A1_West_Virginia_Lottery_Additional_Information.docx

APPENDIX A1

West Virginia Lottery Additional Information Traditional Gaming System Procurement Purpose This Appendix provides additional background information, operational context, technical information, and business requirements intended to assist Vendors in understanding the West Virginia Lottery's Traditional Gaming System environment.

This Appendix is incorporated by reference into the Request for Proposal (RFP). Unless otherwise stated, all information and requirements contained within this Appendix shall be considered part of the Procurement Documents.

1.1 Lottery Overview

The West Virginia Lottery operates as a constitutionally authorized public enterprise whose primary mandate is the generation of revenue for the State of West Virginia through the lawful administration of lottery gaming. Since the commencement of ticket sales in 1986, the Lottery has generated more than $13.7 billion in proceeds distributed to education, senior services, veterans’ initiatives, tourism, infrastructure, and other statutorily designated programs. These proceeds are not discretionary funds; they are embedded within the State’s fiscal planning structure and are relied upon annually in the development of the State budget.

The Traditional Lottery Gaming System serves as the operational backbone of this public enterprise. It is responsible for capturing sales transactions, enforcing game rules, validating prizes, calculating liabilities, settling retailer accounts, generating tax documentation, maintaining audit trails, and supporting regulatory oversight. Unlike many commercial transaction systems, the Traditional Lottery Gaming System must operate within a framework of heightened public scrutiny, statutory compliance, and independent audit review.

In Fiscal Year 2025, Traditional Lottery retail sales totaled approximately $224 million, with Scratch-Off games accounting for approximately $155.6 million of that total. Multi-state draw games, including Powerball® and Mega Millions®, generated significant revenue, particularly during periods of elevated jackpots rollovers. These financial figures underscore the operational importance of maintaining system stability, accuracy, and scalability.

The Lottery’s statewide retail network includes approximately 1,500 licensed retailers operating across diverse geographic and technological environments. From metropolitan retail chains processing high transaction volumes to rural outlets operating in limited-bandwidth areas, the Traditional Gaming System must function reliably across a wide spectrum of operational conditions.

Detailed technical, operational, security, validation, accounting, and compliance requirements referenced throughout this overview are defined in subsequent sections of this RFP and shall govern Vendor obligations.

1.1.1 Statutory Authority

The Lottery derives its authority from constitutional amendment and enabling legislation codified in West Virginia law. This statutory framework grants the Lottery full authority to establish, operate, regulate, and modify lottery games; to license and regulate retailers; to conduct drawings; to validate prizes; to collect and distribute revenue; and to establish internal control standards.

1.1.2 Public Mission and Revenue Impact

Lottery revenue forms a material component of the State’s fiscal structure. In Fiscal Year 2025, total Lottery revenue exceeded $1.296 billion, with more than $611 million transferred to the State. Because these proceeds are integrated into annual appropriations, even temporary revenue disruption can have broader fiscal implications.

The Traditional Lottery Gaming System must therefore operate with an emphasis on:

Revenue volatility associated with jackpot-driven surges introduces additional system stress. During high-profile jackpot events, transaction volumes may increase substantially within compressed timeframes. The system must accommodate these surges without degradation of performance or validation delays.

Operational resilience is inseparable from fiscal responsibility.

1.1.3 Historical Financial Performance

The Lottery’s Traditional sales portfolio has demonstrated sustained performance. across multiple fiscal cycles. Scratch-Off games consistently represent the largest revenue contributor within Traditional operations, providing stable baseline income. Draw-based games introduce both recurring revenue and event-driven spikes, particularly in multi-state jackpot scenarios.

The Vendor must demonstrate capacity planning sufficient to support peak transaction loads at or above 150 percent of historical maximums, while maintaining system responsiveness and validation accuracy.

1.1.4 Current Retail Footprint and Geographic Distribution

The Lottery licenses approximately 1,500 Traditional retailers statewide. These retailers are geographically dispersed across urban centers, suburban corridors, and rural communities.

Connectivity conditions vary significantly across this network. Retailers may operate in environments characterized by:

This variability requires a communications architecture that is adaptable rather than uniform. The Traditional Lottery Gaming System must support:

The system must treat geographic variability as a design assumption rather than an exception condition.

1.1.5 Retailer Types and Volume Segmentation

Retailers differ not only by geography but also by transaction volume and operational profile. The Lottery’s network includes:

High-volume retailers present heightened revenue exposure. A brief outage at such a location can result in measurable revenue loss. These retailers may require:

Low-volume retailers require reliable store-and-forward capabilities that prevent transaction loss during intermittent connectivity disruptions. The system must preserve transactional integrity without introducing reconciliation discrepancies.

