LOTTERY-VARIOUS

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SB4027 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB4027

Introduced 2/6/2026, by Sen. Bill Cunningham

SYNOPSIS AS INTRODUCED:

20 ILCS 1605/7.1

from Ch. 120, par. 1157.1
20 ILCS 1605/7.15
20 ILCS 1605/7.16
20 ILCS 1605/9.1
20 ILCS 1605/10.1

from Ch. 120, par. 1160.1
20 ILCS 1605/10.6

from Ch. 120, par. 1160.6
20 ILCS 1605/19

from Ch. 120, par. 1169
20 ILCS 1605/20

from Ch. 120, par. 1170
20 ILCS 1605/20.1

from Ch. 120, par. 1170.1
20 ILCS 1605/24

from Ch. 120, par. 1174
20 ILCS 1605/27

from Ch. 120, par. 1177
20 ILCS 1605/10.8 rep.

Amends the Illinois Lottery Law. Removes language providing that the
Department of the Lottery shall publish each January in the Illinois
Register a list of all game-specific rules, play instructions, directives,
operations manuals, brochures, or other game-specific publications issued
by the Department during the previous year and instructions concerning how
the public may obtain copies of these materials from the Department.
Removes language regarding the selection of a private manager for the
total management of the Lottery. Removes language providing that moneys in
the Department's account shall be deposited by the Department into the
Public Treasurers' Investment Pool. Provides that the Department shall
make an effort to more directly inform players of the odds of winning
prizes by publishing the information for all games on the Department's
public website (rather than by requiring all ticket agents to display a
placard stating the odds of winning for each game offered by that agent).
Requires the Department to make written play instructions available on the
Department's public website or by the Department by request (rather than
to all players through sales agents licensed to sell game tickets or
shares). Allows the Department (rather than the State Treasurer) to
contract with any person or corporation to perform financial functions.
Allows the State Treasurer to act as an agent of the Department to perform
the financial functions. Removes language providing that moneys in the
Department's account for paying validated prizes shall be deposited in the
Public Treasurer's Investment Pool. Repeals a provision related to a
specialty retailers license. Makes other and conforming changes.
LRB104 20451 LNS 33916 b

A BILL FOR

SB4027
LRB104 20451 LNS 33916 b
1

AN ACT concerning State government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Lottery Law is amended by changing
5
Sections 7.1, 7.15, 7.16, 9.1, 10.1, 10.6, 19, 20, 20.1, 24,
6
and 27 as follows:

7

(20 ILCS 1605/7.1)

(from Ch. 120, par. 1157.1)
8

Sec. 7.1.
The Department shall promulgate such rules and
9
regulations governing the establishment and operation of a
10
State lottery as it deems necessary to carry out the purposes
11
of this Act. Such rules and regulations shall be subject to the
12
provisions of The Illinois Administrative Procedure Act. The
13
Department shall issue written game rules, play instructions,
14
directives, operations manuals, brochures, or any other
15
publications necessary to conduct specific games, as
16
authorized by rule by the Department. Any written game rules,
17
play instructions, directives, operations manuals, brochures,
18
or other game publications issued by the Department that
19
relate to a specific lottery game shall be maintained as a
20
public record in the Department's principal office, and made
21
available for public inspection and copying but shall be
22
exempt from the rulemaking procedures of the Illinois
23
Administrative Procedure Act. However, when such written

SB4027
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LRB104 20451 LNS 33916 b
1
materials contain any policy of general applicability, the
2
Department shall formulate and adopt such policy as a rule in
3
accordance with the provisions of the Illinois Administrative
4
Procedure Act.
In addition, the Department shall publish each
5
January in the Illinois Register a list of all game-specific
6
rules, play instructions, directives, operations manuals,
7
brochures, or other game-specific publications issued by the
8
Department during the previous year and instructions
9
concerning how the public may obtain copies of these materials
10
from the Department.
11
(Source: P.A. 97-464, eff. 10-15-11.)

12

(20 ILCS 1605/7.15)
13

Sec. 7.15.
Verification for Internet program; security for
14
Internet lottery accounts.
The Department must establish a
15
procedure to verify that an individual is 18 years of age or
16
older and that the sale of lottery tickets on the Internet is
17
limited to transactions that are initiated and received or
18
otherwise made exclusively within the State of Illinois,
19
unless the federal Department of Justice indicates that it is
20
legal for the transactions to originate in states other than
21
Illinois. An individual must satisfy the verification
22
procedure before he or she may establish one Internet lottery
23
account and purchase lottery tickets or shares through the
24
Internet
pilot
program. By rule, the Department shall
25
establish funding procedures for Internet lottery accounts and

SB4027
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LRB104 20451 LNS 33916 b
1
shall provide a mechanism to prevent the unauthorized use of
2
Internet lottery accounts. If any participant in the
pilot

3
program violates any provisions of this amendatory Act of the
4
96th General Assembly or rule established by the Department,
5
the participant's winnings shall be forfeited. Such forfeited
6
winnings shall be deposited in the Common School Fund.
7
(Source: P.A. 96-34, eff. 7-13-09; 96-840, eff. 12-23-09.)

