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Legislation Document
SPONSOR:
Rep. Bush & Sen. Paradee
Reps. Bolden, Cooke, D. Short; Sens. Hoffner, Walsh
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE BILL NO. 335
AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE LOTTERY.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 4826, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 4826. Internet lottery.
(a) The Director is authorized to operate an Internet lottery in accordance with this chapter, other Delaware laws, and federal law.
(b) No Internet lottery game shall be conducted unless the software,
computer
computer,
or other gaming equipment utilized can verify that the player engaged in such game is physically present in the State at the time they engage in such games. The Office shall confirm that players of the Internet lottery are, in fact, verified to be physically located in the State at the time they place a wager in such games. Notwithstanding the foregoing, persons who are not physically present in this State may engage in Internet lottery games only if the Office determines that such games are not inconsistent with federal law and the law of the jurisdiction in which the person is physically present, or if such games are conducted pursuant to an interstate compact to which the State is a party that is not inconsistent with federal law.
(c) The Director
shall have
has
the duty to promulgate such rules and regulations governing the Internet lottery as the Director deems necessary and desirable in order that the Internet lottery be initiated at the earliest feasible time in a manner that provides for the security and effective administration of such games, including
but not limited to:
all of the following:
(1) The type, number, payout, wagering limits, and rules for Internet lottery
games;
games.
(2) The creation, utilization, of Internet lottery accounts by players of the Internet lottery, provided that such accounts shall be possessed only by a natural person and not in the name of any beneficiary, custodian, joint trust, corporation, partnership or other organization or entity, and provided that such accounts shall not be assignable or otherwise
transferable;
transferable.
(3) Procedures for logging in Internet lottery account holders, authenticating their identity, agreeing to the terms, conditions and rules applicable to such games, and logging out, including procedures for automatically logging off persons from the Internet lottery after a specified period of
inactivity;
inactivity.
(4) Procedures for acquiring funds in an Internet lottery account by cash,
transfer
transfer,
or other means, the
withdraw
withdrawal
of
such
funds from
such
Internet lottery
accounts, the suspension of Internet lottery account activity for security reasons, the termination of Internet lottery accounts and disposition of proceeds therein, and the disposition of unclaimed amounts in dormant Internet lottery accounts pursuant to Chapter 11 of
Title 12;
Title 12.
(5) Mechanisms by which the Office or persons playing Internet lottery games may place limits on the amount of money being wagered per game or during any specified time period, or the amount of losses incurred during any specified time
period;
period.
(6) Mechanisms to exclude from the Internet lottery persons not eligible to play by reason of age, inclusion on a list of self-excluded persons in § 4834 of this title, or inclusion by the Director on a list for exclusion pursuant to § 4835 of this
title;
title.
(7) Procedures for the security and reliability of Internet lottery games and Internet lottery accounts, protection of the software,
computers
computers,
and other equipment used in the Internet lottery, and mechanisms to prevent tampering or utilization by unauthorized
persons; and
persons.
(8) Mechanisms by which the Office shall require that accounts for Internet ticket game purchases be funded
only
by purchase of a prepaid card
or other mechanism
obtained from a
physical
lottery agent through which players can transfer money or credits for Internet ticket game play.
(d) The Director shall cause each Internet site on which the Internet lottery is conducted to include an advertisement for and link to additional information for services for the treatment,
education
education,
and assistance of compulsive gamblers and their families.
(e) Notwithstanding any other law, regulation, or rule to the contrary, an Internet lottery program operated by the State Lottery Office shall require that all online play is funded by the purchase of a prepaid card obtained from a physical lottery agent through which players can then transfer the money or credits for Internet ticket game play.
Section 2. This Act takes effect 30 days after its enactment into law.
SYNOPSIS
This bill protects small businesses in Delaware by preserving lottery retailers’ role in iLottery. This bill requires iLottery players to purchase prepaid cards at physical stores to enable their online play.
In 2012, the General Assembly adopted the Delaware Gaming Competitiveness Act of 2012, HB 333 of the 146th General Assembly, establishing iLottery in Delaware. To support small businesses, the General Assembly included a provision of that law that required online players to purchase prepaid cards in physical retail stores. However, over a decade later, the Delaware Lottery Commissioner launched an iLottery program that does not uphold this protective provision. This bill updates the iLottery program to reflect the original intent of the law.
This Act also makes technical changes to conform to the Legislative Drafting Manual.