What rules of play govern selling and conducting seal card games in Nebraska?

Plain-English summary

When Nebraska legalized seal card games in 1996, the Department issued this ruling as the operating rulebook for the businesses that distribute, sell, and conduct them. (A companion ruling on how manufacturers must build these games is Revenue Ruling 35-97-2; this one governs play and conduct.)

Legal basis. Under LB 1277, effective July 19, 1996, seal card games became a legal form of lottery by the sale of pickle cards. They're subject to all the game-conduct requirements of the Nebraska Pickle Card Lottery Act and its regulations that apply to traditional pickle card games, unless this ruling provides otherwise, plus the rules here.

The pieces. A seal card is a board/placard used with a pickle card unit holding concealed winning combinations; a coin board is a seal card built to hold U.S. currency or coins; a hold card is the pickle card whose combination matches a winning seal or coin prize; the Rules of Play are issued by the Department's Charitable Gaming Division; and a seller is a licensed organization or pickle card operator selling the game to the public.

Distributor duties. Until October 1, 1996, each licensed distributor had to place a copy of this ruling and the Rules of Play inside each game box (on paper no smaller than 8½"×11", type no smaller than 12 point). Each unit must contain only one seal card, and the distributor applies a state identification stamp to the face of each seal card (or the back, if a face stamp would obscure game or serial information).

Seller posting and security. A seller must conspicuously post the Rules of Play where games are played, and keep the seal card visible but not physically accessible to the public. If a seller's house rule requires pickle cards to be opened on premises, it must be modified: a player holding a hold card may leave before the seals are opened, provided they legibly print their name and phone number on the seal card so they can be contacted if they win.

Selling requirements. Sellers may not commingle units — only one seal card game of a given form number may be in play at a time, and a second unit of that form number can't start until the prior game's last pickle card is sold and its seals opened. Registered coin/currency dispensing devices may be used if the last card is detectable without opening the device. For "variable option" games, the seller must decide the payout structure before selling the first card by boldly circling the prize seals to be awarded and marking an "X" over those that won't be. Seals with a sign-up feature aren't removed until the last card is sold; the seller then prints the date the seals were opened.

After the game closes. Once the seals are opened, the seller posts the seal card until all winning hold cards are redeemed or for 30 days, whichever comes first, making every reasonable effort to contact winners and awarding a seal prize only on presentation of the matching hold card. Unclaimed seal prizes revert to the licensed organization (a pickle card operator writes the organization a check within 30 days; a licensed organization retains the funds in its pickle card checking account for a lawful purpose). The seller is liable for the full amount of any prize for which it can't produce a valid winning hold card, and must deface and keep all redeemed hold cards attached to the seal card for at least one year, available for Department inspection.

What this means for you

A pickle card operator or licensed organization selling seal card games

Treat this as your checklist. Post the Rules of Play, secure the seal card, run one game per form number at a time, and lock in variable-option payouts before the first sale. Let hold-card players leave (with their contact info on the card), and after opening the seals keep the card posted up to 30 days while you pay out only against presented hold cards. Return unclaimed prizes to the organization, and keep the seal cards and redeemed hold cards on file for at least a year.

A distributor supplying the games

Your window mattered up front: through October 1, 1996 you had to box the ruling and Rules of Play with each game. Ongoing, ensure one seal card per unit and apply the state identification stamp without obscuring the game or serial information.

Common questions

Q: Can a player take a "hold card" home before the seals are opened?
A: Yes, if the seller's house rules are modified to allow it and the player legibly prints their name and phone number on the seal card so they can be contacted if they win.

Q: How long must the seal card stay posted after the last card is sold?
A: Until all winning hold cards are redeemed and all seal prizes awarded, or 30 days from opening the last seal, whichever comes first.

Q: What happens to unclaimed seal prizes?
A: They revert to the licensed organization — a pickle card operator writes the organization a check within 30 days; a licensed organization keeps the funds in its pickle card checking account for a lawful purpose.

Q: How long must records be kept?
A: Redeemed hold cards, defaced and attached to the seal card, must be retained at least one year and be available for Department inspection.

Citations and references

• LB 1277 (effective July 19, 1996) — made seal card games a legal form of lottery by the sale of pickle cards.
• Nebraska Pickle Card Lottery Act and accompanying regulations — the traditional pickle-card game-conduct requirements the games must also follow.
• Rules of Play (Charitable Gaming Division) — the Department-issued rules sellers must post and follow.
• Revenue Ruling 35-97-2 — the companion ruling on manufacturer construction and approval of seal card and coin board games.