8

(20 ILCS 1605/7.16)
9

Sec. 7.16.
Voluntary self-exclusion program for Internet
10
lottery sales.
Any resident, or non-resident if allowed to
11
participate in the
pilot
program, may voluntarily prohibit
12
themselves from establishing an Internet lottery account. The
13
Department shall incorporate the voluntary self-exclusion
14
program for Internet lottery accounts into any existing
15
self-exclusion program that it operates on the effective date
16
of this amendatory Act of the 96th General Assembly.
17
(Source: P.A. 96-34, eff. 7-13-09.)

18

(20 ILCS 1605/9.1)
19

Sec. 9.1.
Private manager and management agreement.
20

(a) As used in this Section:
21

"Offeror" means a person or group of persons that responds
22
to a request for qualifications under this Section.
23

"Request for qualifications" means all materials and
24
documents prepared by the Department to solicit the following

SB4027
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LRB104 20451 LNS 33916 b
1
from offerors:
2

(1) Statements of qualifications.
3

(2) Proposals to enter into a management agreement,
4

including the identity of any prospective vendor or
5

vendors that the offeror intends to initially engage to
6

assist the offeror in performing its obligations under the
7

management agreement.
8

"Final offer" means the last proposal submitted by an
9
offeror in response to the request for qualifications,
10
including the identity of any prospective vendor or vendors
11
that the offeror intends to initially engage to assist the
12
offeror in performing its obligations under the management
13
agreement.
14

"Final offeror" means the offeror ultimately selected by
15
the Governor to be the private manager for the Lottery under
16
subsection (h) of this Section.
17

(b)
(Blank).

By September 15, 2010, the Governor shall
18
select a private manager for the total management of the
19
Lottery with integrated functions, such as lottery game
20
design, supply of goods and services, and advertising and as
21
specified in this Section.
22

(c)
(Blank).

Pursuant to the terms of this subsection, the
23
Department shall endeavor to expeditiously terminate the
24
existing contracts in support of the Lottery in effect on July
25
13, 2009 (the effective date of Public Act 96-37) in
26
connection with the selection of the private manager. As part

SB4027
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LRB104 20451 LNS 33916 b
1
of its obligation to terminate these contracts and select the
2
private manager, the Department shall establish a mutually
3
agreeable timetable to transfer the functions of existing
4
contractors to the private manager so that existing Lottery
5
operations are not materially diminished or impaired during
6
the transition. To that end, the Department shall do the
7
following:
8

(1) where such contracts contain a provision
9

authorizing termination upon notice, the Department shall
10

provide notice of termination to occur upon the mutually
11

agreed timetable for transfer of functions;
12

(2) upon the expiration of any initial term or renewal
13

term of the current Lottery contracts, the Department
14

shall not renew such contract for a term extending beyond
15

the mutually agreed timetable for transfer of functions;
16

or
17

(3) in the event any current contract provides for
18

termination of that contract upon the implementation of a
19

contract with the private manager, the Department shall
20

perform all necessary actions to terminate the contract on
21

the date that coincides with the mutually agreed timetable
22

for transfer of functions.
23

If the contracts to support the current operation of the
24
Lottery in effect on July 13, 2009 (the effective date of
25
Public Act 96-34) are not subject to termination as provided
26
for in this subsection (c), then the Department may include a

SB4027
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LRB104 20451 LNS 33916 b
1
provision in the contract with the private manager specifying
2
a mutually agreeable methodology for incorporation.
3

(c-5) The Department shall include provisions in the
4
management agreement whereby the private manager shall, for a
5
fee, and pursuant to a contract negotiated with the Department
6
(the "Employee Use Contract"), utilize the services of current
7
Department employees to assist in the administration and
8
operation of the Lottery. The Department shall be the employer
9
of all such bargaining unit employees assigned to perform such
10
work for the private manager, and such employees shall be
11
State employees, as defined by the Personnel Code. Department
12
employees shall operate under the same employment policies,
13
rules, regulations, and procedures, as other employees of the
14
Department. In addition, neither historical representation
15
rights under the Illinois Public Labor Relations Act, nor
16
existing collective bargaining agreements, shall be disturbed
17
by the management agreement with the private manager for the
18
management of the Lottery.
19

(d) The management agreement with the private manager
20
shall include all of the following:
21

