Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 1770 - LOTTERY (GENERAL) › Section 1770.60 - Conditions of Licensing

Current through Register Vol. 48, No. 28, July 12, 2024
An Agent has a continuing duty to maintain suitability for
				licensure.
A license does not create a property right but is a
				revocable privilege contingent upon continuing suitability for
				licensure.
Licensees are subject to the following conditions of
				licensing:
a) Licenses issued by the
			 Department shall be issued to a person, as defined by Section
			 1770.10, for a specified point
			 of sale, as defined by Section 1770.10, on the condition that the Agent
			 maintains eligibility under the applicable criteria under which the license was
			 granted by the Director (see Section
			 1770.20);
b) Agents shall, at all times during the term
			 of their license, comply with the Lottery Law and any rules or instructions of
			 the Director concerning the security of Lottery equipment, Lottery game tickets
			 or money and the proper conduct of Lottery promotions;
c) Each Agent shall make available for sale
			 to the public, during its normal business hours, the Lottery products that the
			 Agent has been licensed to sell;
d)
			 No license issued pursuant to the Lottery Law shall be changed, assigned or
			 pledged as collateral. A transfer that occurs after the Director has issued a
			 license shall automatically terminate the license;
e) Lottery licenses or other point of sale
			 materials shall be displayed in a conspicuous place on the business premises
			 where the Lottery game tickets are licensed to be sold. The Department will
			 make the odds and written play instructions available to players by publishing
			 in the Illinois Register and on its public website (
https://www.illinoislottery.com
)
			 or on request from the Department;
f) Agents shall actively promote the sale of
			 Lottery game tickets;
g) Agents
			 shall maintain authorized displays, drop boxes, equipment and properly display
			 other promotional materials used in conjunction with sales in accordance with
			 instructions issued by the Department;
h) Each Agent will be held responsible for
			 all instant game tickets accepted from the Department or its vendors and
			 Lottery game tickets generated by the Agent from the Department's central
			 gaming system. All receipts from sales, less commissions earned and prizes
			 properly paid to winners, shall be paid to the Department by the 90-day
			 settlement deadlines. Any and all Lottery game tickets not returned by the
			 90-day settlement deadlines, absent any fault on the part of the Lottery sales
			 representative, shall be considered to have been purchased by the
			 Agent;
i) Each Agent shall maintain
			 current and accurate records of all operations in conjunction with the sale of
			 Lottery game tickets and make these records available to representatives of the
			 Department and the Auditor General of Illinois upon request, during normal
			 business hours;
j) No Lottery game
			 ticket may be sold or shared at a price greater or less than that established
			 by the Department's game rules, provided, the Department may authorize free
			 ticket or discounted ticket promotions in support of marketing activities. No
			 Agent may add a service charge, handling fee or other cost to the established
			 price of a Lottery game ticket. No fee may be charged to redeem valid winning
			 Lottery game tickets;
k) No Lottery
			 Agent license shall be issued to any person to engage in business exclusively
			 as a Lottery Agent;
l) No person
			 other than a licensed Agent shall sell Lottery game tickets;
m) Agents shall sell Lottery game tickets on
			 a face-to-face or authorized dispensing machine basis only at the point of sale
			 designated in the license, and shall not conduct sales to off-premises
			 customers by telephone, mail, parcel delivery service, or through an
			 agent-sponsored vehicle such as a club, players' association, or similar
			 entity;
n)
No Lottery game
			 tickets shall be sold or given to a person under the age of 18 years, or any
			 prize paid to a person under the age of 18
(Section 15 of the
			 Act);
o) Each Agent shall hold the
			 Department and the State of Illinois harmless with respect to any liability
			 arising in connection with the Agent's Lottery game ticket sales
			 activities;
p) Each Agent shall
			 immediately report to the Department the loss or theft of any Lottery game
			 tickets consigned to the Agent, with the ticket identification
			 numbers;
q) Each Agent shall redeem
			 all winning Lottery game tickets with a face value up to $599 or less, so long
			 as the Agent has adequate ticket sales funds on hand. No Agent shall redeem a
			 winning ticket with a face value equal to or greater than $600, but shall
			 instead follow established prize claim procedures (see Section
			 1770.190);
r) No license shall be granted to any
			 applicant whose prior Lottery license has been revoked less than two years
			 prior to the date of the current application;
s) No Agent shall sell Lottery game tickets
			 or shares issued by any governmental entity, foreign or domestic, other than
			 tickets and shares for games operated by the Department. No Agent shall sell
			 any other type of gambling or gaming tickets or chances other than those for
			 which the retailer is specifically licensed by a department, board or
			 commission of the State of Illinois or a unit of local government;
t) All Lottery proceeds are funds of the
			 State of Illinois, must be segregated from other business or personal funds,
			 must be held in trust on behalf of the Illinois Lottery, and the agent's
			 fiduciary duty, under penalty of law, must maintain a separate bank account
			 exclusively for deposit and transfer of weekly Lottery fund settlements by
			 means of an Electronic Fund Transfer system. The account must be designated on
			 the bank's records as "Lottery Trust Fund Account";
u) Agents are responsible for resolving net
			 proceed discrepancies on a billing statement (i.e., differences between actual
			 money collected and the amount shown on the billing statement);
v) Agents shall comply with all prescribed
			 State and federal requirements for tax withholding, recording and reporting,
			 including, without limitation, those requirements relating to the transfer,
			 from the Agents to the tax authorities, of funds withheld from player
			 winnings;
w) Notwithstanding
			 subsection (u), any discrepancy regarding settlement of accounts will be
			 resolved by the Director as deemed appropriate;
x) No person shall engage in Lottery game
			 ticket discounting. Any person found to have engaged in the practice of
			 discounting shall be fined, as determined by the Director:
1) For prizes of less than $1,000, not more
			 than $250;
2) For prizes of $1,000
			 or more, but less than $5,000, more than $250 but not more than $500;
			 and
3) For prizes of $5,000 or
			 more, no less than $1,000; and