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| AN ACT concerning the lottery.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Lottery Law is amended by adding |
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| Sections 7.12, 7.13, 7.14, 7.15, and 7.16 as follows: |
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| (20 ILCS 1605/7.12 new) |
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| Sec. 7.12. Internet pilot program. The Department shall |
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| create a pilot program that allows the purchase of lottery |
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| tickets or shares on the Internet and that licenses agents to |
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| sell lottery tickets or shares over the Internet. The |
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| Department shall adopt rules necessary for the administration |
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| of this program. The provisions of this Act and the rules |
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| adopted under this Act shall apply to the sale of lottery |
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| tickets or shares and to the licensure of Internet agents under |
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| this program. |
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| (20 ILCS 1605/7.13 new)
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| Sec. 7.13. Licensing of Internet agents; fees. The |
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| Department shall issue a license as an agent to sell lottery |
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| tickets or shares through the Internet if the applicant meets |
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| all of the qualifications specified in this Act and the rules |
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| adopted under this Act, except those related to the |
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| accessibility of his or her place of business or activity to |
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| the public and the ancillary nature of his or her business as a |
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| lottery sales agent, provided that the applicant owns and |
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| demonstrates that he or she can operate a secure and effective |
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| Internet-based system for selling lottery tickets or shares. |
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| Each application for a new Internet agent license must be |
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| accompanied by a one-time application fee as established by |
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| rule and not to exceed $25,000, and each application for |
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| renewal of an Internet agent license must be accompanied by a |
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| renewal fee as established by rule and not to exceed $12,500. |
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| In addition to the application fee, the Department may retain |
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| outside experts to evaluate the security and effectiveness of |
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| each applicant's Internet-based system and may charge |
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| applicants a uniform fee to recover the costs of those |
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| evaluations. Each Internet agent licensee granted on-line |
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| status pursuant to the Department's rules must pay a fee of |
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| $500 per month as partial reimbursement for telecommunications |
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| charges incurred by the Department in providing access to the |
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| Department's Internet lottery system. |
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| (20 ILCS 1605/7.14 new)
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| Sec. 7.14. Posting of Internet agent license numbers and |
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| notices. Each agent licensed to sell lottery tickets or shares |
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| through the Internet shall prominently display his or her |
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| license number on his or her Internet site or sites, as well as |
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| on any portal to his or her Internet site or sites, and shall |
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| appropriately display any notices or statements that are |
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| required by this Act or the rules adopted under this Act to |
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| appear on the back of lottery tickets or to be posted or made |
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| available at a licensed non-Internet agent's place of business. |
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| (20 ILCS 1605/7.15 new)
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| Sec. 7.15. Verification of age for Internet program; |
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| security for on-line lottery accounts. The Department shall, by |
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| rule, establish a procedure to verify that a person is 18 years |
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| of age or older before he or she may establish an on-line |
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| lottery account and purchase lottery tickets or shares through |
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| the Internet program. By rule, the Department shall establish |
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| funding procedures for on-line lottery accounts and shall |
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| provide a mechanism for each on-line lottery account to have a |
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| personal identification number to prevent the unauthorized use |
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| of on-line lottery accounts. |
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| (20 ILCS 1605/7.16 new)
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| Sec. 7.16. Residency restrictions; limits on monthly |
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| Internet purchases; Internet program games. The Department |
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| may, by rule, limit the persons authorized to purchase lottery |
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| tickets on-line to Illinois residents and may, by rule, set a |
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| limitation on the monthly purchases that may be made through |
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| any individual lottery account. All Lotto and Mega Million |
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| games offered by the Illinois Lottery shall be offered to |
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| on-line players, but the Department is authorized to determine |
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| which additional lottery games may be offered through the |
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| Internet program. |
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| Section 10. The Criminal Code of 1961 is amended by |
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| changing Section 28-1 as follows:
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| (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
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| Sec. 28-1. Gambling.
