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AB864: Bill Text
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2025 - 2026 LEGISLATURE
LRB-2988/1
JAM:emw
2025 ASSEMBLY BILL 864
January 16, 2026 - Introduced by Representatives
Brooks
,
Swearingen
,
Wittke
,
Knodl
,
Doyle
,
Miresse
,
Subeck
and
Udell
, cosponsored by Senator
Feyen
. Referred to Committee on State Affairs.
AB864,1,7
1
An Act
to repeal
565.01 (3m) and 565.01 (4g);
to amend
20.566 (8) (c), 20.566
2
(8) (v), 25.75 (1) (c) 3., 25.75 (3) (b) 3., 565.02 (3) (i), 565.02 (3) (j), 565.02 (4) (g),
3
565.10 (3) (b), 565.10 (7) (a), 565.10 (7) (b), 565.10 (14) (b) 1., 565.10 (14) (b) 2.,
4
565.10 (14) (b) 3m., 565.10 (16), 565.27 (5), 565.30 (1) (a), 565.30 (3) (a) 1. and
5
565.30 (3) (a) 2.;
to create
565.01 (1r), 565.01 (1s), 565.01 (3g), 565.01 (3h),
6
565.01 (3v), 565.01 (3w), 565.10 (14) (b) 3., 565.30 (1) (am) and 565.30 (3) (a) 4.
7
of the statutes;
relating to:
various changes to the state lottery.
Analysis by the Legislative Reference Bureau
This bill makes various changes to the state lottery. Under current law, the state lottery is an enterprise in which a player, by purchasing a ticket, is entitled to participate in a game of chance in which any of the following applies: 1) the ticket is evidence of the numbers or symbols selected by the player or selected randomly by a computer, and the player becomes entitled to a prize if the player’s ticket is randomly selected by a computer at the time of the ticket’s purchase or if the ticket is selected in a chance drawing or 2) the winning tickets are randomly predetermined, and the player reveals preprinted numbers or symbols from which it can be immediately determined whether the ticket is a winning ticket entitling the player to win a certain prize.
The games described in item 1 are commonly known as the lotto, and the bill defines the term “lotto game” to mean a state lottery game that is played, revealed, or displayed on a preprinted digital or physical ticket and that is identified as a “lotto game” in the Lottery Division of the Department of Revenue’s published features and procedures for the game. The games described in item 2 are commonly known as instant games or scratch-off games and include some games commonly known as pull-tab games. The bill creates definitions for these games as follows: An “instant game” is defined in the bill to mean a state lottery game, commonly known as a scratch-off game, that is played, revealed, or displayed on a preprinted digital or physical ticket and that is identified as an “instant game” in the Lottery Division’s published features and procedures for the game. A “break open game” is defined in the bill to mean a state lottery game, commonly known as a pull-tab game, that is played, revealed, or displayed on a preprinted digital or physical ticket and that is identified as a “break open game” in the Lottery Division’s published features and procedures for the game.
Under current law, funds are appropriated to DOR to pay vendors for certain procurements related to “on-line and instant ticket services and supplies,” which together include “on-line” (or “lotto”) game and instant game lottery products and their associated services, including technologies necessary to maximize the state lottery revenues and minimize the state lottery’s total operating costs. The bill directs that DOR may use the appropriated funds for services and supplies related to instant games, break open games, and lotto games, including tickets for those games and technologies necessary to maximize the state lottery revenues related to those games and minimize the state lottery’s total operating costs related to those games.
Under current law, DOR must pay to a lottery retailer basic compensation ranging from 5.5 to 6.25 percent of the retail price of state lottery tickets sold by the retailer, and DOR can pay an additional amount to a retailer that meets certain performance goals identified by DOR. The bill requires DOR to pay lottery retailers a basic compensation of 5.5 percent of the retail price of sold lotto game tickets, 6.25 percent of the retail price of sold instant game tickets, and 15 percent of the retail price of sold break open game tickets. The bill also increases the additional amount that DOR can pay to retailers that meet certain performance goals for the sale of break open game tickets.
Also under current law, contracts between DOR and lottery retailers generally must be for a period of three years. The bill increases that period to five years. Also under current law, no lottery retailer contract may be entered into with a person that has been adjudged delinquent in the payment of certain taxes or that owes certain employment payments. The bill exempts from this prohibition lottery retailers who, through an approved payment plan, are paying off the amount owed.
Under current law, the administrator of the Lottery Division is responsible for meeting statutory requirements for the payment of lottery ticket winnings. The bill creates a requirement that, unless otherwise directed and paid in a manner approved by the administrator, retailers are responsible for the payment of break open game winnings and that break open game winnings must be requested and paid to the winner on the date and at the location where the break open game ticket was purchased.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB864,1
1
Section
1
.
