Peters v. Ohio State Lottery Commission (63 Ohio St. 3d 296, 1992)

Alice Robie Resnick, J.

Appellants advance several arguments in support of their position that they are entitled to the unclaimed prize money from the drawings for which they selected the winning numbers. Additionally, appellants assert that the Court of Claims erred when it allowed into evidence certain computer records over their hearsay objection. In its cross-appeal, the lottery commission renews its argument that the Court of Claims should have disqualified appellants’ counsel. We shall address these issues seriatim.

I

Appellants contend that the terms of a contract for the sale of a lottery ticket between the State Lottery Commission and its customer consist of those terms that appear on the face of the subject lottery ticket. Appellants also argue that the lottery commission violated the Consumer Sales Practices Act (R.C. Chapter 1345) by failing to disclose in its promotional material a limitation on the manner in which jackpot money would be distributed. Appellants also assert that the lottery commission did not notify its customers of any rules or regulations that might reduce the jackpot awards by a portion thereof being kept as an “unclaimed prize.”

A common theme permeates appellants’ assertions as set forth above. Each argument relies on the lack of adequate notice of the lottery’s rules and regulations to support the contention that the appellants are entitled to the unclaimed portion of the drawings wherein they selected the winning numbers. In support of their contract theory, appellants argue that the rules contained on the ticket and betting card do not indicate any limit on the jackpot award. Similarly, as to the consumer fraud claim, appellants posit that none of the lottery advertisements contains adequate and proper notice of how the lottery’s rules dictate the manner in which unclaimed prizes are to be handled. However, appellants mistakenly contend that the rules and regulations of the lottery commission alone control the distribution of any unclaimed prize money.

R.C. 3770.07 provides statutory authority which determines the manner in which prize money is awarded, how unclaimed prize money is disbursed, and where these funds are to be deposited. R.C. 3770.07 states in part:

“(A) Lottery prize awards shall be claimed by the holder of the winning lottery ticket, * * * within one year of the date on which such prize award was announced. Except as otherwise provided in division (B) of this section, if no valid claim to the prize award is made within the prescribed period, the prize money * * * shall be returned to the state lottery fund and distributed in accordance with section 3770.06 of the Revised Code.

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