Bill Text: IL SB2147 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Lottery Law. Removes language providing that the Department of the Lottery shall publish each January in the Illinois Register a list of all game-specific rules, play instructions, directives, operations manuals, brochures, or other game-specific publications issued by the Department during the previous year and instructions concerning how the public may obtain copies of these materials from the Department. Removes provisions regarding the private manager. Provides that the Department shall make an effort to more directly inform players of the odds of winning prizes by publishing the information for all games on the Department's public website. Removes language providing that the effort to more directly inform players of the odds of winning prizes shall include the Department requiring all ticket agents to display a placard stating the odds of winning for each game offered by that agent. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than to all players through sales agents licensed to sell game tickets or shares). Removes language providing that moneys in the Department's account shall be deposited by the Department into the Public Treasurers' Investment Pool. Removes language providing that moneys from the Department's account may not be used to pay amounts to deferred prize winners. Allows the State Treasurer to act as an agent of the Department to perform financial functions. Removes language providing that the Director shall prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-07 - Referred to Assignments [SB2147 Detail]

Download: Illinois-2025-SB2147-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2147 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
20 ILCS 1605/7.1 from Ch. 120, par. 1157.1
20 ILCS 1605/9.1
20 ILCS 1605/10.1 from Ch. 120, par. 1160.1
20 ILCS 1605/10.6 from Ch. 120, par. 1160.6
20 ILCS 1605/19 from Ch. 120, par. 1169
20 ILCS 1605/20 from Ch. 120, par. 1170
20 ILCS 1605/20.1 from Ch. 120, par. 1170.1
20 ILCS 1605/24 from Ch. 120, par. 1174
20 ILCS 1605/27 from Ch. 120, par. 1177
Amends the Illinois Lottery Law. Removes language providing that the Department of the Lottery shall publish each January in the Illinois Register a list of all game-specific rules, play instructions, directives, operations manuals, brochures, or other game-specific publications issued by the Department during the previous year and instructions concerning how the public may obtain copies of these materials from the Department. Removes provisions regarding the private manager. Provides that the Department shall make an effort to more directly inform players of the odds of winning prizes by publishing the information for all games on the Department's public website. Removes language providing that the effort to more directly inform players of the odds of winning prizes shall include the Department requiring all ticket agents to display a placard stating the odds of winning for each game offered by that agent. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than to all players through sales agents licensed to sell game tickets or shares). Removes language providing that moneys in the Department's account shall be deposited by the Department into the Public Treasurers' Investment Pool. Removes language providing that moneys from the Department's account may not be used to pay amounts to deferred prize winners. Allows the State Treasurer to act as an agent of the Department to perform financial functions. Removes language providing that the Director shall prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Makes other changes.
LRB104 08441 LNS 18493 b
A BILL FOR
SB2147 LRB104 08441 LNS 18493 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Lottery Law is amended by changing
Sections 7.1, 9.1, 10.1, 10.6, 19, 20, 20.1, 24, and 27 as
follows:
(20 ILCS 1605/7.1) (from Ch. 120, par. 1157.1)
Sec. 7.1. The Department shall promulgate such rules and
regulations governing the establishment and operation of a
State lottery as it deems necessary to carry out the purposes
of this Act. Such rules and regulations shall be subject to the
provisions of The Illinois Administrative Procedure Act. The
Department shall issue written game rules, play instructions,
directives, operations manuals, brochures, or any other
publications necessary to conduct specific games, as
authorized by rule by the Department. Any written game rules,
play instructions, directives, operations manuals, brochures,
or other game publications issued by the Department that
relate to a specific lottery game shall be maintained as a
public record in the Department's principal office, and made
available for public inspection and copying but shall be
exempt from the rulemaking procedures of the Illinois
Administrative Procedure Act. However, when such written

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materials contain any policy of general applicability, the
Department shall formulate and adopt such policy as a rule in
accordance with the provisions of the Illinois Administrative
Procedure Act. In addition, the Department shall publish each
January in the Illinois Register a list of all game-specific
rules, play instructions, directives, operations manuals,
brochures, or other game-specific publications issued by the
Department during the previous year and instructions
concerning how the public may obtain copies of these materials
from the Department.
(Source: P.A. 97-464, eff. 10-15-11.)
(20 ILCS 1605/9.1)
Sec. 9.1. Private manager and management agreement.
(a) As used in this Section:
"Offeror" means a person or group of persons that responds
to a request for qualifications under this Section.
"Request for qualifications" means all materials and
documents prepared by the Department to solicit the following
from offerors:
(1) Statements of qualifications.
(2) Proposals to enter into a management agreement,
including the identity of any prospective vendor or
vendors that the offeror intends to initially engage to
assist the offeror in performing its obligations under the
management agreement.

