Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 1770 - LOTTERY (GENERAL) › Section 1770.40 - License Revocation Without Prior Notice

Current through Register Vol. 48, No. 28, July 12, 2024
a) Pursuant to Section
			 10.1 of the Lottery Law, the
			 Director must act to assure that no person whom the Lottery Law declares to be
			 ineligible for a license is granted a license, and that no Agent who becomes
			 ineligible under the Lottery Law is allowed to remain as an Agent.
1) The Director may revoke or suspend a
			 license without notice or prior hearing when the Agent has:
A) violated any of the provisions of the
			 Lottery Law or this Part;
B) failed
			 to meet or maintain the eligibility requirements for licensing as provided in
			 the Lottery Law and this Part, and the conditions of licensing set forth in
			 Section 1770.60;
C) been found guilty of fraud, deceit,
			 misrepresentation or other conduct prejudicial to public confidence in the
			 Lottery, including misrepresentation or failure to disclose a material fact on
			 its application for the sale of Lottery game tickets;
D) been convicted of a felony, reasonably
			 related to the responsibilities of selling Lottery products, in any
			 jurisdiction, unless the requirements of Section
			 10.1 of the Act have been
			 met;
E) in contravention of the
			 agent's fiduciary duty:
i) commingled and has
			 failed to segregate Lottery funds as a "trust fund" as required by the Lottery
			 Law;
ii) failed to surrender
			 Lottery funds and/or unsold instant tickets upon demand by the Department or
			 its authorized agent;
iii) carried
			 an accounts receivable balance in excess of $500 for more than 90 days;
			 or
iv) failed to post a bond or
			 security deposit as required by the Director;
F) failed to take reasonable security
			 precautions with regard to the handling of Lottery game tickets and related
			 materials;
G) untimely offered new
			 Lottery products for sale, altogether ceased to offer Lottery products for
			 sale, or changed business ownership, (see Section
			 1770.80(d)),
			 with no prior notice to the Department by the seller or buyer;
H) demonstrated, based on information made
			 available to the Director after the Agent was licensed, that the Agent's
			 character and general fitness are such that participation as an Agent is
			 inconsistent with the public interest, convenience and necessity;
I) demonstrated, based on information made
			 available to the Director after the Agent was licensed, that the Agent or an
			 employee has engaged in discrimination and harassment inconsistent with the
			 public interest and State and federal law;
J) demonstrated insufficient financial
			 stability, integrity and responsibility to conduct Lottery
			 activities;
K) demonstrated
			 insufficient business ability and experience to create and maintain successful
			 Lottery activities;
L) filed, or
			 had filed against it, a proceeding for bankruptcy or has ever been involved in
			 any formal process to adjust, defer, suspend, or otherwise work out the payment
			 of any debt;
M) been served with a
			 complaint or other notice filed with any public body regarding a payment of any
			 tax or child support required under any law in any jurisdiction, when the Agent
			 has been in breach for one or more years; or
N) currently or previously been a defendant
			 in litigation involving business practices that would call into question
			 suitability to be licensed.