Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 1770 - LOTTERY (GENERAL) › Section 1770.10 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Terms defined in the Lottery Law have the same meanings when
				used in this Part. The following words and terms when used in this Part shall
				have the following meanings, unless the context clearly indicates
				otherwise:
"Agent" means a person permitted by a license issued by the
				Director under the authority of Sections 9.d, 10 and
				10.1 of the Lottery Law to sell
				Illinois Lottery game tickets to the public.
"Administrative Hearing" means a proceeding at which parties
				present legal arguments and evidence about a case to an Administrative Law
				Judge or the Board, pursuant to the Lottery Law and 11 Ill. Adm. Code
				1700.
"Administrative Law Judge" or "ALJ" means an attorney admitted
				to practice law by, and in good standing before, the Illinois Supreme Court who
				is duly authorized and designated in writing by the Director of the Illinois
				Lottery to convene and conduct hearings on matters under the jurisdiction of
				the Department. An ALJ is specifically empowered to administer oaths and
				affirmations; rule on matters of proof and evidence; regulate the schedule and
				course of the hearing and pre-hearing process; hear and dispose of procedural
				and other similar matters; sign and issue orders and subpoenas; and exercise
				any other powers relating to the proceeding which are legally proper and
				reasonably necessary to carry out an ALJ's responsibilities. The authority of
				any person to act as an ALJ shall not be a matter of proof in any hearing
				before the Department unless an appropriate motion is made pursuant to 11 Ill.
				Adm. Code 1700.200.
"Annuity" or "Annual Payout Option" means the payment of the
				grand prize in 30 consecutive graduated annual installments for Mega Millions,
				Powerball and Lotto games and 20 consecutive straight line annual installments
				for instant games as per game rules.
"Applicant" means a person who has applied to the Director for
				a license to sell Lottery game tickets to the public.
"Assignment" means a change of ownership for an annuity.
"Automated Clearing House" or "ACH" means a computer-based
				electronic network for processing payments and automated money transfers
				between banks across the United States without using paper checks, wire
				transfers, credit card networks, or cash.
"Bearer Instrument" means a designation of a Lottery game
				ticket under which the winnings from the ticket are payable to the person or
				business organization possessing the ticket or to the order of the person who
				has demonstrated bearer status by signing the ticket as the owner.
"Board" means the Lottery Control Board as established by
				Section 6 of the Lottery Law.
"Business Organization" means a partnership; incorporated or
				unincorporated association or group; corporation; limited liability company;
				partnerships for shares; trust; sole proprietorship; or other business
				enterprise.
"Cash-for-Life Game" means a Lottery game that offers a set
				prize payment to be made in installments to that winner for the duration of the
				winner's life or lump sum cash equivalent.
"Cash Option" has the same meaning as "Lump Sum".
"Chairperson" means the Chairperson of the Lottery Control
				Board.
"Change of Business Organization" means a change from one form
				of organization and ownership of a business organization to another.
"Change of Name" means a change in the corporation or doing
				business as name shown on the records of the Secretary of State, County Clerk,
				or both, in the license granted to the Agent and in the Agent's application for
				a license.
"Claim Process" means the process of completing an Illinois
				Lottery claim form and providing proper identification involved in awarding a
				prize to a Claimant. iLottery claims up to $599 or less submitted through this
				process will be treated the same as if they were presented to a retailer with
				no formal claim submission and automatically credited to an account.
"Claimant" means a person, as defined in this Section, who
				presents a valid winning Lottery game ticket to an Agent or a Lottery prize
				center or administrative office for the purpose of receiving a prize. iLottery
				claims up to $599 or less that are presented in this manner will be treated the
				same as if they were presented to a retailer with no formal claim submission
				and automatically credited to an account.
"Department" means the Illinois Department of the
				Lottery.
"Director" means the individual responsible for the executive
				oversight of the Department.