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"Final offer" means the last proposal submitted by an
offeror in response to the request for qualifications,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offeror" means the offeror ultimately selected by
the Governor to be the private manager for the Lottery under
subsection (h) of this Section.
(b) (Blank). By September 15, 2010, the Governor shall
select a private manager for the total management of the
Lottery with integrated functions, such as lottery game
design, supply of goods and services, and advertising and as
specified in this Section.
(c) (Blank). Pursuant to the terms of this subsection, the
Department shall endeavor to expeditiously terminate the
existing contracts in support of the Lottery in effect on July
13, 2009 (the effective date of Public Act 96-37) in
connection with the selection of the private manager. As part
of its obligation to terminate these contracts and select the
private manager, the Department shall establish a mutually
agreeable timetable to transfer the functions of existing
contractors to the private manager so that existing Lottery
operations are not materially diminished or impaired during
the transition. To that end, the Department shall do the
following:

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(1) where such contracts contain a provision
authorizing termination upon notice, the Department shall
provide notice of termination to occur upon the mutually
agreed timetable for transfer of functions;
(2) upon the expiration of any initial term or renewal
term of the current Lottery contracts, the Department
shall not renew such contract for a term extending beyond
the mutually agreed timetable for transfer of functions;
or
(3) in the event any current contract provides for
termination of that contract upon the implementation of a
contract with the private manager, the Department shall
perform all necessary actions to terminate the contract on
the date that coincides with the mutually agreed timetable
for transfer of functions.
If the contracts to support the current operation of the
Lottery in effect on July 13, 2009 (the effective date of
Public Act 96-34) are not subject to termination as provided
for in this subsection (c), then the Department may include a
provision in the contract with the private manager specifying
a mutually agreeable methodology for incorporation.
(c-5) The Department shall include provisions in the
management agreement whereby the private manager shall, for a
fee, and pursuant to a contract negotiated with the Department
(the "Employee Use Contract"), utilize the services of current
Department employees to assist in the administration and

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operation of the Lottery. The Department shall be the employer
of all such bargaining unit employees assigned to perform such
work for the private manager, and such employees shall be
State employees, as defined by the Personnel Code. Department
employees shall operate under the same employment policies,
rules, regulations, and procedures, as other employees of the
Department. In addition, neither historical representation
rights under the Illinois Public Labor Relations Act, nor
existing collective bargaining agreements, shall be disturbed
by the management agreement with the private manager for the
management of the Lottery.
(d) The management agreement with the private manager
shall include all of the following:
(1) A term not to exceed 10 years, including any
renewals.
(2) A provision specifying that the Department:
(A) shall exercise actual control over all
significant business decisions;
(A-5) has the authority to direct or countermand
operating decisions by the private manager at any
time;
(B) has ready access at any time to information
regarding Lottery operations;
(C) has the right to demand and receive
information from the private manager concerning any
aspect of the Lottery operations at any time; and

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(D) retains ownership of all trade names,
trademarks, and intellectual property associated with
the Lottery.
(3) A provision imposing an affirmative duty on the
private manager to provide the Department with material
information and with any information the private manager
reasonably believes the Department would want to know to
enable the Department to conduct the Lottery.
(4) A provision requiring the private manager to
provide the Department with advance notice of any
operating decision that bears significantly on the public
interest, including, but not limited to, decisions on the
kinds of games to be offered to the public and decisions
affecting the relative risk and reward of the games being
offered, so the Department has a reasonable opportunity to
evaluate and countermand that decision.
(5) A provision providing for compensation of the
private manager that may consist of, among other things, a
fee for services and a performance based bonus as
consideration for managing the Lottery, including terms
that may provide the private manager with an increase in
compensation if Lottery revenues grow by a specified
percentage in a given year.
(6) (Blank).
(7) A provision requiring the deposit of all Lottery
proceeds to be deposited into the State Lottery Fund

