*LRB09407766AMC37944b* SB0198 94THEngrossed GENERALLRB094 ASSEMBLY07766 StateAMC of37944 Illinoisb andAN 2006ACT SB0198concerning Introducedthe 2/2/2005,lottery. by Sen.
John J.
Cullerton SYNOPSIS AS INTRODUCED:
ILCS 1605/7.12 new ILCS 5/28-1 from Ch.
38, par.
28-1 Amends the Illinois Lottery Law.
Provides that the Department of Revenue shall create a pilot program that allows Illinois residents to purchase Illinois lottery tickets on the Internet.
Provides that the Act and the rules adopted pursuant to the Act pertaining to the sale of lottery tickets apply to the sale of lottery tickets under this program.
Amends the Criminal Code of 1961.
Provides that the exemption from conviction of gambling for lotteries when conducted by the State of Illinois in accordance with the Illinois Lottery Law includes any activity conducted by the Department of Revenue to sell lottery tickets pursuant to the provisions of the Illinois Lottery Law and its rules.
Provides that persons who purchase lottery tickets through the Internet in connection with the Department of Revenue’s pilot program shall not be convicted of gambling.
LRB094 07766 AMC 37944 b FISCAL NOTE ACT MAY APPLY A BILL FOR SB0198 LRB094 07766 AMC 37944 b AN ACT concerning the lottery.
The Illinois Lottery Law is amended by adding SectionSections 7.127.12, 7.13, 7.14, 7.15, and 7.16 as follows:
The Department of Revenue shall create a pilot program that allows Illinoisthe residents to purchase Illinoisof lottery tickets or shares on the Internet and that licenses agents to sell lottery tickets or shares over the Internet.
The provisionsDepartment ofshall thisadopt Act and the rules adoptednecessary pursuantfor to this Act pertaining to the saleadministration of lottery tickets shall apply to the sale of lottery tickets under this program.
The Departmentprovisions shallof adoptthis anyAct and the rules necessaryadopted forunder this Act shall apply to the administrationsale of lottery tickets or shares and to the licensure of Internet agents under this program.
(20 ILCS 1605/7.13 new) Sec.
7.13.
Licensing of Internet agents;
fees.
The Department shall issue a license as an agent to sell lottery tickets or shares through the Internet if the applicant meets all of the qualifications specified in this Act and the rules adopted under this Act, except those related to the accessibility of his or her place of business or activity to the public and the ancillary nature of his or her business as a lottery sales agent, provided that the applicant owns and demonstrates that he or she can operate a secure and effective Internet-based system for selling lottery tickets or shares.
Each application for a new Internet agent license must be accompanied by a one-time application fee as established by rule and not to exceed $25,000, and each application for renewal of an Internet agent license must be accompanied by a renewal fee as established by rule and not to exceed $12,500.
SB0198 Engrossed - 2 - LRB094 07766 AMC 37944 b In addition to the application fee, the Department may retain outside experts to evaluate the security and effectiveness of each applicant’s Internet-based system and may charge applicants a uniform fee to recover the costs of those evaluations.
Each Internet agent licensee granted on-line status pursuant to the Department’s rules must pay a fee of $500 per month as partial reimbursement for telecommunications charges incurred by the Department in providing access to the Department’s Internet lottery system.
(20 ILCS 1605/7.14 new) Sec.
7.14.
Posting of Internet agent license numbers and notices.
Each agent licensed to sell lottery tickets or shares through the Internet shall prominently display his or her license number on his or her Internet site or sites, as well as on any portal to his or her Internet site or sites, and shall appropriately display any notices or statements that are required by this Act or the rules adopted under this Act to appear on the back of lottery tickets or to be posted or made available at a licensed non-Internet agent’s place of business.
(20 ILCS 1605/7.15 new) Sec.
7.15.
Verification of age for Internet program;
security for on-line lottery accounts.
The Department shall, by rule, establish a procedure to verify that a person is 18 years of age or older before he or she may establish an on-line lottery account and purchase lottery tickets or shares through the Internet program.
By rule, the Department shall establish funding procedures for on-line lottery accounts and shall provide a mechanism for each on-line lottery account to have a personal identification number to prevent the unauthorized use of on-line lottery accounts.
(20 ILCS 1605/7.16 new) Sec.
7.16.
Residency restrictions;
limits on monthly Internet purchases;
Internet program games.
The Department SB0198 Engrossed - 3 - LRB094 07766 AMC 37944 b may, by rule, limit the persons authorized to purchase lottery tickets on-line to Illinois residents and may, by rule, set a limitation on the monthly purchases that may be made through any individual lottery account.
All Lotto and Mega Million games offered by the Illinois Lottery shall be offered to on-line players, but the Department is authorized to determine which additional lottery games may be offered through the Internet program.
or (4) Contracts to have or give himself or another the option to buy or sell, or contracts to buy or sell, at a future time, any grain or other commodity whatsoever, or SB0198 - 2 - LRB094 07766 AMC 37944 b any stock or security of any company, where it is at the time of making such contract intended by both parties thereto that the contract to buy or sell, or the option, whenever exercised, or the contract resulting therefrom, shall be settled, not by the receipt or delivery of such property, but by the payment only of differences in prices thereof;
however, the issuance, purchase, sale, exercise, endorsement or guarantee, by or through a person registered with the Secretary of State pursuant to Section 8 of the Illinois Securities Law of 1953, or by or through a person SB0198 Engrossed - 4 - LRB094 07766 AMC 37944 b exempt from such registration under said Section 8, of a put, call, or other option to buy or sell securities which have been registered with the Secretary of State or which are exempt from such registration under Section 3 of the Illinois Securities Law of 1953 is not gambling within the meaning of this paragraph (4);
or SB0198 - 3 - LRB094 07766 AMC 37944 b (10) Knowingly advertises any lottery or policy game, except for such activity related to lotteries, bingo games and raffles authorized by and conducted in accordance with the laws of Illinois or any other state;
except that nothing in this subdivision (11) prohibits transmission or receipt of such SB0198 Engrossed - 5 - LRB094 07766 AMC 37944 b information for use in news reporting of sporting events or contests;
SB0198 - 4 - LRB094 07766 AMC 37944 b (5) The game commonly known as "bingo", when conducted in accordance with the Bingo License and Tax Act.;
(6.1) The purchase of lottery tickets through the Internet for a lottery conducted by the State of Illinois under the program established in Section 7.12 of the SB0198 Engrossed - 6 - LRB094 07766 AMC 37944 b Illinois Lottery Law.
In prosecutions under subsection (a)(1) through (a)(12) of this Section circumstantial evidence shall have the same SB0198 - 5 - LRB094 07766 AMC 37944 b validity and weight as in any criminal prosecution.
1-1-00.) Section 99.
Effective date.
This Act takes effect upon becoming law.