Bill Amendment: IL HB2674 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: DEPT OF THE LOTTERY-VARIOUS

Status: 2025-03-21 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB2674 Detail]

Download: Illinois-2025-HB2674-House_Amendment_001.html

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Rep. Margaret Croke

Filed: 3/10/2025

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AMENDMENT TO HOUSE BILL 2674
AMENDMENT NO. ______. Amend House Bill 2674 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Lottery Law is amended by
changing Sections 2, 3, 6, 7.1, 7.8a, 7.12, 8.1, 9, 9.1, 9.3,
10.1, 10.6, 13.1, 19, 20, 20.1, 24, and 27 as follows:
(20 ILCS 1605/2) (from Ch. 120, par. 1152)
Sec. 2. This Act is enacted to implement and establish
within the State a lottery to be conducted by the State through
the Department. The entire net proceeds of the Lottery are to
be used for the support of the State's Common School Fund,
except as otherwise provided in this Act. The General Assembly
finds that it is in the public interest for the Department to
conduct the functions of the Lottery with the assistance of a
private manager under a management agreement overseen by the
Department until the current management agreement expires and

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all roles and responsibilities of the private manager are
transitioned to the State. The Department shall be accountable
to the General Assembly and the people of the State through a
comprehensive system of regulation, audits, reports, and
enduring operational oversight. The Department's ongoing
conduct of the Lottery through a management agreement with a
private manager shall act to promote and ensure the integrity,
security, honesty, and fairness of the Lottery's operation and
administration. It is the intent of the General Assembly that
the Department shall conduct the Lottery with the assistance
of a private manager under a management agreement at all times
in a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1),
1953(b)(4).
Beginning with Fiscal Year 2018 and every year thereafter,
any moneys transferred from the Department State Lottery Fund
to the Common School Fund shall be supplemental to, and not in
lieu of, any other money due to be transferred to the Common
School Fund by law or appropriation.
Beginning in Fiscal Year 2027 the Department shall begin
to transition all roles and responsibilities of the private
manager to the State. The Department shall have the authority
to assume, manage, and extend any contractual relationships
held by the private manager in the provision of services to the
Department as necessary to facilitate and ensure a seamless
transition. The Department shall have the authority to
increase its headcount appropriately to assume role of the

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private manager and shall complete the transition by the end
of Fiscal Year 2029.
(Source: P.A. 101-81, eff. 7-12-19; 101-561, eff. 8-23-19;
102-558, eff. 8-20-21; 102-699, eff. 4-19-22.)
(20 ILCS 1605/3) (from Ch. 120, par. 1153)
Sec. 3. For the purposes of this Act:
a. "Lottery" or "State Lottery" means the lottery or
lotteries established and operated pursuant to this Act.
b. "Board" means the Lottery Control Board created by this
Act.
c. "Department" means the Department of the Lottery.
d. (Blank).
e. "Chairman" means the Chairman of the Lottery Control
Board.
f. "Multi-state game directors" means such persons,
including the Director, as may be designated by an agreement
between the Department and one or more additional lotteries
operated under the laws of another state or states.
g. (Blank).
h. "Director" means the Director of the Department of the
Lottery.
i. "Management agreement" means an agreement or contract
between the Department on behalf of the State with a private
manager, as an independent contractor, whereby the private
manager provides management services to the Lottery in

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exchange for compensation that may consist of, among other
things, a fee for services and a performance-based bonus of no
more than 5% of Lottery profits so long as the Department
continues to exercise actual control over all significant
business decisions made by the private manager as set forth in
Section 9.1.
j. "Person" means any individual, firm, association, joint
venture, partnership, estate, trust, syndicate, fiduciary,
corporation, or other legal entity, group, or combination.
k. "Private manager" means a person that provides
management services to the Lottery on behalf of the Department
under a management agreement.
l. "Profits" means total revenues accruing from the sale
of lottery tickets or shares and related proceeds minus (1)
the payment of prizes and retailer bonuses and (2) the payment
of costs incurred in the operation and administration of the
lottery, excluding costs of services directly rendered by a
private manager.
m. "Chief Procurement Officer" means the Chief Procurement
Officer provided for under paragraph (4) of subsection (a) of
Section 10-20 of the Illinois Procurement Code.
(Source: P.A. 97-464, eff. 8-19-11; 98-499, eff. 8-16-13.)
(20 ILCS 1605/6) (from Ch. 120, par. 1156)
Sec. 6. There is hereby created an independent board to be
known as the Lottery Control Board, consisting of 5 members,

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all of whom shall be citizens of the United States and
residents of this State and shall be appointed by the Governor
with the advice and consent of the Senate. No more than 3 of
the 5 members shall be members of the same political party. A
chairman of the Board shall be chosen annually from the
membership of the Board by a majority of the members of the
Board at the first meeting of the Board each fiscal year.
Initial members shall be appointed to the Board by the
Governor as follows: one member to serve until July 1, 1974,
and until his successor is appointed and qualified; 2 members
to serve until July 1, 1975, and until their successors are
appointed and qualified; 2 members to serve until July 1,
1976, and until their successors are appointed and qualified.
As terms of members so appointed expire, their successors
shall be appointed for terms to expire the first day in July 3
years thereafter, and until their successors are appointed and
qualified.
Any vacancy in the Board occurring for any reason other
than expiration of term, shall be filled for the unexpired
term in the same manner as the original appointment.
Any member of the Board may be removed by the Governor for
neglect of duty, misfeasance, malfeasance, or nonfeasance in
office.
Board members shall receive as compensation for their
services $100 for each day they are in attendance at any
official board meeting, but in no event shall members receive

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more than $1,200 per year. They shall receive no other
compensation for their services, but shall be reimbursed for
necessary traveling and other reasonable expenses incurred in
the performance of their official duties. Each member shall
make a full financial disclosure upon appointment.
The Board shall hold at least one meeting each quarter of
the fiscal year. In addition, special meetings may be called
by the Chairman, any 2 Board members, or the Director of the
Department, upon delivery of 72 hours' written notice to the
office of each member. All Board meetings shall be open to the
public pursuant to the Open Meetings Act.
Three members of the Board shall constitute a quorum, and
3 votes shall be required for any final determination by the
Board. The Board may delegate to one or more of its members,
the Director, or any agent or employee of the Department such
powers and duties as it may deem proper. No vacancy in the
membership of the Board shall impair the right of the members
to exercise all the powers and perform all the duties of the
Board. The Board shall keep a complete and accurate record of
all its meetings.
(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
(20 ILCS 1605/7.1) (from Ch. 120, par. 1157.1)
Sec. 7.1. The Department shall promulgate such rules and
regulations governing the establishment and operation of a
State lottery as it deems necessary to carry out the purposes