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except as otherwise provided in Section 20 of this Act.
(8) A provision requiring the private manager to
locate its principal office within the State.
(8-5) A provision encouraging that, pursuant to
Section 4 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act, at least 20% of
the cost of contracts entered into for goods and services
by the private manager in connection with its management
of the Lottery, other than contracts with sales agents or
technical advisors, be awarded to businesses that are a
minority-owned business, a women-owned business, or a
business owned by a person with disability, as those terms
are defined in the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(9) A requirement that so long as the private manager
complies with all the conditions of the agreement under
the oversight of the Department, the private manager shall
have the following duties and obligations with respect to
the management of the Lottery:
(A) The right to use equipment and other assets
used in the operation of the Lottery.
(B) The rights and obligations under contracts
with retailers and vendors.
(C) The implementation of a comprehensive security
program by the private manager.
(D) The implementation of a comprehensive system

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of internal audits.
(E) The implementation of a program by the private
manager to curb compulsive gambling by persons playing
the Lottery.
(F) A system for determining (i) the type of
Lottery games, (ii) the method of selecting winning
tickets, (iii) the manner of payment of prizes to
holders of winning tickets, (iv) the frequency of
drawings of winning tickets, (v) the method to be used
in selling tickets, (vi) a system for verifying the
validity of tickets claimed to be winning tickets,
(vii) the basis upon which retailer commissions are
established by the manager, and (viii) minimum
payouts.
(10) A requirement that advertising and promotion must
be consistent with Section 7.8a of this Act.
(11) A requirement that the private manager market the
Lottery to those residents who are new, infrequent, or
lapsed players of the Lottery, especially those who are
most likely to make regular purchases on the Internet as
permitted by law.
(12) A code of ethics for the private manager's
officers and employees.
(13) A requirement that the Department monitor and
oversee the private manager's practices and take action
that the Department considers appropriate to ensure that

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the private manager is in compliance with the terms of the
management agreement, while allowing the manager, unless
specifically prohibited by law or the management
agreement, to negotiate and sign its own contracts with
vendors.
(14) A provision requiring the private manager to
periodically file, at least on an annual basis,
appropriate financial statements in a form and manner
acceptable to the Department.
(15) Cash reserves requirements.
(16) Procedural requirements for obtaining the prior
approval of the Department when a management agreement or
an interest in a management agreement is sold, assigned,
transferred, or pledged as collateral to secure financing.
(17) Grounds for the termination of the management
agreement by the Department or the private manager.
(18) Procedures for amendment of the agreement.
(19) A provision requiring the private manager to
engage in an open and competitive bidding process for any
procurement having a cost in excess of the small purchase
limits under Section 20-20 of the Illinois Procurement
Code $50,000 that is not a part of the private manager's
final offer. The process shall favor the selection of a
vendor deemed to have submitted a proposal that provides
the Lottery with the best overall value. The process shall
not be subject to the provisions of the Illinois

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Procurement Code, unless specifically required by the
management agreement.
(20) The transition of rights and obligations,
including any associated equipment or other assets used in
the operation of the Lottery, from the manager to any
successor manager of the lottery, including the
Department, following the termination of or foreclosure
upon the management agreement.
(21) Right of use of copyrights, trademarks, and
service marks held by the Department in the name of the
State. The agreement must provide that any use of them by
the manager shall only be for the purpose of fulfilling
its obligations under the management agreement during the
term of the agreement.
(22) The disclosure of any information requested by
the Department to enable it to comply with the reporting
requirements and information requests provided for under
subsection (p) of this Section.
(e) Notwithstanding any other law to the contrary, the
Department shall select a private manager through a
competitive request for qualifications process consistent with
Section 20-35 of the Illinois Procurement Code, which shall
take into account:
(1) the offeror's ability to market the Lottery to
those residents who are new, infrequent, or lapsed players
of the Lottery, especially those who are most likely to

