Ill. Admin. Code tit. 11, § 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. The Department will
make the odds and written play instructions available to players by publishing
in the Illinois Register and on its public website (https://www.illinoislottery.com)
or on request from the Department;
f) Agents shall actively promote the sale of
Lottery game tickets;
g) Agents
shall maintain authorized displays, drop boxes, equipment and properly display
other promotional materials used in conjunction with sales in accordance with
instructions issued by the Department;
h) Each Agent will be held responsible for
all instant game tickets accepted from the Department or its vendors and
Lottery game tickets generated by the Agent from the Department's central
gaming system. All receipts from sales, less commissions earned and prizes
properly paid to winners, shall be paid to the Department by the 90-day
settlement deadlines. Any and all Lottery game tickets not returned by the
90-day settlement deadlines, absent any fault on the part of the Lottery sales
representative, shall be considered to have been purchased by the
Agent;
i) Each Agent shall maintain
current and accurate records of all operations in conjunction with the sale of
Lottery game tickets and make these records available to representatives of the
Department and the Auditor General of Illinois upon request, during normal
business hours;
j) No Lottery game
ticket may be sold or shared at a price greater or less than that established
by the Department's game rules, provided, the Department may authorize free
ticket or discounted ticket promotions in support of marketing activities. No
Agent may add a service charge, handling fee or other cost to the established
price of a Lottery game ticket. No fee may be charged to redeem valid winning
Lottery game tickets;
k) No Lottery
Agent license shall be issued to any person to engage in business exclusively
as a Lottery Agent;
l) No person
other than a licensed Agent shall sell Lottery game tickets;
m) Agents shall sell Lottery game tickets on
a face-to-face or authorized dispensing machine basis only at the point of sale
designated in the license, and shall not conduct sales to off-premises
customers by telephone, mail, parcel delivery service, or through an
agent-sponsored vehicle such as a club, players' association, or similar
entity;
n)
No Lottery game
tickets shall be sold or given to a person under the age of 18 years, or any
prize paid to a person under the age of 18 (Section 15 of the
Act);
o) Each Agent shall hold the
Department and the State of Illinois harmless with respect to any liability
arising in connection with the Agent's Lottery game ticket sales
activities;
p) Each Agent shall
immediately report to the Department the loss or theft of any Lottery game
tickets consigned to the Agent, with the ticket identification
numbers;
q) Each Agent shall redeem
all winning Lottery game tickets with a face value up to $599 or less, so long
as the Agent has adequate ticket sales funds on hand. No Agent shall redeem a
winning ticket with a face value equal to or greater than $600, but shall
instead follow established prize claim procedures (see Section
1770.190);
r) No license shall be granted to any
applicant whose prior Lottery license has been revoked less than two years
prior to the date of the current application;
s) No Agent shall sell Lottery game tickets
or shares issued by any governmental entity, foreign or domestic, other than
tickets and shares for games operated by the Department. No Agent shall sell
any other type of gambling or gaming tickets or chances other than those for
which the retailer is specifically licensed by a department, board or
commission of the State of Illinois or a unit of local government;
t) All Lottery proceeds are funds of the
State of Illinois, must be segregated from other business or personal funds,
must be held in trust on behalf of the Illinois Lottery, and the agent's
fiduciary duty, under penalty of law, must maintain a separate bank account
exclusively for deposit and transfer of weekly Lottery fund settlements by
means of an Electronic Fund Transfer system. The account must be designated on
the bank's records as "Lottery Trust Fund Account";
u) Agents are responsible for resolving net
proceed discrepancies on a billing statement (i.e., differences between actual
money collected and the amount shown on the billing statement);
v) Agents shall comply with all prescribed
State and federal requirements for tax withholding, recording and reporting,
including, without limitation, those requirements relating to the transfer,
from the Agents to the tax authorities, of funds withheld from player
winnings;
w) Notwithstanding
subsection (u), any discrepancy regarding settlement of accounts will be
resolved by the Director as deemed appropriate;
x) No person shall engage in Lottery game
ticket discounting. Any person found to have engaged in the practice of
discounting shall be fined, as determined by the Director:
1) For prizes of less than $1,000, not more
than $250;
2) For prizes of $1,000
or more, but less than $5,000, more than $250 but not more than $500;
and
3) For prizes of $5,000 or
more, no less than $1,000; and
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.
Notes
Amended at 36 Ill. Reg. 14356, effective September 14, 2012
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