20.566 (8) (c) of the statutes is amended to read:
AB864,2,6
2
20.566
(8)
(c)
Vendor fees; general purpose revenue.
The amounts in the
3
schedule to pay vendors for
on-line and instant ticket
break open game services and
4
supplies, as defined in s. 565.01 (1s), instant game services and supplies, as defined
5
in s. 565.01 (3h), and lotto game
services and supplies
, as defined in s. 565.01 (3w),
6
provided by the vendors under contract under s. 565.25 (2) (a).
AB864,2
7
Section
2
.
20.566 (8) (v) of the statutes is amended to read:
AB864,2,12
8
20.566
(8)
(v)
Vendor fees.
From the lottery fund, a sum sufficient to pay
9
vendors for
on-line and instant ticket
break open game services and supplies, as
10
defined in s. 565.01 (1s), instant game services and supplies, as defined in s. 565.01
11
(3h), and lotto game
services and supplies
, as defined in s. 565.01 (3w),
provided by
12
the vendors under contract under s. 565.25 (2) (a).
AB864,3
13
Section
3
.
25.75 (1) (c) 3. of the statutes is amended to read:
AB864,3,2
14
25.75
(1)
(c) 3. Amounts for other expenses, including compensation paid to
15
retailers under s. 565.10 (14) and amounts paid to vendors for
on-line
break open
16
game services and supplies, as defined in s. 565.01 (1s), instant game services and
17
supplies, as defined in s. 565.01 (3h), and lotto game
services and supplies
, as
1
defined in s. 565.01 (3w),
provided by the vendors under contract under s. 565.25 (2)
2
(a).
AB864,4
3
Section
4
.
25.75 (3) (b) 3. of the statutes is amended to read:
AB864,3,7
4
25.75
(3)
(b) 3. Payments to vendors for
on-line
break open game services and
5
supplies, as defined in s. 565.01 (1s), instant game services and supplies, as defined
6
in s. 565.01 (3h), and lotto game
services and supplies
, as defined in s. 565.01 (3w),
7
provided by the vendors under contract under s. 565.25 (2) (a) shall be included.
AB864,5
8
Section
5
.
565.01 (1r) of the statutes is created to read:
AB864,3,13
9
565.01
(1r)
“Break open game” means a game of chance, as described under
10
sub. (6m) (a) 1., commonly known as a pull-tab game, that is played, revealed, or
11
displayed on a preprinted digital or physical ticket and that is identified as a “break
12
open game” in the lottery division of the department’s published features and
13
procedures for the game of chance.
AB864,6
14
Section
6
.
565.01 (1s) of the statutes is created to read:
AB864,3,20
15
565.01
(1s)
“Break open game services and supplies” means services and
16
supplies specifically associated with break open games, including digital and
17
physical tickets, computerized transaction processing equipment, computerized
18
retailer vending terminals, and technologies necessary to maximize the state
19
lottery revenues related to break open games and minimize the state lottery’s
20
operating costs related to break open games.
AB864,7
21
Section
7
.
565.01 (3g) of the statutes is created to read:
AB864,4,2
22
565.01
(3g)
“Instant game” means a game of chance, as described under sub.
23
(6m) (a) 1., commonly known as a scratch-off game, that is played, revealed, or
24
displayed on a preprinted digital or physical ticket and that is identified as an
1
“instant game” in the lottery division of the department’s published features and
2
procedures for the game of chance.
AB864,8
3
Section
8
.
565.01 (3h) of the statutes is created to read:
AB864,4,9
4
565.01
(3h)
“Instant game services and supplies” means services and
5
supplies specifically associated with instant games, including digital and physical
6
tickets, computerized transaction processing equipment, computerized retailer
7
vending terminals, and technologies necessary to maximize the state lottery
8
revenues related to instant games and minimize the state lottery’s operating costs
9
related to instant games.
AB864,9
10
Section
9
.
565.01 (3m) of the statutes is repealed.
AB864,10
11
Section
10
.
565.01 (3v) of the statutes is created to read:
AB864,4,15
12
565.01
(3v)
“Lotto game” means a game of chance, as described under sub.
13
(6m) (a) 2., that is played, revealed, or displayed on a preprinted digital or physical
14
ticket and that is identified as a “lotto game” in the lottery division of the
15
department’s published features and procedures for the game of chance.
AB864,11
16
Section
11
.