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make regular purchases on the Internet;
(2) the offeror's ability to address the State's
concern with the social effects of gambling on those who
can least afford to do so;
(3) the offeror's ability to provide the most
successful management of the Lottery for the benefit of
the people of the State based on current and past business
practices or plans of the offeror; and
(4) the offeror's poor or inadequate past performance
in servicing, equipping, operating or managing a lottery
on behalf of Illinois, another State or foreign government
and attracting persons who are not currently regular
players of a lottery.
(f) The Department may retain the services of an advisor
or advisors with significant experience in financial services
or the management, operation, and procurement of goods,
services, and equipment for a government-run lottery to assist
in the preparation of the terms of the request for
qualifications and selection of the private manager. Any
prospective advisor seeking to provide services under this
subsection (f) shall disclose any material business or
financial relationship during the past 3 years with any
potential offeror, or with a contractor or subcontractor
presently providing goods, services, or equipment to the
Department to support the Lottery. The Department shall
evaluate the material business or financial relationship of

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each prospective advisor. The Department shall not select any
prospective advisor with a substantial business or financial
relationship that the Department deems to impair the
objectivity of the services to be provided by the prospective
advisor. During the course of the advisor's engagement by the
Department, and for a period of one year thereafter, the
advisor shall not enter into any business or financial
relationship with any offeror or any vendor identified to
assist an offeror in performing its obligations under the
management agreement. Any advisor retained by the Department
shall be disqualified from being an offeror. The Department
shall not include terms in the request for qualifications that
provide a material advantage whether directly or indirectly to
any potential offeror, or any contractor or subcontractor
presently providing goods, services, or equipment to the
Department to support the Lottery, including terms contained
in previous responses to requests for proposals or
qualifications submitted to Illinois, another State or foreign
government when those terms are uniquely associated with a
particular potential offeror, contractor, or subcontractor.
The request for proposals offered by the Department on
December 22, 2008 as "LOT08GAMESYS" and reference number
"22016176" is declared void.
(g) The Department shall select at least 2 offerors as
finalists to potentially serve as the private manager no later
than August 9, 2010. Upon making preliminary selections, the

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Department shall schedule a public hearing on the finalists'
proposals and provide public notice of the hearing at least 7
calendar days before the hearing. The notice must include all
of the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to
be awarded.
(4) The identity of the offerors that have been
selected as finalists to serve as the private manager.
(5) The address and telephone number of the
Department.
(h) At the public hearing, the Department shall (i)
provide sufficient time for each finalist to present and
explain its proposal to the Department and the Governor or the
Governor's designee, including an opportunity to respond to
questions posed by the Department, Governor, or designee and
(ii) allow the public and non-selected offerors to comment on
the presentations. The Governor or a designee shall attend the
public hearing. After the public hearing, the Department shall
have 14 calendar days to recommend to the Governor whether a
management agreement should be entered into with a particular
finalist. After reviewing the Department's recommendation, the
Governor may accept or reject the Department's recommendation,
and shall select a final offeror as the private manager by
publication of a notice in the Illinois Procurement Bulletin

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on or before September 15, 2010. The Governor shall include in
the notice a detailed explanation and the reasons why the
final offeror is superior to other offerors and will provide
management services in a manner that best achieves the
objectives of this Section. The Governor shall also sign the
management agreement with the private manager.
(i) Any action to contest the private manager selected by
the Governor under this Section must be brought within 7
calendar days after the publication of the notice of the
designation of the private manager as provided in subsection
(h) of this Section.
(j) The Lottery shall remain, for so long as a private
manager manages the Lottery in accordance with provisions of
this Act, a Lottery conducted by the State, and the State shall
not be authorized to sell or transfer the Lottery to a third
party.
(k) Any tangible personal property used exclusively in
connection with the lottery that is owned by the Department
and leased to the private manager shall be owned by the
Department in the name of the State and shall be considered to
be public property devoted to an essential public and
governmental function.
(l) The Department may exercise any of its powers under
this Section or any other law as necessary or desirable for the
execution of the Department's powers under this Section.
(m) Neither this Section nor any management agreement

