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TITLE 11: ALCOHOL, HORSE RACING, AND LOTTERY

SUBTITLE C: LOTTERY

CHAPTER II: DEPARTMENT OF REVENUE


PART 1770

LOTTERY (GENERAL)


Section



1770.10 Definitions
1770.20 Selection of Lottery Sales Agents; License Application and Fee; On-Line Status
1770.30 Special Licenses
1770.40 License Revocation Without Prior Notice
1770.50 License Revocation, Suspension, Non-Renewal or Denial With Prior Notice
1770.60 Conditions of Licensing
1770.70 License to be Displayed
1770.80 Change of Name, Ownership, or Form of Business Organization
1770.90 Delinquent Financial Obligations
1770.100 Bonding of Agents
1770.110 License Expiration and Renewal
1770.120 Agent Financial Adjustments
1770.130 Lost, Stolen, and Damaged Winning Tickets and other Discrepancies
1770.140 Sales by Department Directly
1770.150 Sales, Inspection, Compensation, and Ticket Purchases
1770.160 Lottery Tickets
1770.170 Lottery Games
1770.180 Drawings
1770.190 Prize Payment, Claiming or Redeeming of Prizes and Transfers to Common School Fund
1770.200 Eligibility to Buy
1770.210 Promotional Items
1770.220 Priority of Rules
1770.230 Assignment of Lottery Prizes
1770.240 Voluntary Self-exclusion Program
1770.APPENDIX A Affidavit
1770.APPENDIX B Voluntary Self-exclusion Agreement


AUTHORITY: Implementing and authorized by Sections 7.1 and 7.2 of the Illinois Lottery Law [20 ILCS 1605/7.1 and 7.2].
SOURCE: Filed by the Lottery Control Board July 11, 1974; amended at 2 Ill.Reg. 17, p. 130, effective April 1, 1978; amended at 4 Ill. Reg. 15, p. 201, effective March 30, 1980; codified as 11 Ill. Adm. Code 1670 at 5 Ill. Reg.10713; transferred from 11 Ill. Adm. Code 1670 (Lottery Control Board) to 11 Ill. Adm. Code 1770 (Department of the Lottery) pursuant to Executive Order 86-2, effective July 1, 1986, at 11 Ill. Reg. 1582; Part repealed, new Part adopted at 13 Ill. Reg. 7908, effective May 16, 1989; amended at 17 Ill. Reg.18816, effective October 19, 1993; amended at 18 Ill. Reg. 13439, effective August 23, 1994; amended at 19 Ill. Reg. 6810, effective May 8, 1995; amended at 20 Ill. Reg. 15039, effective November 6, 1996; emergency amendment at 22 Ill. Reg. 1964, effective January 15, 1998, for a maximum of 150 days; amended at 22 Ill. Reg. 9307, effective May 15, 1998; amended at 22 Ill. Reg. 22298, effective December 14, 1998; amended at 24 Ill. Reg. 16061, effective October 13, 2000; amended at 25 Ill. Reg. 12812, effective September 28, 2001; amended at 26 Ill. Reg. 8562, effective May 30, 2002; recodified from the Department of the Lottery to the Department of Revenue pursuant to Executive Order 2003-9 at 27 Ill. Reg. 16993; amended at 29 Ill. Reg.13869, effective August 29, 2005; amended at 32 Ill. Reg. 14888, effective August 28, 2008.


Section 1770.10 Definitions


Terms defined in the Act 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:
"Act" means the Illinois Lottery Law [20 ILCS 1605].
"Agent", "Retailer", "Sales Agent" or "Distributor" means a person and his representative who has been licensed to distribute and/or sell lottery tickets under Sections 9.d, 10 and 10.1 of the Act. "Applicant" means a person who has applied to the Director for a license to sell lottery tickets to the public. "Board" means the Lottery Control Board as established by Section 6 of the Act. "Chairman" means the Chairman of the Lottery Control Board. "Claim" means to present a purported winning Illinois Lottery ticket to a licensed Lottery Agent or a Lottery regional or administrative office for payment. "Claim" shall additionally mean the process of completing an Illinois Lottery claim form or other documentation as required by this Part. "Claimant" means a person, as defined in this Section, who presents a winning lottery ticket to a licensed Lottery Agent or a Lottery regional or administrative office for the purpose of receiving a prize. "Department" means the Illinois Department of Revenue. "Director" means the Director of the Department of Revenue or his or her designee. "Employee of the Department" means an employee of the Department of Revenue. "Game" means any individual or particular type of lottery authorized by the Department. "License" means a license, issued by the Director pursuant to Section 9 of the Act, under the authority of the Act, for an agent to sell lottery tickets to the public. Licenses shall be effective for an initial period of two years from the date issued by the Department's lottery licensing unit. Each license thereafter approved for renewal by the Department will be renewed for a two-year term dated from the date of expiration of the initial or last prior renewal term, as may be appropriate. "Licensed Agent", "Lottery Sales Agent", "Licensed Sales Agent", "Licensed Retailer" or "Lottery Retailer" means a person permitted by a license issued by the Director under the authority of Sections 9.d, 10 and 10.1 of the Act to sell Illinois State Lottery tickets to the public, by an across-the-counter transaction at a specified Point of Sale at a specifically licensed location. "Lottery" or "State Lottery" means the lottery established and operated pursuant to the Act. "On-line status" means the ability of an agent to sell computer-generated lottery game tickets or shares through a terminal connected to a lottery central system. "Person", when used in reference to a sales 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 thereof. "Person", when used in the context of a prize claim, shall be construed to mean and include an individual; a group of individuals; a partnership or club; a limited partnership, if registered prior to the date the prize was won; a corporation, if incorporated prior to the date the prize was won; a limited liability company, if registered prior to the date the prize was won; a revocable living trust, provided the prize winner is the initial trustee; an irrevocable trust, if the trust agreement was executed prior to the date the prize was won, and provided all beneficiaries of the trust are named therein; a charitable organization, if registered prior to the date the prize was won; an estate; or a governmental entity other than the Department of Revenue. Prize claims by any such "persons" are subject to eligibility requirements set forth in the Act, this Part, or game rules. "Point of Sale" means the physical location where a licensed agent is authorized to conduct the sale of lottery tickets to the public. "Prize" means any award, financial or otherwise, awarded to a ticket holder pursuant to the rules of the lottery. In determining whether a winning lottery ticket may be redeemed for cash by a lottery retailer 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, "prize" means the verified prize amount, less the dollar amount of the wager, in accordance with federal tax regulations. "Redeem" means to surrender a winning Illinois Lottery ticket to a lottery retailer for immediate cash payment of the prize, in accordance with Section 1770.190 of this Part. "Related terminal" means any player activated machine or any agent operated terminal in which an owner of an agent location has 50% or greater interest. "Secretary" means the Secretary of the Lottery Control Board. "Service" means the mailing of any notice required by the Act or this Part by certified mail, return receipt requested. 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 such address with no return of the item. "Special License" means a license issued by the Director limited in geographic scope and/or duration of validity, pursuant to Section 1770.30 of this Part. "State Lottery Fund" means the special fund created in the State Treasury by Section 20 of the Act, in which all revenues received by the State Lottery, as defined and limited by Section 20 of the Act, are deposited. "Ticket" means a lottery ticket or share issued by the Department for sale to the general public.
(Source: Amended at 29 Ill. Reg. 13869 , effective August 29, 2005)
Section 1770.20 Selection of Lottery Sales Agents; License Application and Fee; On-Line Status

a) The Director shall license as sales agents, persons engaged in business activity dealing with the public provided, however, that the sole proprietors, partners, corporate officers or principals of an applicant must be 18 years of age or older to be eligible to apply for a license. The total number of sales agents shall be sufficient to assure that lottery products are conveniently available to the public throughout the State, consistent with the constraints of the Department's budget. Any person interested in obtaining a license as a sales agent, must first fill out an application with the Department, on such forms as may be provided by the Department. The Department will have a representative meet with the applicant to discuss the responsibilities of selling lottery products, and gather information concerning the applicant and his business establishment concerning the factors listed below. The Director shall give careful consideration to the following factors in selecting as sales agents those persons which one may expect to provide a high level of sales volume of lottery products, proper security for the lottery equipment, tickets and money, and a good public image for the State's lottery products.