(1) A term not to exceed 10 years, including any
22

renewals.
23

(2) A provision specifying that the Department:
24

(A) shall exercise actual control over all
25

significant business decisions;
26

(A-5) has the authority to direct or countermand

SB4027
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LRB104 20451 LNS 33916 b
1

operating decisions by the private manager at any
2

time;
3

(B) has ready access at any time to information
4

regarding Lottery operations;
5

(C) has the right to demand and receive
6

information from the private manager concerning any
7

aspect of the Lottery operations at any time; and
8

(D) retains ownership of all trade names,
9

trademarks, and intellectual property associated with
10

the Lottery.
11

(3) A provision imposing an affirmative duty on the
12

private manager to provide the Department with material
13

information and with any information the private manager
14

reasonably believes the Department would want to know to
15

enable the Department to conduct the Lottery.
16

(4) A provision requiring the private manager to
17

provide the Department with advance notice of any
18

operating decision that bears significantly on the public
19

interest, including, but not limited to, decisions on the
20

kinds of games to be offered to the public and decisions
21

affecting the relative risk and reward of the games being
22

offered, so the Department has a reasonable opportunity to
23

evaluate and countermand that decision.
24

(5) A provision providing for compensation of the
25

private manager
that may consist of, among other things, a
26

fee for services and a performance based bonus as

SB4027
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LRB104 20451 LNS 33916 b
1

consideration for managing the Lottery, including terms
2

that may provide the private manager with an increase in
3

compensation if Lottery revenues grow by a specified
4

percentage in a given year
.
5

(6) (Blank).
6

(7) A provision requiring the deposit of all Lottery
7

proceeds to be deposited into the State Lottery Fund
8

except as otherwise provided in Section 20 of this Act.
9

(8) A provision requiring the private manager to
10

locate its principal office within the State.
11

(8-5) A provision encouraging that
, pursuant to
12

Section 4 of the Business Enterprise for Minorities,
13

Women, and Persons with Disabilities Act,

at least 20% of
14

the cost of
contracts entered into for goods and services
15

by the private manager in connection with its management
16

of the Lottery, other than contracts with sales agents or
17

technical advisors, be awarded to businesses that are a
18

minority-owned business, a women-owned business, or a
19

business owned by a person with disability, as those terms
20

are defined in the Business Enterprise for Minorities,
21

Women, and Persons with Disabilities Act.
22

(9) A requirement that so long as the private manager
23

complies with all the conditions of the agreement under
24

the oversight of the Department, the private manager shall
25

have the following duties and obligations with respect to
26

the management of the Lottery:

SB4027
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LRB104 20451 LNS 33916 b
1

(A) The right to use equipment and other assets
2

used in the operation of the Lottery.
3

(B) The rights and obligations under contracts
4

with retailers and vendors.
5

(C) The implementation of a comprehensive security
6

program by the private manager.
7

(D) The implementation of a comprehensive system
8

of internal audits.
9

(E) The implementation of a program by the private
10

manager to curb compulsive gambling by persons playing
11

the Lottery.
12

(F) A system for determining (i) the type of
13

Lottery games, (ii) the method of selecting winning
14

tickets, (iii) the manner of payment of prizes to
15

holders of winning tickets, (iv) the frequency of
16

drawings of winning tickets, (v) the method to be used
17

in selling tickets, (vi) a system for verifying the
18

validity of tickets claimed to be winning tickets,
19

(vii) the basis upon which retailer commissions are
20

established by the manager, and (viii) minimum
21

payouts.
22

(10) A requirement that advertising and promotion must
23

be consistent with Section 7.8a of this Act.
24

(11) A requirement that the private manager market the
25

Lottery to those residents who are new, infrequent, or
26

lapsed players of the Lottery, especially those who are

SB4027
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LRB104 20451 LNS 33916 b
1

most likely to make regular purchases on the Internet as
2

permitted by law.
3

(12) A code of ethics for the private manager's
4

officers and employees.
5

(13) A requirement that the Department monitor and
6

oversee the private manager's practices and take action
7

that the Department considers appropriate to ensure that
8

the private manager is in compliance with the terms of the
9

management agreement, while allowing the manager, unless
10

specifically prohibited by law or the management
11

agreement, to negotiate and sign its own contracts with
12

vendors.
13

(14) A provision requiring the private manager to
14

periodically file, at least on an annual basis,
15

appropriate financial statements in a form and manner
16

acceptable to the Department.
17

(15) Cash reserves requirements.
18

(16) Procedural requirements for obtaining the prior
19

approval of the Department when a management agreement or
20

an interest in a management agreement is sold, assigned,
21

transferred, or pledged as collateral to secure financing.
22

(17) Grounds for the termination of the management
23

agreement by the Department or the private manager.
24

(18) Procedures for amendment of the agreement.
25

(19) A provision requiring the private manager to
26

engage in an open and competitive bidding process for any

SB4027
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LRB104 20451 LNS 33916 b
1

procurement having a cost in excess of
the small purchase
2

limits under Section 20-20 of the Illinois Procurement
3

Code

$50,000
that is not a part of the private manager's
4

final offer. The process shall favor the selection of a
5

vendor deemed to have submitted a proposal that provides
6

the Lottery with the best overall value. The process shall
7

not be subject to the provisions of the Illinois
8

Procurement Code, unless specifically required by the
9

management agreement.
10

(20) The transition of rights and obligations,
11

including any associated equipment or other assets used in
12

the operation of the Lottery, from the manager to any
13

successor manager of the lottery, including the
14

Department, following the termination of or foreclosure
15

upon the management agreement.
16

(21) Right of use of copyrights, trademarks, and
17

service marks held by the Department in the name of the
18

State. The agreement must provide that any use of them by
19

the manager shall only be for the purpose of fulfilling
20

its obligations under the management agreement during the
21

term of the agreement.
22

(22) The disclosure of any information requested by
23

the Department to enable it to comply with the reporting
24

requirements and information requests provided for under
25

subsection (p) of this Section.
26

(e) Notwithstanding any other law to the contrary, the

SB4027
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LRB104 20451 LNS 33916 b
1
Department shall select a private manager through a
2
competitive request for qualifications process consistent with
3
Section 20-35 of the Illinois Procurement Code, which shall
4
take into account:
5

