How may seal card and coin board games be built, approved, and sold under Nebraska's Pickle Card Lottery Act?

Plain-English summary

Nebraska's charitable-gaming system lets nonprofits run a "lottery by the sale of pickle cards." This ruling (which supersedes Revenue Ruling 35-96-4) tells licensed manufacturers how they may build seal card and coin board games — a pickle-card variant with a shared prize board — so they'll be approved for sale in Nebraska.

Legality and dates. Under the Nebraska Pickle Card Lottery Act, effective July 19, 1996, seal card games are a legal form of lottery by the sale of pickle cards. Effective October 1, 1997, seal card games that include a "last sale" feature are also permissible. These games must meet all the Act's and its regulations' requirements for pickle cards, plus the rules in this ruling.

The pieces (definitions).

• A seal card is a board or placard, used with a pickle card unit, containing concealed numbers, symbols, or letters that correspond to combinations on certain winning pickle cards.
• A coin board is a type of seal card designed to hold U.S. currency or coins, where the coins may conceal an additional cash prize.
• A hold card is the pickle card whose combination matches a manufacturer-set winning combination for a seal or coin prize.
• A last sale feature requires awarding a manufacturer-set cash prize to whoever buys the last pickle card in the unit.

Construction standards (highlights). The pickle cards and the seal card/coin board must follow the Pickle Card Lottery Act and Regulation 35-318 for traditional pickle cards and flare cards. A pickle card can't be both an instant winner and a hold card. Each game uses one board/placard that also serves as the game's flare card, and each unit contains only one seal card. Every hold card must have an equal opportunity of winning. Seals must be built so the concealed information can't be determined in advance — die-cut tabs must be opaque and glued/sealed on all edges; rub-off coverings must be opaque, durable, and free of voids; sewn coverings must be opaque and securely stitched. For coin boards, the manufacturer inserts the coins before shipping, pre-identifies each coin slot, randomizes concealed prize amounts, and secures the coins against "peeking" or removal.

Play features — what's allowed and what isn't.

• "Last sale" games may be approved, but a game that lets the seller choose whether to use the last-sale feature is prohibited, and the last-sale cash prize must be predetermined and fixed.
• Progressive, carry-over, or user-determined prize features are not approved — all winning combinations and amounts must be predetermined by the manufacturer and printed on the board.
• A predetermined "variable option" payout structure (e.g., one $300 seal prize or three $100 prizes) is permissible, as long as the unit's overall definite profit doesn't vary and the pickle cards don't mislead players into thinking only one structure is possible.
• Coin boards may use only U.S. coins or currency of general circulation — no foreign, commemorative, collectible, or uncirculated coins.

Approval. Seal card and coin board games go through the same departmental approval procedures as traditional pickle card and punchboard games; for the required sample material, manufacturers refer to Charitable Gaming Division Procedure 13-19.

What this means for you

A licensed manufacturer marketing seal card or coin board games in Nebraska

Design to these rules before you submit for approval: one board that doubles as the flare card, one seal card per unit, equal winning odds across hold cards, tamper-proof seals, and coins pre-inserted and secured. Keep every prize amount and winning combination predetermined and printed. If you build in a "last sale" feature, make it mandatory (not seller-optional) with a fixed prize, and don't offer progressive or carry-over jackpots. Submit sample material per Charitable Gaming Division Procedure 13-19.

A charitable organization or pickle card operator running these games

Buy only manufacturer-approved games. A game that lets you turn the last-sale feature on or off, or that promises a growing/progressive prize, isn't compliant. Variable-option payout structures are fine if the game was approved that way and the unit's profit is fixed.

Common questions

Q: Are seal card and coin board games legal in Nebraska?
A: Yes. Under the Nebraska Pickle Card Lottery Act (effective July 19, 1996) they're a legal form of lottery by the sale of pickle cards, subject to the Act, its regulations, and this ruling.

Q: Is a "last sale" prize feature allowed?
A: Yes, effective October 1, 1997 — but the manufacturer can't leave it to the seller's option, and the last-sale prize must be a fixed, predetermined amount.

Q: Can these games offer a progressive or growing jackpot?
A: No. Progressive, carry-over, and user-determined prize features aren't approved; all winning amounts must be predetermined and printed on the board. A predetermined variable-option structure is allowed only if the unit's definite profit doesn't vary.