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entered into under this Section prohibits the General Assembly
from authorizing forms of gambling that are not in direct
competition with the Lottery. The forms of gambling authorized
by Public Act 101-31 constitute authorized forms of gambling
that are not in direct competition with the Lottery.
(n) The private manager shall be subject to a complete
investigation in the third, seventh, and tenth years of the
agreement (if the agreement is for a 10-year term) by the
Department in cooperation with the Auditor General to
determine whether the private manager has complied with this
Section and the management agreement. The private manager
shall bear the cost of an investigation or reinvestigation of
the private manager under this subsection.
(o) The powers conferred by this Section are in addition
and supplemental to the powers conferred by any other law. If
any other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code, then this Section controls as to any
management agreement entered into under this Section. This
Section and any rules adopted under this Section contain full
and complete authority for a management agreement between the
Department and a private manager. No law, procedure,
proceeding, publication, notice, consent, approval, order, or
act by the Department or any other officer, Department,
agency, or instrumentality of the State or any political
subdivision is required for the Department to enter into a

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management agreement under this Section. This Section contains
full and complete authority for the Department to approve any
contracts entered into by a private manager with a vendor
providing goods, services, or both goods and services to the
private manager under the terms of the management agreement,
including subcontractors of such vendors.
Upon receipt of a written request from the Chief
Procurement Officer, the Department shall provide to the Chief
Procurement Officer a complete and un-redacted copy of the
management agreement or any contract that is subject to the
Department's approval authority under this subsection (o). The
Department shall provide a copy of the agreement or contract
to the Chief Procurement Officer in the time specified by the
Chief Procurement Officer in his or her written request, but
no later than 5 business days after the request is received by
the Department. The Chief Procurement Officer must retain any
portions of the management agreement or of any contract
designated by the Department as confidential, proprietary, or
trade secret information in complete confidence pursuant to
subsection (g) of Section 7 of the Freedom of Information Act.
The Department shall also provide the Chief Procurement
Officer with reasonable advance written notice of any contract
that is pending Department approval.
Notwithstanding any other provision of this Section to the
contrary, the Chief Procurement Officer shall adopt
administrative rules, including emergency rules, to establish

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a procurement process to select a successor private manager if
a private management agreement has been terminated. The
selection process shall at a minimum take into account the
criteria set forth in items (1) through (4) of subsection (e)
of this Section and may include provisions consistent with
subsections (f), (g), (h), and (i) of this Section. The Chief
Procurement Officer shall also implement and administer the
adopted selection process upon the termination of a private
management agreement. The Department, after the Chief
Procurement Officer certifies that the procurement process has
been followed in accordance with the rules adopted under this
subsection (o), shall select a final offeror as the private
manager and sign the management agreement with the private
manager.
Through June 30, 2022, except as provided in Sections
21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
of this Act and Section 25-70 of the Sports Wagering Act, the
Department shall distribute all proceeds of lottery tickets
and shares sold in the following priority and manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management
agreement with the Department.
(3) On the last day of each month or as soon thereafter
as possible, the State Comptroller shall direct and the

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State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund an amount that is equal to the
proceeds transferred in the corresponding month of fiscal
year 2009, as adjusted for inflation, to the Common School
Fund.
(4) On or before September 30 of each fiscal year,
deposit any estimated remaining proceeds from the prior
fiscal year, subject to payments under items (1), (2), and
(3), into the Capital Projects Fund. Beginning in fiscal
year 2019, the amount deposited shall be increased or
decreased each year by the amount the estimated payment
differs from the amount determined from each year-end
financial audit. Only remaining net deficits from prior
fiscal years may reduce the requirement to deposit these
funds, as determined by the annual financial audit.
Beginning July 1, 2022, the Department shall distribute
all proceeds of lottery tickets and shares sold in the manner
and priority described in Section 9.3 of this Act, except that
the Department shall make the deposit into the Capital
Projects Fund that would have occurred under item (4) of this
subsection (o) on or before September 30, 2022, but for the
changes made to this subsection by Public Act 102-699.
(p) The Department shall be subject to the following
reporting and information request requirements:
(1) the Department shall submit written quarterly
reports to the Governor and the General Assembly on the