(1) the offeror's ability to market the Lottery to
6

those residents who are new, infrequent, or lapsed players
7

of the Lottery, especially those who are most likely to
8

make regular purchases on the Internet;
9

(2) the offeror's ability to address the State's
10

concern with the social effects of gambling on those who
11

can least afford to do so;
12

(3) the offeror's ability to provide the most
13

successful management of the Lottery for the benefit of
14

the people of the State based on current and past business
15

practices or plans of the offeror; and
16

(4) the offeror's poor or inadequate past performance
17

in servicing, equipping, operating or managing a lottery
18

on behalf of Illinois, another State or foreign government
19

and attracting persons who are not currently regular
20

players of a lottery.
21

(f) The Department may retain the services of an advisor
22
or advisors with significant experience in financial services
23
or the management, operation, and procurement of goods,
24
services, and equipment for a government-run lottery to assist
25
in the preparation of the terms of the request for
26
qualifications and selection of the private manager. Any

SB4027
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LRB104 20451 LNS 33916 b
1
prospective advisor seeking to provide services under this
2
subsection (f) shall disclose any material business or
3
financial relationship during the past 3 years with any
4
potential offeror, or with a contractor or subcontractor
5
presently providing goods, services, or equipment to the
6
Department to support the Lottery. The Department shall
7
evaluate the material business or financial relationship of
8
each prospective advisor. The Department shall not select any
9
prospective advisor with a substantial business or financial
10
relationship that the Department deems to impair the
11
objectivity of the services to be provided by the prospective
12
advisor. During the course of the advisor's engagement by the
13
Department, and for a period of one year thereafter, the
14
advisor shall not enter into any business or financial
15
relationship with any offeror or any vendor identified to
16
assist an offeror in performing its obligations under the
17
management agreement. Any advisor retained by the Department
18
shall be disqualified from being an offeror. The Department
19
shall not include terms in the request for qualifications that
20
provide a material advantage whether directly or indirectly to
21
any potential offeror, or any contractor or subcontractor
22
presently providing goods, services, or equipment to the
23
Department to support the Lottery, including terms contained
24
in previous responses to requests for proposals or
25
qualifications submitted to Illinois, another State or foreign
26
government when those terms are uniquely associated with a

SB4027
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LRB104 20451 LNS 33916 b
1
particular potential offeror, contractor, or subcontractor.
2
The request for proposals offered by the Department on
3
December 22, 2008 as "LOT08GAMESYS" and reference number
4
"22016176" is declared void.
5

(g)
The Department shall select at least 2 offerors as
6
finalists to potentially serve as the private manager no later
7
than August 9, 2010.
Upon making preliminary selections, the
8
Department shall schedule a public hearing on the finalists'
9
proposals and provide public notice of the hearing at least 7
10
calendar days before the hearing. The notice must include all
11
of the following:
12

(1) The date, time, and place of the hearing.
13

(2) The subject matter of the hearing.
14

(3) A brief description of the management agreement to
15

be awarded.
16

(4) The identity of the offerors that have been
17

selected as finalists to serve as the private manager.
18

(5) The address and telephone number of the
19

Department.
20

(h) At the public hearing, the Department shall (i)
21
provide sufficient time for each finalist to present and
22
explain its proposal to the Department and the Governor or the
23
Governor's designee, including an opportunity to respond to
24
questions posed by the Department, Governor, or designee and
25
(ii) allow the public and non-selected offerors to comment on
26
the presentations. The Governor or a designee shall attend the

SB4027
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LRB104 20451 LNS 33916 b
1
public hearing. After the public hearing, the Department shall
2
have 14 calendar days to recommend to the Governor whether a
3
management agreement should be entered into with a particular
4
finalist. After reviewing the Department's recommendation, the
5
Governor may accept or reject the Department's recommendation,
6
and shall select a final offeror as the private manager by
7
publication of a notice in the Illinois Procurement Bulletin
8
on or before September 15, 2010
. The Governor shall include in
9
the notice a detailed explanation and the reasons why the
10
final offeror is superior to other offerors and will provide
11
management services in a manner that best achieves the
12
objectives of this Section. The Governor shall also sign the
13
management agreement with the private manager.
14

(i) Any action to contest the private manager selected by
15
the Governor under this Section must be brought within 7
16
calendar days after the publication of the notice of the
17
designation of the private manager as provided in subsection
18
(h) of this Section.
19