Source

• Landing page: https://revenue.nebraska.gov/about/legal-information/revenue-rulings-issued-tax-commissioner
• Original PDF: https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/legal/rulings/rr359605.pdf

Original ruling text

Revenue Ruling 35-96-5
August 14, 1996
Bingo, Lottery by Pickle Card, Lottery, and Raffle - Rules of Play for seal card games in
Nebraska. IN ACCORDANCE WITH THE PROVISIONS CONTAINED IN LB 1277,
EFFECTIVE JULY 19, 1996, SEAL CARD GAMES BECAME A LEGAL FORM OF
LOTTERY BY THE SALE OF PICKLE CARDS IN NEBRASKA. SEAL CARD GAMES ARE
SUBJECT TO ALL OF THE GAME CONDUCT REQUIREMENTS AND RESTRICTIONS
CONTAINED IN THE NEBRASKA PICKLE CARD LOTTERY ACT AND ACCOMPANYING
REGULATIONS WHICH APPLY TO TRADITIONAL PICKLE CARD GAMES, UNLESS
OTHERWISE PROVIDED BY THIS RULING, AND IN ADDITION ARE SUBJECT TO THE
REQUIREMENTS AND RESTRICTIONS OF THIS REVENUE RULING.
Advice has been requested regarding the proper method of play for seal card games. This revenue
ruling is intended to advise and assist licensed organizations and pickle card operators relative to
the rules of play to which they must adhere, in providing seal card games for play by the public.
I. DEFINITIONS

1. Seal card means a board or placard used in conjunction with a pickle card unit, that contains
   one or more concealed numbers, symbols, letters, or a combination thereof. The concealed
   numbers, symbols, or letters correspond to combinations appearing on one or more pickle
   cards predetermined by the manufacturer as combinations eligible for a seal prize.
2. Coin board means a type of seal card used in conjunction with a pickle card unit, which is
   designed to hold U.S. currency or coins. The coins on a coin board may conceal underneath,
   an additional cash prize amount to be awarded.
3. Hold card means a pickle card used in conjunction with a seal card, which has a combination
   of numbers, letters, or other symbols that match a combination predetermined by the
   manufacturer as a combination eligible for a seal or coin prize.
4. Rules of Play means the rules developed by the Charitable Gaming Division of the
   Nebraska Department of Revenue, to govern seal card game play.
5. Seller means a licensed organization or pickle card operator selling seal card game pickle
   cards to the public.
   II. DISTRIBUTOR RESPONSIBILITIES AND REQUIREMENTS
6. Until October 1, 1996, each licensed distributor shall place inside each box of pickle cards
   which comprise a seal card game, a copy of this revenue ruling along with a copy of the
   Rules of Play adopted by the Department.
   a. Copies of this revenue ruling and the Rules of Play are available from the Department.
   However, if the Rules of Play are duplicated by the distributor, such shall not be

Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Nebraska 68509-4818

Revenue Ruling 35-96-5

August 14, 1996

Page 2 of 4

provided on smaller than standard 8½” by 11” paper, with the printed type being not
smaller than standard 12 point.

2. The licensed distributor shall ensure that each unit of pickle cards comprising a seal card
   unit, contains only one seal card.
3. The licensed distributor shall place a state identification stamp on the face side of each seal
   card sold for use in Nebraska; however, if such placement would conceal pertinent game
   or serial number information, or impair the playing of the game, the distributor may place
   the identification stamp on the back or reverse side of the seal card.
   III. SELLER OF SEAL CARD GAMES - POSTING REQUIREMENTS
4. Each seller utilizing a seal card game shall conspicuously post on its premises where the
   games are played, a copy of the Rules of Play issued by the Department.
   a. The Rules of Play must be posted in such a manner so as to be easily read by players of
   the seal card game.
5. Any seller utilizing a seal card game whereby the seal(s) of the game are not to be removed
   until the last pickle card in the game is sold, and who have established and posted a house
   rule requiring that all pickle cards must be opened on the premises and cannot be removed
   from the premises, must modify its house rules in the following manner: Any play
   possessing a “hold card” must be permitted to leave the premises with such pickle card,
   if the seal(s) for the game which he or she is playing have not been opened or removed
   and he or she wishes to leave the premises before the seal(s) are opened or removed;
   HOWEVER:
   a. A player with a hold card who wishes to leave the premises prior to the opening of the
   seal(s), must legibly print his or her name and telephone number on the appropriate
   blank of the appropriate seal card, to enable him or her to be contacted in the event they
   are a seal winner.
6. In order to ensure the security and integrity of the game, a seller must post the seal card in
   a secure location on the premises so that it is visible but not physically accessible to the
   public.
   IV. SELLER REQUIREMENTS FOR SELLING SEAL CARD GAME PICKLE CARDS
   TO THE PUBLIC
7. The commingling of two or more units of seal card pickle cards is prohibited. However, a
   seller may offer more than one seal card game simultaneously, provided the games are of a
   different form number. In addition:
   a. Only one seal card game of a particular form number may be placed in play at a time.

