Section 1770.10 Definitions

Section 1770

Section 1770.10  Definitions

Terms defined in the Lottery Law

have the same meanings when used in this Part.  The following words and terms

when used in this Part shall have the following meanings, unless the context

clearly indicates otherwise:

"Agent"

means a person permitted by a license issued by the Director under the

authority of Sections 9.d, 10 and 10.1 of the Lottery Law to sell Illinois

Lottery game tickets to the public.

"Administrative Hearing"

means a proceeding at which parties present legal arguments and evidence about a

case to an Administrative Law Judge or the Board, pursuant to the Lottery Law

and 11 Ill. Adm. Code 1700.

"Administrative Law Judge"

or "ALJ" means an attorney admitted to practice law by, and in good

standing before, the Illinois Supreme Court who is duly authorized and

designated in writing by the Director of the Illinois Lottery to convene and

conduct hearings on matters under the jurisdiction of the Department.  An ALJ

is specifically empowered to administer oaths and affirmations; rule on matters

of proof and evidence; regulate the schedule and course of the hearing and

pre-hearing process; hear and dispose of procedural and other similar matters;

sign and issue orders and subpoenas; and exercise any other powers relating to

the proceeding which are legally proper and reasonably necessary to carry out

an ALJ's responsibilities.  The authority of any person to act as an ALJ shall

not be a matter of proof in any hearing before the Department unless an

appropriate motion is made pursuant to 11 Ill. Adm. Code 1700.200.

"Annuity" or

"Annual Payout Option" means the payment of the grand prize in 30

consecutive graduated annual installments for Mega Millions, Powerball and

Lotto games and 20 consecutive straight line annual installments for instant

games as per game rules.

"Applicant"

means a person who has applied to the Director for a license to sell Lottery game

tickets to the public

l. Adm. Code 1700.200.

"Annuity" or

"Annual Payout Option" means the payment of the grand prize in 30

consecutive graduated annual installments for Mega Millions, Powerball and

Lotto games and 20 consecutive straight line annual installments for instant

games as per game rules.

"Applicant"

means a person who has applied to the Director for a license to sell Lottery game

tickets to the public.

"Assignment" means a

change of ownership for an annuity.

"Automated Clearing

House" or "ACH" means a computer-based electronic network for

processing payments and automated money transfers between banks across the

United States without using paper checks, wire transfers, credit card networks,

or cash.

"Bearer Instrument"

means a designation of a Lottery game ticket under which the winnings from the

ticket are payable to the person or business organization possessing the ticket

or to the order of the person who has demonstrated bearer status by signing the

ticket as the owner.

"Board"

means the Lottery Control Board as established by Section 6 of the Lottery Law.

"Business

Organization" means a partnership; incorporated or unincorporated

association or group; corporation; limited liability company; partnerships for

shares; trust; sole proprietorship; or other business enterprise.

"Cash-for-Life

Game" means a Lottery game that offers a set prize payment to be made in

installments to that winner for the duration of the winner's life or lump sum

cash equivalent.

"Cash

Option" has the same meaning as "Lump Sum".

"Chairperson"

means the Chairperson of the Lottery Control Board.

"Change

of Business Organization" means a change from one form of organization and

ownership of a business organization to another.

"Change

of Name" means a change in the corporation or doing business as name shown

on the records of the Secretary of State, County Clerk, or both, in the license

granted to the Agent and in the Agent's application for a license

rson of the Lottery Control Board.

"Change

of Business Organization" means a change from one form of organization and

ownership of a business organization to another.

"Change

of Name" means a change in the corporation or doing business as name shown

on the records of the Secretary of State, County Clerk, or both, in the license

granted to the Agent and in the Agent's application for a license.

"Claim

Process" means the process of completing an Illinois Lottery claim form and

providing proper identification involved in awarding a prize to a Claimant. iLottery

claims up to $599 or less submitted through this process will be treated the

same as if they were presented to a retailer with no formal claim submission

and automatically credited to an account.

"Claimant"

means a person, as defined in this Section, who presents a valid winning Lottery

game ticket to an Agent or a Lottery prize center or administrative office for

the purpose of receiving a prize. iLottery claims up to $599 or less that are

presented in this manner will be treated the same as if they were presented to

a retailer with no formal claim submission and automatically credited to an

account.

"Department"

means the Illinois Department of the Lottery.

"Director"

means the individual responsible for the executive oversight of the Department.

"Draw-Based

Game" or "DBG" means a game wherein its winning lottery numbers,

symbols, characters, or outcomes are randomly selected by a manual or digital

process. Each DBG approved for sale by the Department is played in accordance

with its game rules. DBGs may be sold by licensed retailers and via the Department.