1) The credit worthiness and financial responsibility of the applicant as disclosed by standard credit reporting services, the records of the State and such other credible information bearing upon the credit worthiness of the applicant as may be brought to the attention of the Director.
2) The criminal history and tax status of the applicant as disclosed in the application or in records of the State.
3) The physical security of the applicant's establishment in terms of the physical structure and design of the applicant's facilities as it would relate to the placement of lottery equipment, the sale of lottery products and the storage of lottery receipts.
4) The public accessibility of applicant's place of business or activity, including accessibility from roads, major highways, parking facilities, public transit routes, accessibility by the disabled, proximity of pedestrian traffic, hours of operation of applicant's business, and the cleanliness, attractiveness and physical security of the premises.
5) The number of existing lottery sales licenses in the vicinity.
6) The nature of the applicant's business and the volume of the applicant's sales from his regular business in order to assure that the sale of lottery products will be ancillary to the applicant's regular business.
7) The level of anticipated or projected sales from the general area in which the applicant's business is located taking into consideration the demographics of the neighborhood or locality, the proximity of the location to population centers and the average sales for other comparable agents.
8) The character of the applicant and his or her reputation for honesty and integrity in the community.
9) The veracity of the information supplied in the license application.
10) The merchandising skills and business experience of the applicant, including the tenure of applicant's business at the proposed location.
11) The applicant may provide any information relating to the above listed factors to the Department's representative at the time of the site visit or may include any information relating to these factors at the time of submission of the application.


b) The Director shall make available forms for application for lottery sales licensing. Each license application shall be accompanied by a non-refundable $50 application fee, which application and fee should be mailed or delivered to the Office of the Director located at:
Illinois Department of Revenue Lottery Licensing Unit 101 West Jefferson Street, MC5-940 Springfield, Illinois 62794-9015


c) The license fee described in subsection (b) will be waived by the Department if the period of the license does not exceed 30 days.


d) The Director may grant a licensed sales agent on-line status based upon an evaluation conducted by an employee of the Department. The evaluation will include, but shall not be limited to:
1) Performance as an instant sales agent, including sales volume, settlement practices and compliance with Department procedures;
2) Financial responsibility;
3) Proximity to existing on-line sales agents;
4) Ability to pay valid winning tickets;
5) Days and hours of operation;
6) Accessibility of the sales agent's place of business, including available parking, proximity of public transit stops and accessibility by the disabled; and
7) Anticipated volume of on-line sales.


e) Each lottery licensee granted on-line status pursuant to the Departments rules must pay a fee of $10 per week as partial reimbursement for telecommunications charges incurred by the Department in providing access to the lotteries on-line gaming system. [20 ILCS 1605/10.2]
(Source: Amended at 29 Ill. Reg. 13869 , effective August 29, 2005)


Section 1770.30 Special Licenses

a) The Director may issue Special Licenses from time to time for the sale of lottery products at public events of short-term duration and limited geographic scope. Examples of such events include, but are not limited to, State and county fairs, ethnic festivals, and street fairs. Subject to the provisions of subsection (c) below, a special license shall entitle the holder to conduct sales of instant tickets only for the term of the license, and on the licensed premises. The term of the special license shall be determined by the duration of the event.


b) Factors which shall be considered by the Director in determining whether the licensing of sale of lottery products during the course of a public event shall include, but are not limited to:
1) The anticipated public perception of the event as an appropriate vehicle for marketing of lottery products;
2) The term and expected attendance at the event, as a measure of anticipated sales; and
3) Sensitivity of the sponsor to the preservation of the integrity of the lottery and its products as evidenced by the sponsor's conduct of similar activities or events in a responsible manner.


c) Any person may apply for a special license. However, to be granted on-line status, an applicant must be a currently licensed lottery Sales Agent authorized to sell on-line products. Applications for special licenses will be subject to the discretionary review of the Director as provided in subsections (a) and (b) above. In granting on-line status, the Director shall additionally consider the cost of installation and availability of equipment balanced against the anticipated volume of sales of lottery products.


d) Lottery sales agents holding special licenses are subject to the same responsibilities and restrictions as regular sales agents as set forth in this Part. However, the Director may, in his or her discretion, temporarily waive a particular condition of licensing in order to carry out the purposes of this Section.


e) If the Director determines Lottery tickets should be sold at a public event, and no application for special license is received for that event, the Director may assign such personnel of the Department as may be appropriate to sell tickets to the public at the event.
(Source: Amended at 17 Ill. Reg. 18816, effective October 19, 1993)


Section 1770.40 License Revocation Without Prior Notice


a) Pursuant to Section 10.1 of the Act, the Director must act to assure that no person whom the Act declares to be "ineligible for a license" is granted a license and that no licensed sales agent who becomes "ineligible" under the Act is allowed to remain as a licensed sales agent. The Director may revoke the license of any agent who violates the Act or any rule promulgated pursuant to the Act. The Director may revoke a license without notice or prior hearing, upon determining any of the following:
1) That an agent has been convicted of a felony or any crime involving fraud, misrepresentation, moral turpitude or failure to pay taxes;
2) That the agent, or an employee of the agent engaged in or responsible for lottery ticket sales, has been arrested for bookmaking or any other form of illegal gambling;
3) That the agent has been found guilty of any fraud or misrepresentation;
4) That the agent has commingled and has failed to segregate Lottery funds from other funds, or has failed to surrender such funds and/or unsold instant tickets upon demand by the Department or its authorized agent, or has carried an accounts receivable balance in excess of $500 for more than 90 days;
5) That the agent has failed to take reasonable security precautions with regard to the handling of lottery tickets and related materials;
6) That the agent has ceased to offer Lottery products for sale, or has changed business ownership, as defined in Section 1770.80(d) herein with no prior notice to the Department by the seller or buyer;
7) That, on the basis of information made available to the Director since the agent was licensed, the Director finds that the agent's character and general fitness are such that his or her participation as an agent is inconsistent with the public interest, convenience and necessity.


b) In the event the Director revokes a license without notice and an opportunity for a prior hearing, the Director shall, by service of appropriate notice pursuant to 11 Ill. Adm. Code 1700.30 and this Part, afford the person whose license has been revoked an opportunity for a hearing within 30 days after the revocation order has been issued. As a result of any such hearing the Director may confirm the action revoking the license, or may order the restoration of the license. In determining whether to confirm the action revoking the license, or order the restoration of the license, the Director shall take the following factors into consideration, if applicable:
1) the agent's history of past offenses;
2) whether the agent's course of conduct constituted a threat to the safety of the agent, Department Officials, or others;
3) any evidence of the agent's ignorance of a material fact which led to his unlawful conduct;
4) the degree of cooperation exhibited by the agent with Department Officials;
5) the degree to which the agent profited economically as a result of his conduct;
6) any other evidence offered and noted by the Hearing Officer as demonstrating factors in mitigation or factors in aggravation of the relief sought in the complaint.


c) The Director may suspend, with or without notice or prior hearing, the license of any agent who violates this Act or any rule or regulation promulgated pursuant to this Act. In the event the Director suspends a license without notice and an opportunity for prior hearing, the Director shall, by service of appropriate notice, as provided by 11 Ill. Adm. Code 1700.30 and this Part, afford the person whose license has been suspended an opportunity for a hearing within 30 days after the suspension order has been issued. As a result of any such suspension, the Director may confirm suspension of the license or may rescind the suspension. In determining whether to confirm the action confirming suspension or rescinding the suspension, the Director shall take the following factors into consideration, if applicable:
1) the agent's history of past offenses;
2) whether the agent's course of conduct constituted a threat to the safety of the agent, Department Officials, or others;
3) any evidence of the agent's ignorance of a material fact which led to his unlawful conduct;
4) the degree of cooperation exhibited by the agent with Department Officials;
5) the degree to which the agent profited economically as a result of his conduct;
6) any other evidence offered and noted by the Hearing Officer as demonstrating factors in mitigation or factors in aggravation of the relief sought in the complaint.


d) Upon termination of an agent's license, the Department shall arrange, and the agent shall participate in, a meeting with the Department's representative for the purpose of rendering the agent's final lottery accounting.


e) Upon receipt of notice of revocation, the agent shall surrender immediately to the Director or his or her designee, his agent's license and other lottery equipment and materials supplied to the agent by the Department, its on-line games vendor or its instant ticket validation service vendor.


f) Nothing in this Section shall be construed to prevent the immediate termination of an agent's license upon agent's request and the Department's approval thereof, or upon the effective date of a change in ownership for which the Department has received written documentation. The right to a hearing shall not apply in such circumstances.
(Source: Amended at 22 Ill. Reg. 9307, effective May 15, 1998)


Section 1770.50 License Revocation, Suspension, Non-Renewal or Denial With Prior Notice

The Director may deny, suspend, not renew or revoke an agent's license with prior service of notice and opportunity for hearing for one or more of the following causes:


a) violation of any of the provisions of the Act or this Part;


b) failure to meet or maintain the eligibility requirements for licensing as provided in the Act and these rules, and the Conditions of Licensing set forth in Section 1770.60 of this Part;


c) fraud, deceit, misrepresentation or other conduct prejudicial to public confidence in the Lottery;


d) the misrepresentation of, or failure to disclose, a material fact to the Board or the Director on any report, record, application, form or questionnaire required to be submitted to the Board or the Director, including, but not limited to, the misrepresentation of or failure to disclose a criminal record, taxpayer status with the State of Illinois or relevant information bearing on the financial status of the applicant;


e) failure to promptly produce for inspection, by a member of the Board, the Director, or their authorized representatives, including law enforcement personnel, any book, record, account, document or item required by the Act or this Part;


f) refusal to permit access to members of the Board, the Director, or their authorized representatives, including law enforcement personnel, to any place where a licensed lottery activity is conducted;


g) failure to file any returns or reports or to keep any records or reports as required by the Director under the Act or this Part;


h) failure to account for lottery tickets received or the proceeds from the sale of lottery tickets, or to post a bond if so required by the Director;


i) failure to maintain sales levels established by Department directive;


j) failure to comply with the instructions or directives of the Director as to security procedures for the handling of lottery tickets or the conduct of any lottery game;


k) knowingly causing, aiding, abetting or conspiring with any other person to violate this Act or this Part;


l) making a misrepresentation of fact to the purchaser, or prospective purchaser, of a lottery ticket, or to the general public, with respect to the conduct of any lottery game;


m) upon a determination by the Director that the number of lottery sales agents in agent's area of operation exceeds the number which can be efficiently supported by the Department's budget or personnel, or the public convenience in obtaining lottery products is sufficiently served by other agent locations considering the total volume of sales in such area;


n) failure to pay the Department any obligation when said obligation becomes due;


o) upon a determination by the Director that the licensed agent has become insolvent or unable or unwilling to pay his debts;


p) failure to display lottery point-of-sale material in a manner which can be readily seen by the public, or make hand-out materials readily available to the public;


q) upon any change of business ownership, business organization or business location;


r) selling a ticket, giving a ticket or paying a prize to a person under the age of 18. (Section 15 of the Act) For the purposes of this Section, an action by an employee of the agent shall constitute an action by the sales agent.