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of this Act. Such rules and regulations shall be subject to the
provisions of The Illinois Administrative Procedure Act. The
Department shall issue written game rules, play instructions,
directives, operations manuals, brochures, or any other
publications necessary to conduct specific games, as
authorized by rule by the Department. Any written game rules,
play instructions, directives, operations manuals, brochures,
or other game publications issued by the Department that
relate to a specific lottery game shall be maintained as a
public record in the Department's principal office, and made
available for public inspection and copying but shall be
exempt from the rulemaking procedures of the Illinois
Administrative Procedure Act. However, when such written
materials contain any policy of general applicability, the
Department shall formulate and adopt such policy as a rule in
accordance with the provisions of the Illinois Administrative
Procedure Act. In addition, the Department 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.
(Source: P.A. 97-464, eff. 10-15-11.)
(20 ILCS 1605/7.8a) (from Ch. 120, par. 1157.8a)

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Sec. 7.8a. The Board shall establish advertising policy to
ensure that advertising content and practices do not target
with the intent to exploit specific groups or economic classes
of people, and that its content is accurate and not
misleading. The Board shall review, at least quarterly, all
past advertising for major media campaigns to ensure that they
do not target with the intent to exploit specific groups or
economic classes of people, and that their content is accurate
and not misleading. If the Board finds that advertising
conflicts with such policy, it shall have the authority to
direct the Department to cease that advertising. The Director
or his or her designee shall provide a briefing on proposed
major media campaigns at any regularly scheduled meeting upon
written request from any Board member. Such written request
must be received by the Director at least 10 days prior to the
regularly scheduled meeting.
The Board shall review and approve the Department's
procurement policies and procedures and major procurements
presented by the Department and amend or modify the terms of
procurements recommended by the Director.
(Source: P.A. 98-499, eff. 8-16-13.)
(20 ILCS 1605/7.12)
(Section scheduled to be repealed on July 1, 2025)
Sec. 7.12. Internet program.
(a) The General Assembly finds that:

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(1) the consumer market in Illinois has changed since
the creation of the Illinois State Lottery in 1974;
(2) the Internet has become an integral part of
everyday life for a significant number of Illinois
residents not only in regards to their professional life,
but also in regards to personal business and
communication; and
(3) the current practices of selling lottery tickets
does not appeal to the new form of market participants who
prefer to make purchases on the Internet at their own
convenience.
It is the intent of the General Assembly to create an
Internet program for the sale of lottery tickets to capture
this new form of market participant.
(b) The Department shall create a program that allows an
individual 18 years of age or older to purchase lottery
tickets or shares on the Internet without using a Lottery
retailer with on-line status, as those terms are defined by
rule. The Department shall restrict the sale of lottery
tickets on the Internet to transactions initiated and received
or otherwise made exclusively within the State of Illinois.
The Department shall adopt rules necessary for the
administration of this program. These rules shall include,
among other things, requirements for marketing of the Lottery
to infrequent players, as well as limitations on the purchases
that may be made through any one individual's lottery account.

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The provisions of this Act and the rules adopted under this Act
shall apply to the sale of lottery tickets or shares under this
program.
The Department is obligated to implement the program set
forth in this Section and Sections 7.15 and 7.16. The
Department may offer Lottery games Lotto, Lucky Day Lotto,
Mega Millions, Powerball, Pick 3, Pick 4, and other draw games
that are offered at retail locations through the Internet
program. The private manager shall obtain the Director's
approval before providing any draw games. Any draw game
tickets that are approved for sale by lottery licensees are
automatically approved for sale through the Internet program.
The Department shall maintain responsible gaming controls in
its policies.
The Department shall authorize the private manager to
implement and administer the program pursuant to the
management agreement entered into under Section 9.1 and in a
manner consistent with the provisions of this Section. If a
private manager has not been selected pursuant to Section 9.1
at the time the Department is obligated to implement the
program, then the Department shall not proceed with the
program until after the selection of the private manager, at
which time the Department shall authorize the private manager
to implement and administer the program pursuant to the
management agreement entered into under Section 9.1 and in a
manner consistent with the provisions of this Section.

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Nothing in this Section shall be construed as prohibiting
the Department from implementing and operating a website
portal whereby individuals who are 18 years of age or older
with an Illinois mailing address may apply to purchase lottery
tickets via subscription. Nothing in this Section shall also
be construed as prohibiting the Lottery draw game tickets
authorized for sale through the Internet program under this
Section from also continuing to be sold at retail locations by
a lottery licensee pursuant to the Department's rules.
(c) (Blank).
(d) (Blank). This Section is repealed on July 1, 2025.
(Source: P.A. 101-35, eff. 6-28-19; 102-699, eff. 4-19-22.)
(20 ILCS 1605/8.1) (from Ch. 120, par. 1158.1)
Sec. 8.1. Contracts for State Lottery tickets or shares or
for other State Lottery game related services shall be
obtained through the utilization of competitive negotiation
procedures as defined by the Department and approved by the
Board whenever practicable and shall be exempt from the
Illinois Procurement Code. Approved procurement policies and
procedures shall be posted on the Department's website and
filed with the Illinois Procurement Policy Board. No contract
shall have a term longer than 10 years, inclusive of renewals.
Exceptions to competitive bidding are allowed for:
(1) Small purchases $300,000 or less. This amount will
be adjusted annually for inflation as determined by the

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Consumer Price Index for All Urban Consumers as determined
by the United States Department of Labor and rounded to
the nearest $100.
(2) Sole source procurements.
(3) Emergency procurements.
The Department shall establish and adopt a policy that
sets forth goals for utilization of businesses owned by
minorities, women, and persons with disabilities for all
contracts and services as defined in the Business Enterprise
for Minorities, Women, and Persons with Disabilities Act.
(Source: P.A. 84-268.)
(20 ILCS 1605/9) (from Ch. 120, par. 1159)
Sec. 9. The Director, as administrative head of the
Department, shall direct and supervise all its administrative
and technical activities. In addition to the duties imposed
upon him elsewhere in this Act, it shall be the Director's
duty:
a. To supervise and administer the operation of the
lottery in accordance with the provisions of this Act or
such rules and regulations of the Department adopted
thereunder.
b. To attend meetings of the Board or to appoint a
designee to attend in his stead.
c. To employ and direct current and additional such
personnel in accordance accord with the Personnel Code as