Retail segmentation must be configurable within the system, allowing the Lottery to adjust redundancy and monitoring parameters based on operational classification.

1.1.6 Current Game Portfolio

The Lottery’s Traditional game portfolio includes instant and draw-based games, each introducing unique operational requirements. The Central Gaming System must manage these products within a unified framework while accommodating their distinct transactional, financial, and regulatory characteristics.

1.1.6.1 Scratch-Off Games

Scratch-Off games are pre-printed instant win tickets issued in sequential packs and distributed through a centralized warehouse operation. Unlike draw games, the outcome of each ticket is predetermined at the time of manufacture. This structure requires the Central Gaming System to maintain precise alignment between physical inventory and digital system state.

Activation serves as a critical control point. Until a pack is activated within the Central Gaming System, tickets within that pack must not be eligible for validation. Upon activation, the system must immediately reflect the associated prize liability exposure.

The system must also support:

Scratch-Off integrity is inseparable from financial and audit integrity. The system must treat pack lifecycle management as a core financial control mechanism.

1.1.6.2 Daily 3

Daily 3 is a fixed-schedule, in-state draw game offered through licensed retail locations as part of the Traditional Lottery portfolio. The Traditional Lottery Gaming System shall support retail sales, wager type configuration, permutation processing, draw execution, prize validation, liability monitoring, and real-time result dissemination for Daily 3 in accordance with established game rules. These may change at the Lottery’s discretion and additional drawings may be added.

Daily 3 drawings are conducted Monday through Saturday evenings at approximately 6:59 p.m. Eastern Time. Retail sales must cease at approximately 6:49 p.m. Eastern Time. Strict statewide cut-off enforcement is mandatory[AS1.1].

Wager Structure and Number Selection Controls Daily 3 requires players to select three digits, each digit ranging from 0 through 9.

The system must support:

At the point of sale, the system must enforce:

No Daily 3 transaction shall be accepted after the official cut-off time.

Exact Play (Exact Order) An Exact wager wins only if all three selected digits match the drawn numbers in the exact order drawn.

The system must:

Exact match evaluation must be deterministic and auditable.

Any Play (Any Order) An Any wager wins if the three selected digits match the drawn digits in any order.

The system must:

Permutation generation must correctly reflect:

The system must automatically classify the selected digit pattern and calculate payout exposure accordingly.

Boxed Play Classification (3-Way and 6-Way) Daily 3 boxed wagers depend on duplicate digit structure:

The Traditional Gaming System must:

Incorrect permutation classification shall be treated as a critical defect.

Exact/Any Play (Split Payout Logic) Exact/Any is a hybrid wager type with unique payout allocation logic.

If the selected numbers match the draw in exact order:

• The player wins half of the Exact payout and half of the Any payout.

If the selected numbers match in any order but not exact order:

• The player wins half of the boxed payout only.

The system must:

Split payout calculations must be transparent, reproducible, and auditable.

Combo Play Expansion The Combo wager provides an Exact play for all possible ordered permutations of the selected digits on a single ticket.

The system must:

Because Combo wagers increase exposure, liability must incorporate full permutation expansion.

Multi-Draw Tracking Daily 3 supports consecutive draw purchases. The system must:

Multi-draw functionality must align precisely with scheduled draw execution.

Liability Monitoring and Financial Controls The system must calculate projected liability exposure at the moment of sale, accounting for:

Following draw result ingestion, the system must:

Any error in permutation logic, payout scaling, or split allocation shall be treated as a high-severity system defect.

Draw Processing and Real-Time Result Dissemination The system must:

Immediately upon draw certification, the system must:

All result dissemination must be encrypted, timestamped, and logged. Any inconsistency between retail validation and public display shall be treated as a critical integrity incident.

1.1.6.3 Daily 4

Daily 4 is a fixed-schedule, in-state draw game offered through licensed retail locations as part of the Traditional Lottery portfolio. The Traditional Lottery Gaming System shall support retail sales, wager type configuration, permutation processing, draw execution, prize validation, liability monitoring, and real-time result dissemination for Daily 4 in accordance with established game rules.

Daily 4 drawings are conducted Monday through Saturday evenings at approximately 6:59 p.m. Eastern Time. Retail sales must cease at approximately 6:49 p.m. Eastern Time. Strict statewide cut-off enforcement is mandatory.[AS3.1] Wager Structure and Number Selection Controls Daily 4 requires players to select four digits, each digit ranging from 0 through 9. The system must support:

At the point of sale, the system must enforce:

No Daily 4 transaction shall be accepted after the official cut-off time.