(Source: Amended at 22 Ill. Reg. 9307, effective May 15, 1998)

Section 1770.60 Conditions of Licensing

Lottery sales licenses are subject to the following conditions of licensing:
a) The lottery sales license 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 licensed sales agent maintains eligibility under the applicable criteria under which the license was granted by the Director, as defined in Section 1770.20;


b) Licensees shall, at all times during the term of licensure, comply with the Act and any rules or instructions of the Director concerning the security of lottery equipment, tickets or money;


c) Each licensed agent shall make available for sale to the public, during its normal business hours, those Illinois State Lottery ticket products which the agent has been licensed to sell. No agent shall offer for sale any gambling or gaming tickets or chances other than those for which the agent is specifically licensed by the Department of Revenue or other department, board or commission of the State of Illinois;


d) No license issued pursuant to the Act shall be transferable or assignable;


e) Lottery sales licenses and placards stating game play odds for Lottery games shall be displayed in a conspicuous place on the business premises where the lottery tickets are licensed to be sold;


f) Lottery licensees shall actively promote the sale of Illinois State Lottery tickets;


g) Licensees 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. Each licensee will be held responsible for all tickets accepted from the Department or its distribution agents, by licensee, its agents or employees. All unsold tickets and receipts from sales, less commissions from such sales and less such sums as have been paid by licensees to winners of prizes in the manner prescribed by directives of the Department, shall be returned to the Department or its distribution agents by the stated settlement deadlines. Tickets not returned by settlement deadlines dates shall be considered to have been purchased by the agent;


h) Each agent shall maintain current and accurate records of all operations in conjunction with sales in conformity with rules of the Department. Such records shall be made available to representatives of the Department and the Auditor General of Illinois;


i) No person shall sell a ticket or share at a price greater or less than that fixed by rule of the Department, provided, the Department may enter into ticket couponing and ticket discount couponing promotions in support of marketing activities. No "service charge", "handling fee" or other cost shall be added by any person to the established price of a ticket or share. No person shall charge a fee to redeem valid winning tickets or shares;


j) No license as an agent to sell lottery tickets or shares shall be issued to any person to engage in business exclusively as a lottery sales agent;


k) No person other than a lottery sales agent shall sell lottery tickets;


l) Licensed agents shall sell lottery tickets on a face-to-face or authorized dispensing machine basis only on the business premises 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;


m) No lottery ticket 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 years (Section 15 of the Act);


n) Each licensee shall hold the Department and the State of Illinois harmless with respect to any liability arising in connection with agent ticket sales activities;


o) Each licensee shall immediately report to the Department the loss or theft of any lottery tickets consigned to the licensee, with the ticket identification numbers;


p) Each licensee shall redeem all winning instant game tickets presented to the licensee for monetary prizes of less than $600. Each on-line agent shall redeem all winning tickets of any Lottery games presented to the licensee for monetary prizes of less than $600. No agent shall redeem a winning ticket for a prize of $600 or more, but shall instead follow established prize claim procedures specified in Section 1770.190;


q) No license shall be granted to any applicant whose prior license has been revoked pursuant to these rules, when the effective date of revocation has been less than two years prior to the date of the current application;


r) No licensed agent shall sell lottery tickets or shares issued by any governmental entity, foreign or domestic, other than tickets and shares for games operated by the Illinois State Lottery;


s) All lottery proceeds are funds of the State of Illinois, must be separately segregated from other business or personal funds, must be held in trust on behalf of the Illinois Lottery, and the agent must, under penalty of law, 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."


(Source: Amended at 26 Ill. Reg. 8562, effective May 30, 2002)


Section 1770.70 License to be Displayed

a) Every licensed agent shall prominently display his license or a copy thereof in an area visible to the general public.


b) In addition, the "Authorized Lottery Agent" decal shall be mounted on a prominent public window of the agent's premises.


c) Each lottery sales agent shall maintain and display all promotional material in a prominent location, conveniently visible to the public.

Section 1770.80 Change of Name, Ownership, or Form of Business Organization


a) Every change in the name, ownership or form of business organization of the business designated in the license as permitted to offer to the public lottery tickets, shall be reported by the licensed agent to the Director 30 days prior to effective date of change. Reporting may be accomplished by completing a departmental form provided for such purpose or by mailing notice of the proposed change by certified mail, return receipt requested, postmarked on or before the 30th day prior to the effective date of change, and addressed to the Department at the following address:
Illinois Department of Revenue Lottery Licensing Unit 101 West Jefferson Street Springfield, Illinois 62794-9015


b) "Change of name" means a change in the name of the business designated in the license, by which name the business is intended to be known to the public.


c) "Change of business organization" means a change from one form of organization and ownership of the business, as permitted by the laws of the State, to another, including, but not necessarily limited to, general partnerships, limited partnerships, corporations and proprietary ownership.
d) "Change of ownership" means the transfer of more than 50% of the equity, management control, legal ownership, shares or stock of the business designated in the license.
e) Each notification of change of name, ownership or form of business organization of a licensee communicated to the Director shall include the following information:
1) the name, address and agent identification number of the licensed agent;
2) the name of the business as it appears on the license;
3) the proposed new name of the business designated in the license, if applicable;
4) the current form of business organization;
5) the proposed form of business organization, if applicable;

6) the current owners, managers or shareholders of the business, as is indicated in the license;
7) the proposed changes of ownership, including the names and addresses of the proposed new owners, managers or shareholders, the percentage of proposed transfer of equity, management control, legal ownership, shares or stock; and
8) the anticipated date of the proposed change in name, business organization or ownership.
f) The Director shall review the changes, considering current licensing standards, as provided in the Act and this Part.
g) The Director, upon approval of a change in name or a change in business structure which does not also involve a change in ownership, shall issue a replacement license reflecting the new name or business structure. The replacement license shall have an expiration date no later than the expiration date provided in the previous license.
h) Except as provided below, any change of business ownership shall necessitate termination of the existing licensing agreement, as of the effective date of the change of ownership. The new owner must submit an application and fee as provided in Section 1770.20 of this Part. If the existing agent has not provided the Department with required written notification of the change, the applicant may be required to furnish documentation evidencing the change in ownership, such as a sales contract. In the event of change of ownership of a corporate chain or franchise in which a business at a licensed location continues operation under the franchisor or chain corporate management, and upon corporate guarantee and assumption of the financial obligations of the licensee, a license may be assigned to the corporate sponsor and need not be terminated.


i) In the event of the proven incapacity, death, receivership, bankruptcy or assignment for the benefit of creditors of any licensed agent or business as designated in the license held by a licensed agent, and upon approval of the Director, the license may continue under a court-approved or court-confirmed guardian, executor or administrator, receiver or trustee for the benefit of creditors, who may continue to operate the business designated under the license, subject to the provisions of this Act and this Part, including the requirements that:
1) the person to whom the license is transferred must be otherwise qualified to hold a license;
2) the license following the transfer shall be void in the event the license transferee ceases to hold such court-appointed or court-confirmed position;
3) the Director may condition the transfer of any license under this Section upon the posting of a bond, or a guaranteed payment in the form of a cashier's check or money order, on such terms and under such conditions as the Director may deem necessary to protect the financial interests of the State, provided that any such bond shall reflect the reasonably anticipated risk of transfer.


j) Every change in the location of the business designated in the license shall be reported to the Director no less than 30 days prior to the effective date of the change. If such change results from severe damage to or destruction of the business premises specified in the license, as a result of fire, natural disaster or other cause beyond the control of the licensed sales agent, the licensed sales agent shall promptly notify the Director of such destruction or damage to the business premises, and the consequent change of location, but in no case shall such notification be later than three days after such damage to or destruction of the premises or change of location. Upon such notification, the Director shall consider the factors set forth in Section 1770.20 of this Part to determine whether the agent should be licensed to sell tickets at the new location. Upon the Director's approval, a replacement license shall be issued having an expiration date no later than that of the agent's original license.


k) If a sales agent fails to notify the Department, in writing, of a change of ownership before such change occurs, all owners, officers or other responsible persons named in the Application for Lottery Sales Agent's License shall remain liable to the Department for all tickets issued to or generated by the agent location, and all proceeds from the sale of such tickets (less prizes paid and/or commissions retained) to the date written notice is received by the Department and a final settlement conducted, or the date the Sales Agent's license is revoked or otherwise terminated by the Department, whichever shall first occur.