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well as a number of additional exempt personnel, as may be
necessary to carry out the purposes of this Act and to
facilitate the transition of responsibilities from the
private manager to the State. In addition, the Director
may by agreement secure such services as he or she may deem
necessary from any other department, agency, or unit of
the State government, and may employ and compensate such
consultants, lottery professionals, service providers, and
technical assistants as may be required and is otherwise
permitted by law.
d. To license, in accordance with the provisions of
Sections 10 and 10.1 of this Act and the rules and
regulations of the Department adopted thereunder, as
agents to sell lottery tickets such persons as in his
opinion will best serve the public convenience and promote
the sale of tickets or shares. The Director may require a
bond from every licensed agent, in such amount as provided
in the rules and regulations of the Department. Every
licensed agent shall prominently display his license, or a
copy thereof, as provided in the rules and regulations of
the Department.
e. To suspend or revoke any license issued pursuant to
this Act or the rules and regulations promulgated by the
Department thereunder.
f. To confer regularly as necessary or desirable and
not less than once every month with the Lottery Control

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Board on the operation and administration of the Lottery;
to make available for inspection by the Board or any
member of the Board, upon request, all books, records,
files, and other information and documents of his office;
to advise the Board and recommend such rules and
regulations and such other matters as he deems necessary
and advisable to improve the operation and administration
of the lottery.
g. To enter into contracts for the operation of the
lottery, or any part thereof, and into contracts for the
promotion of the lottery on behalf of the Department with
any person, firm or corporation, to perform any of the
functions provided for in this Act or the rules and
regulations promulgated thereunder. The Department shall
not expend State funds on a contractual basis for such
functions unless those functions and expenditures are
expressly authorized by the General Assembly.
h. To enter into an agreement or agreements with the
management of state lotteries operated pursuant to the
laws of other states for the purpose of creating and
operating a multi-state lottery game wherein a separate
and distinct prize pool would be combined to award larger
prizes to the public than could be offered by the several
state lotteries, individually. No tickets or shares
offered in connection with a multi-state lottery game
shall be sold within the State of Illinois, except those

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offered by and through the Department. No such agreement
shall purport to pledge the full faith and credit of the
State of Illinois, nor shall the Department expend State
funds on a contractual basis in connection with any such
game unless such expenditures are expressly authorized by
the General Assembly, provided, however, that in the event
of error or omission by the Illinois State Lottery in the
conduct of the game, as determined by the multi-state game
directors, the Department shall be authorized to pay a
prize winner or winners the lesser of a disputed prize or
$1,000,000, any such payment to be made solely from funds
appropriated for game prize purposes. The Department shall
be authorized to share in the ordinary operating expenses
of any such multi-state lottery game, from funds
appropriated by the General Assembly, and in the event the
multi-state game control offices are physically located
within the State of Illinois, the Department is authorized
to advance start-up operating costs not to exceed
$150,000, subject to proportionate reimbursement of such
costs by the other participating state lotteries. The
Department shall be authorized to share proportionately in
the costs of establishing a liability reserve fund from
funds appropriated by the General Assembly. The Department
is authorized to transfer prize award funds attributable
to Illinois sales of multi-state lottery game tickets to
the multi-state control office, or its designated

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depository, for deposit to such game pool account or
accounts as may be established by the multi-state game
directors, the records of which account or accounts shall
be available at all times for inspection in an audit by the
Auditor General of Illinois and any other auditors
pursuant to the laws of the State of Illinois. No
multi-state game prize awarded to a nonresident of
Illinois, with respect to a ticket or share purchased in a
state other than the State of Illinois, shall be deemed to
be a prize awarded under this Act for the purpose of
taxation under the Illinois Income Tax Act. The Department
shall promulgate such rules as may be appropriate to
implement the provisions of this Section.
i. To make a continuous study and investigation of (1)
the operation and the administration of similar laws which
may be in effect in other states or countries, (2) any
literature on the subject which from time to time may be
published or available, (3) any Federal laws which may
affect the operation of the lottery, and (4) the reaction
of Illinois citizens to existing and potential features of
the lottery with a view to recommending or effecting
changes that will tend to serve the purposes of this Act.
j. To report monthly to the State Treasurer and the
Lottery Control Board a full and complete statement of
lottery revenues, prize disbursements and other expenses
for each month and the amounts to be transferred to the

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Common School Fund pursuant to Section 7.2, and to make an
annual report, which shall include a full and complete
statement of lottery revenues, prize disbursements and
other expenses, to the Governor and the Board. All reports
required by this subsection shall be public and copies of
all such reports shall be sent to the Speaker of the House,
the President of the Senate, and the minority leaders of
both houses.
k. To keep the name and municipality of residence of
the prize winner of a prize of $250,000 or greater
confidential upon the prize winner making a written
request that his or her name and municipality of residence
be kept confidential. The prize winner must submit his or
her written request at the time of claiming the prize. The
written request shall be in the form established by the
Department. Nothing in this paragraph k supersedes the
Department's duty to disclose the name and municipality of
residence of a prize winner of a prize of $250,000 or
greater pursuant to the Freedom of Information Act.
The powers conferred by this Act are in addition and
supplemental to the powers conferred by any other law. If any
other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code or Personnel Code, then this Section controls
as to the Department's authority. This Section and any rules
adopted under this Section contain full and complete authority

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of the Department to approve any contracts with a vendor
providing goods or services to the Department and to hire the
necessary personnel.
(Source: P.A. 99-933, eff. 1-27-17; 100-1068, eff. 8-24-18.)
(20 ILCS 1605/9.1)
Sec. 9.1. Private manager and management agreement.
(a) As used in this Section:
"Offeror" means a person or group of persons that responds
to a request for qualifications under this Section.
"Request for qualifications" means all materials and
documents prepared by the Department to solicit the following
from offerors:
(1) Statements of qualifications.
(2) Proposals to enter into a management agreement,
including the identity of any prospective vendor or
vendors that the offeror intends to initially engage to
assist the offeror in performing its obligations under the
management agreement.
"Final offer" means the last proposal submitted by an
offeror in response to the request for qualifications,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offeror" means the offeror ultimately selected by

