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1 | | including the
Superintendent, as may be designated by an
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2 | | agreement between the Department and one or more additional
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3 | | lotteries operated under the laws of another state or states. |
4 | | g. (Blank).
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5 | | h. "Superintendent" means the Superintendent of the |
6 | | Department of the Lottery.
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7 | | i. "Management agreement" means an agreement or contract |
8 | | between the Department on behalf of the State with a private |
9 | | manager, as an independent contractor, whereby the private |
10 | | manager provides management services to the Lottery in exchange |
11 | | for compensation that may consist of, among other things, a fee |
12 | | for services and a performance-based bonus of no more than 5% |
13 | | of Lottery profits so long as the Department continues to |
14 | | exercise actual control over all significant business |
15 | | decisions made by the private manager as set forth in Section |
16 | | 9.1. |
17 | | j. "Person" means any individual, firm, association, joint |
18 | | venture, partnership, estate, trust, syndicate, fiduciary, |
19 | | corporation, or other legal entity, group, or combination. |
20 | | k. "Private manager" means a person that provides |
21 | | management services to the Lottery on behalf of the Department |
22 | | under a management agreement. |
23 | | l. "Profits" means total revenues accruing from the sale of |
24 | | lottery tickets or shares and related proceeds minus (1) the |
25 | | payment of prizes and retailer bonuses and (2) the payment of |
26 | | costs incurred in the operation and administration of the |
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1 | | lottery, excluding costs of services directly rendered by a |
2 | | private manager. |
3 | | m. "Chief Procurement Officer" means the Chief Procurement |
4 | | Officer provided for under paragraph (4) of subsection (a) of |
5 | | Section 10-20 of the Illinois Procurement Code. |
6 | | n. "Draw-based games" means games where a series of numbers |
7 | | or characters are determined to be the winning numbers or |
8 | | characters by a mechanical or computerized random number |
9 | | generator at a drawing time specified by the Department. |
10 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840, |
11 | | eff. 12-23-09; 97-464, eff. 8-19-11.) |
12 | | (20 ILCS 1605/7.12) |
13 | | Sec. 7.12. Internet pilot program. |
14 | | (a) The General Assembly finds that: |
15 | | (1) the consumer market in Illinois has changed since |
16 | | the creation of the Illinois State Lottery in 1974; |
17 | | (2) the Internet has become an integral part of |
18 | | everyday life for a significant number of Illinois |
19 | | residents not only in regards to their professional life, |
20 | | but also in regards to personal business and communication; |
21 | | and |
22 | | (3) the current practices of selling lottery tickets |
23 | | does not appeal to the new form of market participants who |
24 | | prefer to make purchases on the Internet at their own |
25 | | convenience. |
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1 | | It is the intent of the General Assembly to create an |
2 | | Internet pilot program for the sale of lottery tickets to |
3 | | capture this new form of market participant. |
4 | | (b) The Department shall create a pilot program that allows |
5 | | an individual 18 years of age or older to purchase lottery |
6 | | tickets or shares on the Internet without using a Lottery |
7 | | retailer with on-line status, as those terms are defined by |
8 | | rule. The Department shall restrict the sale of lottery tickets |
9 | | on the Internet to transactions initiated and received or |
10 | | otherwise made exclusively within the State of Illinois. The |
11 | | Department shall adopt rules necessary for the administration |
12 | | of this program. These rules shall include, among other things, |
13 | | requirements for marketing of the Lottery to infrequent |
14 | | players, as well as limitations on the purchases that may be |
15 | | made through any one individual's lottery account. The |
16 | | provisions of this Act and the rules adopted under this Act |
17 | | shall apply to the sale of lottery tickets or shares under this |
18 | | program. |
19 | | Before beginning the pilot program, the Department of the |
20 | | Lottery must submit a request to the United States Department |
21 | | of Justice for review of the State's plan to implement a pilot |
22 | | program for the sale of lottery tickets on the Internet and its |
23 | | propriety under federal law. The Department shall implement the |
24 | | Internet pilot program only if the Department of Justice does |
25 | | not object to the implementation of the program within a |
26 | | reasonable period of time after its review. |
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1 | | The Department is obligated to implement the pilot program |
2 | | set forth in this Section and Sections 7.15 and 7.16 only at |
3 | | such time, and to such extent, that the Department of Justice |
4 | | does not object to the implementation of the program within a |
5 | | reasonable period of time after its review. While the Illinois |
6 | | Lottery may only offer draw-based Lotto, Mega Millions, and |
7 | | Powerball games through the pilot program, the Department shall |
8 | | request review from the federal Department of Justice for the |
9 | | Illinois Lottery to sell lottery tickets on the Internet on |
10 | | behalf of the State of Illinois that are not limited to just |
11 | | these games. |
12 | | The Department shall authorize the private manager to |
13 | | implement and administer the program pursuant to the management |
14 | | agreement entered into under Section 9.1 and in a manner |
15 | | consistent with the provisions of this Section. If a private |
16 | | manager has not been selected pursuant to Section 9.1 at the |
17 | | time the Department is obligated to implement the pilot |
18 | | program, then the Department shall not proceed with the pilot |
19 | | program until after the selection of the private manager, at |
20 | | which time the Department shall authorize the private manager |
21 | | to implement and administer the program pursuant to the |