"Drawing"

means the procedure by which the Department (or in the case of a

multi-jurisdiction game the managing organization) randomly selects winning

numbers, symbols, characters, or outcomes in accordance with the rules of the

specific game being played and its drawing procedures

ment is played in accordance

with its game rules. DBGs may be sold by licensed retailers and via the Department.

"Drawing"

means the procedure by which the Department (or in the case of a

multi-jurisdiction game the managing organization) randomly selects winning

numbers, symbols, characters, or outcomes in accordance with the rules of the

specific game being played and its drawing procedures.

"Electronic

Funds Transfer" or "EFT" means an electronic financial

transaction from one account to another.

"Game"

means any individual or particular type of Lottery authorized by the

Department.

"Game

Closed" means the time when tickets for an instant game can no longer be

ordered or distributed by the Lottery or a retailer.

"Game

End" means the official date, determined by the Lottery, an instant game

has ended. Prizes must then be redeemed within the time period required by the

Lottery.

"Game

Expiration" means the time after an instant game has been closed and the

game prize redemption date has passed, when tickets from the game can no longer

be redeemed.

"High-Frequency

Prize Winner" means a person who submits at least 20 claims for Lottery

prizes, each with a value of $1,000 or more, within any period of 365 days.

"iLottery"

or "Internet Lottery" means the ability to place wagers via the

internet on Lottery games.

"Instant

Game" or "Scratcher" means an instant lottery ticket on which a

player scratches the covering from one or more play areas to determine if a

prize was won, as indicated by the symbols and words that are revealed. Instant

games are Lottery games that can be played, won and redeemed at the time of

purchase.

"Internet Lottery Player

Account" means a secure electronic account associated with a registered

internet Lottery player that allows the internet player to access information

about the player's Lottery internet account, including, but not limited to the

transaction history of purchases, winnings and prize redemptions

Lottery games that can be played, won and redeemed at the time of

purchase.

"Internet Lottery Player

Account" means a secure electronic account associated with a registered

internet Lottery player that allows the internet player to access information

about the player's Lottery internet account, including, but not limited to the

transaction history of purchases, winnings and prize redemptions.  The player

account also maintains a bank account established for the purpose of purchasing

Lottery game tickets or subscriptions via the internet and receiving payment

for any prizes won in connection with an internet Lottery purchase. Prizes up

to $599 are paid back into the account, unless the player's winnings exceed the

maximum wallet threshold of $2000 at which point the player's winnings will

automatically by mailed to them by check.  For prizes in excess of $600, a

claim must be submitted to the Department for processing.

"Jackpot" means the top

prize in a pari-mutuel or progressive draw-based Game. Jackpots are paid in

accordance with the game rules and can be either in annuity payments or in one

lump sum.

"License"

means an Agent license, issued by the Director pursuant to Section 9 of the Lottery

Law for an Agent to sell Lottery tickets to the public.

"Lottery"

means the Lottery established and operated pursuant to the Lottery Law.

"Lottery

Beneficiaries" means the designated recipients of lottery prizes.

"Lottery Game Ticket" or

"Ticket" means:

A scratch-off ticket;

A paper ticket produced from a

kiosk or electronic record generated and maintained by the Department's central

gaming system, on official paper stock approved by the Department, by a Lottery

retailer; or

A virtual ticket purchased via the

internet and recorded in the Department's central gaming system.

"Lottery Law" means the

Illinois Lottery Law [20 ILCS 1605].

"Lottery Retailer"

means a location licensed by the Department to sell Lottery game tickets or

shares

maintained by the Department's central

gaming system, on official paper stock approved by the Department, by a Lottery

retailer; or

A virtual ticket purchased via the

internet and recorded in the Department's central gaming system.

"Lottery Law" means the

Illinois Lottery Law [20 ILCS 1605].

"Lottery Retailer"

means a location licensed by the Department to sell Lottery game tickets or

shares.

[230 ILCS 45/25-70]

"Lottery Sales

Representative" means a lottery employee responsible for servicing lottery

retailers' needs in a particular geographical region or territory, or by a

specific classification of retailer.

"Lump Sum" or "Cash

Equivalent Option" means a single prize payment, as opposed to an

annuitized payment.

"Lottery Vendor" or

"Vendor" means any person or company who submits a bid, proposal or

offer and is awarded a contract to provide goods or services to the Lottery.

"Multi-Jurisdiction

Lottery" means lottery games that are offered in more than one

jurisdiction, including Powerball and Mega Millions, allowing lotteries to

generate larger jackpots than they could individually. Jackpots may be paid in

lump sums or annuities.

"Multi-State Lottery

Association" or "MUSL" means a non-profit, government-benefit

association that assists its member lotteries in multi-jurisdictional game

development. Each MUSL member, and non-members who sell MUSL games via a

cross-sell agreement, offers one or more of the games administered by the

association, but retains its independent statutory duties regarding ticket

sales, retailer authorization, prize payments, income offsets, and other

responsibilities.