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the Governor to be the private manager for the Lottery under
subsection (h) of this Section.
(b) (Blank). By September 15, 2010, the Governor shall
select a private manager for the total management of the
Lottery with integrated functions, such as lottery game
design, supply of goods and services, and advertising and as
specified in this Section.
(c) (Blank). Pursuant to the terms of this subsection, the
Department shall endeavor to expeditiously terminate the
existing contracts in support of the Lottery in effect on July
13, 2009 (the effective date of Public Act 96-37) in
connection with the selection of the private manager. As part
of its obligation to terminate these contracts and select the
private manager, the Department shall establish a mutually
agreeable timetable to transfer the functions of existing
contractors to the private manager so that existing Lottery
operations are not materially diminished or impaired during
the transition. To that end, the Department shall do the
following:
(1) where such contracts contain a provision
authorizing termination upon notice, the Department shall
provide notice of termination to occur upon the mutually
agreed timetable for transfer of functions;
(2) upon the expiration of any initial term or renewal
term of the current Lottery contracts, the Department
shall not renew such contract for a term extending beyond

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the mutually agreed timetable for transfer of functions;
or
(3) in the event any current contract provides for
termination of that contract upon the implementation of a
contract with the private manager, the Department shall
perform all necessary actions to terminate the contract on
the date that coincides with the mutually agreed timetable
for transfer of functions.
If the contracts to support the current operation of the
Lottery in effect on July 13, 2009 (the effective date of
Public Act 96-34) are not subject to termination as provided
for in this subsection (c), then the Department may include a
provision in the contract with the private manager specifying
a mutually agreeable methodology for incorporation.
(c-5) The Department shall include provisions in the
management agreement whereby the private manager shall, for a
fee, and pursuant to a contract negotiated with the Department
(the "Employee Use Contract"), utilize the services of current
Department employees to assist in the administration and
operation of the Lottery. The Department shall be the employer
of all such bargaining unit employees assigned to perform such
work for the private manager, and such employees shall be
State employees, as defined by the Personnel Code. Department
employees shall operate under the same employment policies,
rules, regulations, and procedures, as other employees of the
Department. In addition, neither historical representation

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rights under the Illinois Public Labor Relations Act, nor
existing collective bargaining agreements, shall be disturbed
by the management agreement with the private manager for the
management of the Lottery.
(d) The management agreement with the private manager
shall include all of the following:
(1) A term not to exceed 10 years, including any
renewals.
(2) A provision specifying that the Department:
(A) shall exercise actual control over all
significant business decisions;
(A-5) has the authority to direct or countermand
operating decisions by the private manager at any
time;
(B) has ready access at any time to information
regarding Lottery operations;
(C) has the right to demand and receive
information from the private manager concerning any
aspect of the Lottery operations at any time; and
(D) retains ownership of all trade names,
trademarks, and intellectual property associated with
the Lottery.
(3) A provision imposing an affirmative duty on the
private manager to provide the Department with material
information and with any information the private manager
reasonably believes the Department would want to know to

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enable the Department to conduct the Lottery.
(4) A provision requiring the private manager to
provide the Department with advance notice of any
operating decision that bears significantly on the public
interest, including, but not limited to, decisions on the
kinds of games to be offered to the public and decisions
affecting the relative risk and reward of the games being
offered, so the Department has a reasonable opportunity to
evaluate and countermand that decision.
(5) A provision providing for compensation of the
private manager that may consist of, among other things, a
fee for services and a performance based bonus as
consideration for managing the Lottery, including terms
that may provide the private manager with an increase in
compensation if Lottery revenues grow by a specified
percentage in a given year.
(6) (Blank).
(7) A provision requiring the deposit of all Lottery
proceeds to be deposited into the State Lottery Fund
except as otherwise provided in Section 20 of this Act.
(8) A provision requiring the private manager to
locate its principal office within the State.
(8-5) A provision encouraging that pursuant to Section
4 of the Business Enterprise for Minorities, Women, and
Persons with Disabilities Act, at least 20% of the cost of
contracts entered into for goods and services by the

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private manager in connection with its management of the
Lottery, other than contracts with sales agents or
technical advisors, be awarded to businesses that are a
minority-owned business, a women-owned business, or a
business owned by a person with disability, as those terms
are defined in the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(9) A requirement that so long as the private manager
complies with all the conditions of the agreement under
the oversight of the Department, the private manager shall
have the following duties and obligations with respect to
the management of the Lottery:
(A) The right to use equipment and other assets
used in the operation of the Lottery.
(B) The rights and obligations under contracts
with retailers and vendors.
(C) The implementation of a comprehensive security
program by the private manager.
(D) The implementation of a comprehensive system
of internal audits.
(E) The implementation of a program by the private
manager to curb compulsive gambling by persons playing
the Lottery.
(F) A system for determining (i) the type of
Lottery games, (ii) the method of selecting winning
tickets, (iii) the manner of payment of prizes to

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holders of winning tickets, (iv) the frequency of
drawings of winning tickets, (v) the method to be used
in selling tickets, (vi) a system for verifying the
validity of tickets claimed to be winning tickets,
(vii) the basis upon which retailer commissions are
established by the manager, and (viii) minimum
payouts.
(10) A requirement that advertising and promotion must
be consistent with Section 7.8a of this Act.
(11) A requirement that the private manager market the
Lottery to those residents who are new, infrequent, or
lapsed players of the Lottery, especially those who are
most likely to make regular purchases on the Internet as
permitted by law.
(12) A code of ethics for the private manager's
officers and employees.
(13) A requirement that the Department monitor and
oversee the private manager's practices and take action
that the Department considers appropriate to ensure that
the private manager is in compliance with the terms of the
management agreement, while allowing the manager, unless
specifically prohibited by law or the management
agreement, to negotiate and sign its own contracts with
vendors.
(14) A provision requiring the private manager to
periodically file, at least on an annual basis,

