Bill Text: IL SB1955 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Lottery Law. Allows the Illinois Lottery to offer Lucky Day Lotto, My3, Pick 3, and Pick 4 games through the Internet pilot program. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Passed) 2013-12-31 - Public Act . . . . . . . . . 98-0616 [SB1955 Detail]

Download: Illinois-2013-SB1955-Amended.html

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Sen. Terry Link

Filed: 4/8/2013

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AMENDMENT TO SENATE BILL 1955
AMENDMENT NO. ______. Amend Senate Bill 1955 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Lottery Law is amended by changing
Sections 3 and 7.12 as follows:
(20 ILCS 1605/3) (from Ch. 120, par. 1153)
Sec. 3. For the purposes of this Act:
a. "Lottery" or "State Lottery" means the lottery or
lotteries established and operated pursuant to this Act.
b. "Board" means the Lottery Control Board created by this
Act.
c. "Department" means the Department of the Lottery.
d. (Blank).
e. "Chairman" means the Chairman of the Lottery Control
Board.
f. "Multi-state game directors" means such persons,

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including the Superintendent, as may be designated by an
agreement between the Department and one or more additional
lotteries operated under the laws of another state or states.
g. (Blank).
h. "Superintendent" means the Superintendent of the
Department of the Lottery.
i. "Management agreement" means an agreement or contract
between the Department on behalf of the State with a private
manager, as an independent contractor, whereby the private
manager provides management services to the Lottery in exchange
for compensation that may consist of, among other things, a fee
for services and a performance-based bonus of no more than 5%
of Lottery profits so long as the Department continues to
exercise actual control over all significant business
decisions made by the private manager as set forth in Section
9.1.
j. "Person" means any individual, firm, association, joint
venture, partnership, estate, trust, syndicate, fiduciary,
corporation, or other legal entity, group, or combination.
k. "Private manager" means a person that provides
management services to the Lottery on behalf of the Department
under a management agreement.
l. "Profits" means total revenues accruing from the sale of
lottery tickets or shares and related proceeds minus (1) the
payment of prizes and retailer bonuses and (2) the payment of
costs incurred in the operation and administration of the

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lottery, excluding costs of services directly rendered by a
private manager.
m. "Chief Procurement Officer" means the Chief Procurement
Officer provided for under paragraph (4) of subsection (a) of
Section 10-20 of the Illinois Procurement Code.
n. "Draw-based games" means games where a series of numbers
or characters are determined to be the winning numbers or
characters by a mechanical or computerized random number
generator at a drawing time specified by the Department.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
eff. 12-23-09; 97-464, eff. 8-19-11.)
(20 ILCS 1605/7.12)
Sec. 7.12. Internet pilot program.
(a) The General Assembly finds that:
(1) the consumer market in Illinois has changed since
the creation of the Illinois State Lottery in 1974;
(2) the Internet has become an integral part of
everyday life for a significant number of Illinois
residents not only in regards to their professional life,
but also in regards to personal business and communication;
and
(3) the current practices of selling lottery tickets
does not appeal to the new form of market participants who
prefer to make purchases on the Internet at their own
convenience.

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It is the intent of the General Assembly to create an
Internet pilot program for the sale of lottery tickets to
capture this new form of market participant.
(b) The Department shall create a pilot program that allows
an individual 18 years of age or older to purchase lottery
tickets or shares on the Internet without using a Lottery
retailer with on-line status, as those terms are defined by
rule. The Department shall restrict the sale of lottery tickets
on the Internet to transactions initiated and received or
otherwise made exclusively within the State of Illinois. The
Department shall adopt rules necessary for the administration
of this program. These rules shall include, among other things,
requirements for marketing of the Lottery to infrequent
players, as well as limitations on the purchases that may be
made through any one individual's lottery account. The
provisions of this Act and the rules adopted under this Act
shall apply to the sale of lottery tickets or shares under this
program.
Before beginning the pilot program, the Department of the
Lottery must submit a request to the United States Department
of Justice for review of the State's plan to implement a pilot
program for the sale of lottery tickets on the Internet and its
propriety under federal law. The Department shall implement the
Internet pilot program only if the Department of Justice does
not object to the implementation of the program within a
reasonable period of time after its review.