(Source: Amended at 22 Ill. Reg. 9307, effective May 15, 1998)


Section 1770.90 Delinquent Financial Obligations


a) It is the obligation of each Lottery sales agent to remain current on his or her financial obligations to the Department. Lottery accounts are due and owing, in full, on each settlement day designated by the Department. Settlement of on-line terminal agent ticket accounts will be on a weekly basis, and settlement of instant game ticket accounts will be as scheduled by the Department. Accounts not settled on designated settlement days shall be deemed delinquent. Serious or repeated delinquencies may result in the suspension or revocation of a Lottery sales agent's license or the deactivation of the Lottery sales agent's on-line terminal. In the event the Department determines that a delinquency exists as a result of failure of an agent to segregate Lottery funds from other funds or as a result of commingling of Lottery funds or other assets so that the funds and assets of the Department, held in trust by an agent, cannot be identified and surrendered upon demand by the Department or its authorized collection representative, the Department shall revoke the license without notice or prior hearing, as provided in Section 1770.40(a)(4) of this Part. Lesser delinquent financial obligations will be processed pursuant to the provisions of subsections (b) and (c) of this Section.


b) In the event an agent, authorized to sell only instant products, is delinquent with respect to settlement of his or her account, and the delinquency is the first or second such delinquency within the past twelve months, inclusive of the month of the current delinquency, the collector will establish an extended collection deadline of 4:00 p.m. on the next business day, for a morning delinquency, and 10:00 a.m. the second business day for an afternoon delinquency. A delinquent agent will be charged with each such delinquency. There will be no sanctions imposed with respect to the first two such delinquencies within a twelve-month period, unless both delinquencies occur within a 30-day period. Upon the third such delinquency, or the second of two delinquencies in a 30-day period, the Department or its collection agent shall notify the licensee that it will be under review by Department management for possible license revocation. During the period of review, no new instant tickets will be delivered to the agent. If the Department determines that the delinquencies, or any of them, were reasonably justified due to circumstances beyond control of the agent, the Department will reinstate the agent. Thereafter, any subsequent delinquency which, when taken with other delinquencies within the immediate past twelve calendar month period totals three delinquencies, or two delinquencies within a 30-day period, shall require additional review by the Department. If, upon any such review, the Department determines that the delinquencies are not reasonably justified by the agent, the Department may proceed with notification of termination in accordance with the procedures set forth in subsection (d) of this Section.

c) The Department will apply sanctions with respect to delinquent on-line agent accounts according to the following schedule of sanctions:
1) First delinquency: In the event an agent is delinquent in settlement of his or her Lottery account, and the delinquency is the first within the past twelve months, inclusive of the month of delinquency, the agent will deliver correct payment to one of the Department's regional offices or wire transfer the funds to the Department's account by 4:00 p.m. the next business day if delinquency was before noon (12:00 p.m.); by 10:00 a.m. the second business day if the delinquency was reported after noon (12:00 p.m.). If the current week's settlement that was due on settlement date is paid by the extended settlement deadline, the agent will be charged with one delinquency but will receive no further sanction. However, if the settlement amount is not paid by the extended settlement deadline, the delinquent agent's Lottery sales terminal and any related terminals will be immediately deactivated and the account will be referred to the Lottery's Collections Office or appropriate regional office for a follow-up report. The terminals will not be reactivated until the follow-up report is received and reviewed by the Department's lottery finance staff;
2) Second delinquency: In the event an agent is delinquent in settlement of his or her Lottery account, and the delinquency is the second one in the past twelve months, inclusive of the month of the delinquency, the collector will promptly notify the Department of the delinquency, whereupon the delinquent agent's Lottery sales terminal and any related terminals will be immediately deactivated and the agent will be charged with a second delinquency. When settlement of the current week's account which was due on settlement date is paid to one of the Department's regional offices or wire transferred to its account, the Lottery sales terminal and related terminals will be reactivated unless the second incident is within one month after the first, or the payment was made after the extended payment deadline. If this occurs, the sales terminal and any related terminals will be reactivated only after review and approval by the Department's lottery finance staff. In determining whether to reactivate a terminal, Department staff may consider the agent's prior history of delinquencies, general financial status as disclosed by a current credit report, ability to provide a security deposit to protect against future delinquencies, and such other relevant financial and administrative information as may be available to the Department;
3) Subsequent delinquencies: In the event an agent is delinquent in settlement of his or her Lottery account or any extended payment deadline, and the delinquency is the third or more in the past twelve months, inclusive of the month of the delinquency, the collector will promptly notify the Department of the delinquency, whereupon the delinquent agent's Lottery sales terminal and any related terminals will be immediately deactivated and the agent will be charged with an additional delinquency. The terminals will be reactivated only after payment and after review and approval by the Department's lottery finance staff. In determining whether to reactivate a terminal, Department staff may consider the agent's prior history of delinquencies, general financial status as disclosed by a current credit report, ability to provide a security deposit to protect against future delinquencies, and such other relevant financial and administrative information as may be available to the Department.

d) The Department may, upon written notification and with opportunity for hearing, revoke an agent's license after review of a delinquency, at any stage if the Director determines that termination is in the best interest of the Lottery. Such termination may be initiated without prior notice and opportunity for hearing when the Department's funds are not segregated and available for surrender or when accounts receivable exceed allowable limits as provided in Section 1770.40 of this Part. An evaluation of the circumstances surrounding delinquency, including a review of a delinquent agent's past delinquency record will be conducted to differentiate between incidental agent management error and lack of financial stability or responsibility.


e) It is the responsibility of the licensed sales agent to insure that all payments due the Department are properly prepared. Failure to properly prepare and tender any payment due the Department shall not be an excuse for failure to fulfill obligations due the State Lottery.


f) The deactivation or removal of an on-line terminal, or the suspension or revocation of the license of a Lottery sales agent shall not relieve the Lottery sales agent of liability for any obligation due the Department.
(Source: Amended at 26 Ill. Reg. 8562, effective May 30, 2002)


Section 1770.100 Bonding of Agents


The Department may require a surety bond or a guaranteed payment in the form of a cashier's check or money order from any agent, at such agent's expense, so as to avoid any monetary loss to the State because of an agent's activities in the sale of tickets. The Department may require a financial statement revealing the financial condition of any person or organization seeking to become or continue as an agent. (Source: Amended at 22 Ill. Reg. 9307, effective May 15, 1998)

Section 1770.110 License Expiration and Renewal


All licenses issued by the Department pursuant to this Act shall be valid for a period not to exceed two years after issuance unless sooner revoked, cancelled or suspended. The license may be terminated before the expiration date by the Director in accordance with this Part. To be eligible for license renewal, an agent must submit an updated application package or renewal form, as prescribed by the Department, along with a check or money order in the amount of $25. If no check or money order is included with a renewing retailers application, the Department reserves the right to withdraw the sum of $25 from the retailers lottery account. (Source: Amended at 29 Ill. Reg. 13869 , effective August 29, 2005)

Section 1770.120 Agent Financial Adjustments


a) Whenever instant tickets are lost, stolen or destroyed while in the possession of a Lottery agent or distributor, or while in transit to, from or between the Department and the agent or distributor, the Department may provide for full or partial credit against the settlement due the Department from an agent for lost or destroyed non-winning tickets, mid-tier tickets authorized prior to the loss, and mid-tier tickets properly reported as lost or destroyed and therefore unable to be claimed or redeemed. Each such claim for credit shall be accompanied by an affidavit, an incident report and a police or fire report, as appropriate, and/or such other supplementary documentation as the Director may deem necessary to proper validation of the loss.


b) Whenever an agent pays a prize with a claimed value in excess of the amount permitted by Section 1770.190(b) of this Part and seeks reimbursement for the full amount paid, the agent must submit:
1) a written explanation of the circumstances surrounding the prize payment;
2) the winning ticket or, if the ticket has been destroyed, a written explanation of the circumstances surrounding the ticket's destruction; v 3) a claim form completed in the agent's name and taxpayer identification number; and
4) such other documentation as may be requested by the Department's lottery finance staff and lottery General Counsel.
The Department's lottery finance staff and lottery General Counsel will review the documentation provided in conjunction with Department records and, if satisfied that an honest error occurred, such an error is not likely to occur again, and that the original holder of the winning ticket was paid the full amount due for the winning ticket, may jointly recommend that the agent be reimbursed up to the full prize amount paid. If necessary in order to ensure that no other person has legal claim to the prize, the Department's lottery finance staff and lottery General Counsel may withhold reimbursement to the agent until the pertinent prize claim period has expired.
(Source: Amended at 26 Ill. Reg. 8562, effective May 30, 2002)