Revenue Ruling 35-96-5

August 14, 1996

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No seller shall place a second unit of seal card pickle cards, with the same form number,
in play until the last pickle card of the previous game has been sold and the seal(s) have
been appropriately opened or removed.

2. Sellers may utilize a properly registered coin- or currency-operated pickle card dispensing
   device to sell seal card pickle cards provided:
   a. The device is designed so that the pickle cards within the device are visible and a
   determination can be made as to when the last pickle card of the game is sold, without
   having to open the device; and
   b. A second game of the same form number is not added to the device until the last pickle
   card from the first or prior game is sold and the game’s seal(s) have been appropriately
   opened or removed.
3. Sellers utilizing “variable option” payout seal card games, where the seller chooses one of
   two or more optional prize payout structures, must determine which prize payout structure
   they will award prior to the selling of the first pickle card for the game. To accomplish this,
   the seller must do the following to the seal card itself:
   a. Boldly circle the prize seal(s) to be awarded; and
   b. Boldly place a permanent “X” over the prize seal(s) which are not to be awarded.
4. The seals of a seal card game which incorporate a sign-up feature shall not be removed
   prior to the selling of the last pickle card in the game. The seller shall adequately monitor
   the security of the seal card, to ensure that no one tampers with, opens, or removes the
   seal(s) prior to the last pickle card of the game being sold.
   a. Upon the selling of the last pickle card and the opening or removing of the seal(s), the
   seller shall clearly and legibly print on the seal card itself, the month, day, and year the
   last seal(s) were opened or removed.
5. Once the seal(s) have been opened or removed, the seller must visibly post the seal card
   on the premises in such a manner that players can readily view the seal card. The seal card
   must remain posted until all of the winning hold card cards have been redeemed and all of
   the seal prizes have been awarded, or for 30 days from the date of the opening or removing
   of the last seal, whichever comes first. In addition:
   a. The seller shall make every reasonable effort to contact alls seal winners;
   b. The seller cannot award a seal prize unless and until the appropriate hold card has been
   presented; and
   c. At the end of the 30-day period, the seal card game shall be deemed closed, and any
   remaining seal prize(s) shall be considered unclaimed.

Revenue Ruling 35-96-5

August 14, 1996

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V. SELLER HANDLING OF UNCLAIMED SEAL PRIZES AND RECORD KEEPING
REQUIREMENTS

1. Seal prizes which have not been claimed within the 30-day period specified above shall
   revert to the licensed organization on whose behalf the seal card game was sold. Unclaimed
   seal prizes shall be handled in the following manner:
   a. In the case of a pickle card operator, the operator shall write a check to the licensed
   organization for the amount of any unclaimed seal prizes, within 30 days of the close
   of the game. The close of the game shall be 30 days from the date the last pickle card
   for the game was sold and the seal(s) were appropriately opened or removed.
   i. Such check must be drawn on the business account of the pickle card operator or a
   personal account of an owner, partner, or officer of the pickle card operator, and the
   licensed organization shall deposit such check in its pickle card checking account,
   to be utilized for a lawful purpose.
   b. In the case of a licensed organization selling a seal card game at its designated premises
   or bingo occasion, unclaimed seal prizes shall be retained in the organization’s pickle
   card checking account until utilized for a lawful purpose.
2. The seller shall be liable for returning to the licensed organization, or retaining in the
   licensed organization’s pickle card checking account, as applicable, the full amount of any
   seal prizes for which the seller cannot produce a valid winning hold card.
3. The seller must deface and retain all redeemed hold cards, and securely attach them to the
   appropriate seal card for record keeping purposes. The seller must retain all such seal cards
   and hold cards for a period of not less than one year from the closing of the game. Such
   materials must be readily available for inspection upon request by authorized Department
   personnel.
   a. A licensed organization shall retain these materials either at its designated premises or
   at its principal office.
   b. A pickle card operator shall retain these materials in a secure location either at its
   pickle card operator location or at another location provided the information is readily
   available upon request by authorized Department personnel.
   APPROVED:
   M. Berri Balka
   State Tax Commissioner
   August 14, 1996