(j) The Lottery shall remain, for so long as a private
20
manager manages the Lottery in accordance with provisions of
21
this Act, a Lottery conducted by the State, and the State shall
22
not be authorized to sell or transfer the Lottery to a third
23
party.
24

(k) Any tangible personal property used exclusively in
25
connection with the lottery that is owned by the Department
26
and leased to the private manager shall be owned by the

SB4027
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LRB104 20451 LNS 33916 b
1
Department in the name of the State and shall be considered to
2
be public property devoted to an essential public and
3
governmental function.
4

(l) The Department may exercise any of its powers under
5
this Section or any other law as necessary or desirable for the
6
execution of the Department's powers under this Section.
7

(m) Neither this Section nor any management agreement
8
entered into under this Section prohibits the General Assembly
9
from authorizing forms of gambling that are not in direct
10
competition with the Lottery. The forms of gambling authorized
11
by Public Act 101-31 constitute authorized forms of gambling
12
that are not in direct competition with the Lottery.
13

(n) The private manager shall be subject to a complete
14
investigation in the third, seventh, and tenth years of the
15
agreement (if the agreement is for a 10-year term) by the
16
Department in cooperation with the Auditor General to
17
determine whether the private manager has complied with this
18
Section and the management agreement. The private manager
19
shall bear the cost of an investigation or reinvestigation of
20
the private manager under this subsection.
21

(o) The powers conferred by this Section are in addition
22
and supplemental to the powers conferred by any other law. If
23
any other law or rule is inconsistent with this Section,
24
including, but not limited to, provisions of the Illinois
25
Procurement Code, then this Section controls as to any
26
management agreement entered into under this Section. This

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1
Section and any rules adopted under this Section contain full
2
and complete authority for a management agreement between the
3
Department and a private manager. No law, procedure,
4
proceeding, publication, notice, consent, approval, order, or
5
act by the Department or any other officer, Department,
6
agency, or instrumentality of the State or any political
7
subdivision is required for the Department to enter into a
8
management agreement under this Section. This Section contains
9
full and complete authority for the Department to approve any
10
contracts entered into by a private manager with a vendor
11
providing goods, services, or both goods and services to the
12
private manager under the terms of the management agreement,
13
including subcontractors of such vendors.
14

Upon receipt of a written request from the Chief
15
Procurement Officer, the Department shall provide to the Chief
16
Procurement Officer a complete and un-redacted copy of the
17
management agreement or any contract that is subject to the
18
Department's approval authority under this subsection (o). The
19
Department shall provide a copy of the agreement or contract
20
to the Chief Procurement Officer in the time specified by the
21
Chief Procurement Officer in his or her written request, but
22
no later than 5 business days after the request is received by
23
the Department. The Chief Procurement Officer must retain any
24
portions of the management agreement or of any contract
25
designated by the Department as confidential, proprietary, or
26
trade secret information in complete confidence pursuant to

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1
subsection (g) of Section 7 of the Freedom of Information Act.
2
The Department shall also provide the Chief Procurement
3
Officer with reasonable advance written notice of any contract
4
that is pending Department approval.
5

Notwithstanding any other provision of this Section to the
6
contrary, the Chief Procurement Officer shall adopt
7
administrative rules, including emergency rules, to establish
8
a procurement process to select a successor private manager if
9
a private management agreement has been terminated. The
10
selection process shall at a minimum take into account the
11
criteria set forth in items (1) through (4) of subsection (e)
12
of this Section and may include provisions consistent with
13
subsections (f), (g), (h), and (i) of this Section. The Chief
14
Procurement Officer shall also implement and administer the
15
adopted selection process upon the termination of a private
16
management agreement. The Department, after the Chief
17
Procurement Officer certifies that the procurement process has
18
been followed in accordance with the rules adopted under this
19
subsection (o), shall select a final offeror as the private
20
manager and sign the management agreement with the private
21
manager.
22

Through June 30, 2022, except as provided in Sections
23
21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
24
of this Act and Section 25-70 of the Sports Wagering Act, the
25
Department shall distribute all proceeds of lottery tickets
26
and shares sold in the following priority and manner:

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1

(1) The payment of prizes and retailer bonuses.
2

(2) The payment of costs incurred in the operation and
3

administration of the Lottery, including the payment of
4

sums due to the private manager under the management
5

agreement with the Department.
6

(3) On the last day of each month or as soon thereafter
7

as possible, the State Comptroller shall direct and the
8

State Treasurer shall transfer from the State Lottery Fund
9

to the Common School Fund an amount that is equal to the
10

proceeds transferred in the corresponding month of fiscal
11

year 2009, as adjusted for inflation, to the Common School
12

Fund.
13

(4) On or before September 30 of each fiscal year,
14

deposit any estimated remaining proceeds from the prior
15

fiscal year, subject to payments under items (1), (2), and
16

(3), into the Capital Projects Fund. Beginning in fiscal
17

year 2019, the amount deposited shall be increased or
18

decreased each year by the amount the estimated payment
19

differs from the amount determined from each year-end
20

financial audit. Only remaining net deficits from prior
21

fiscal years may reduce the requirement to deposit these
22

funds, as determined by the annual financial audit.
23

Beginning July 1, 2022, the Department shall distribute
24
all proceeds of lottery tickets and shares sold in the manner
25
and priority described in Section 9.3 of this Act, except that
26
the Department shall make the deposit into the Capital