Wager Type Processing and Permutation Logic Daily 4 supports multiple wager types, each of which requires specific internal processing logic.

Exact Play (Exact Order) An Exact wager wins only if all four selected digits match the drawn numbers in the exact order drawn.

The system must:

Any Play (Any Order) An Any wager wins if the four selected digits match the drawn digits in any order.

The system must:

The system must correctly handle cases where duplicate digits reduce total possible permutations.

Boxed Play Logic (4-Way, 6-Way, and Similar Types) Certain number combinations result in reduced permutation counts based on duplicate digits.

For example:

The system must:

Permutation logic must be deterministic, reproducible, and auditable.

Exact/Any Play (Split Payout Logic) The Exact/Any wager type combines elements of Exact and Any play and carries unique payout logic.

If the numbers match in exact order:

• The player wins half of the Exact payout and half of the Any payout.

If the numbers match in any order but not exact order:

• The player wins half of the boxed payout only.

The system must:

Partial payout calculation must be transparent and fully logged.

Combo Play Expansion The Combo wager type provides an Exact play for all possible combinations of the selected digits on a single ticket.

The system must:

Because Combo wagers increase exposure significantly, real-time liability calculation must incorporate full permutation expansion.

Multi-Draw Tracking Daily 4 supports consecutive draw purchases. The system must:

Liability Monitoring The system must calculate projected liability exposure at the moment of sale, accounting for:

Following draw result ingestion, the system must:

Any miscalculation in permutation handling or payout scaling shall be treated as a critical system defect.

Draw Processing and Result Dissemination The system must:

Immediately upon draw certification, the system must:

All result transmissions must be encrypted and logged. Any discrepancy between retail validation outcomes and public result display shall be treated as a Severity 1 integrity incident.

1.1.6.4 Cash 25

Cash 25 is an in-state, fixed-jackpot draw game offered through licensed retail locations as part of the Traditional Lottery portfolio. The Traditional Lottery Gaming System shall support retail sales, draw processing, jackpot liability tracking, prize validation, and real-time result dissemination for Cash 25 in accordance with established game rules.

Cash 25 drawings are conducted on Monday, Tuesday, Thursday, and Friday evenings, with retail sales closing at approximately 6:49 p.m. Eastern Time and the drawing occurring at approximately 6:59 p.m. Eastern Time. Strict cut-off enforcement is mandatory.[AS4.1] Wager Structure and Retail Transaction Controls Cash 25 requires players to select:

• Six distinct numbers from a defined field of 1 through 25.

The system must support:

At the point of sale, the system must enforce:

No Cash 25 transaction shall be accepted after the official cut-off time.

Fixed Jackpot Structure and Liability Cap Cash 25 operates under a fixed jackpot model with defined liability thresholds.

For a single drawing:

This structure introduces a controlled jackpot exposure cap of $250,000 per drawing.

The Traditional Lottery Gaming System must therefore support:

All division calculations must be precise, reproducible, and auditable.

Winner Count Threshold Logic Upon ingestion of certified draw results, the system must:

When equal division is required:

Because payout logic changes based on winner count, the system must clearly record the threshold trigger event for audit purposes.

Liability Monitoring and Projection The system must calculate projected jackpot liability exposure in real time at the moment of sale.

Liability projection must include:

Following draw processing, the system must:

Because Cash 25 operates on multiple weekly draw days, liability tracking must clearly distinguish between draw IDs and associated sales windows.

Draw Processing and Cut-Off Enforcement The system must:

Draw execution, result ingestion, and payout calculation must occur without latency that would impact subsequent reporting cycles.

Real-Time Result Dissemination Immediately upon certification of each Cash 25 draw, the Traditional Lottery Gaming System must:

Result dissemination must:

Any discrepancy between retail validation outcomes and publicly displayed results shall be treated as a critical integrity incident.

Multi-Draw Tracking Cash 25 supports consecutive draw purchases. The system must:

1.1.6.5 Keno Go

Keno Go is a high-frequency, retail-only draw game conducted continuously throughout the day. Unlike fixed-schedule jackpot games, Keno Go operates on an automated three-minute draw cycle, seven days per week, from approximately 5:01 a.m. through 3:46 a.m. Eastern Time. The Traditional Lottery Gaming System shall support the exclusive retail sale, draw processing, validation, bonus application, liability monitoring, and real-time result dissemination of Keno Go.