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activities and actions of the private manager selected
under this Section;
(2) upon request of the Chief Procurement Officer, the
Department shall promptly produce information related to
the procurement activities of the Department and the
private manager requested by the Chief Procurement
Officer; the Chief Procurement Officer must retain
confidential, proprietary, or trade secret information
designated by the Department in complete confidence
pursuant to subsection (g) of Section 7 of the Freedom of
Information Act; and
(3) at least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written report on the activities of the private
manager selected under this Section and deliver that
report to the Governor and General Assembly.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
4-19-22; 102-1115, eff. 1-9-23.)
(20 ILCS 1605/10.1) (from Ch. 120, par. 1160.1)
Sec. 10.1. The following are ineligible for any license
under this Act:
(a) any person who has been convicted of a felony;
(b) any person who is or has been a professional
gambler or gambling promoter;

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(c) any person who has engaged in bookmaking or other
forms of illegal gambling;
(d) any person who is not of good character and
reputation in the community in which he resides;
(e) any person who has been found guilty of any fraud
or misrepresentation in any connection;
(f) any firm or corporation in which a person defined
in item (a), (b), (c), (d), or (e) has a proprietary,
equitable or credit interest of 5% or more.
(g) any organization in which a person defined in item
(a), (b), (c), (d), or (e) is an officer, director, or
managing agent, whether compensated or not; and
(h) any organization in which a person defined in item
(a), (b), (c), (d), or (e) is to participate in the
management or sales of lottery tickets or shares.
However, with respect to persons defined in (a), the
Department may grant any such person a license under this Act
when:
1) at least 10 years have elapsed since the date when
the sentence for the most recent such conviction was
satisfactorily completed;
2) the applicant has no history of criminal activity
subsequent to such conviction;
3) the applicant has complied with all conditions of
probation, conditional discharge, supervision, parole or
mandatory supervised release; and

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4) the applicant presents at least 3 letters of
recommendation from responsible citizens in his community
who personally can attest that the character and attitude
of the applicant indicate that he is unlikely to commit
another crime.
The Department may revoke, without notice or a hearing,
the license of any agent who violates this Act or any rule or
regulation promulgated pursuant to this Act. However, if the
Department does revoke a license without notice and an
opportunity for a hearing, the Department shall, by
appropriate notice, afford the person whose license has been
revoked an opportunity for a hearing within 30 days after the
revocation order has been issued. As a result of any such
hearing, the Department may confirm its action in revoking the
license, or it may order the restoration of such license.
(Source: P.A. 97-464, eff. 10-15-11.)
(20 ILCS 1605/10.6) (from Ch. 120, par. 1160.6)
Sec. 10.6. The Department shall make an effort to more
directly inform players of the odds of winning prizes by
publishing the information for all games on the Department's
public website. This effort shall include, at a minimum, that
the Department require all ticket agents to display a placard
stating the odds of winning for each game offered by that
agent.
(Source: P.A. 97-464, eff. 10-15-11.)

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(20 ILCS 1605/19) (from Ch. 120, par. 1169)
Sec. 19. The Department shall establish an appropriate
period for the claiming of prizes for each lottery game
offered. Each claim period shall be stated in game rules and
written play instructions issued by the Director in accordance
with Section 7.1 of this Act. Written play instructions shall
be made available on the Department's public website or by the
Department by request to all players through sales agents
licensed to sell game tickets or shares. Prizes for lottery
games which involve the purchase of a physical lottery ticket
may be claimed only by presentation of a valid winning lottery
ticket that matches validation records on file with the
Lottery; no claim may be honored which is based on the
assertion that the ticket was lost or stolen. No lottery
ticket which has been altered, mutilated, or fails to pass
validation tests shall be deemed to be a winning ticket.
If no claim is made for the money within the established
claim period, the prize may be included in the prize pool of
such special drawing or drawings as the Department may, from
time to time, designate. Unclaimed multi-state game prize
money may be included in the multi-state prize pool for such
special drawing or drawings as the multi-state game directors
may, from time to time, designate. Any bonuses offered by the
Department to sales agents who sell winning tickets or shares
shall be payable to such agents regardless of whether or not