22 | | management agreement entered into under Section 9.1 and in a |
23 | | manner consistent with the provisions of this Section. |
24 | | The pilot program shall last for not less than 36 months, |
25 | | but not more than 48 months from the date of its initial |
26 | | operation. |
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1 | | Nothing in this Section shall be construed as prohibiting |
2 | | the Department from implementing and operating a website portal |
3 | | whereby individuals who are 18 years of age or older with an |
4 | | Illinois mailing address may apply to purchase lottery tickets |
5 | | via subscription. Nothing in this Section shall also be |
6 | | construed as prohibiting the sale of draw-based Lotto, Mega |
7 | | Millions, and Powerball games by a lottery licensee pursuant to |
8 | | the Department's rules. |
9 | | (c) There is created the Internet Lottery Study Committee |
10 | | as an advisory body within the Department. The Department shall |
11 | | conduct a study to determine the impact of the Internet pilot |
12 | | program on lottery licensees. The Department shall also |
13 | | determine the feasibility of the sale of stored value cards by |
14 | | lottery licensees as a non-exclusive option for use by |
15 | | individuals 18 years of age or older who purchase tickets for |
16 | | authorized lottery games in the Internet pilot program. For the |
17 | | purposes of this study, it is anticipated that the stored value |
18 | | cards will have, but need not be limited to, the following |
19 | | characteristics: (1) the cards will be available only to |
20 | | individuals 18 years of age and older; (2) the cards will be |
21 | | rechargeable, closed-loop cards that can only be loaded with |
22 | | cash; (3) the cards will have unique identifying numbers to be |
23 | | used for on-line play; (4) the cards will have on-line play |
24 | | subtracted from the card's value; (5) the cards may have |
25 | | on-line winnings added to them; (6) the cards will be used at |
26 | | Lottery retailers to cash out winnings of up to $600; and (7) |
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1 | | the cards will meet all technological, programming, and |
2 | | security requirements mandated by the Department and the |
3 | | governing bodies of both Mega Millions and Powerball. |
4 | | To the fullest extent possible, but subject to available |
5 | | resources, the Department shall ensure that the study evaluates |
6 | | and analyzes at least the following issues: |
7 | | (1) economic benefits to the State from Internet |
8 | | Lottery sales from stored value cards and from resulting |
9 | | sales taxes; |
10 | | (2) economic benefits to local governments from sales |
11 | | taxes generated from Internet Lottery sales through stored |
12 | | value cards; |
13 | | (3) economic benefits to Lottery retailers from |
14 | | Internet Lottery sales and from ancillary retail product |
15 | | sales in connection with the same; |
16 | | (4) enhanced player age verification from face-to-face |
17 | | interaction; |
18 | | (5) enhanced control of gambling addiction from |
19 | | face-to-face interaction; |
20 | | (6) elimination of credit card overspending through |
21 | | the use of stored value cards and resulting reduced debt |
22 | | issues; |
23 | | (7) the feasibility of the utilization of existing |
24 | | Lottery machines to dispense stored value cards; |
25 | | (8) the technological, programming, and security |
26 | | requirements to make stored value cards an appropriate |
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1 | | sales alternative; and |
2 | | (9) the cost and project time estimates for |
3 | | implementation, including adaptation of existing Lottery |
4 | | machines, programming, and technology enhancements and |
5 | | impact to operations. |
6 | | The Study Committee shall consist of the Superintendent or |
7 | | his or her designee; the chief executive officer of the |
8 | | Lottery's private manager or his or her designee; a |
9 | | representative appointed by the Governor's Office; 2 |
10 | | representatives of the lottery licensee community appointed by |
11 | | the Superintendent; one representative of a statewide |
12 | | association representing food retailers appointed by the |
13 | | Superintendent; and one representative of a statewide |
14 | | association representing retail merchants appointed by the |
15 | | Superintendent. |
16 | | Members of the Study Committee shall be appointed within 30 |
17 | | days after the effective date of this amendatory Act of the |
18 | | 97th General Assembly. No later than 6 months after the |
19 | | effective date of this amendatory Act of the 97th General |
20 | | Assembly, the Department shall provide to the members of the |
21 | | Study Committee the proposed findings and recommendations of |
22 | | the study in order to solicit input from the Study Committee. |
23 | | Within 30 calendar days thereafter, the Study Committee shall |
24 | | convene a meeting of the members to discuss the proposed |
25 | | findings and recommendations of the study. No later than 15 |
26 | | calendar days after meeting, the Study Committee shall submit |
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1 | | to the Department any written changes, additions, or |
2 | | corrections the Study Committee wishes the Department to make |
3 | | to the study. The Department shall consider the propriety of |
4 | | and respond to each change, addition, or correction offered by |
5 | | the Study Committee in the study. The Department shall also set |
6 | | forth any such change, addition, or correction offered by |
7 | | members of the Study Committee and the Department's responses |
8 | | thereto in the appendix to the study. No later than 15 calendar |
9 | | days after receiving the changes, additions, or corrections |
10 | | offered by the Study Committee, the Department shall deliver |
11 | | copies of the final study and appendices, if any, to the |
12 | | Governor, President of the Senate, Minority Leader of the |
13 | | Senate, Speaker of the House of Representatives, Minority |
14 | | Leader of the House of Representatives, and each of the members |
15 | | of the Study Committee. |
16 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840, |
17 | | eff. 12-23-09; 97-464, eff. 10-15-11; 97-1121, eff. |
18 | | 8-27-12.)".
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