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appropriate financial statements in a form and manner
acceptable to the Department.
(15) Cash reserves requirements.
(16) Procedural requirements for obtaining the prior
approval of the Department when a management agreement or
an interest in a management agreement is sold, assigned,
transferred, or pledged as collateral to secure financing.
(17) Grounds for the termination of the management
agreement by the Department or the private manager.
(18) Procedures for amendment of the agreement.
(19) A provision requiring the private manager to
engage in an open and competitive bidding process for any
procurement having a cost in excess of the small purchase
limits under Section 20-20 of the Illinois Procurement
Code $50,000 that is not a part of the private manager's
final offer. The process shall favor the selection of a
vendor deemed to have submitted a proposal that provides
the Lottery with the best overall value. The process shall
not be subject to the provisions of the Illinois
Procurement Code, unless specifically required by the
management agreement.
(20) The transition of rights and obligations,
including any associated equipment or other assets used in
the operation of the Lottery, from the manager to any
successor manager of the lottery, including the
Department, following the termination of or foreclosure

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upon the management agreement.
(21) Right of use of copyrights, trademarks, and
service marks held by the Department in the name of the
State. The agreement must provide that any use of them by
the manager shall only be for the purpose of fulfilling
its obligations under the management agreement during the
term of the agreement.
(22) The disclosure of any information requested by
the Department to enable it to comply with the reporting
requirements and information requests provided for under
subsection (p) of this Section.
(e) Notwithstanding any other law to the contrary, the
Department shall select a private manager through a
competitive request for qualifications process consistent with
Section 20-35 of the Illinois Procurement Code, which shall
take into account:
(1) the offeror's ability to market the Lottery to
those residents who are new, infrequent, or lapsed players
of the Lottery, especially those who are most likely to
make regular purchases on the Internet;
(2) the offeror's ability to address the State's
concern with the social effects of gambling on those who
can least afford to do so;
(3) the offeror's ability to provide the most
successful management of the Lottery for the benefit of
the people of the State based on current and past business

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practices or plans of the offeror; and
(4) the offeror's poor or inadequate past performance
in servicing, equipping, operating or managing a lottery
on behalf of Illinois, another State or foreign government
and attracting persons who are not currently regular
players of a lottery.
(f) The Department may retain the services of an advisor
or advisors with significant experience in financial services
or the management, operation, and procurement of goods,
services, and equipment for a government-run lottery to assist
in the preparation of the terms of the request for
qualifications and selection of the private manager. Any
prospective advisor seeking to provide services under this
subsection (f) shall disclose any material business or
financial relationship during the past 3 years with any
potential offeror, or with a contractor or subcontractor
presently providing goods, services, or equipment to the
Department to support the Lottery. The Department shall
evaluate the material business or financial relationship of
each prospective advisor. The Department shall not select any
prospective advisor with a substantial business or financial
relationship that the Department deems to impair the
objectivity of the services to be provided by the prospective
advisor. During the course of the advisor's engagement by the
Department, and for a period of one year thereafter, the
advisor shall not enter into any business or financial

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relationship with any offeror or any vendor identified to
assist an offeror in performing its obligations under the
management agreement. Any advisor retained by the Department
shall be disqualified from being an offeror. The Department
shall not include terms in the request for qualifications that
provide a material advantage whether directly or indirectly to
any potential offeror, or any contractor or subcontractor
presently providing goods, services, or equipment to the
Department to support the Lottery, including terms contained
in previous responses to requests for proposals or
qualifications submitted to Illinois, another State or foreign
government when those terms are uniquely associated with a
particular potential offeror, contractor, or subcontractor.
The request for proposals offered by the Department on
December 22, 2008 as "LOT08GAMESYS" and reference number
"22016176" is declared void.
(g) The Department shall select at least 2 offerors as
finalists to potentially serve as the private manager no later
than August 9, 2010. Upon making preliminary selections, the
Department shall schedule a public hearing on the finalists'
proposals and provide public notice of the hearing at least 7
calendar days before the hearing. The notice must include all
of the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to

10400HB2674ham001 - 29 - LRB104 08891 LNS 23474 a
be awarded.
(4) The identity of the offerors that have been
selected as finalists to serve as the private manager.
(5) The address and telephone number of the
Department.
(h) At the public hearing, the Department shall (i)
provide sufficient time for each finalist to present and
explain its proposal to the Department and the Governor or the
Governor's designee, including an opportunity to respond to
questions posed by the Department, Governor, or designee and
(ii) allow the public and non-selected offerors to comment on
the presentations. The Governor or a designee shall attend the
public hearing. After the public hearing, the Department shall
have 14 calendar days to recommend to the Governor whether a
management agreement should be entered into with a particular
finalist. After reviewing the Department's recommendation, the
Governor may accept or reject the Department's recommendation,
and shall select a final offeror as the private manager by
publication of a notice in the Illinois Procurement Bulletin
on or before September 15, 2010. The Governor shall include in
the notice a detailed explanation and the reasons why the
final offeror is superior to other offerors and will provide
management services in a manner that best achieves the
objectives of this Section. The Governor shall also sign the
management agreement with the private manager.
(i) Any action to contest the private manager selected by

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the Governor under this Section must be brought within 7
calendar days after the publication of the notice of the
designation of the private manager as provided in subsection
(h) of this Section.
(j) The Lottery shall remain, for so long as a private
manager manages the Lottery in accordance with provisions of
this Act, a Lottery conducted by the State, and the State shall
not be authorized to sell or transfer the Lottery to a third
party.
(k) Any tangible personal property used exclusively in
connection with the lottery that is owned by the Department
and leased to the private manager shall be owned by the
Department in the name of the State and shall be considered to
be public property devoted to an essential public and
governmental function.
(l) The Department may exercise any of its powers under
this Section or any other law as necessary or desirable for the
execution of the Department's powers under this Section.
(m) Neither this Section nor any management agreement
entered into under this Section prohibits the General Assembly
from authorizing forms of gambling that are not in direct
competition with the Lottery. The forms of gambling authorized
by Public Act 101-31 constitute authorized forms of gambling
that are not in direct competition with the Lottery.
(n) The private manager shall be subject to a complete
investigation in the third, seventh, and tenth years of the

10400HB2674ham001 - 31 - LRB104 08891 LNS 23474 a
agreement (if the agreement is for a 10-year term) by the
Department in cooperation with the Auditor General to
determine whether the private manager has complied with this
Section and the management agreement. The private manager
shall bear the cost of an investigation or reinvestigation of
the private manager under this subsection.
(o) The powers conferred by this Section are in addition
and supplemental to the powers conferred by any other law. If
any other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code, then this Section controls as to any
management agreement entered into under this Section. This
Section and any rules adopted under this Section contain full
and complete authority for a management agreement between the
Department and a private manager. No law, procedure,
proceeding, publication, notice, consent, approval, order, or
act by the Department or any other officer, Department,
agency, or instrumentality of the State or any political
subdivision is required for the Department to enter into a
management agreement under this Section. This Section contains
full and complete authority for the Department to approve any
contracts entered into by a private manager with a vendor
providing goods, services, or both goods and services to the
private manager under the terms of the management agreement,
including subcontractors of such vendors.
Upon receipt of a written request from the Chief