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Projects Fund that would have occurred under item (4) of this
2
subsection (o) on or before September 30, 2022, but for the
3
changes made to this subsection by Public Act 102-699.
4

(p) The Department shall be subject to the following
5
reporting and information request requirements:
6

(1) the Department shall submit written quarterly
7

reports to the Governor and the General Assembly on the
8

activities and actions of the private manager selected
9

under this Section;
10

(2) upon request of the Chief Procurement Officer, the
11

Department shall promptly produce information related to
12

the procurement activities of the Department and the
13

private manager requested by the Chief Procurement
14

Officer; the Chief Procurement Officer must retain
15

confidential, proprietary, or trade secret information
16

designated by the Department in complete confidence
17

pursuant to subsection (g) of Section 7 of the Freedom of
18

Information Act; and
19

(3) at least 30 days prior to the beginning of the
20

Department's fiscal year, the Department shall prepare an
21

annual written report on the activities of the private
22

manager selected under this Section and deliver that
23

report to the Governor and General Assembly.
24
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
25
101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
26
4-19-22; 102-1115, eff. 1-9-23.)

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1

(20 ILCS 1605/10.1)

(from Ch. 120, par. 1160.1)
2

Sec. 10.1.
The following are ineligible for any license
3
under this Act:
4

(a) any person who has been convicted of a felony;
5

(b) any person who is or has been a professional
6

gambler or gambling promoter;
7

(c) any person who has engaged in bookmaking or other
8

forms of illegal gambling;
9

(d) any person who is not of good character and
10

reputation in the community in which he resides;
11

(e) any person who has been found guilty of any fraud
12

or misrepresentation in any connection;
13

(f) any firm or corporation in which a person defined
14

in
item
(a), (b), (c), (d)
,
or (e) has a proprietary,
15

equitable or credit interest of 5% or more
;

.
16

(g) any organization in which a person defined in
item

17

(a), (b), (c), (d)
,
or (e) is an officer, director, or
18

managing agent, whether compensated or not;
and

19

(h) any organization in which a person defined in
item

20

(a), (b),
(c)
, (d),
or (e) is to participate in the
21

management or sales of lottery tickets or shares.
22

However, with respect to persons defined in (a), the
23
Department may grant any such person a license under this Act
24
when:
25

1) at least 10 years have elapsed since the date when

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1

the sentence for the most recent such conviction was
2

satisfactorily completed;
3

2) the applicant has no history of criminal activity
4

subsequent to such conviction;
5

3) the applicant has complied with all conditions of
6

probation, conditional discharge, supervision, parole or
7

mandatory supervised release; and
8

4) the applicant presents at least 3 letters of
9

recommendation from responsible citizens in his community
10

who personally can attest that the character and attitude
11

of the applicant indicate that he is unlikely to commit
12

another crime.
13

The Department may revoke, without notice or a hearing,
14
the license of any agent who violates this Act or any rule or
15
regulation promulgated pursuant to this Act. However, if the
16
Department does revoke a license without notice and an
17
opportunity for a hearing, the Department shall, by
18
appropriate notice, afford the person whose license has been
19
revoked an opportunity for a hearing within 30 days after the
20
revocation order has been issued. As a result of any such
21
hearing, the Department may confirm its action in revoking the
22
license, or it may order the restoration of such license.
23
(Source: P.A. 97-464, eff. 10-15-11.)

24

(20 ILCS 1605/10.6)

(from Ch. 120, par. 1160.6)
25

Sec. 10.6.
The Department shall make an effort to more

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1
directly inform players of the odds of winning prizes
by
2
publishing the information for all games on the Department's
3
public website
.
This effort shall include, at a minimum, that
4
the Department require all ticket agents to display a placard
5
stating the odds of winning for each game offered by that
6
agent.
7
(Source: P.A. 97-464, eff. 10-15-11.)

8

(20 ILCS 1605/19)

(from Ch. 120, par. 1169)
9

Sec. 19.
The Department shall establish an appropriate
10
period for the claiming of prizes for each lottery game
11
offered. Each claim period shall be stated in game rules and
12
written play instructions issued by the Director in accordance
13
with Section 7.1 of this Act. Written play instructions shall
14
be made available
on the Department's public website or by the
15
Department by request.

to all players through sales agents
16
licensed to sell game tickets or shares.
Prizes for lottery
17
games which involve the purchase of a physical lottery ticket
18
may be claimed only by presentation of a valid winning lottery
19
ticket that matches validation records on file with the
20
Lottery; no claim may be honored which is based on the
21
assertion that the ticket was lost or stolen. No lottery
22
ticket which has been altered, mutilated, or fails to pass
23
validation tests shall be deemed to be a winning ticket.
24