Section 1770.130 Lost, Stolen, and Damaged Winning Tickets and other Discrepancies


c) Whenever a player submits a claim during the valid claim period for a game alleging that a properly purchased Illinois Lottery ticket was lost or stolen after being deposited in the U.S. Mail, if one year has elapsed since the date of the on-line drawing for which the ticket was purchased or one year has elapsed since the announced end of game for the instant game in question, and no prize has been paid to or claimed by another person, the Director may declare the ticket to be a valid winning ticket and authorize

1) The claimant furnishes a copy of the ticket or other satisfactory evidence as to the date, time and location of the ticket purchase for on-line games; the game, location of purchase, and approximate date of purchase for instant tickets; or such other relevant information as could only be known by the original purchaser of the ticket;
2) The claimant establishes to the satisfaction of the Director that the claimant took reasonable steps with respect to the security of the ticket, actually deposited the ticket in the U.S. Mail properly addressed to the Illinois Lottery, and that the ticket was not lost or stolen due to the player's negligence or carelessness;
3) One and only one claimant meets the criteria outlined in subsections (c)(1) and (2) above; and
4) The prize claimed is not a Lotto game Grand Prize, Little Lotto game First Prize, The Big Game Grand Prize or Second Prize, or instant game prize in excess of $5,000.
Evidence regarding the date, time and place of purchase will not be considered satisfactory evidence of ticket purchase if such information has been generally released to the public by the Department.
(Source: Amended at 26 Ill. Reg. 8562, effective May 30, 2002)payment of the associated prize to the claimant provided that the following conditions are met:

Section 1770.140 Sales by Department Directly

a) The Department may engage in direct sales of tickets at any selling points it establishes within the State. The Department may also sell its products by means of telephone, electronic transmission, parcel delivery services and, to the extent permitted by federal statutes, through the U.S. Mail.


b) In any case where the Department is engaged in the selling of tickets as a general promotion, nothing herein shall be construed to prohibit the Department from compensating lottery agents who may be economically adversely affected by such promotion.

(Source: Amended at 22 Ill. Reg. 9307, effective May 15, 1998)

Section 1770.150 Sales, Inspection, Compensation, and Ticket Purchases

a) Except as provided in Section 1770.140 of this Part, tickets shall be sold only to purchasers physically present on the premises at the specific location named in the license.

b) All ticket sales shall be final, and no agent is authorized to accept ticket returns except as otherwise provided in this Part or with the specific approval of the Director.

c) Authorized inspectors of the Department may inspect the business premises of any agent at any time during normal business hours. Such inspections may be made without prior notice to the agent.

d) An agent is entitled to a commission for tickets sold by the agent at such rate or rates as are established by the Director. Each licensed agent shall be entitled to such bonus or bonuses to be awarded with respect to a winning ticket sold by the agent as may be established by the Director with respect to each particular lottery game.

e) The Director may award additional cash bonuses or other incentives from time to time to sales agents. Agents shall be notified of any such bonuses or incentives by means of an agent newsletter or such other similar agent circular as may be distributed by the Department.

f) Each agent shall deposit to a Lottery Trust Fund Account in a bank, or otherwise return to the Department in the manner prescribed by directive, all monies received by the agent from the sale of tickets less the amount of commission and such sums of money paid out by the agent to winners of prizes (lottery proceeds) which must be separate and apart from other business or personal funds and must be segregated as a trust fund on behalf of the Lottery. The agent shall file with the Department, or its designated representatives,reports of receipts, sales, payment to winners and related transactions in such form and containing such information as the Department may require by directive. Any discrepancies in such receipts and transactions are to be resolved as provided in the reporting directives.


g) All game tickets accepted by an agent remain the property of the Department until the tickets are sold and the proceeds remitted to the Department. Any unsold tickets not returned to the Department upon demand shall be considered purchased by the agent and the purchase price of the tickets, less appropriate deductions, shall be immediately due and payable to the Department .The agent is responsible for lost, stolen or missing tickets not returned, except as provided in Section 1770.120(a) of this Part.


(Source: Amended at 22 Ill. Reg. 22298, effective December 14, 1998)

Section 1770.160 Lottery Tickets


a) The Director is authorized to prepare for sale to the public such lottery tickets as may be appropriate for implementation of the lottery games offered, from time to time, by the Department, or to offer lottery tickets at no charge to consumers 18 years of age or older as a promotional tool.


b) Each lottery ticket shall contain the price of the ticket, the drawing date if appropriate, and such unique identification numbers or symbols and such other information as the Director may deem appropriate for security and marketing purposes. If a lottery ticket is being offered at no charge in connection with promotional activities of the Department, the ticket will be stamped with the words "not for sale" or words of similar import.
c) Any unsigned lottery ticket issued by the Director is a bearer instrument and shall be treated as such until a name is imprinted or placed upon the rear portion of the lottery ticket in an area designated for "Name". Once a name is placed on the rear of the ticket in the place designated for that purpose, the person whose name appears in that area shall be the owner of the ticket and shall be entitled to any prize attributable to that ticket, subject to the provisions of subsection (d) of this Section.

d) In the event an otherwise valid ticket is submitted as a claim for payment, and the Department is put on notice prior to payment of the claim that ownership of the ticket is disputed by an adverse claimant alleging fraud, theft, loss, conversion or any other misappropriation of the ticket by the claimant of record, the Department may withhold payment of the claim for a period of ten working days from and after the working days during which the adverse claim was first communicated by oral or written means to the Department. If a civil action is initiated on behalf of the claimant or adverse claimant in a circuit court of the State of Illinois, or equivalent court of any sister state within ten working days from and after the Department has received the notice of adverse claim, the Department shall continue to withhold payment of the prize, or any part of the prize, to the claimant or adverse claimant until an adjudication of the ownership has been rendered by the court, all statutory appeals have been exhausted and, in the case of a judgment entered by the courts of a sister state, the final order has been registered as a foreign judgment in an Illinois court, and all statutory appeals have been exhausted, whereupon the Department shall honor the claim of the prevailing party. During the course of any such litigation conducted in the courts of the State of Illinois, the Department may interplead and pay into court the prize or, in the case of an installment prize, such installment or installments as may fall due during the course of litigation. In the event the Department is not notified by written confirmation received by the Department before close of business on the tenth working day from and after receipt of the initial adverse claim by the Department, that a civil lawsuit has been filed as provided in this Section, the Department shall honor the claim as filed by the claimant who has presented the winning ticket, and will proceed to process the claim for payment without further reference to the adverse claim. If a violation of Illinois criminal law is indicated, the matter shall be referred by the Director to the appropriate law enforcement authorities, and nothing in this Section will be construed to require the Department to take any action or pay any claim pending final disposition of any criminal investigation or proceedings. No interest shall be payable with respect to prize payments made by the Department, its contractor or other agencies authorized to make such payments by direction of the Department.

e) No claim shall be deemed complete, and no prize shall be awarded with respect to a claim, unless the claimant can and does produce a valid winning ticket to the game and prize claimed. Except as otherwise provided in subsection (d) of this Section or Section 1770.130 of this Part, claims not accompanied by a winning ticket will be rejected. Any claim received by an agent and unaccompanied by a ticket will be forwarded to the Department. Upon receipt of any such claim, the Department shall notify the claimant of the rejection, by certified mail, with notification to be deemed completed if returned undelivered, when mailed to the party's last known address, with proper postage prepaid. Notice of rejected claims will be mailed within ten working days after receipt of the claim by the Department, at its lottery claims validation unit in the Department offices in Springfield, Illinois. (Source: Amended at 29 Ill. Reg. 13869 , effective August 29, 2005)

Section 1770.170 Lottery Games


a) The Director may authorize instant ticket games in which winners are determined by matching certain of the numbers, letters, characters, words or devices as provided by the rules of the game. Instant game rules may also provide for preliminary and grand prize drawings. Preliminary drawings will be conducted at the Department offices to determine semifinalists for Grand Prize drawings. Preliminary drawings will be from those tickets or shares eligible for entry into the preliminary drawing and submitted to the Department as part of the preliminary drawing pool in such manner and by such deadline as may be provided by departmental directive. Preliminary drawings shall be open to the public and notice of such drawings shall be posted in the State of Illinois Center in the City of Chicago and the Department's offices in the City of Springfield, Illinois, at least five days prior to such drawing. Grand prize drawings shall be conducted pursuant to the rules of the game, and copies of written procedures to be followed at Grand Prize drawings will be furnished each finalist prior to a drawing.


b) The Department may offer passive lottery games wherein tickets bear pre-assigned numbers, words or symbols. Winners in such games shall be determined either by the results of future events or by publicly held drawings wherein randomly drawn numbers, words or symbols are selected and tickets with numbers matching those drawn shall entitle the ticket holder to the prize indicated on the ticket and in accordance with the prize structure established by the game rules.


c) The Department may offer computer operated games where players are permitted to purchase tickets bearing player-selected numbers, letters, characters, words or devices or computer selected numbers, letters, characters, words or devices, as provided by the rules of the game, for drawings which are regularly scheduled in accordance with game rules. With respect to such games, the Director shall conduct drawings using air-driven or gravity selection equipment (including but not limited to, devices utilizing air-driven ball selection, gravity mixing chamber ball selection, spinning wheel and ball selection or similar equipment, and utilizing either hollow or solid balls appropriate to the type of equipment utilized), or utilizing a computerized random selection program. In the case of drawings conducted using air-driven or gravity selection equipment, drawings shall be by random selection in the presence of a certified public accountant who will monitor the integrity of the drawing procedure. For any game utilizing computerized random selection, the selection program will be subject to a software acceptance test by the Department prior to implementation.


d) Players holding tickets with numbers, letters, characters, words or devices corresponding to those drawn in the several games, or which in combination with those drawn meet the criteria for prize award set forth in game rules, shall be entitled to prizes in the amounts set forth in game rules to be established by the Director.