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The Department is obligated to implement the pilot program
set forth in this Section and Sections 7.15 and 7.16 only at
such time, and to such extent, that the Department of Justice
does not object to the implementation of the program within a
reasonable period of time after its review. While the Illinois
Lottery may only offer Lotto, Mega Millions, and Powerball
games through the pilot program, the Department shall request
review from the federal Department of Justice for the Illinois
Lottery to sell lottery tickets on the Internet on behalf of
the State of Illinois that are not limited to just these games.
After the study of the Internet Lottery Study Committee is
delivered to the Governor, President of the Senate, Minority
Leader of the Senate, Speaker of the House of Representatives,
Minority Leader of the House of Representatives, and each of
the members of the Study Committee in accordance with
subsection (c) of this Section, the Illinois Lottery may offer
additional draw-based games through the pilot program.
The Department shall authorize the private manager to
implement and administer the program pursuant to the management
agreement entered into under Section 9.1 and in a manner
consistent with the provisions of this Section. If a private
manager has not been selected pursuant to Section 9.1 at the
time the Department is obligated to implement the pilot
program, then the Department shall not proceed with the pilot
program until after the selection of the private manager, at
which time the Department shall authorize the private manager

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to implement and administer the program pursuant to the
management agreement entered into under Section 9.1 and in a
manner consistent with the provisions of this Section.
The pilot program shall last for not less than 36 months,
but not more than 48 months from the date of its initial
operation.
Nothing in this Section shall be construed as prohibiting
the Department from implementing and operating a website portal
whereby individuals who are 18 years of age or older with an
Illinois mailing address may apply to purchase lottery tickets
via subscription. Nothing in this Section shall also be
construed as prohibiting the sale of Lotto, Mega Millions, and
Powerball and other draw-based games by a lottery licensee
pursuant to the Department's rules.
(c) There is created the Internet Lottery Study Committee
as an advisory body within the Department. The Department shall
conduct a study to determine the impact of the Internet pilot
program on lottery licensees. The Department shall also
determine the feasibility of the sale of stored value cards by
lottery licensees as a non-exclusive option for use by
individuals 18 years of age or older who purchase tickets for
authorized lottery games in the Internet pilot program. For the
purposes of this study, it is anticipated that the stored value
cards will have, but need not be limited to, the following
characteristics: (1) the cards will be available only to
individuals 18 years of age and older; (2) the cards will be

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rechargeable, closed-loop cards that can only be loaded with
cash; (3) the cards will have unique identifying numbers to be
used for on-line play; (4) the cards will have on-line play
subtracted from the card's value; (5) the cards may have
on-line winnings added to them; (6) the cards will be used at
Lottery retailers to cash out winnings of up to $600; and (7)
the cards will meet all technological, programming, and
security requirements mandated by the Department and the
governing bodies of both Mega Millions and Powerball.
To the fullest extent possible, but subject to available
resources, the Department shall ensure that the study evaluates
and analyzes at least the following issues:
(1) economic benefits to the State from Internet
Lottery sales from stored value cards and from resulting
sales taxes;
(2) economic benefits to local governments from sales
taxes generated from Internet Lottery sales through stored
value cards;
(3) economic benefits to Lottery retailers from
Internet Lottery sales and from ancillary retail product
sales in connection with the same;
(4) enhanced player age verification from face-to-face
interaction;
(5) enhanced control of gambling addiction from
face-to-face interaction;
(6) elimination of credit card overspending through

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the use of stored value cards and resulting reduced debt
issues;
(7) the feasibility of the utilization of existing
Lottery machines to dispense stored value cards;
(8) the technological, programming, and security
requirements to make stored value cards an appropriate
sales alternative; and
(9) the cost and project time estimates for
implementation, including adaptation of existing Lottery
machines, programming, and technology enhancements and
impact to operations.
The Study Committee shall consist of the Superintendent or
his or her designee; the chief executive officer of the
Lottery's private manager or his or her designee; a
representative appointed by the Governor's Office; 2
representatives of the lottery licensee community appointed by
the Superintendent; one representative of a statewide
association representing food retailers appointed by the
Superintendent; and one representative of a statewide
association representing retail merchants appointed by the
Superintendent.
Members of the Study Committee shall be appointed within 30
days after the effective date of this amendatory Act of the
97th General Assembly. No later than 6 months after the
effective date of this amendatory Act of the 97th General
Assembly, the Department shall provide to the members of the

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Study Committee the proposed findings and recommendations of
the study in order to solicit input from the Study Committee.
Within 30 calendar days thereafter, the Study Committee shall
convene a meeting of the members to discuss the proposed
findings and recommendations of the study. No later than 15
calendar days after meeting, the Study Committee shall submit
to the Department any written changes, additions, or
corrections the Study Committee wishes the Department to make
to the study. The Department shall consider the propriety of
and respond to each change, addition, or correction offered by
the Study Committee in the study. The Department shall also set
forth any such change, addition, or correction offered by
members of the Study Committee and the Department's responses
thereto in the appendix to the study. No later than 15 calendar
days after receiving the changes, additions, or corrections
offered by the Study Committee, the Department shall deliver
copies of the final study and appendices, if any, to the
Governor, President of the Senate, Minority Leader of the
Senate, Speaker of the House of Representatives, Minority
Leader of the House of Representatives, and each of the members
of the Study Committee.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
eff. 12-23-09; 97-464, eff. 10-15-11; 97-1121, eff.
8-27-12.)".