If no claim is made for the money within the established
25
claim period, the prize may be included in the prize pool of

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1
such special drawing or drawings as the Department may, from
2
time to time, designate. Unclaimed multi-state game prize
3
money may be included in the multi-state prize pool for such
4
special drawing or drawings as the multi-state game directors
5
may, from time to time, designate. Any bonuses offered by the
6
Department to sales agents who sell winning tickets or shares
7
shall be payable to such agents regardless of whether or not
8
the prize money on the ticket or share is claimed, provided
9
that the agent can be identified as the vendor of the winning
10
ticket or share, and that the winning ticket or share was sold
11
on or after January 1, 1984. All unclaimed prize money not
12
included in the prize pool of a special drawing shall be
13
transferred to the Common School Fund.
14
(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)

15

(20 ILCS 1605/20)

(from Ch. 120, par. 1170)
16

Sec. 20.
State Lottery Fund.
17

(a) There is created in the State Treasury a special fund
18
to be known as the State Lottery Fund. Such fund shall consist
19
of all revenues received from (1) the sale of lottery tickets
20
or shares, (net of commissions, fees representing those
21
expenses that are directly proportionate to the sale of
22
tickets or shares at the agent location, and prizes of
less
23
than
$600
or less
which have been validly paid at the agent
24
level), (2) application fees, and (3) all other sources
25
including moneys credited or transferred thereto from any

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1
other fund or source pursuant to law. Interest earnings of the
2
State Lottery Fund shall be credited to the Common School
3
Fund.
4

(a-5) The receipt and distribution of moneys under Section
5
21.4 of this Act shall be in accordance with Section 21.4.
6

(b) The receipt and distribution of moneys under Section
7
21.5 of this Law shall be in accordance with Section 21.5.
8

(c) The receipt and distribution of moneys under Section
9
21.6 of this Law shall be in accordance with Section 21.6.
10

(d) The receipt and distribution of moneys under Section
11
21.7 of this Law shall be in accordance with Section 21.7.
12

(e) The receipt and distribution of moneys under Section
13
21.8 of this Law shall be in accordance with Section 21.8.
14

(f) The receipt and distribution of moneys under Section
15
21.9 of this Law shall be in accordance with Section 21.9.
16

(g) The receipt and distribution of moneys under Section
17
21.10 of this Law shall be in accordance with Section 21.10.
18

(h) The receipt and distribution of moneys under Section
19
21.11 of this Law shall be in accordance with Section 21.11.
20

(i) (Blank).
21

(j) The receipt and distribution of moneys under Section
22
21.13 of this Law shall be in accordance with Section 21.13.
23

(k) The receipt and distribution of moneys under Section
24
25-70 of the Sports Wagering Act shall be in accordance with
25
Section 25-70 of the Sports Wagering Act.
26

(l) The receipt and distribution of moneys under Section

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1
21.15 of this Law shall be in accordance with Section 21.15.
2

(m) The receipt and distribution of moneys under Section
3
21.16 of this Law shall be in accordance with Section 21.16.
4
(Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)

5

(20 ILCS 1605/20.1)

(from Ch. 120, par. 1170.1)
6

Sec. 20.1.
Department account.
7

(a) The Department is authorized to pay validated prizes
8
up to $25,000
from funds held by the Department in an account
9
separate and apart from all public moneys of the State. Moneys
10
in this account shall be administered by the Director
11
exclusively for the purposes of issuing payments to prize
12
winners authorized by this Section.
Moneys in this account
13
shall be deposited by the Department into the Public
14
Treasurers' Investment Pool established under Section 17 of
15
the State Treasurer Act.
The Department shall submit vouchers
16
from time to time as needed for reimbursement of this account
17
from moneys appropriated for prizes from the State Lottery
18
Fund. Investment income earned from this account shall be
19
deposited
monthly
by the Department into the Common School
20
Fund. The Department shall file quarterly fiscal reports
21
specifying the activity of this account as required under
22
Section 16 of the State Comptroller Act, and shall file
23
quarterly with the General Assembly, the Auditor General, the
24
Comptroller, and the State Treasurer a report indicating the
25
costs associated with this activity.

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1

(b) The Department is authorized to enter into an
2
interagency agreement with the Office of the Comptroller or
3
any other State agency to establish responsibilities, duties,
4
and procedures for complying with the Comptroller's Offset
5
System under Section 10.05 of the State Comptroller Act. All
6
federal and State tax reporting and withholding requirements
7
relating to prize winners under this Section shall be the
8
responsibility of the Department.
Moneys from this account may
9
not be used to pay amounts to deferred prize winners.
Moneys
10
may not be transferred from the State Lottery Fund to this
11
account for payment of prizes under this Section until
12
procedures are implemented to comply with the Comptroller's
13
Offset System and sufficient internal controls are in place to
14
validate prizes.
15
(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)

16

(20 ILCS 1605/24)