(Source: Amended at 22 Ill. Reg. 9307, effective May 15, 1998)

Section 1770.180 Drawings


a) All drawings utilizing a manual selection process or air-driven or gravity selection equipment shall be open to the public in a manner consistent with game security and facilities requirements and shall utilize such mechanical devices and following such procedures as are established by this Part and the game rule issued by departmental directive.

b) The Department may award prizes of cash or merchandise as incidental or participation prizes at drawings, at special events and in connection with promotions. Merchandise prizes of nominal value (e.g., water bottles, t-shirts or coffee mugs) may be distributed to all participants at a drawing, special event or promotional activity. However, cash prizes or merchandise prizes having a value in excess of $25 per prize shall be awarded pursuant to a random drawing, in accordance with written drawing procedures.


(Source: Amended at 29 Ill. Reg. 13869 , effective August 29, 2005)

Section 1770.190 Prize Payment, Claiming or Redeeming of Prizes and Transfers to Common School Fund


a) The prize structure may vary with each game and will be established at the beginning of the game by the Director. The prize structure, odds of winning, the manner in which winners are determined, the claim period for the game and various procedural matters will be set forth in game rules and play instructions.

b) A monetary prize of less than $600 may be redeemed by submitting the winning Lottery ticket to a Lottery agent location which sells the type of game won, and may be paid by the Lottery agent directly from Lottery ticket sales funds on hand after the agent follows verification procedures which establish that the ticket is a winning ticket, examines the ticket for alteration, verifies that the prize claim period has not expired, and requests proof of age from the claimant if appropriate. However, when a winning ticket is presented for payment at an agent location after the expiration of any agent claim period established in game rules, the monetary prize is $600 or more, or the Department's verification procedures require, the agent shall follow the claim procedures set forth in subsection (c) below.


c) Prizes of up to $25,000, claimed by an individual or in the name and under the taxpayer identification number of a partnership or other artificial person, may be paid by the Department at designated offices, subject to established claim periods, procedures and validation tests. All claims for prizes of more than $25,000, as well as claims for lesser prizes not paid by the Department at a designated Department office or by an agent pursuant to subsection (b) of this Section, must be paid centrally by the Department. Claimants may obtain claim forms from any lottery ticket sales agent, any departmental regional office, or the Department's administrative offices in Chicago or Springfield, Illinois. When initiating a claim at any of the aforesaid locations, a claimant shall complete the name and address area on the reverse of the ticket, and present proof of identification and the winning ticket. The agent or Department employee, as applicable, will assist the claimant in filling out the claim form which will be signed by the agent or employee and by the claimant or his or her authorized representative. The claimant or authorized representative will receive a copy of the claim form as a receipt. The winning ticket and a copy of the claim form will be sent to the Department's offices in Springfield, Illinois, for verification. When the ticket is verified as a winning ticket, the prize will be mailed to the claimant. Prizes in the amount of $1,000,000 or more may be claimed only at the Department's administrative offices in Springfield and Chicago, or alternate site mutually agreed to by the Department and the claimant, and absent extenuating circumstances, only by appointment so that appropriate Department personnel are available to assist in the claim process. The Director may require claimants of $1,000,000 or more to participate in a press conference as part of the claim process, in order to assure the public that prizes are being awarded and maintain public trust in the Lottery. For purposes of press conference requirements, the claimants are the ultimate recipients of the prize, such as the beneficiaries of a trust, the partners in a partnership, or the members of a club or group.

d) Prizes of less than $600 claimed by multiple winners playing as partners or as a group, with common ownership of a winning ticket at the time of the prize drawing, shall be claimed in the individual name of one of the partners or members of the group. Payment of any claim filed on behalf of such an individual group member shall be in the same manner as if filed on behalf of a single claimant.

e) Prizes of $600 up to $1,000,000 claimed by multiple winners playing as partners or as a group, with common ownership of a winning ticket at the time of the prize drawing, may be claimed in the individual name of one of the partners or members of the group. Any claim filed on behalf of such an individual group member shall be filed in the same manner as if filed on behalf of a single claimant, but must be accompanied by a form 5754 setting forth the names, addresses, social security numbers and prize shares of all other persons entitled to a share of the prize. The Department will process a voucher payable to each individual listed on the form 5754, dividing the winnings equally, or as otherwise designated on the form 5754. The Department will then process payment vouchers to the office of the Comptroller for preparation of warrants and end of year income tax withholding documents. Claim and payment may be made in a partnership name only if the partnership furnishes a Federal Employer's Identification Number (FEIN).

f) Prizes in the amount of $1,000,000 or more claimed by multiple winners playing as partners or as a group, with common ownership of a winning ticket at the time of the prize drawing, must be claimed in a partnership or group name. Payment will be made out to a partnership as a single payee, or to each of the individual partners or group members, as requested in writing by the winners and provided that each individual's gross annual payment will equal or exceed $5,000. Partnership claims shall include the name, address and (if one check is requested) Federal Employer's Identification Number of the partnership, the ticket and claim form must be signed by one of the general partners on behalf of the partnership, and the claim form must be accompanied by a form 5754 setting forth the names, addresses, social security numbers and prize shares of each partner. Prior to payment, the partnership must submit a written partnership agreement evidencing, at a minimum, that an oral agreement for group play existed prior to the purchase of the winning lottery ticket. The partnership agreement shall be subject to review by the Department's legal staff, and may not contain provisions contrary to law. Where separate checks have been requested, the partnership must additionally furnish payment instructions for each partner. Group claims shall include a group name and the address and Social Security Number of the representative signing the ticket and claim form, and be accompanied by a form 5754 setting forth the names, addresses, Social Security Numbers and prize shares of all group members. A group play agreement may additionally be required. Claims by other entities such as corporations or trusts must be in the name of the entity as established prior to ticket purchase, provide the taxpayer identification number of the entity and be signed by an authorized representative. Payment will be in the name and under the taxpayer identification number of the claiming entity.

g) Lottery clubs, charitable organizations, corporations, partnerships and other "artificial" persons shall be eligible to purchase lottery tickets. However, with respect to awards of prizes for life, such "artificial" persons shall be entitled to the minimum guaranteed prize.

h) Prizes claimed but unpaid at the time of a prize winner's death shall be treated as follows:
1) Any prize, or portion thereof remaining unpaid at the death of a winner, may be paid to the estate of such deceased prize winner, or to the designated trustee under a revocable living trust established by the deceased prize winner, as settlor, provided that a copy of such trust has been filed with the Department, along with a notarized letter of direction from the settlor, and no written notice of revocation has been received by the Department prior to the settlor's death. Following such a settlor's death and prior to any payment to such a successor trustee, the Director shall obtain from the trustee and each trust beneficiary a written agreement to indemnify and hold the Department harmless with respect to any claims that may be asserted against the Department arising from payment to, or through the trust.
2) The payment of prize installments due with respect to a prize winner whose death occurs prior to payment of the final installment may be accelerated under certain circumstances. At the election of the estate or successor trustee of an individual prize claimant, the estate or trustee may have the option to request, within six months from the date of death, that the annuity or equivalent investment securities procured by the Department for purposes of generating annual installment prize payments be liquidated at current market value and paid over to the personal representative of the estate or beneficiary successor trustee, as appropriate. In the case of a prize claimed by a partnership or group, the right to request liquidation of the decedent's remaining prize may be available to the decedent's personal representative or successor trustee, but only if the decedent is entitled to receive one-third or more of the claimed prize. Upon receipt of notice of election to liquidate the remaining prize, if the prize payment has been structured through purchase of an annuity and the annuity contract permits early liquidation, the Department shall promptly notify the annuity company and request that the annuity be liquidated and the commuted (check) value be paid to the personal representative or successor trustee. If the Department has procured investment securities to generate income for satisfaction of future prize installments, the Department, as soon as practicable after such notification, and without jeopardy to the common investment position of securities purchased in connection with payment of future installments to other winners of Grand Prizes from the same drawing date as decedent, shall offer such securities for market sale and shall pay the personal representative or successor trustee the proceeds of sales attributable to decedent's prize. Prior to such distribution, the Department shall deduct from the proceeds of sales such sum as may be required to absorb from the share of the party requesting liquidation, any penalties or losses incidental to sale, and to restore the investment position of securities purchased with respect to any other same-date winners to the position held prior to liquidation. The balance of the proceeds of sale attributable to decedent's prize shall be distributed. Prior to authorizing accelerated liquidation of any prize, the Department shall obtain from each personal representative or successor trustee requesting such liquidation a complete release of any further liability of the Department for further payment with respect to the decedent's prize upon liquidation as provided herein, and the Department in liquidating the investment vehicle for any such prize shall be discharged of any further liability with respect to such prize beyond the amount actually realized through liquidation. Any election pursuant to this subsection must be in writing and shall be irrevocable.
3) No right to accelerate installment payments shall accrue to the estate of a prize for life winner when the guaranteed minimum payment has not yet been paid. Rather, installment payments shall continue until the guaranteed minimum prize has been paid.

