Section 1770.60 Conditions of Licensing

Section 1770

Section 1770.60  Conditions

of Licensing

An Agent has a continuing duty to maintain suitability for

licensure.

A license does not create a property right but is a revocable

privilege contingent upon continuing suitability for licensure.

Licensees

are subject to the following conditions of licensing:

a)         Licenses issued by the Department shall be issued to a person,

as defined by Section 1770.10, for a specified point of sale, as defined by

Section 1770.10, on the condition that the Agent maintains eligibility under

the applicable criteria under which the license was granted by the Director

(see Section 1770.20);

b)         Agents shall, at all times during the term of their license,

comply with the Lottery Law and any rules or instructions of the Director concerning

the security of Lottery equipment, Lottery game tickets or money and the proper

conduct of Lottery promotions;

c)         Each Agent shall make available for sale to the public, during

its normal business hours, the Lottery products that the Agent has been

licensed to sell;

d)         No license issued pursuant to the Lottery Law shall be changed,

assigned or pledged as collateral.  A transfer that occurs after the Director

has issued a license shall automatically terminate the license;

e)         Lottery

licenses or other point of sale materials shall be displayed in a conspicuous

place on the business premises where the Lottery game tickets are licensed to

be sold

No license issued pursuant to the Lottery Law shall be changed,

assigned or pledged as collateral.  A transfer that occurs after the Director

has issued a license shall automatically terminate the license;

e)         Lottery

licenses or other point of sale materials shall be displayed in a conspicuous

place on the business premises where the Lottery game tickets are licensed to

be sold.  The Department will make the odds and written play instructions

available to players by publishing in the Illinois Register and on its public

website (https://www.illinoislottery.com) or on request from the Department;

f)         Agents shall actively promote the sale of Lottery game tickets;

g)         Agents shall maintain authorized displays, drop boxes,

equipment and properly display other promotional materials used in conjunction

with sales in accordance with instructions issued by the Department;

h)         Each Agent will be held responsible for all instant game tickets

accepted from the Department or its vendors and Lottery game tickets generated

by the Agent from the Department's central gaming system.  All receipts from

sales, less commissions earned and prizes properly paid to winners, shall be paid

to the Department by the 90-day settlement deadlines.  Any and all Lottery game

tickets not returned by the 90-day settlement deadlines, absent any fault on

the part of the Lottery sales representative, shall be considered to have been

purchased by the Agent;

i)          Each Agent shall maintain current and accurate records of all

operations in conjunction with the sale of Lottery game tickets and make these

records available to representatives of the Department and the Auditor General

of Illinois upon request, during normal business hours;

j)          No Lottery game ticket may be sold or shared at a price

greater or less than that established by the Department's game rules, provided,

the Department may authorize free ticket or discounted ticket promotions in

support of marketing activities

hese

records available to representatives of the Department and the Auditor General

of Illinois upon request, during normal business hours;

j)          No Lottery game ticket may be sold or shared at a price

greater or less than that established by the Department's game rules, provided,

the Department may authorize free ticket or discounted ticket promotions in

support of marketing activities.  No Agent may add a service charge, handling

fee or other cost to the established price of a Lottery game ticket.  No fee

may be charged to redeem valid winning Lottery game tickets;

k)         No Lottery Agent license shall be issued to any person to

engage in business exclusively as a Lottery Agent;

l)          No person other than a licensed Agent shall sell Lottery game

tickets;

m)        Agents shall sell Lottery game tickets on a face-to-face or

authorized dispensing machine basis only at the point of sale designated in the

license, and shall not conduct sales to off-premises customers by telephone,

mail, parcel delivery service, or through an agent-sponsored vehicle such as a

club, players' association, or similar entity;

n)