"Multiplier" means an

extra number drawn to increase the payout if the wager is a winner. The drawn

number (Y) will multiply the player's prize (X) by that drawn (Y) value. A

multiplier option usually requires an additional wager amount

tion, but retains its independent statutory duties regarding ticket

sales, retailer authorization, prize payments, income offsets, and other

responsibilities.

"Multiplier" means an

extra number drawn to increase the payout if the wager is a winner. The drawn

number (Y) will multiply the player's prize (X) by that drawn (Y) value. A

multiplier option usually requires an additional wager amount.

"Net Proceeds" means all

revenue derived from the sale of Lottery game tickets or shares, all other

monies derived from the Lottery games, and all other monies derived in the

operations of the Lottery, less the amounts expended for prizes, retailer fees,

and other operating costs as determined by Generally Accepted Accounting

Principles issued by the Government Accounting Standards Board and the

Financial Accounting Standards Board.

"North American Association

of State and Provincial Lotteries" or "NASPL" means the

non-profit professional association formed to assemble and disseminate

information and benefits of state and provincial lottery organizations through

education and communications and where appropriate publicly advocate the

positions of the Association on matters of general policy.  NASPL represents

government-sanctioned lotteries in the United States, Canada, Virgin Islands

and Puerto Rico.

"On-line Status"

means the ability of an Agent to sell computer-generated Lottery game tickets

or shares for the Lottery's draw-based games through a terminal connected to the

Department's central gaming system.

"Operating

Expenses" means all costs of doing business including, but not limited to,

prizes, commissions, bonuses, and other compensation paid to an agent;

advertising and marketing costs; rental fees; personnel costs; capital costs;

depreciation of property and equipment; funds for compulsive gambling education

and treatments; amounts held in or paid from a fidelity fund; and other

operating costs

ng

Expenses" means all costs of doing business including, but not limited to,

prizes, commissions, bonuses, and other compensation paid to an agent;

advertising and marketing costs; rental fees; personnel costs; capital costs;

depreciation of property and equipment; funds for compulsive gambling education

and treatments; amounts held in or paid from a fidelity fund; and other

operating costs.

"Payout"

means the money or cash prize that a player wins for matching a certain

combination of numbers.

"Person",

when used in reference to an Agent's license, shall be construed to mean and

include an individual, association, partnership, corporation, limited liability

company or partnership, club, trust, estate, society, company, joint stock

company, receiver, trustee, referee, or any other person acting in a fiduciary

or representative capacity, who is appointed by a court, or any other

combination of individuals.  "Person" includes any department,

commission, agency or instrumentality of the State, including the Department,

and also including any county, city, village, or township and any agency and

instrumentality of this State.

"Player",

when used in the context of a purchase of a Lottery game ticket or of a prize

claim, means:

an individual;

a group of individuals;

a partnership or club;

a revocable living trust;

an irrevocable

trust, if the trust agreement was executed prior to the date the prize was won;

an irrevocable

trust, if the trust agreement was executed prior to the date the prize was won,

and provided all beneficiaries are named in the trust;

an estate;

a governmental

entity other than the Department; or

the following additional types of entities:

a limited

partnership;

a corporation;

a limited

liability company; or

a charitable

organization.

Prize claims

by any such "players" are subject to eligibility requirements set

forth in the Lottery Law, this Part, or game rules

won,

and provided all beneficiaries are named in the trust;

an estate;

a governmental

entity other than the Department; or

the following additional types of entities:

a limited

partnership;

a corporation;

a limited

liability company; or

a charitable

organization.

Prize claims

by any such "players" are subject to eligibility requirements set

forth in the Lottery Law, this Part, or game rules.

"Point of

Sale" means the physical location where an Agent is licensed to conduct

the sale of Lottery game tickets to the public.

"Private

Manager" means the company, and any permitted successor company, awarded a

contract to provide business management services, including but not limited to

the operation of sales, advertising, marketing, retail agent services and

system support functions to the Illinois Lottery in accordance with the Lottery

Law.

"Prize"

means any award, financial or otherwise, awarded to a Lottery game ticket

holder pursuant to the rules of the Lottery. In determining whether a winning Lottery

Game Ticket may be redeemed for cash through a Lottery retailer or at a prize

center, or must be presented to a Department office for payment, and whether a

prize may be claimed in a group name or must be claimed by an individual group

member, the Department will adhere to 26 U.S.C. 165(d) and deduct the amount of

the wager from the face value of the prize.

"Prize Center" means a

Lottery office or other authorized location where:

Winning Lottery game tickets with

a face value up to $25,000 may be redeemed pursuant to Section 20.1 of the Lottery

Law; or

Larger prizes, or those subject to

withholding or investigation, may be claimed.