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the prize money on the ticket or share is claimed, provided
that the agent can be identified as the vendor of the winning
ticket or share, and that the winning ticket or share was sold
on or after January 1, 1984. All unclaimed prize money not
included in the prize pool of a special drawing shall be
transferred to the Common School Fund.
(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
(20 ILCS 1605/20) (from Ch. 120, par. 1170)
Sec. 20. State Lottery Fund.
(a) There is created in the State Treasury a special fund
to be known as the State Lottery Fund. Such fund shall consist
of all revenues received from (1) the sale of lottery tickets
or shares, (net of commissions, fees representing those
expenses that are directly proportionate to the sale of
tickets or shares at the agent location, and prizes of less
than $600 or less which have been validly paid at the agent
level), (2) application fees, and (3) all other sources
including moneys credited or transferred thereto from any
other fund or source pursuant to law. Interest earnings of the
State Lottery Fund shall be credited to the Common School
Fund.
(a-5) The receipt and distribution of moneys under Section
21.4 of this Act shall be in accordance with Section 21.4.
(b) The receipt and distribution of moneys under Section
21.5 of this Law shall be in accordance with Section 21.5.

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(c) The receipt and distribution of moneys under Section
21.6 of this Law shall be in accordance with Section 21.6.
(d) The receipt and distribution of moneys under Section
21.7 of this Law shall be in accordance with Section 21.7.
(e) The receipt and distribution of moneys under Section
21.8 of this Law shall be in accordance with Section 21.8.
(f) The receipt and distribution of moneys under Section
21.9 of this Law shall be in accordance with Section 21.9.
(g) The receipt and distribution of moneys under Section
21.10 of this Law shall be in accordance with Section 21.10.
(h) The receipt and distribution of moneys under Section
21.11 of this Law shall be in accordance with Section 21.11.
(i) (Blank).
(j) The receipt and distribution of moneys under Section
21.13 of this Law shall be in accordance with Section 21.13.
(k) The receipt and distribution of moneys under Section
25-70 of the Sports Wagering Act shall be in accordance with
Section 25-70 of the Sports Wagering Act.
(l) The receipt and distribution of moneys under Section
21.15 of this Law shall be in accordance with Section 21.15.
(m) The receipt and distribution of moneys under Section
21.16 of this Law shall be in accordance with Section 21.16.
(Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)
(20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
Sec. 20.1. Department account.

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(a) The Department is authorized to pay validated prizes
up to $25,000 from funds held by the Department in an account
separate and apart from all public moneys of the State. Moneys
in this account shall be administered by the Director
exclusively for the purposes of issuing payments to prize
winners authorized by this Section. Moneys in this account
shall be deposited by the Department into the Public
Treasurers' Investment Pool established under Section 17 of
the State Treasurer Act. The Department shall submit vouchers
from time to time as needed for reimbursement of this account
from moneys appropriated for prizes from the State Lottery
Fund. Investment income earned from this account shall be
deposited monthly by the Department into the Common School
Fund. The Department shall file quarterly fiscal reports
specifying the activity of this account as required under
Section 16 of the State Comptroller Act, and shall file
quarterly with the General Assembly, the Auditor General, the
Comptroller, and the State Treasurer a report indicating the
costs associated with this activity.
(b) The Department is authorized to enter into an
interagency agreement with the Office of the Comptroller or
any other State agency to establish responsibilities, duties,
and procedures for complying with the Comptroller's Offset
System under Section 10.05 of the State Comptroller Act. All
federal and State tax reporting and withholding requirements
relating to prize winners under this Section shall be the

SB2147 - 26 - LRB104 08441 LNS 18493 b
responsibility of the Department. Moneys from this account may
not be used to pay amounts to deferred prize winners. Moneys
may not be transferred from the State Lottery Fund to this
account for payment of prizes under this Section until
procedures are implemented to comply with the Comptroller's
Offset System and sufficient internal controls are in place to
validate prizes.
(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
(20 ILCS 1605/24) (from Ch. 120, par. 1174)
Sec. 24. The State Comptroller shall conduct a preaudit of
all accounts and transactions of the Department in connection
with the operation of the State Lottery under the State
Comptroller Act, excluding payments issued by the Department
for prizes of $25,000 or less.
The Auditor General or a certified public accountant firm
appointed by him shall conduct an annual post-audit of all
accounts and transactions of the Department in connection with
the operation of the State Lottery and other special post
audits as the Auditor General, the Legislative Audit
Commission, or the General Assembly deems necessary. The
annual post-audits shall include payments made by lottery
sales agents of prizes of less than $600 or less authorized
under Section 20, and payments made by the Department of
prizes up to $25,000 authorized under Section 20.1. The
Auditor General or his agent conducting an audit under this

