HB4538 103RD GENERAL ASSEMBLY

LRB103 35509 SPS 65581 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4538

Introduced 1/31/2024, by Rep. Margaret Croke

SYNOPSIS AS INTRODUCED:

20 ILCS 1605/7.12

Amends the Illinois Lottery Law. Provides that the Department of the Lottery may offer interactive instant win games through the Internet program. Provides that the Director of the Lottery shall not approve and the Department shall not offer any interactive instant win game that qualifies as a gambling game. Removes a provision that repeals provisions concerning the Internet program on July 1, 2025. Makes other changes. Defines terms. Effective immediately.

A BILL FOR

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 Section 7.12 as follows:

(20 ILCS 1605/7.12)

(Section scheduled to be repealed on July 1, 2025)

Sec. 7.12. Internet 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.

It is the intent of the General Assembly to create an Internet program for the sale of lottery tickets to capture this new form of market participant.

(b) The Department shall create a 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.

The Department is obligated to implement the program set forth in this Section and Sections 7.15 and 7.16. The Department may offer Lotto, Lucky Day Lotto, Mega Millions, Powerball, Pick 3, Pick 4, and other draw games that are offered at retail locations and interactive instant win games through the Internet program. The private manager shall obtain the Director's approval before providing any draw games or an interactive instant win game. The Director shall not approve and the Department shall not offer any interactive instant win game that qualifies as a gambling game. Any draw game tickets that are approved for sale by lottery licensees are automatically approved for sale through the Internet program. The Department shall maintain responsible gaming controls in its policies.

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 program, then the Department shall not proceed with the program until after the selection of the private manager, at which time 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.

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 Lottery draw game tickets authorized for sale through the Internet program under this Section from also continuing to be sold at retail locations by a lottery licensee pursuant to the Department's rules.

(c) (Blank).

(d) (Blank). This Section is repealed on July 1, 2025.

(e) As used in this Section:

"Gambling game" has the meaning set forth in Section 4 of the Illinois Gambling Act.

"Interactive instant win game" means a virtual lottery instant game with specified prize structures and set odds that does not include an instant-reveal function that immediately reveals the outcome of the game.

(Source: P.A. 101-35, eff. 6-28-19; 102-699, eff. 4-19-22.)

Section 99. Effective date. This Act takes effect upon becoming law.