"Redeem"

(and its variants) means to surrender a valid winning Illinois Lottery game ticket

to a Lottery retailer for immediate cash payment of the prize, or to a Lottery

prize center for payment by check, prepaid debit card, electronic funds

transfer, automated clearing house, or other means in accordance with Section

1770.190

r those subject to

withholding or investigation, may be claimed.

"Redeem"

(and its variants) means to surrender a valid winning Illinois Lottery game ticket

to a Lottery retailer for immediate cash payment of the prize, or to a Lottery

prize center for payment by check, prepaid debit card, electronic funds

transfer, automated clearing house, or other means in accordance with Section

1770.190.

"Registered

Internet Lottery Player" means an individual who has successfully

established an internet Lottery player account after registering through the

Lottery's web portal establishing the requisite age, location and other eligibility

requirements.

"Related Terminal"

means any player activated machine or any Agent operated terminal in which another

Agent has an interest.

"Requests

for Proposals" or "RFP" means a formal, public notice by an

organization inviting vendors to submit ideas, concepts and costs related to a

specific end.

"Secretary"

means the Secretary of the Lottery Control Board.

"Service" means the

mailing of any notice required by the Lottery Law or this Part by certified

mail or electronic means, return receipt requested.  Service by mail shall be

deemed complete four days after mailing of the document, properly addressed and

posted for delivery, to the person to be served.  Service shall be deemed

complete if the notice is returned undelivered or unclaimed when mailed,

postage prepaid, to the intended recipient's last known address as disclosed in

the Department's records, or if 30 days have elapsed from the date of mailing,

to that address with no return of the item.  Service by electronic means is

complete on the day of transmission or, if after 5:00 p.m., the next business

day. If service is by email, the Department shall maintain a copy of the sent

email and shall verify, within one business day, that the transmission of the

email has not been rejected or has failed

days have elapsed from the date of mailing,

to that address with no return of the item.  Service by electronic means is

complete on the day of transmission or, if after 5:00 p.m., the next business

day. If service is by email, the Department shall maintain a copy of the sent

email and shall verify, within one business day, that the transmission of the

email has not been rejected or has failed. In the event of rejection or

failure, absent correction of an erroneous email address, service shall be made

by mail.

"Special

License" means a license issued by the Director limited in geographic

scope and/or duration of validity (see Section 1770.30).

"State

Lottery Fund" means the special fund, created in the State Treasury by

Section 20 of the Lottery Law, in which all revenues received by the Lottery,

as defined and limited by Section 20 of the Lottery Law, are deposited.

"Subscription"

means a paid-in-advance program in which a player purchases a specified number

of Lottery tickets to be drawn over a specified time period. Subscriptions may

be offered to players in several ways, including via the internet where allowed

by the Lottery Law.

"Surety

Bond" means a promise to be liable for the debt, default, or failure of

another. It is a three-party agreement that legally binds the agent or vendor

who needs a bond; the Lottery, which requires the bond as proof of financial

responsibility; and a surety company that guarantees the performance or

obligations of the agent or vendor to the Lottery.

"Sweep

Account" means a banking account which allows the Lottery to credit or debit

funds to a retailer through EFT.

"Sweepstakes"

means a game in which prizes are awarded to a specified number of entrants

drawn from a pool.

"Ticket Discounting"

means reselling or having a person other than the prize winner claim a winning Lottery

game ticket or buying or claiming a winning Lottery game ticket for the purpose

of assisting the original prize winner with concealing the winner's identity as

a prize winner

FT.

"Sweepstakes"

means a game in which prizes are awarded to a specified number of entrants

drawn from a pool.

"Ticket Discounting"

means reselling or having a person other than the prize winner claim a winning Lottery

game ticket or buying or claiming a winning Lottery game ticket for the purpose

of assisting the original prize winner with concealing the winner's identity as

a prize winner.

"Ticket Symbol" means

the printed data in the play area on the front of an instant game ticket that

is used, among other things, to determine eligibility for prizes pursuant to

the working papers/games specifications for each game.

"Transfer"

means the change, in the aggregate, directly or indirectly, of the equity,

management control, legal ownership, or shares of stock of the Agent.

"Trust

Account" means a bank account designated and dedicated by an Agent for the

receipt of Lottery proceeds.

"Tradestyle"

means a Lottery retailer category based on similarities in operation, organization,

or business model, as determined by the Director.

"Validation

Number" means a unique set of identification numbers on draw-based and instant

game tickets that is matched with internal databases in order to determine the

winning or non-winning status of the ticket, as well as the prize amount.

"Withholding" means the

amounts required by law to be subtracted from a winner's prize to recover money

owed by the winner to others for obligations that include but are not limited

to State, federal, and in some cases local taxes; judgment creditors; or child

support obligations.