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Act shall have access and authority to examine any and all
records of the Department or the Board, its distributing
agents and its licensees.
(Source: P.A. 94-776, eff. 5-19-06.)
(20 ILCS 1605/27) (from Ch. 120, par. 1177)
Sec. 27. (a) The Department may State Treasurer may, with
the consent of the Director, contract with any person or
corporation, including, without limitation, a bank, banking
house, trust company or investment banking firm, to perform
such financial functions, activities or services in connection
with operation of the lottery. The State Treasurer may, with
the consent of the Director, act as an agent of the Department
to perform the financial functions as the Director may
prescribe as the State Treasurer and the Director may
prescribe.
(b) All proceeds from investments made pursuant to
contracts executed by the Department or the State Treasurer,
with the consent of the Director, to perform financial
functions, activities or services in connection with operation
of the lottery, shall be deposited and held by the State
Treasurer as ex-officio custodian thereof, separate and apart
from all public money or funds of this State in a special trust
fund outside the State treasury. Such trust fund shall be
known as the "Deferred Lottery Prize Winners Trust Fund", and
shall be administered by the Director.

SB2147 - 28 - LRB104 08441 LNS 18493 b
The Director shall, at such times and in such amounts as
shall be necessary, prepare and send to the State Comptroller
vouchers requesting payment from the Deferred Lottery Prize
Winners Trust Fund to deferred prize winners, in a manner that
will insure the timely payment of such amounts owed.
This Act shall constitute an irrevocable appropriation of
all amounts necessary for that purpose, and the irrevocable
and continuing authority for and direction to the Director and
the State Treasurer to make the necessary payments out of such
trust fund for that purpose.
(c) Moneys invested pursuant to subsection (a) of this
Section may be invested only in bonds, notes, certificates of
indebtedness, treasury bills, or other securities constituting
direct obligations of the United States of America and all
securities or obligations the prompt payment of principal and
interest of which is guaranteed by a pledge of the full faith
and credit of the United States of America. Interest earnings
on moneys in the Deferred Lottery Prize Winners Trust Fund
shall remain in such fund and be used to pay the winners of
lottery prizes deferred as to payment until such obligations
are discharged. Proceeds from bonds purchased and interest
accumulated as a result of a grand prize multi-state game
ticket that goes unclaimed will be transferred after the
termination of the relevant claim period directly from the
lottery's Deferred Lottery Prize Winners Trust Fund to each
respective multi-state partner state according to its

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contribution ratio.
(c-5) If a deferred lottery prize is not claimed within
the claim period established by game rule, then the securities
or other instruments purchased to fund the prize shall be
liquidated and the liquidated amount shall be transferred to
the State Lottery Fund for disposition pursuant to Section 19
of this Act.
(c-10) The Director may use a portion of the moneys in the
Deferred Lottery Prize Winners Trust Fund to purchase bonds to
pay a lifetime prize if the prize duration exceeds the length
of available securities. If the winner of a lifetime prize
exceeds his or her life expectancy as determined using
actuarial assumptions and the securities or moneys set aside
to pay the prize have been exhausted, moneys in the State
Lottery Fund shall be used to make payments to the winner for
the duration of the winner's life.
(c-15) From time to time, the Director may request that
the State Comptroller transfer any excess moneys in the
Deferred Lottery Prize Winners Trust Fund to the State Lottery
Fund.
(d) This amendatory Act of 1985 shall be construed
liberally to effect the purposes of the Illinois Lottery Law.
(Source: P.A. 97-464, eff. 10-15-11; 98-463, eff. 8-16-13;
98-499, eff. 8-16-13.)