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Procurement Officer, the Department shall provide to the Chief
Procurement Officer a complete and un-redacted copy of the
management agreement or any contract that is subject to the
Department's approval authority under this subsection (o). The
Department shall provide a copy of the agreement or contract
to the Chief Procurement Officer in the time specified by the
Chief Procurement Officer in his or her written request, but
no later than 5 business days after the request is received by
the Department. The Chief Procurement Officer must retain any
portions of the management agreement or of any contract
designated by the Department as confidential, proprietary, or
trade secret information in complete confidence pursuant to
subsection (g) of Section 7 of the Freedom of Information Act.
The Department shall also provide the Chief Procurement
Officer with reasonable advance written notice of any contract
that is pending Department approval.
Notwithstanding any other provision of this Section to the
contrary, the Chief Procurement Officer shall adopt
administrative rules, including emergency rules, to establish
a procurement process to select a successor private manager if
a private management agreement has been terminated. The
selection process shall at a minimum take into account the
criteria set forth in items (1) through (4) of subsection (e)
of this Section and may include provisions consistent with
subsections (f), (g), (h), and (i) of this Section. The Chief
Procurement Officer shall also implement and administer the

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adopted selection process upon the termination of a private
management agreement. The Department, after the Chief
Procurement Officer certifies that the procurement process has
been followed in accordance with the rules adopted under this
subsection (o), shall select a final offeror as the private
manager and sign the management agreement with the private
manager.
Through June 30, 2022, except as provided in Sections
21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
of this Act and Section 25-70 of the Sports Wagering Act, the
Department shall distribute all proceeds of lottery tickets
and shares sold in the following priority and manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management
agreement with the Department.
(3) On the last day of each month or as soon thereafter
as possible, the State Comptroller shall direct and the
State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund an amount that is equal to the
proceeds transferred in the corresponding month of fiscal
year 2009, as adjusted for inflation, to the Common School
Fund.
(4) On or before September 30 of each fiscal year,
deposit any estimated remaining proceeds from the prior

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fiscal year, subject to payments under items (1), (2), and
(3), into the Capital Projects Fund. Beginning in fiscal
year 2019, the amount deposited shall be increased or
decreased each year by the amount the estimated payment
differs from the amount determined from each year-end
financial audit. Only remaining net deficits from prior
fiscal years may reduce the requirement to deposit these
funds, as determined by the annual financial audit.
Beginning July 1, 2022, the Department shall distribute
all proceeds of lottery tickets and shares sold in the manner
and priority described in Section 9.3 of this Act, except that
the Department shall make the deposit into the Capital
Projects Fund that would have occurred under item (4) of this
subsection (o) on or before September 30, 2022, but for the
changes made to this subsection by Public Act 102-699.
(p) The Department shall be subject to the following
reporting and information request requirements:
(1) the Department shall submit written quarterly
reports to the Governor and the General Assembly on the
activities and actions of the private manager selected
under this Section;
(2) upon request of the Chief Procurement Officer, the
Department shall promptly produce information related to
the procurement activities of the Department and the
private manager requested by the Chief Procurement
Officer; the Chief Procurement Officer must retain

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confidential, proprietary, or trade secret information
designated by the Department in complete confidence
pursuant to subsection (g) of Section 7 of the Freedom of
Information Act; and
(3) at least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written report on the activities of the private
manager selected under this Section and deliver that
report to the Governor and General Assembly.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
4-19-22; 102-1115, eff. 1-9-23.)
(20 ILCS 1605/9.3)
Sec. 9.3. Expenditure and distribution of lottery
proceeds.
(a) Beginning July 1, 2022, except as provided in Sections
21.4, 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.13,
21.15, and 21.16 of this Law and Section 25-70 of the Sports
Wagering Act, the Department shall distribute all proceeds of
lottery tickets and shares sold in the following priority and
manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management

10400HB2674ham001 - 36 - LRB104 08891 LNS 23474 a
agreement with the Department and including costs of
administering the Lottery sports wagering program pursuant
to Section 25-70 of the Sports Wagering Act.
(3) On the last day of each month or as soon thereafter
as possible, the State Comptroller shall direct and the
State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund the Department's estimate of net
lottery proceeds.
(4) If an amount in excess of the annual net lottery
proceeds is transferred for a fiscal year, then the
Department shall offset the monthly transfers of estimated
net lottery proceeds during the following fiscal year by
that excess amount. If an amount less than the annual net
lottery proceeds is transferred for a fiscal year, then
after the related annual fiscal year audit is completed
following such fiscal year, the Department shall direct
the deposit of any remaining annual net lottery proceeds
from such fiscal year, subject to payments under
paragraphs (1) and (2), into the Common School Fund as
soon thereafter as possible.
(b) The net lottery proceeds shall be determined by
deducting from total annual lottery proceeds the expenditures
required by paragraphs (1) and (2) of subsection (a). The
total annual lottery proceeds and annual net lottery proceeds
shall be determined according to generally accepted accounting
principles for governmental entities and verified by an annual

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fiscal year audit.
(Source: P.A. 102-699, eff. 4-19-22; 103-381, eff. 7-28-23.)
(20 ILCS 1605/10.1) (from Ch. 120, par. 1160.1)
Sec. 10.1. The following are ineligible for any license
under this Act:
(a) any person who has been convicted of a felony;
(b) any person who is or has been a professional
gambler or gambling promoter;
(c) any person who has engaged in bookmaking or other
forms of illegal gambling;
(d) any person who is not of good character and
reputation in the community in which he resides;
(e) any person who has been found guilty of any fraud
or misrepresentation in any connection;
(f) any firm or corporation in which a person defined
in (a), (b), (c), (d) or (e) has a proprietary, equitable
or credit interest of 5% or more.
(g) any organization in which a person defined in item
(a), (b), (c), (d) or (e) is an officer, director, or
managing agent, whether compensated or not; and
(h) any organization in which a person defined in item
(a), (b), (c), (d), or (e) is to participate in the
management or sales of lottery tickets or shares.
However, with respect to persons defined in item (a), the
Department may grant any such person a license under this Act

