Sec. 1770.60 - Conditions of Licensing

ยง 1770.60. Conditions of Licensing

Lottery sales licenses are subject to the following conditions of licensing:

a) The Lottery sales license 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 licensed sales agent maintains eligibility under the applicable criteria under which the license was granted by the Superintendent, as defined in Section 1770.20;

b) Licensed sales agents shall, at all times during the term of their Lottery license, comply with the Act and any rules or instructions of the Superintendent concerning the security of Lottery equipment, tickets or money and the proper conduct of Lottery promotions;

c) Each licensed sales agent shall make available for sale to the public, during its normal business hours, the Lottery products that the licensed sales agent has been licensed to sell;

d) No license issued pursuant to the Act shall be transferable or assignable;

e) Lottery sales licenses and any placards or other point of sale materials stating game play odds for Lottery games shall be displayed in a conspicuous place on the business premises where the Lottery tickets are licensed to be sold;

f) Licensed Lottery sales agents shall actively promote the sale of Illinois State Lottery tickets;

g) Licensed sales 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 licensed sales agent will be held responsible for all instant game tickets accepted from the Department or its vendors and tickets generated by the licensed sales 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 stated settlement deadlines. Tickets not returned by settlement deadlines shall be considered to have been purchased by the agent;

i) Each licensed sales agent shall maintain current and accurate records of all operations in conjunction with Lottery ticket sales and make these records available to representatives of the Department and the Auditor General of Illinois upon request, during normal business hours;

j) No person, including a licensed retailer, shall sell a ticket or share 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 retailer may add a service charge, handling fee or other cost to the established price of a Lottery ticket. No person shall charge a fee to redeem valid winning tickets;

k) No Lottery license shall be issued to any person to engage in business exclusively as a Lottery sales agent;

l) No person other than a licensed Lottery sales agent shall sell Lottery tickets;

m) Licensed sales agents shall sell Lottery 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 ticket shall be soldor givento a person under the age of 18 years, or any prize paid to a person under the age of 18 years (Section 15 of the Act);

o) Each licensed sales agent shall hold the Department and the State of Illinois harmless with respect to any liability arising in connection with the licensed sales agent's ticket sales activities;

p) Each licensed sales agent shall immediately report to the Department the loss or theft of any Lottery tickets consigned to the licensed sales agent, with the ticket identification numbers;

q) Each licensed sales agent shall redeem all winning Lottery game tickets with a face value of $600 or less, as long as the licensed sales agent sells the type of ticket being redeemed. No licensed sales agent shall redeem a winning ticket with a face value greater than $600, but shall instead follow established prize claim procedures specified in 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 licensed retailer shall sell lottery tickets or shares issued by any governmental entity, foreign or domestic, other than tickets and shares for games operated by the Illinois State Lottery. No licensed retailer 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 licensed sales agent must, under penalty of law, 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".

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Amended at 36 Ill. Reg. 14356, effective September 14, 2012

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