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| (a) A person commits gambling when he:
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| (1) Plays a game of chance or skill for money or other |
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| thing of
value, unless excepted in subsection (b) of this |
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| Section; or
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| (2) Makes a wager upon the result of any game, contest, |
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| or any
political nomination, appointment or election; or
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| (3) Operates, keeps, owns, uses, purchases, exhibits, |
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| rents, sells,
bargains for the sale or lease of, |
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| manufactures or distributes any
gambling device; or
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| (4) Contracts to have or give himself or another the |
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| option to buy
or sell, or contracts to buy or sell, at a |
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| future time, any grain or
other commodity whatsoever, or |
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| any stock or security of any company,
where it is at the |
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| time of making such contract intended by both parties
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| thereto that the contract to buy or sell, or the option, |
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| whenever
exercised, or the contract resulting therefrom, |
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| shall be settled, not by
the receipt or delivery of such |
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| property, but by the payment only of
differences in prices |
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| thereof; however, the issuance, purchase, sale,
exercise, |
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| endorsement or guarantee, by or through a person registered
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| with the Secretary of State pursuant to Section 8 of the |
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| Illinois
Securities Law of 1953, or by or through a person |
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| exempt from such
registration under said Section 8, of a |
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| put, call, or other option to
buy or sell securities which |
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| have been registered with the Secretary of
State or which |
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| are exempt from such registration under Section 3 of the
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| Illinois Securities Law of 1953 is not gambling within the |
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| meaning of
this paragraph (4); or
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| (5) Knowingly owns or possesses any book, instrument or |
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| apparatus by
means of which bets or wagers have been, or |
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| are, recorded or registered,
or knowingly possesses any |
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| money which he has received in the course of
a bet or |
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| wager; or
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| (6) Sells pools upon the result of any game or contest |
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| of skill or
chance, political nomination, appointment or |
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| election; or
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| (7) Sets up or promotes any lottery or sells, offers to |
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| sell or
transfers any ticket or share for any lottery; or
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| (8) Sets up or promotes any policy game or sells, |
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| offers to sell or
knowingly possesses or transfers any |
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| policy ticket, slip, record,
document or other similar |
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| device; or
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| (9) Knowingly drafts, prints or publishes any lottery |
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| ticket or share,
or any policy ticket, slip, record, |
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| document or similar device, except for
such activity |
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| related to lotteries, bingo games and raffles authorized by
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| and conducted in accordance with the laws of Illinois or |
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| any other state or
foreign government; or
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| (10) Knowingly advertises any lottery or policy game, |
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| except for such
activity related to lotteries, bingo games |
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| and raffles authorized by and
conducted in accordance with |
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| the laws of Illinois or any other state; or
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| (11) Knowingly transmits information as to wagers, |
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| betting odds, or
changes in betting odds by telephone, |
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| telegraph, radio, semaphore or
similar means; or knowingly |
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| installs or maintains equipment for the
transmission or |
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| receipt of such information; except that nothing in this
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| subdivision (11) prohibits transmission or receipt of such |
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| information
for use in news reporting of sporting events or |
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| contests; or
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| (12) Knowingly establishes, maintains, or operates an |
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| Internet site that
permits a person to play a game of
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| chance or skill for money or other thing of value by means |
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| of the Internet or
to make a wager upon the
result of any |
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| game, contest, political nomination, appointment, or
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| election by means of the Internet.
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| (b) Participants in any of the following activities shall |
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| not be
convicted of gambling therefor:
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| (1) Agreements to compensate for loss caused by the |
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| happening of
chance including without limitation contracts |
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| of indemnity or guaranty
and life or health or accident |
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| insurance . ;
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| (2) Offers of prizes, award or compensation to the |
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| actual
contestants in any bona fide contest for the |
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| determination of skill,
speed, strength or endurance or to |
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| the owners of animals or vehicles
entered in such contest . ;
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| (3) Pari-mutuel betting as authorized by the law of |
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| this State . ;
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| (4) Manufacture of gambling devices, including the |
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| acquisition of
essential parts therefor and the assembly |
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| thereof, for transportation in
interstate or foreign |
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| commerce to any place outside this State when such
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| transportation is not prohibited by any applicable Federal |
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| law . ;
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| (5) The game commonly known as "bingo", when conducted |
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| in accordance
with the Bingo License and Tax Act . ;
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| (6) Lotteries when conducted by the State of Illinois |
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| in accordance
with the Illinois Lottery Law . This exemption |
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| includes any activity conducted by the Department of |
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| Revenue to sell lottery tickets pursuant to the provisions |
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| of the Illinois Lottery Law and its rules. ;
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| (6.1) The purchase of lottery tickets through the |
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| Internet for a lottery conducted by the State of Illinois |
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| under the program established in Section 7.12 of the |
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| Illinois Lottery Law.
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| (7) Possession of an antique slot machine that is |
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| neither used nor
intended to be used in the operation or |
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| promotion of any unlawful
gambling activity or enterprise. |
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| For the purpose of this subparagraph
(b)(7), an antique |
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| slot machine is one manufactured 25 years ago or earlier . ;
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| (8) Raffles when conducted in accordance with the |
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| Raffles Act . ;
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| (9) Charitable games when conducted in accordance with |
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| the Charitable
Games Act . ;
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| (10) Pull tabs and jar games when conducted under the |
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| Illinois Pull
Tabs and Jar Games Act . ; or
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| (11) Gambling games conducted on riverboats when
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| authorized by the Riverboat Gambling Act.
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| (c) Sentence.
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| Gambling under subsection (a)(1) or (a)(2) of this Section |
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| is a
Class A misdemeanor. Gambling under any of subsections |
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| (a)(3) through
(a)(11) of this Section is a Class A |
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| misdemeanor. A second or
subsequent conviction under any of |
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| subsections (a)(3) through (a)(11),
is a Class 4 felony. |
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| Gambling under subsection (a)(12) of this Section is a
Class A
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| misdemeanor. A second or subsequent conviction under |
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| subsection (a)(12) is a
Class 4 felony.
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| (d) Circumstantial evidence.
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| In prosecutions under subsection (a)(1) through (a)(12) of
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| this
Section circumstantial evidence shall have the same |
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| validity and weight as
in any criminal prosecution.
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| (Source: P.A. 91-257, eff. 1-1-00.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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