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when:
1) at least 10 years have elapsed since the date when
the sentence for the most recent such conviction was
satisfactorily completed;
2) the applicant has no history of criminal activity
subsequent to such conviction;
3) the applicant has complied with all conditions of
probation, conditional discharge, supervision, parole or
mandatory supervised release; and
4) the applicant presents at least 3 letters of
recommendation from responsible citizens in his community
who personally can attest that the character and attitude
of the applicant indicate that he is unlikely to commit
another crime.
The Department may revoke, without notice or a hearing,
the license of any agent who violates this Act or any rule or
regulation promulgated pursuant to this Act. However, if the
Department does revoke a license without notice and an
opportunity for a hearing, the Department shall, by
appropriate notice, afford the person whose license has been
revoked an opportunity for a hearing within 30 days after the
revocation order has been issued. As a result of any such
hearing, the Department may confirm its action in revoking the
license, or it may order the restoration of such license.
(Source: P.A. 97-464, eff. 10-15-11.)

10400HB2674ham001 - 39 - LRB104 08891 LNS 23474 a
(20 ILCS 1605/10.6) (from Ch. 120, par. 1160.6)
Sec. 10.6. 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. This effort shall include, at a minimum, that
the Department require all ticket agents to display a placard
stating the odds of winning for each game offered by that
agent.
(Source: P.A. 97-464, eff. 10-15-11.)
(20 ILCS 1605/13.1)
Sec. 13.1. Assignment of prizes payable in installments.
(a) The right of any person to receive payments from the
original prize issued by the Department under a prize that is
paid in installments over time by the Department may be
voluntarily assigned once, in whole or in part, if the
assignment is made to a person or entity designated pursuant
to an order of a court of competent jurisdiction located in the
judicial circuit where the assigning prize winner resides or
where the headquarters of the Department is located. A court
may issue an order approving a voluntary assignment and
directing the Department to make prize payments in whole or in
part to the designated assignee, if the court finds that all of
the following conditions have been met:
(1) The assignment is in writing, is executed by the
assignor, and is, by its terms, subject to the laws of this

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State.
(2) The purchase price being paid for the payments
being assigned represents a present value of the payments
being assigned, discounted at an annual rate that does not
exceed 10 percentage points over the Wall Street Journal
prime rate published on the business day prior to the date
of execution of the contract.
(3) The contract of assignment expressly states that
the assignor has 3 business days after the contract was
signed to cancel the assignment.
(4) The assignor provides a sworn affidavit attesting
that he or she:
(i) is of sound mind, is in full command of his or
her faculties, and is not acting under duress;
(ii) has been advised regarding the assignment by
his or her own independent legal counsel, who is
unrelated to and is not being compensated by the
assignee or any of the assignee's affiliates, and has
received independent financial or tax advice
concerning the effects of the assignment from a lawyer
or other professional who is unrelated to and is not
being compensated by the assignee or any of the
assignee's affiliates;
(iii) understands that he or she will not receive
the prize payments or portions thereof for the years
assigned;

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(iv) understands and agrees that, with regard to
the assigned payments, the Department and its
officials and employees will have no further liability
or responsibility to make the assigned payments to him
or her;
(v) has been provided with a one-page written
disclosure statement setting forth, in bold type of
not less than 14 points, the payments being assigned,
by amounts and payment dates; the purchase price being
paid; the rate of discount to present value, assuming
daily compounding and funding on the contract date;
and the amount, if any, of any origination or closing
fees that will be charged to him or her; and
(vi) was advised in writing, at the time he or she
signed the assignment contract, that he or she had the
right to cancel the contract, without any further
obligation, within 3 business days following the date
on which the contract was signed.
(5) Written notice of the proposed assignment and any
court hearing concerning the proposed assignment is
provided to the Department's counsel at least 30 days
prior to any court hearing. The Department is not required
to appear in or be named as a party to any such action
seeking judicial confirmation of an assignment under this
Section, but may intervene as of right in any such
proceeding.

10400HB2674ham001 - 42 - LRB104 08891 LNS 23474 a
(b) A certified copy of a court order approving a
voluntary assignment must be provided to the Department no
later than 30 days before the date on which the payment is to
be made.
(c) A court order obtained pursuant to this Section,
together with all such prior orders, shall not require the
Department to divide any single prize payment among more than
3 different persons. Nothing in this Section shall prohibit
substituting assignees as long as there are no more than 3
assignees at any one time for any one prize payment.
(d) If a husband and wife are co-owners of a prize, any
assignment of the prize must be made jointly.
(e) A voluntary assignment may not include portions of
payments that are subject to offset on account of a defaulted
or delinquent child support obligation, non-wage garnishment,
or criminal restitution obligation or on account of a debt
owed to a State agency. Each court order issued under
subsection (a) shall provide that any delinquent child support
or criminal restitution obligations of the assigning prize
winner and any debts owed to a State agency by the assigning
prize winner, as of the date of the court order, shall be set
off by the Department first against remaining payments or
portions thereof due the prize winner and then against
payments due the assignee.
(f) The Department and its respective officials and
employees shall be discharged of all liability upon payment of

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an assigned prize under this Section. The assignor and
assignee shall hold harmless and indemnify the Department, the
State of Illinois, and its employees and agents from all
claims, actions, suits, complaints, and liabilities related to
the assignment.
(g) The Department may establish a reasonable fee to
defray any administrative expenses associated with assignments
made under this Section, including the cost to the Department
of any processing fee that may be imposed by a private annuity
provider. The fee amount shall reflect the direct and indirect
costs associated with processing assignments.
(h) If at any time the Internal Revenue Service or a court
of competent jurisdiction issues a determination letter,
revenue ruling, other public ruling of the Internal Revenue
Service, or published decision to the Department or to any
lottery prize winner declaring that the voluntary assignment
of prizes will affect the federal income tax treatment of
prize winners who do not assign their prizes, the Department
shall immediately file a copy of that letter, ruling, or
published decision with the Attorney General, the Secretary of
State, and the Administrative Office of the Illinois Courts. A
court may not issue an order authorizing a voluntary
assignment under this Section after the date any such ruling,
letter, or published decision is filed.
(i) A contract of assignment in which the assignor is a
lottery winner shall include a sworn affidavit from the