Because of its frequency and continuous operation, Keno Go imposes elevated architectural, performance, and synchronization requirements on the Central Gaming System.

High-Frequency Draw Architecture A new Keno Go drawing occurs approximately every three minutes. The system must therefore support:

For each draw cycle, the Lottery’s secured and certified Random Number Generator (RNG) shall generate twenty (20) winning numbers from a defined pool of eighty (80) numbers.

The Traditional Gaming System must:

Because draw cycles occur every three minutes, the system must process draw events without queuing delays that could impact subsequent cycles.

Wager Structure and Spot Selection Controls Keno Go allows players to select:

The system must enforce:

Total wager must be calculated as:

Wager Amount × Number of Consecutive Draws (with Bonus selection doubling the total wager amount).

All calculations must be transparent and auditable.

Consecutive Draw Tracking Keno Go supports purchase of consecutive drawings. The system must:

Given the rapid draw cadence, the system must ensure precise alignment between purchased draw cycles and executed draw events.

Keno Go Bonus Feature Keno Go includes an optional Bonus feature that increases prize payouts. The Bonus costs an additional amount equal to the base wager, effectively doubling the wager amount when selected.

For each draw cycle:

The Traditional Gaming System must:

Bonus configuration must be version-controlled and accessible only to authorized administrative roles.

Prize Validation and Rolling Liability Monitoring Following each draw:

Because Keno Go operates nearly continuously, the system must support rolling liability management, including:

Latency in validation processing is unacceptable due to the rapid draw frequency.

Real-Time Result Dissemination Requirements Given the three-minute draw cycle, the Traditional Lottery Gaming System must provide secure, real-time result feeds to authorized downstream systems, including:

Immediately upon certification of each draw, the system must:

The following controls are mandatory:

Latency Control

Single Source of Truth

Data Integrity

Failure Handling

Any discrepancy between:

shall be treated as a critical integrity incident.

Performance and Monitoring Requirements Because of continuous operation and high transaction concurrency, the system must:

A delay that impacts scheduled draw cycles shall be treated as a Severity 1 operational incident.

1.1.6.6 CA$H POP™

CA$H POP™ is a high-frequency, retail-only draw game designed around rapid draw cycles and variable wager structures. The Traditional Lottery Gaming System shall support the exclusive retail sale, draw execution, wager calculation, validation, liability tracking, and real-time result dissemination of CA$H POP™.

CA$H POP introduces dynamic wager multiplication logic that directly affects transaction processing and liability exposure. The system must enforce these calculations with precision and full audit transparency.

Draw Structure and Frequency CA$H POP drawings occur multiple times per hour, with players permitted to purchase consecutive draws (up to eight draws per play slip, representing approximately two hours of continuous participation).

For each draw:

The Traditional Gaming System must:

Because draw cycles occur frequently, performance bottlenecks must not delay subsequent draws.

Wager Structure and Cost Calculation Logic CA$H POP allows players to:

The system must calculate total ticket cost as:

Wager Amount × Number of Numbers Selected × Number of Draws For example:

The Traditional Gaming System must enforce:

All cost calculations must be logged and auditable.

Cover All Functionality The “Cover All” option allows a player to select all fifteen numbers in a single draw. Because one number will always be drawn, Cover All guarantees a winning outcome for that draw.

This feature introduces guaranteed payout logic that must be handled precisely by the system.

The system must:

Because Cover All guarantees a win, liability must be fully reflected in real time at transaction capture.

Consecutive Draw Management CA$H POP allows up to eight consecutive drawings per play slip. The system must:

The system must ensure precise alignment between purchased draw count and executed draw cycles.

Prize Validation and Liability Tracking Following each draw:

Because CA$H POP permits selection of multiple numbers per draw and potentially high wager multipliers, liability exposure can escalate rapidly. The system must support:

Any discrepancy in payout calculation shall be treated as a critical system defect.

Real-Time Result Dissemination Given the compressed draw schedule, the Traditional Gaming System must provide real-time result feeds to authorized downstream systems, including:

Upon certification of each draw result, the system must:

Result dissemination must meet the following requirements:

Any mismatch between retail validation outcomes and publicly displayed results shall be considered a Severity 1 integrity incident.

Performance and Monitoring Requirements Because CA$H POP operates on a frequent draw schedule and permits wager multiplication, the system must:

Performance degradation impacting scheduled draw cycles is unacceptable.