"Draw-Based Game" or "DBG" means a game wherein its winning
				lottery numbers, symbols, characters, or outcomes are randomly selected by a
				manual or digital process. Each DBG approved for sale by the Department is
				played in accordance with its game rules. DBGs may be sold by licensed
				retailers and via the Department.
"Drawing" means the procedure by which the Department (or in
				the case of a multi-jurisdiction game the managing organization) randomly
				selects winning numbers, symbols, characters, or outcomes in accordance with
				the rules of the specific game being played and its drawing procedures.
"Electronic Funds Transfer" or "EFT" means an electronic
				financial transaction from one account to another.
"Game" means any individual or particular type of Lottery
				authorized by the Department.
"Game Closed" means the time when tickets for an instant game
				can no longer be ordered or distributed by the Lottery or a retailer.
"Game End" means the official date, determined by the Lottery,
				an instant game has ended. Prizes must then be redeemed within the time period
				required by the Lottery.
"Game Expiration" means the time after an instant game has been
				closed and the game prize redemption date has passed, when tickets from the
				game can no longer be redeemed.
"High-Frequency Prize Winner" means a person who submits at
				least 20 claims for Lottery prizes, each with a value of $1,000 or more, within
				any period of 365 days.
"iLottery" or "Internet Lottery" means the ability to place
				wagers via the internet on Lottery games.
"Instant Game" or "Scratcher" means an instant lottery ticket
				on which a player scratches the covering from one or more play areas to
				determine if a prize was won, as indicated by the symbols and words that are
				revealed. Instant games are Lottery games that can be played, won and redeemed
				at the time of purchase.
"Internet Lottery Player Account" means a secure electronic
				account associated with a registered internet Lottery player that allows the
				internet player to access information about the player's Lottery internet
				account, including, but not limited to the transaction history of purchases,
				winnings and prize redemptions. The player account also maintains a bank
				account established for the purpose of purchasing Lottery game tickets or
				subscriptions via the internet and receiving payment for any prizes won in
				connection with an internet Lottery purchase. Prizes up to $599 are paid back
				into the account, unless the player's winnings exceed the maximum wallet
				threshold of $2000 at which point the player's winnings will automatically by
				mailed to them by check. For prizes in excess of $600, a claim must be
				submitted to the Department for processing.
"Jackpot" means the top prize in a pari-mutuel or progressive
				draw-based Game. Jackpots are paid in accordance with the game rules and can be
				either in annuity payments or in one lump sum.
"License" means an Agent license, issued by the Director
				pursuant to Section 9 of the Lottery Law for an Agent to sell Lottery tickets
				to the public.
"Lottery" means the Lottery established and operated pursuant
				to the Lottery Law.
"Lottery Beneficiaries" means the designated recipients of
				lottery prizes.
"Lottery Game Ticket" or "Ticket" means:
A scratch-off ticket;
A paper ticket produced from a kiosk or electronic record
				generated and maintained by the Department's central gaming system, on official
				paper stock approved by the Department, by a Lottery retailer; or
A virtual ticket purchased via the internet and recorded in the
				Department's central gaming system.
"Lottery Law" means the Illinois Lottery Law [20 ILCS
				1605 ].
"Lottery Retailer" means a location licensed by the
				Department to sell Lottery game tickets or shares.
[230 ILCS
				45/25-70 ]
"Lottery Sales Representative" means a lottery employee
				responsible for servicing lottery retailers' needs in a particular geographical
				region or territory, or by a specific classification of retailer.
"Lump Sum" or "Cash Equivalent Option" means a single prize
				payment, as opposed to an annuitized payment.
"Lottery Vendor" or "Vendor" means any person or company who
				submits a bid, proposal or offer and is awarded a contract to provide goods or
				services to the Lottery.
"Multi-Jurisdiction Lottery" means lottery games that are
				offered in more than one jurisdiction, including Powerball and Mega Millions,
				allowing lotteries to generate larger jackpots than they could individually.
				Jackpots may be paid in lump sums or annuities.