(from Ch. 120, par. 1174)
17

Sec. 24.
The State Comptroller shall conduct a preaudit of
18
all accounts and transactions of the Department in connection
19
with the operation of the State Lottery under the State
20
Comptroller Act, excluding payments issued by the Department
21
for prizes
of $25,000 or less
.
22

The Auditor General or a certified public accountant firm
23
appointed by him shall conduct an annual post-audit of all
24
accounts and transactions of the Department in connection with
25
the operation of the State Lottery and other special post

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LRB104 20451 LNS 33916 b
1
audits as the Auditor General, the Legislative Audit
2
Commission, or the General Assembly deems necessary. The
3
annual post-audits shall include payments made by lottery
4
sales agents of prizes of
less than
$600
or less
authorized
5
under Section 20, and payments made by the Department of
6
prizes
up to $25,000
authorized under Section 20.1. The
7
Auditor General or his agent conducting an audit under this
8
Act shall have access and authority to examine any and all
9
records of the Department or the Board, its distributing
10
agents and its licensees.
11
(Source: P.A. 94-776, eff. 5-19-06.)

12

(20 ILCS 1605/27)

(from Ch. 120, par. 1177)
13

Sec. 27.
(a)
The Department may

The State Treasurer may,
14
with the consent of the Director,
contract with any person or
15
corporation, including, without limitation, a bank, banking
16
house, trust company or investment banking firm, to perform
17
such financial functions, activities or services in connection
18
with operation of the lottery
. The State Treasurer may, with
19
the consent of the Director, act as an agent of the Department
20
to perform the financial functions as the Director may
21
prescribe

as the State Treasurer and the Director may
22
prescribe
.
23

(b) All proceeds from investments made pursuant to
24
contracts executed by the
Department or the
State Treasurer,
25
with the consent of the Director, to perform financial

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LRB104 20451 LNS 33916 b
1
functions, activities or services in connection with operation
2
of the lottery, shall be deposited and held
by the State
3
Treasurer as ex-officio custodian thereof,
separate and apart
4
from all public money or funds of this State in a special trust
5
fund outside the State treasury. Such trust fund shall be
6
known as the "Deferred Lottery Prize Winners Trust Fund", and
7
shall be administered by the Director.
8

The Director shall, at such times and in such amounts as
9
shall be necessary, prepare and send to the State Comptroller
10
vouchers requesting payment from the Deferred Lottery Prize
11
Winners Trust Fund to deferred prize winners, in a manner that
12
will insure the timely payment of such amounts owed.
13

This Act shall constitute an irrevocable appropriation of
14
all amounts necessary for that purpose, and the irrevocable
15
and continuing authority for and direction to the Director and
16
the State Treasurer to make the necessary payments out of such
17
trust fund for that purpose.
18

(c) Moneys invested pursuant to subsection (a) of this
19
Section may be invested only in bonds, notes, certificates of
20
indebtedness, treasury bills, or other securities constituting
21
direct obligations of the United States of America and all
22
securities or obligations the prompt payment of principal and
23
interest of which is guaranteed by a pledge of the full faith
24
and credit of the United States of America. Interest earnings
25
on moneys in the Deferred Lottery Prize Winners Trust Fund
26
shall remain in such fund and be used to pay the winners of

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1
lottery prizes deferred as to payment until such obligations
2
are discharged. Proceeds from bonds purchased and interest
3
accumulated as a result of a grand prize multi-state game
4
ticket that goes unclaimed will be transferred after the
5
termination of the relevant claim period directly from the
6
lottery's Deferred Lottery Prize Winners Trust Fund to each
7
respective multi-state partner state according to its
8
contribution ratio.
9

(c-5) If a deferred lottery prize is not claimed within
10
the claim period established by game rule, then the securities
11
or other instruments purchased to fund the prize shall be
12
liquidated and the liquidated amount shall be transferred to
13
the State Lottery Fund for disposition pursuant to Section 19
14
of this Act.
15

(c-10) The Director may use a portion of the moneys in the
16
Deferred Lottery Prize Winners Trust Fund to purchase bonds to
17
pay a lifetime prize if the prize duration exceeds the length
18
of available securities. If the winner of a lifetime prize
19
exceeds his or her life expectancy as determined using
20
actuarial assumptions and the securities or moneys set aside
21
to pay the prize have been exhausted, moneys in the State
22
Lottery Fund shall be used to make payments to the winner for
23
the duration of the winner's life.
24

(c-15) From time to time, the Director may request that
25
the State Comptroller transfer any excess moneys in the
26
Deferred Lottery Prize Winners Trust Fund to the State Lottery

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LRB104 20451 LNS 33916 b
1
Fund.
2

(d) This amendatory Act of 1985 shall be construed
3
liberally to effect the purposes of the Illinois Lottery Law.
4
(Source: P.A. 97-464, eff. 10-15-11; 98-463, eff. 8-16-13;
5
98-499, eff. 8-16-13.)

6

(20 ILCS 1605/10.8 rep.)
7

Section 10.
The Illinois Lottery Law is amended by
8
repealing Section 10.8.

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