Terms and Definitions


Agent: A retail outlet for Kentucky Lottery tickets.

Annuity: A prize paid out in installments, typically over 25 or 30 years.

Box bet: A numbers game wager where the player selects numbers without regard to the order in which they are drawn. For example, if the numbers "1,2,3" are drawn, the combinations "1,2,3", "1,3,2", "2,1,3", "2,3,1", "3,1,2", and "3,2,1" all win under a box bet.

Cash option: A large jackpot that the winner elects to receive as a lump sum cash payment rather than an annuity.

Commission: The fee paid to retail outlets for selling lottery tickets. Commissions in North America typically range between 5 percent and 6 percent of the price of the ticket.

Daily game: This can refer to any game where winners are determined on a daily basis, but usually refers to a numbers game such as the Pick 3 or Pick 4.

Instant (or Scratch-off) game: A lottery ticket that requires the player to remove a latex coating to determine if the ticket is a winner. Scratch-offs fall under this definition.

Jackpot: The top prize for a lotto game. Jackpots are usually parimutuel. If not won in the next drawing, they "roll" to the next drawing and increase in size.

Online game: IN THE LOTTERY INDUSTRY, THIS TERM HAS NO CONNECTION TO THE INTERNET. Instead, in lottery terms an online game is where tickets are purchased through a network of computer terminals located at retail outlets. The terminals are linked to a central computer that records the wagers. Examples of online games include Pick 3, Kentucky Cash Ball, Mega Millions and Powerball.

Quick pick: A method for playing numbers or online games where players choose to have a computer randomly select their numbers rather than picking the numbers themselves.

Rollover: An event that occurs when an online game jackpot is not won. The jackpot thus "rolls over" to the next drawing, resulting in a higher jackpot for that drawing.

Straight bet: A form of betting on a numbers game where the player attempts to match both the numbers drawn and the order in which they are selected. For example, if the numbers "1,2,3" are selected in a three-digit game, a ticket bearing "1,2,3" will win but a ticket bearing "2,1,3" will not.

Terminal
: A computerized device located at a lottery retailer that is used to sell online games and to validate winning tickets of online and instant games. Terminals are connected to a lottery's central computers by satellite.