"Multi-State Lottery Association" or "MUSL" means a non-profit,
				government-benefit association that assists its member lotteries in
				multi-jurisdictional game development. Each MUSL member, and non-members who
				sell MUSL games via a cross-sell agreement, offers one or more of the games
				administered by the association, but retains its independent statutory duties
				regarding ticket sales, retailer authorization, prize payments, income offsets,
				and other responsibilities.
"Multiplier" means an extra number drawn to increase the payout
				if the wager is a winner. The drawn number (Y) will multiply the player's prize
				(X) by that drawn (Y) value. A multiplier option usually requires an additional
				wager amount.
"Net Proceeds" means all revenue derived from the sale of
				Lottery game tickets or shares, all other monies derived from the Lottery
				games, and all other monies derived in the operations of the Lottery, less the
				amounts expended for prizes, retailer fees, and other operating costs as
				determined by Generally Accepted Accounting Principles issued by the Government
				Accounting Standards Board and the Financial Accounting Standards Board.
"North American Association of State and Provincial Lotteries"
				or "NASPL" means the non-profit professional association formed to assemble and
				disseminate information and benefits of state and provincial lottery
				organizations through education and communications and where appropriate
				publicly advocate the positions of the Association on matters of general
				policy. NASPL represents government-sanctioned lotteries in the United States,
				Canada, Virgin Islands and Puerto Rico.
"On-line Status" means the ability of an Agent to sell
				computer-generated Lottery game tickets or shares for the Lottery's draw-based
				games through a terminal connected to the Department's central gaming
				system.
"Operating Expenses" means all costs of doing business
				including, but not limited to, prizes, commissions, bonuses, and other
				compensation paid to an agent; advertising and marketing costs; rental fees;
				personnel costs; capital costs; depreciation of property and equipment; funds
				for compulsive gambling education and treatments; amounts held in or paid from
				a fidelity fund; and other operating costs.
"Payout" means the money or cash prize that a player wins for
				matching a certain combination of numbers.
"Person", when used in reference to an Agent's license, shall
				be construed to mean and include an individual, association, partnership,
				corporation, limited liability company or partnership, club, trust, estate,
				society, company, joint stock company, receiver, trustee, referee, or any other
				person acting in a fiduciary or representative capacity, who is appointed by a
				court, or any other combination of individuals. "Person" includes any
				department, commission, agency or instrumentality of the State, including the
				Department, and also including any county, city, village, or township and any
				agency and instrumentality of this State.
"Player", when used in the context of a purchase of a Lottery
				game ticket or of a prize claim, means:
an individual;
a group of individuals;
a partnership or club;
a revocable living trust;
an irrevocable trust, if the trust agreement was executed prior
				to the date the prize was won;
an irrevocable trust, if the trust agreement was executed prior
				to the date the prize was won, and provided all beneficiaries are named in the
				trust;
an estate;
a governmental entity other than the Department; or
the following additional types of entities:
a limited partnership;
a corporation;
a limited liability company; or
a charitable organization.
Prize claims by any such "players" are subject to eligibility
				requirements set forth in the Lottery Law, this Part, or game rules.
"Point of Sale" means the physical location where an Agent is
				licensed to conduct the sale of Lottery game tickets to the public.
"Private Manager" means the company, and any permitted
				successor company, awarded a contract to provide business management services,
				including but not limited to the operation of sales, advertising, marketing,
				retail agent services and system support functions to the Illinois Lottery in
				accordance with the Lottery Law.
"Prize" means any award, financial or otherwise, awarded to a
				Lottery game ticket holder pursuant to the rules of the Lottery. In determining
				whether a winning Lottery Game Ticket may be redeemed for cash through a
				Lottery retailer or at a prize center, or must be presented to a Department
				office for payment, and whether a prize may be claimed in a group name or must
				be claimed by an individual group member, the Department will adhere to
				26 U.S.C.
				165(d) and deduct the amount
				of the wager from the face value of the prize.
"Prize Center" means a Lottery office or other authorized
				location where:
Winning Lottery game tickets with a face value up to $25,000
				may be redeemed pursuant to Section
				20.1 of the Lottery Law;
				or
Larger prizes, or those subject to withholding or
				investigation, may be claimed.