i) Cash prizes must be claimed within a claim period set by Departmental directive and the game rules establishing claim periods for the respective games offered by the Department. Unclaimed prize money shall be retained by the Director for the person entitled thereto, for the claim period after the date of the drawing in which the prize is won, as established by game rule. Thereafter, said unclaimed prize funds will be managed as provided in statute.

j) Winning tickets which provide entry into a Preliminary Grand Prize drawing for any instant game must be filed with the Department by the deadline established in the game rules. Entry tickets filed after the Preliminary Grand Prize qualification drawing for the game with respect to which the tickets were sold will be entered into the Preliminary Grand Prize Drawing pool for the next game drawing subsequent to filing of such tickets, provided that no such ticket will be eligible for entry into a subsequent drawing unless filed with the Department, within 120 days after the announced end of the game for which the ticket was originally sold, provided, however, that the Director may establish lesser claim periods for specific games by directive and game rule.

k) For prizes in excess of $10,000, a winner must identify his or her place of employment, if any, to ensure the winner is not prohibited from lottery play by the Act or these rules. For partnership claims, each partner must furnish employment information.

l) The net revenues accruing from the sale of lottery tickets shall be determined by deducting from total revenues the payments of prizes to holders of winning tickets and payment of costs incurred in the operation and administration of the Department. The Department may transfer income in excess of current operating needs to the Common School Fund.

(Source: Amended at 26 Ill. Reg. 8562, effective May 30, 2002)

Section 1770.200 Eligibility to Buy


No ticket shall be purchased by, and no prize shall be paid to any of the following persons:

a) Any member of the Board or any officer or other person employed by the Board or by the Department: also any employees of any TV station from which lottery drawings originate who are directly involved in the production of drawing telecasts, including floor director, camera operators, stage hands, character generator operators, air control technicians, announcer and performer for each telecast; the employees of any advertising agency, public relations agency or any consultant employed by the Department who are directly involved in a Lottery engagement; and further those employees, of audit firms, performing on site contractual audit services with respect to Department's operations. In the event the Director determines that purchases of tickets by employees of any vendor of goods or services to the Department or Board may jeopardize the security or integrity of the Lottery, the Director will provide by rule or by contract with the vendor that no ticket shall be purchased by, and no prize shall be paid to, any officer or employee of the vendor, or certain officers or employees of the vendor, at the Director's discretion;

b) Any spouse, child, brother, sister or parent residing as a member of the same household in the principal place of residence of any person designated in subsection (a) of this Section; or

c) Any person under the age of 18. (Section 15 of the Act)
(Source: Amended at 26 Ill. Reg. 8562, effective May 30, 2002)


Section 1770.210 Promotional Items


The Department may purchase and stock, promotional items bearing the identifying marks of the Illinois Lottery or any of its games. These products may be distributed at no charge to consumers for promotional purposes, to licensed lottery retailers or retailer staff as a sales incentive, or to Department personnel in connection with the performance of official duties. The Department may additionally offer its promotional items for sale to individuals, not-for-profit organizations or government entities, and advertise its products for sale via catalog or other means, including, but not limited to, point of purchase displays at agent locations, direct mail and print advertisements. Purchase orders shall be on forms prescribed by the Department and shall include a certification that the purchaser is qualified under the Act and the items will not be resold for commercial gain. The Department may establish reasonable charges for its promotional items, provided, however, that sales to other State agencies will be at cost.


(Source: Amended at 29 Ill. Reg. 13869 , effective August 29, 2005)


Section 1770.220 Priority of Rules

Official rules as published each January in the Illinois Register as specified in Section 7.1 of the Illinois Lottery Law shall be maintained on file in the Department's principal office in Springfield, Illinois and shall be made available for public inspection and copying during normal business hours. In the event of any conflict, discrepancy, omission or apparent contradiction between the official rules on file and any summary, representation or other restatement of rules appearing in any advertisement, point of sale material, tickets or other media, the official rules on file at the Department's office shall govern. (Source: Added at 20 Ill. Reg. 15039, effective November 6, 1996)

Section 1770.230 Assignment of Lottery Prizes

a) Contracts of assignment submitted to the Department pursuant to 20 ILCS 1605/13.1 shall be accompanied by a sworn affidavit of the assignee in a form substantially similar to that set forth in Appendix A to this Part.

b) At its sole discretion, the Department may waive the 30-day advance notice requirement for the initial assignment petition or the final assignment order.

c) A court order obtained pursuant to this Section, together with all such prior orders, shall not require the Department to divide any single prize payment among more than 3 different persons, including the prize winner. [20 ILCS 105/13.1(c)]

d) All petitions for assignment of an Illinois Lottery prize shall be accompanied by a check or money order payable to the Department in the amount of $68, in order to defray the administrative expenses associated with assignments. [20 ILCS 1605/13.1(g)] (Source: Added at 29 Ill. Reg. 13869 , effective August 29, 2005)

Section 1770.240 Voluntary Self-exclusion Program

Any individual wishing to reduce his or her incentive to purchase Illinois Lottery tickets may do so by participating in a voluntary self-exclusion program.

a) In order to participate in the voluntary self-exclusion program, an individual must complete a self-exclusion agreement as set forth in Appendix B to this Part, sign the agreement in the presence of a notary public, and mail or otherwise deliver the signed and notarized agreement to the Illinois Lottery's Claims Unit at 101 West Jefferson, MC5-915, Springfield, Illinois 62702. The form may be obtained in person or by mail from any Lottery office or may be downloaded and printed from the Lottery's website.


b) Upon receipt of the signed and notarized document, the Illinois Lottery will add the individual's identifying information to its confidential database of persons prohibited from receiving payment of prizes through the Lottery's regional prize payment facilities or central office.

c) Upon receipt of a voluntary self-exclusion agreement, the Lottery will take all reasonable steps, including but not limited to providing the enrollee's name and address to advertising and public relations firms retained by the Lottery and to staff in charge of in-house e-mail and fax lists, to remove the self-exclusion program enrollee from existing promotional mailing lists, electronic distribution lists or other promotional listings, and to prevent the inclusion of the individual's name in any promotional listings that may be created in the future.

d) All Illinois Lottery prizes that are unclaimed as a result of the voluntary self-exclusion program shall be handled in the same manner as other unclaimed prizes and may be included in the prize pool of such special drawing or drawings as the Division may, from time to time, designate. All unclaimed prize money not included in the prize pool of a special drawing shall be transferred to the Common School Fund. [20 ILCS 1605/19]

e) Removal from Self-Exclusion List
1) Upon the expiration of 5 years from the date of placement on the Lottery's voluntary self-exclusion list, an individual may request that he or she be removed from the list based upon the elimination of a mental health or medical condition underlying the person's acknowledgment that he or she was a problem gambler and unable to gamble responsibly. The request for removal from the self-exclusion list must be in writing, be addressed to the Lottery Superintendent at the Lottery's central office in Springfield, and include the following:

A) Information as to treatment received for the person's gambling problem, length of treatment, and names and qualifications of treatment providers.

B) A waiver of liability of the Department of Revenue, Illinois Lottery, their agents and the State of Illinois for any damages that might arise out of any act or omission committed by the person as a consequence of his or her removal from the Lottery's voluntary self-exclusion list, including any monetary or other damages sustained in connection with the person's renewal of lottery ticket purchases or redemptions.