No

Lottery game tickets shall be sold or given to a person under the age of 18

years, or any prize paid to a person under the age of 18

(Section 15 of the

Act);

o)         Each Agent shall hold the Department and the State of Illinois

harmless with respect to any liability arising in connection with the Agent's

Lottery game ticket sales activities;

p)         Each Agent shall immediately report to the Department the loss

or theft of any Lottery game tickets consigned to the Agent, with the ticket

identification numbers;

q)         Each Agent shall redeem all winning Lottery game tickets with

a face value up to $599 or less, so long as the Agent has adequate ticket sales

funds on hand

ith the Agent's

Lottery game ticket sales activities;

p)         Each Agent shall immediately report to the Department the loss

or theft of any Lottery game tickets consigned to the Agent, with the ticket

identification numbers;

q)         Each Agent shall redeem all winning Lottery game tickets with

a face value up to $599 or less, so long as the Agent has adequate ticket sales

funds on hand.  No Agent shall redeem a winning ticket with a face value equal

to or greater than $600, but shall instead follow established prize claim

procedures (see Section 1770.190);

r)          No license shall be granted to any applicant whose prior Lottery

license has been revoked less than two years prior to the date of the current

application;

s)         No Agent shall sell Lottery game tickets or shares issued by

any governmental entity, foreign or domestic, other than tickets and shares for

games operated by the Department.  No Agent shall sell any other type of

gambling or gaming tickets or chances other than those for which the retailer

is specifically licensed by a department, board or commission of the State of

Illinois or a unit of local government;

t)          All Lottery proceeds are funds of the State of Illinois, must

be segregated from other business or personal funds, must be held in trust on

behalf of the Illinois Lottery, and the agent's fiduciary duty, under penalty

of law, must maintain a separate bank account exclusively for deposit and

transfer of weekly Lottery fund settlements by means of an Electronic Fund

Transfer system

t)          All Lottery proceeds are funds of the State of Illinois, must

be segregated from other business or personal funds, must be held in trust on

behalf of the Illinois Lottery, and the agent's fiduciary duty, under penalty

of law, must maintain a separate bank account exclusively for deposit and

transfer of weekly Lottery fund settlements by means of an Electronic Fund

Transfer system.  The account must be designated on the bank's records as

"Lottery Trust Fund Account";

u)         Agents

are responsible for resolving net proceed discrepancies on a billing statement

(i.e., differences between actual money collected and the amount shown on the

billing statement);

v)         Agents

shall comply with all prescribed State and federal requirements for tax

withholding, recording and reporting, including, without limitation, those

requirements relating to the transfer, from the Agents to the tax authorities,

of funds withheld from player winnings;

w)        Notwithstanding

subsection (u), any discrepancy regarding settlement of accounts will be

resolved by the Director as deemed appropriate;

x)         No

person shall engage in Lottery game ticket discounting.  Any person found to

have engaged in the practice of discounting shall be fined, as determined by

the Director:

1)         For

prizes of less than $1,000, not more than $250;

2)         For

prizes of $1,000 or more, but less than $5,000, more than $250 but not more

than $500; and

3)         For

prizes of $5,000 or more, no less than $1,000; and

y)         An

Agent shall immediately notify the Department of any proposed or effective

change regarding the makeup of the owners, directors, officers, partners, or

key employees of the Agent

n $1,000, not more than $250;

2)         For

prizes of $1,000 or more, but less than $5,000, more than $250 but not more

than $500; and

3)         For

prizes of $5,000 or more, no less than $1,000; and

y)         An

Agent shall immediately notify the Department of any proposed or effective

change regarding the makeup of the owners, directors, officers, partners, or

key employees of the Agent.

z)         An

Agent must maintain with the Department certified copies of the applicant's

charter, articles or certificate of incorporation, certificate of formation,

certificate of statutory (or business) trust, certificate of limited

partnership, statement of partnership, and any other documents which constitute

or explain the legal organization of the applicant plus a certificate of good

standing that has been issued by the Secretary of State for the state in which

the applicant was created and that is dated within 30 days after the date of

the licensing application.

aa)       A Lottery retailer shall not extend credit or any public

assistance benefits on the sales of lottery tickets.