Q: Can a coin board use collectible or foreign coins?
A: No — only U.S. coins or currency of general circulation.

Citations and references

• Nebraska Pickle Card Lottery Act — makes seal card games a legal pickle-card lottery (effective July 19, 1996); last-sale seal card games permissible effective October 1, 1997.
• Pickle Card Regulation 35-318 — the traditional pickle-card and flare-card construction requirements the games must also meet.
• Charitable Gaming Division Procedure 13-19 — the source for the sample material required when seeking approval of a seal card or coin board game.
• Revenue Ruling 35-96-4 — the prior ruling that 35-97-2 supersedes.

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/rr359702.pdf

Original ruling text

Revenue Ruling 35-97-2
Supersedes Revenue Ruling 35-96-4

September 5, 1997

Bingo, Lottery by Pickle Card, Lottery, and Raffle - Construction, approval, and sale of seal card
and coin board games in Nebraska. IN ACCORDANCE WITH THE PROVISIONS CONTAINED
IN THE NEBRASKA PICKLE CARD LOTTERY ACT, EFFECTIVE JULY 19, 1996, SEAL
CARD GAMES ARE A LEGAL FORM OF LOTTERY BY THE SALE OF PICKLE CARDS
IN NEBRASKA. IN ADDITION, EFFECTIVE OCTOBER 1, 1997, SEAL CARD GAMES
WHICH CONTAIN A LAST SALE FEATURE ARE PERMISSIBLE. SEAL CARE GAMES
ARE SUBJECT TO ALL OF THE APPLICABLE REQUIREMENTS AND RESTRICTIONS
CONTAINED IN THE NEBRASKA PICKLE CARD LOTTERY ACT AND ACCOMPANYING
REGULATIONS FOR PICKLE CARD GAMES, AND IN ADDITION ARE SUBJECT TO THE
REQUIREMENTS AND RESTRICTIONS OF THIS REVENUE RULING.
Advice has been requested as to whether certain types of seal card games, and certain features of
some seal card games, are permissible in Nebraska. This Revenue Ruling is intended to provide
guidance for licensed manufacturers, relative to the types of seal card games which will be
acceptable for marketing in Nebraska.
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 or coin board game,
   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. Last sale means a play feature designed into a seal card game by the licensed manufacturer
   which requires the organization or pickle card operator utilizing the game to award a cash
   prize, predetermined by the manufacturer, to the person who purchases the last pickle card
   in the unit of the seal card game.
   II. CONSTRUCTION STANDARDS
5. Seal Card or Coin Board Game Pickle Cards
   a. Pickle cards used in conjunction with a seal card or coin board game shall adhere to
   all of the requirements contained in the Nebraska Pickle Card Lottery Act and Pickle
   Card Regulation 35-318, for traditional pickle cards.

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

Revenue Ruling 35-97-2

September 5, 1997

Page 2 of 4

b. No pickle card used in conjunction with a seal card or coin board shall be both an
instant winner and a “hold card”, affording one the chance to win a seal or coin prize.

2. Seal Card or Coin Board Game Flare Cards
   a. Seal cards and coin boards shall adhere to all of the requirements contained in the
   Nebraska Pickle Card Lottery Act and Pickle Card Regulation 35-318 for flare cards.
   b. No seal card or coin board game may utilize multiple boards or placards. All of the seal
   card or coin board game features (sign up blanks, seals, coins, etc.) must be contained
   on one board or placard, which also functions as the game’s flare card.
   c. Each unit of seal card pickle cards shall contain only one seal card. No unit shall be
   packaged with more than one seal card, with the intention that the user choose one of
   the seal cards to conduct the game.
   d. In designing seal cards, the manufacturer shall ensure that each hold card has an equal
   opportunity of winning a seal card prize.
   e. Seal cards and coin boards shall be constructed so that it is impossible to predetermine
   the covered or concealed numbers, symbols, letters, or any combination thereof, by any
   method or device including, but not limited to the use of markings or of a light, until
   the seal, seals, or coins are physically removed or opened as intended according to the
   rules of the game.
   f. Seal cards which contain die-cut tabs or windows which, when removed or opened,
   reveal numbers, symbols, or letters, shall be:
   i. Virtually opaque;
   ii. Constructed in such a manner as to allow easy opening of the tabs or windows
   while at the same time not permitting such to be opened prematurely in normal
   handling;
   iii. Glued or sealed on all four edges and between each window or tab, with the glue
   being of sufficient strength so as to prevent the separation or delamination of the
   seal card, so that it is impossible to determine the covered or concealed numbers,
   symbols, or letters until appropriately opened or removed at the close of the game;
   and
   iv. Constructed such that if the detachable die-cut tab(s) is the only location on the
   seal card that contains the winning numbers or dollar amount of the seal prize, then
   perforations shall exist on only three edges of the tab(s), with one edge of the tax(s)
   not perforated, so that the tab(s) remains attached to the seal card upon opening.
   g. Manufacturers which utilize a rub-off, or scratchable covering to conceal the numbers,
   symbols, or letters on a seal card shall ensure that the rub-off or scratch-off material:

Revenue Ruling 35-97-2

September 5, 1997

Page 3 of 4

i. Is of a sufficient quality as to be durable in routine handling;
ii. Is not overprinted with the winning numbers or dollar amount of the seal, unless the
amount is also imprinted elsewhere on the seal card itself;
iii. Is a opaque material which fragments without dusting during normal rub-off;
iv. Is smooth and regular to the touch;
v. Completely covers each number, symbol, or letter which is to be concealed;
vi. Is free of voids or scratches which would allow the concealed numbers, symbols,
or letters to be identified with or without magnification; and
vii. Is covered by a protective coating free of voids to resist damage to the rub-off
material in normal handling.
h. Manufacturers which utilize sewn or stitched coverings to conceal the numbers,
symbols, or letters on a seal card shall ensure that the seal covering material is:
i. Completely opaque;
ii. Tightly and securely sewn or stitched on all edges of the seal in such a manner as
to prevent the unauthorized advance lifting or “peeking” of the seal;
iii. Not imprinted with the winning numbers or dollar amount of the seal, unless the
amount is also imprinted elsewhere on the seal card itself.
i. Manufacturers of coin boards must insert the coins into the board prior to shipping such
games to a Nebraska distributor. In addition, manufacturers shall ensure that:
i. Each slot containing a coin is preidentified with a number, letter, or symbol, clearly
visible when the coins are intact, one or more of which corresponds to pickle cards
containing like numbers, letters, or symbols;
ii. Any concealed prize amounts which appear underneath the coins are randomly
distributed in such a manner that the same prize amount does not always appear in
the same location from board to board; and
iii. The coins are sealed or secured in the board by some method to prevent the
unauthorized advance lifting, “peeking”, or removal of the coins.
III. PLAY FEATURES

1. Seal card and coin board games which incorporate a “last sale” feature may be approved
   for sale in Nebraska; however, games which are designed by the manufacturer to offer the
   seller an option of whether or not to utilize the last sale feature are prohibited. In addition,
   the amount of the cash prize to be awarded for purchasing the last pickle card of a seal card
   or coin board game must be predetermined by the manufacturer and cannot vary.

Revenue Ruling 35-97-2

September 5, 1997

Page 4 of 4

2. Seal cards or coin boards which incorporate user-determined, carry-over, or “progressive”
   prize features shall not be approved for sale in Nebraska. All winning combinations and
   winning prize amounts must be predetermined by the manufacturer and imprinted on the
   seal card or coin board.
3. Seal cards or coin boards which incorporate a “variable option” prize structure predetermined
   by the manufacturer (i.e., the seal card offers the licensed organization, pickle card operator,
   or players an option of choosing one of two or more seal prize payout structures, e.g., one
   seal prize at $300, or three seal prizes at $100 each) are permissible provided the overall
   definite profit of the pickle card unit does not vary, and the pickle cards themselves do not
   mislead the players to believe only one prize structure is possible.
4. Coin boards must utilize only United States coins or currency of general circulation. No
   coin board will be approved which utilizes any foreign, commemorative, collectible, or
   uncirculated coins or currency.
   IV. APPROVAL PROCESS
   Seal card and coin board games are subject to the same departmental approval procedures
   as are traditional pickle card and punchboard games. For information regarding the required
   sample material to be submitted when seeking approval of a seal card or coin board game,
   please refer to Charitable Gaming Division Procedure 13-19.
   APPROVED:
   M. Berri Balka
   State Tax Commissioner
   September 5, 1997