565.01 (3w) of the statutes is created to read:
AB864,4,22
17
565.01
(3w)
“Lotto game services and supplies” means services and supplies
18
specifically associated with lotto games, including digital and physical tickets,
19
computerized transaction processing equipment, computerized retailer vending
20
terminals, and technologies necessary to maximize the state lottery revenues
21
related to lotto games and minimize the state lottery’s operating costs related to
22
lotto games.
AB864,12
23
Section
12
.
565.01 (4g) of the statutes is repealed.
AB864,13
24
Section
13
.
565.02 (3) (i) of the statutes is amended to read:
AB864,5,2
1
565.02
(3)
(i) Providing for terms of lottery retailer contracts for periods that
2
are shorter than
3
5
years.
AB864,14
3
Section
14
.
565.02 (3) (j) of the statutes is amended to read:
AB864,5,6
4
565.02
(3)
(j) Requiring retailers to display a sign provided by the department
5
under s. 565.27 (5) that provides notice that the top prizes in
a scratch-off
an
6
instant
game have been claimed.
AB864,15
7
Section
15
.
565.02 (4) (g) of the statutes is amended to read:
AB864,5,15
8
565.02
(4)
(g) Establishing a program to provide for additional compensation,
9
above the compensation provided under s. 565.10 (14) (b) 1.
or
,
2.,
or 3.,
to be paid to
10
retailers who meet certain performance goals identified by the department. Under
11
this program, the total compensation provided to retailers may not exceed 1.0
12
percent of the gross revenues from the sale of
lottery tickets and lottery shares
lotto
13
game lottery tickets and lottery shares, 1.0 percent of the gross revenues from the
14
sale of instant game lottery tickets and lottery shares, and 2.0 percent of the gross
15
revenues from the sale of break open game lottery tickets and lottery shares
.
AB864,16
16
Section
16
.
565.10 (3) (b) of the statutes is amended to read:
AB864,6,4
17
565.10
(3)
(b) No lottery retailer contract may be entered into with a person
18
who has been finally adjudged to be delinquent in the payment of taxes under ch.
19
71, 72, 76, 77, 78, or 139, who has been found delinquent in the payment of
20
contributions to the unemployment reserve fund under s. 108.16 in a proceeding
21
under s. 108.10, or who owes a payment to the uninsured employers fund under s.
22
102.82 or 102.85 (4) or to the work injury supplemental benefit fund under s. 102.49
23
(5) (a), 102.59 (2), or 102.60 (5) (b) if the person remains liable for those taxes,
24
contributions, or payments at the time the person seeks to enter into the lottery
1
retailer contract.
This paragraph does not apply to a retailer if, through a payment
2
plan approved by the the department of workforce development or the division in
3
the department of revenue responsible for delinquent tax payments, the retailer is
4
paying off an amount described under this paragraph.
AB864,17
5
Section
17
.
565.10 (7) (a) of the statutes is amended to read:
AB864,6,8
6
565.10
(7)
(a) Except as provided in par. (b), a lottery retailer contract shall be
7
for a period of
3
5
years and shall specify whether the retailer is authorized to
8
conduct lottery ticket sales on a year-round, seasonal or temporary basis.
AB864,18
9
Section
18
.
565.10 (7) (b) of the statutes is amended to read:
AB864,6,12
10
565.10
(7)
(b) The administrator may, under rules promulgated by the
11
department, contract for a period that is shorter than
3
5
years in order to stagger
12
lottery retailer contract expiration dates throughout a
3-year
5-year
period.
AB864,19
13
Section
19
.
565.10 (14) (b) 1. of the statutes is amended to read:
AB864,6,17
14
565.10
(14)
(b) 1. The basic compensation to be paid to a retailer for the sale of
15
a
lotto game
lottery ticket or lottery share
described under s. 565.01 (6m) (a) 2.
is
16
5.5 percent of the retail price of
lotto game
lottery tickets or lottery shares sold by
17
the retailer.
AB864,20
18
Section
20
.
565.10 (14) (b) 2. of the statutes is amended to read:
AB864,6,22
19
565.10
(14)
(b) 2. The basic compensation to be paid to a retailer for the sale of
20
a
an instant game
lottery ticket or lottery share
described under s. 565.01 (6m) (a)
21
1.
is 6.25 percent of the retail price of
instant game
lottery tickets or lottery shares
22
sold by the retailer.
AB864,21
23
Section
21
.
565.10 (14) (b) 3. of the statutes is created to read:
AB864,7,2
24
565.10
(14)
(b) 3. The basic compensation to be paid to a retailer for the sale of
1
a break open game lottery ticket or lottery share is 15 percent of the retail price of
2
break open game lottery tickets or lottery shares sold by the retailer.
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