"Redeem" (and its variants) means to surrender a valid winning
				Illinois Lottery game ticket to a Lottery retailer for immediate cash payment
				of the prize, or to a Lottery prize center for payment by check, prepaid debit
				card, electronic funds transfer, automated clearing house, or other means in
				accordance with Section
				1770.190.
"Registered Internet Lottery Player" means an individual who
				has successfully established an internet Lottery player account after
				registering through the Lottery's web portal establishing the requisite age,
				location and other eligibility requirements.
"Related Terminal" means any player activated machine or any
				Agent operated terminal in which another Agent has an interest.
"Requests for Proposals" or "RFP" means a formal, public notice
				by an organization inviting vendors to submit ideas, concepts and costs related
				to a specific end.
"Secretary" means the Secretary of the Lottery Control
				Board.
"Service" means the mailing of any notice required by the
				Lottery Law or this Part by certified mail or electronic means, return receipt
				requested. Service by mail shall be deemed complete four days after mailing of
				the document, properly addressed and posted for delivery, to the person to be
				served. Service shall be deemed complete if the notice is returned undelivered
				or unclaimed when mailed, postage prepaid, to the intended recipient's last
				known address as disclosed in the Department's records, or if 30 days have
				elapsed from the date of mailing, to that address with no return of the item.
				Service by electronic means is complete on the day of transmission or, if after
				5:00 p.m., the next business day. If service is by email, the Department shall
				maintain a copy of the sent email and shall verify, within one business day,
				that the transmission of the email has not been rejected or has failed. In the
				event of rejection or failure, absent correction of an erroneous email address,
				service shall be made by mail.
"Special License" means a license issued by the Director
				limited in geographic scope and/or duration of validity (see Section
				1770.30).
"State Lottery Fund" means the special fund, created in the
				State Treasury by Section 20 of the Lottery Law, in which all revenues received
				by the Lottery, as defined and limited by Section 20 of the Lottery Law, are
				deposited.
"Subscription" means a paid-in-advance program in which a
				player purchases a specified number of Lottery tickets to be drawn over a
				specified time period. Subscriptions may be offered to players in several ways,
				including via the internet where allowed by the Lottery Law.
"Surety Bond" means a promise to be liable for the debt,
				default, or failure of another. It is a three-party agreement that legally
				binds the agent or vendor who needs a bond; the Lottery, which requires the
				bond as proof of financial responsibility; and a surety company that guarantees
				the performance or obligations of the agent or vendor to the Lottery.
"Sweep Account" means a banking account which allows the
				Lottery to credit or debit funds to a retailer through EFT.
"Sweepstakes" means a game in which prizes are awarded to a
				specified number of entrants drawn from a pool.
"Ticket Discounting" means reselling or having a person other
				than the prize winner claim a winning Lottery game ticket or buying or claiming
				a winning Lottery game ticket for the purpose of assisting the original prize
				winner with concealing the winner's identity as a prize winner.
"Ticket Symbol" means the printed data in the play area on the
				front of an instant game ticket that is used, among other things, to determine
				eligibility for prizes pursuant to the working papers/games specifications for
				each game.
"Transfer" means the change, in the aggregate, directly or
				indirectly, of the equity, management control, legal ownership, or shares of
				stock of the Agent.
"Trust Account" means a bank account designated and dedicated
				by an Agent for the receipt of Lottery proceeds.
"Tradestyle" means a Lottery retailer category based on
				similarities in operation, organization, or business model, as determined by
				the Director.
"Validation Number" means a unique set of identification
				numbers on draw-based and instant game tickets that is matched with internal
				databases in order to determine the winning or non-winning status of the
				ticket, as well as the prize amount.
"Withholding" means the amounts required by law to be
				subtracted from a winner's prize to recover money owed by the winner to others
				for obligations that include but are not limited to State, federal, and in some
				cases local taxes; judgment creditors; or child support
				obligations.