C) The requestor's name, address and taxpayer identification number and notarized signature (subscribed and sworn).
2) A decision whether to remove a person from the self-exclusion list shall be at the discretion of the Superintendent, and the Superintendent shall not rule on a request for removal from the voluntary self-exclusion list until all of the requirements of this subsection (e) are met. Written notification of the determination will be sent to the requestor by certified mail.
f) Any information as to mental health or medical conditions received pursuant to this Section will be maintained pursuant to the Mental Health and Developmental Disabilities Confidentiality Act [740 ILCS 110] and other applicable federal and State laws.
(Source: Added at 32 Ill. Reg. 14888, effective August 28, 2008)


Section 1770.Appendix An Affidavit


AFFIDAVIT
This Affidavit is submitted by (officer name) , on behalf of(company name) ("-" ), in connection with a proposed purchase and sale of certain Illinois Lottery prize payments due (winnerís name) , (ìSellerî).
1. My name is . I am current employed by (company name) as (title) , and have been employed in such capacity at all times relative to this matter. I have personal knowledge of all of the facts contained herein and am competent to testify in support of the facts stated in this affidavit. [OR I make the following representations based upon information and belief.]
2. Prior to Sellers execution of a written purchase and sale agreement with (com pany name) , (company name) , through its employees, contractors and/or counsel, had contact with Seller (and/or Sellerís legal counsel and/or financial advisors) through various written, oral or telephonic communications. A summary of those contacts follows (include names, dates, methods and nature of contacts):
3. As of the date of this affidavit, the following lawsuits, claims and legal actions have been filed against (company name) and/or its affiliated entities by lottery winners:
(Include brief case summary as well as case name, number and jurisdiction.) (Address winners of any lottery, not just Illinois.)(Address lawsuits, claims, etc. filed during the 3-year period immediately preceding the date of the affidavit.)
4.(company name) and/or its affiliated entities is in good standing in its state of domicile and with any other licensing or regulatory agency as may be required in the conduct of its business.
5. The history of (company name) is as follows:
(company name) was organized in
(monthyear) as a (type of business) , having its principal place of business as (city/state) , and has operated continuously since that date. (If the type of business organization, principal place of business or other key company information has changed since the company's inception, please include that information as well.)


6.(company name) engages in the business of



7. (company name) as privacy and non-harassment policies are as follows:
(Attach as exhibit if appropriate.) (Include the companyís policies concerning the national do-not-call registry, as it relates to the non-harassment policy.)

(company name) has followed these policies in Illinois.



Name Date

State of ) County of )
Signed and sworn to before me this day of , 20__, by who is personally known to me (or who produced as identification ). NOTARY PUBLIC My commission expires: (Seal) (Source: Added at 29 Ill. Reg. 13869, effective August 29, 2005)


Section 1770.APPENDIX B Voluntary Self-exclusion Agreement
ILLINOIS LOTTERY Attach Recent Photo Here SELF-EXCLUSION FROM PLAY AND PRIZE PAYMENT AGREEMENT


, of , in the State of Illinois, (Name of Individual Signing Contract) (City of Residence)
hereinafter "Player", and the Illinois Lottery, a Division of the Illinois Department of Revenue, hereinafter "Lottery", (collectively, the "Parties") in consideration of the agreed mutual benefits to be derived by the Parties from Player's cessation of lottery game play, do hereby covenant and agree as follows:
1.Player acknowledges that she/he is a compulsive or problem gambler.
2.Player acknowledges that access to payment of prizes won as a result of playing Lottery games is an unwelcome incentive to play such games.
3.Player desires to reduce the incentive to play by entering into a voluntary self-exclusion agreement restricting Player's access to lottery prizes to which Player would otherwise be entitled by virtue of playing lottery games and/or otherwise possessing lottery tickets presented for payment.
4. Lottery intends to honor Player's commitment to abstain from playing Lottery's games by denying Player access to redeem prizes for tickets or chances at any one of the Lottery's regional offices and through Lottery Central whenever such denial is feasible. Player acknowledges that enforcement of this agreement at retailer locations is currently not feasible.
5. Lottery represents and Player acknowledges that compulsive or problem gambler participation in games offered by Lottery is contrary to the policy and objectives of Lottery management, is detrimental to the health and well-being of the problem player, and is not in the best interests of State government and the citizens of Illinois.
6. Lottery agrees to take reasonable steps to remove Player's name from any existing promotional mailing lists, electronic distribution lists or other promotional listings and to prevent the inclusion of Player's name in any promotional listings that may be created in the future. Player acknowledges that any lottery promotional materials sent in error to Player by mail or electronically are not an invitation to play Lottery games. Player agrees to immediately notify the Lottery's Public Information Officer by phone at 800-252-1775 if Player receives any promotional materials from Lottery and Lottery agrees to take corrective action upon receipt of that notification. Player understands and agrees that, although Lottery will endeavor to exclude Player's name from all promotional mailings, electronic communications, web-based players clubs and other promotional listings, Lottery cannot guarantee that Player's name will not be included in such a mailing or listing. Player understands and agrees that inclusion of Player's name in any such lottery listing, club or promotional listing shall neither create nor be construed to create in Player any right, claim or cause of action against Lottery.
NOW, THEREFORE, Player requests that, from this date forward, Player be deemed ineligible to play any Illinois Lottery game and barred from claiming and/or receiving any cash payment or non-cash prize whatsoever that might be won as a result of Player's purchase of a ticket or chance or of Player's playing any Illinois Lottery game, until such time as Player may request and be approved for removal from the self-exclusion list pursuant to 11 Ill. Adm. Code 1770.240(e). To that end, and to facilitate Lottery's implementation of this agreement to be banned from Lottery gaming, Player furnishes the following information:
My Full Name (and any nicknames): My Address: City: State: Zip: Telephone #:( ) Driver's License #: State: Date of Birth: mm/dd/yr: Social Security #: Email Address:


I (Player) acknowledge that, by signing this Self-Exclusion from Play and Prize Payment Agreement, I knowingly and intentionally, and for valuable consideration, including Lottery's efforts to implement my exclusion, enter into a contractual relationship in which I relinquish and release any right, title, claim or cause of action on behalf of myself, my heirs, executors, administrators and assigns to any and all prize winnings that might otherwise accrue as a result of my purchase and/or play of Illinois Lottery gaming products. Specifically, I acknowledge that, during the term of this contract, I agree to waive any right to claim a prize pursuant to the Illinois Lottery Law [20 ILCS 1605] and the administrative rules promulgated thereunder (11 Ill. Adm. Code 1770). I understand and agree that any lottery prize that would otherwise be due me shall be deemed void and uncollectible and that any such prize shall be deemed to be an unclaimed prize within the meaning of Section 19 of the Illinois Lottery Law [20 ILCS 1605/19] and handled in accordance with the requirements for disposition of all such funds held by Lottery.
I understand and agree that I will not seek to hold Lottery liable in any way should I continue to play Lottery games at any venue in the State of Illinois despite this Agreement. I further understand and acknowledge that I am not entitled to a refund of any purchase price even though any Illinois Lottery product purchased by me is deemed void and uncollectible. In other words, I understand and agree that I cannot collect any prize nor can I receive a refund for any lottery product purchased.
I agree to indemnify Lottery, its board members, business partners, officers, employees, agents, retailers, affiliates, contractors and licensees, and their heirs, successors and assigns from any liability Lottery, or any of those persons or entities named, may incur relating to this request. Specifically, I, for myself and my family members, heirs and legal representatives, hereby release and forever discharge Lottery, its board members, business partners, officers, employees, agents, retailers and affiliates, and their heirs, successors and assigns, and those with whom Lottery and those persons or entities named may lawfully share information regarding this Agreement, including any contractor or Internet Services Provider that offers services on behalf of these persons and entities (collectively, the "Released Parties"), from any and all claims in law or equity that I now have or may have in the future against any or all of the Released Parties arising out of, or by reason of, the performance or nonperformance of this Self-Exclusion Request, or any other matter relating to it, including the release of information contained in this Agreement. I further agree, in consideration for the Released Parties' efforts to implement my exclusion, to indemnify and hold harmless the Released Parties to the fullest extent permitted by law from any and all liabilities, judgments, damages, and expenses of any kind, including reasonable attorneys' fees, resulting from or in connection with the performance or nonperformance of this self-exclusion request.
I understand and intend that this release be general in nature and broadly construed, and that it shall extend to the Illinois Lottery, its officers, board members, business partners, employees, agents, retailers, affiliates, contractors and licensees, and their heirs, successors and assigns.
If a prize payment is made to me in error, I further request that, to the extent practical and feasible, the Illinois Lottery, its officers, board members, business partners, employees, agents, retailers, affiliates, contractors and licensees, and their heirs, successors and assigns, confiscate or stop any such payment and pursue any appropriate legal remedies for breach of this Agreement, thereby depriving me of the benefit of the prize payment.
Signed this day of , 2______
PLAYER


State of ) ) County of )



I, , a Notary Public, in and for the County and State aforesaid, do hereby certify that , who acknowledged

to me that she/he is the person described as "Player" in the above and foregoing "Illinois Lottery Self-Exclusion from Play and Prize Payment Agreement", appeared before me on the date shown immediately above his/her signature, signed this Agreement in my presence, and declared the act of signing to be of his/her own free will and accord.

(SEAL) Notary Public




ILLINOIS LOTTERY

Signed this day of , 2______

By: Its: State of Illinois) ) County of )





I, , a Notary Public, in and for the County and State aforesaid, do hereby certify that , a person known to me to

be a duly-authorized officer of the Illinois Lottery, appeared before me on the date shown immediately above his/her signature, signed this Agreement in my presence for and on behalf of the Illinois Lottery, and declared the act of signing to be of his/her own free will and accord and for the uses and purposes set forth in the Illinois Lottery Self-Exclusion from Play and Prize Payment Agreement.


(SEAL) Notary Public

(Source: Added at 32 Ill. Reg. 14888, effective August 28, 2008)


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