1.1.6.7 Lotto America®

Lotto America® is a multi-state jackpot draw game administered through the Multi-State Lottery Association (MUSL). Although presented to players as a simple five-number plus Star Ball selection game, Lotto America introduces layered operational, financial, and compliance requirements that must be fully supported by the Traditional Lottery Gaming System.

The game requires players to select:

Each base play carries a defined wager amount. Players may optionally select the All Star Bonus feature for an additional cost per play, which increases non-jackpot prizes by a multiplier (2X, 3X, 4X, or 5X) as determined for that specific draw. The jackpot prize itself is not eligible for multiplier enhancement.

The Central Gaming System must therefore support both base play and multiplier-based prize augmentation within the same transactional framework.

Wager Processing and Game Configuration The system must support:

The system must enforce game rules at the point of sale, including:

Because Lotto America tickets cannot be cancelled after issuance, the system must treat completed transactions as final and irrevocable. Cancellation logic must be disabled at the system level for this product, and audit logs must clearly record finalization timestamps.

Sales Cut-Off and Draw Integrity Controls Lotto America drawings occur on defined days (currently Monday, Wednesday, and Saturday). The system must:

Following draw execution, the system must securely ingest certified draw results from MUSL and:

The system must ensure that multiplier logic applies exclusively to non-jackpot prize tiers and that jackpot prize validation bypasses multiplier enhancement as required by game rules.

All Star Bonus Operational Implications The All Star Bonus feature introduces additional configuration and audit requirements. For each draw, a multiplier value must be assigned and securely distributed.

The system must:

Because multiplier values influence prize payouts and financial exposure, the system must provide transparent reporting of:

Configuration of the All Star Bonus option must be version-controlled and modifiable only through authorized administrative roles with full audit logging.

Multi-Draw and Auto-Renew Considerations Lotto America supports multi-draw purchases for consecutive drawing periods. The system must:

While auto-renew functionality is primarily associated with digital channels, the Central Gaming System must support the transactional architecture necessary to:

Financial and Liability Management The system must support real-time liability monitoring for:

At the moment of sale, the system must update projected liability exposure based on:

Following result ingestion, the system must:

Compliance and Multi-State Coordination As a MUSL-administered game, Lotto America requires strict adherence to national association rules. The system must support:

All Lotto America transactions, draw results, multiplier assignments, prize calculations, and settlement entries must be fully auditable and reconstructible.

1.1.6.8 Mega Millions®

Mega Millions® is a multi-state jackpot draw game administered pursuant to national game rules and coordinated among participating jurisdictions. Within West Virginia, Mega Millions is offered through licensed retail locations as part of the Traditional Lottery portfolio. While online sales may be offered through the Lottery’s separate iLottery platform, the Traditional Lottery Gaming System supports retail sales and retail validation only.

Mega Millions drawings are conducted on Tuesday and Friday evenings at approximately 11:00 p.m. Eastern Time. Retail ticket sales must cease at the nationally mandated cut-off time (currently 9:59 p.m. Eastern Time on draw days). The Central Gaming System must enforce these cut-off times statewide with timestamp precision and without exception.

Wager Structure and Retail Transaction Controls Mega Millions requires players to select:

Each play carries a fixed base price, and each play automatically includes a randomly assigned multiplier (Megaplier) applicable to non-jackpot prize tiers.

The Traditional Lottery Gaming System must support retail transaction processing for:

Because Mega Millions retail tickets cannot be voided after issuance, the system must treat completed retail transactions as final. Cancellation or reversal functionality for this product must be disabled at the system level. Finalization timestamps must be recorded in immutable logs for audit purposes.

At the point of sale, the system must validate:

No transaction may be accepted after the official draw cut-off time.

Multiplier (Megaplier) Architecture and Controls Each Mega Millions play is assigned a random multiplier applicable to non-jackpot prize tiers. Multiplier values may include 2X, 3X, 4X, 5X, and 10X, subject to national game rules.

Although the multiplier is marketed as a player-facing feature, it represents a significant processing and liability component within the Central Gaming System.

The system must:

Because multiplier logic affects prize payout exposure, the system must provide reporting that allows the Lottery to monitor:

All multiplier configurations must be version-controlled and accessible only through authorized administrative roles with full audit logging.

Sales Cut-Off Enforcement and Draw Lockdown Mega Millions operates under strict multi-state sales and draw lockdown protocols. The Central Gaming System must:

Upon receipt of certified draw results from national authorities, the system must:

Jackpot Governance and Payment Structure Mega Millions jackpot winners are afforded the option to elect either:

Although final…