sale of lottery game tickets or shares and all other monies derived from the lottery or received by the commission. See South Carolina Code 59-150-20
  • Share: means an intangible interest in a lottery ticket, by way of assignment, contractual participation, or other claim or right. See South Carolina Code 59-150-20
  • Ticket: means tangible evidence issued by the South Carolina Lottery Commission to provide participation in a lottery game. See South Carolina Code 59-150-20

(C) Proceeds from the sale of lottery game tickets or shares received by a lottery retailer who becomes insolvent or dies insolvent, are due the commission from the person or his estate in preference over all debts or demands.

(D) A lottery retailer is not required to pay for lottery tickets or shares until the tickets or shares have been activated by the commission.

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