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assignee. The form of the affidavit shall be established by
the Department and shall include:
(1) a summary of assignee contacts with the winner;
(2) a summary of any lawsuits, claims, and other legal
actions from lottery winners regarding conduct of the
assignee or its agents;
(3) a statement that the assignee is in good standing
in its state of domicile and with any other licensing or
regulatory agency as may be required in the conduct of its
business;
(4) a brief business history of the assignee;
(5) a statement describing the nature of the business
of the assignee; and
(6) a statement of the assignee's privacy and
non-harassment policies and express affirmation that the
assignee has followed those policies in Illinois.
(j) The assignee shall notify the Department of its
business location and mailing address for payment purposes
during the entire course of the assignment.
(Source: P.A. 93-465, eff. 1-1-04.)
(20 ILCS 1605/19) (from Ch. 120, par. 1169)
Sec. 19. The Department shall establish an appropriate
period for the claiming of prizes for each lottery game
offered. Each claim period shall be stated in game rules and
written play instructions issued by the Director in accordance

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with Section 7.1 of this Act. Written play instructions shall
be made available on the Department's public website or by the
Department by request to all players through sales agents
licensed to sell game tickets or shares. Prizes for lottery
games which involve the purchase of a physical lottery ticket
may be claimed only by presentation of a valid winning lottery
ticket that matches validation records on file with the
Lottery; no claim may be honored which is based on the
assertion that the ticket was lost or stolen. No lottery
ticket which has been altered, mutilated, or fails to pass
validation tests shall be deemed to be a winning ticket.
If no claim is made for the money within the established
claim period, the prize may be included in the prize pool of
such special drawing or drawings as the Department may, from
time to time, designate. Unclaimed multi-state game prize
money may be included in the multi-state prize pool for such
special drawing or drawings as the multi-state game directors
may, from time to time, designate. Any bonuses offered by the
Department to sales agents who sell winning tickets or shares
shall be payable to such agents regardless of whether or not
the prize money on the ticket or share is claimed, provided
that the agent can be identified as the vendor of the winning
ticket or share, and that the winning ticket or share was sold
on or after January 1, 1984. All unclaimed prize money not
included in the prize pool of a special drawing shall be
transferred to the Common School Fund.

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(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
(20 ILCS 1605/20) (from Ch. 120, par. 1170)
Sec. 20. State Lottery Fund.
(a) There is created in the State Treasury a special fund
to be known as the State Lottery Fund. Such fund shall consist
of all revenues received from (1) the sale of lottery tickets
or shares, (net of commissions, fees representing those
expenses that are directly proportionate to the sale of
tickets or shares at the agent location, and prizes of less
than $600 or less which have been validly paid at the agent
level), (2) application fees, and (3) all other sources
including moneys credited or transferred thereto from any
other fund or source pursuant to law. Interest earnings of the
State Lottery Fund shall be credited to the Common School
Fund.
(a-5) The receipt and distribution of moneys under Section
21.4 of this Act shall be in accordance with Section 21.4.
(b) The receipt and distribution of moneys under Section
21.5 of this Law shall be in accordance with Section 21.5.
(c) The receipt and distribution of moneys under Section
21.6 of this Law shall be in accordance with Section 21.6.
(d) The receipt and distribution of moneys under Section
21.7 of this Law shall be in accordance with Section 21.7.
(e) The receipt and distribution of moneys under Section
21.8 of this Law shall be in accordance with Section 21.8.

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(f) The receipt and distribution of moneys under Section
21.9 of this Law shall be in accordance with Section 21.9.
(g) The receipt and distribution of moneys under Section
21.10 of this Law shall be in accordance with Section 21.10.
(h) The receipt and distribution of moneys under Section
21.11 of this Law shall be in accordance with Section 21.11.
(i) (Blank).
(j) The receipt and distribution of moneys under Section
21.13 of this Law shall be in accordance with Section 21.13.
(k) (Blank). The receipt and distribution of moneys under
Section 25-70 of the Sports Wagering Act shall be in
accordance with Section 25-70 of the Sports Wagering Act.
(l) The receipt and distribution of moneys under Section
21.15 of this Law shall be in accordance with Section 21.15.
(m) The receipt and distribution of moneys under Section
21.16 of this Law shall be in accordance with Section 21.16.
(Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)
(20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
Sec. 20.1. Department account.
(a) The Department is authorized to pay validated prizes,
retailer commissions, and bonuses and costs incurred in the
operation and administration of the Lottery up to $25,000 from
funds held by the Department in an account separate and apart
from all public moneys of the State. Moneys in this account
shall be administered by the Director exclusively for the

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purposes of issuing payments to prize winners authorized by
this Section. Moneys in this account shall be deposited by the
Department into the Public Treasurers' Investment Pool
established under Section 17 of the State Treasurer Act. The
Department shall submit vouchers from time to time as needed
for reimbursement of this account from moneys appropriated for
prizes from the State Lottery Fund. Investment income earned
from this account shall be deposited monthly by the Department
into the Common School Fund. The Department shall file
quarterly fiscal reports specifying the activity of this
account as required under Section 16 of the State Comptroller
Act, and shall file quarterly with the General Assembly, the
Auditor General, the Comptroller, and the State Treasurer a
report indicating the costs associated with this activity.
(b) The Department is authorized to enter into an
interagency agreement with the Office of the Comptroller or
any other State agency to establish responsibilities, duties,
and procedures for complying with the Comptroller's Offset
System under Section 10.05 of the State Comptroller Act. All
federal and State tax reporting and withholding requirements
relating to prize winners under this Section shall be the
responsibility of the Department. Moneys from this account may
not be used to pay amounts to deferred prize winners. Moneys
may not be transferred from the State Lottery Fund to this
account for payment of prizes under this Section until
procedures are implemented to comply with the Comptroller's

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Offset System and sufficient internal controls are in place to
validate prizes.
(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
(20 ILCS 1605/24) (from Ch. 120, par. 1174)
Sec. 24. The State Comptroller shall conduct a preaudit of
all accounts and transactions of the Department in connection
with the operation of the State Lottery under the State
Comptroller Act, excluding payments issued by the Department
as referenced in Section 20.1 for prizes of $25,000 or less.
The Auditor General or a certified public accountant firm
appointed by him shall conduct an annual post-audit of all
accounts and transactions of the Department in connection with
the operation of the State Lottery and other special post
audits as the Auditor General, the Legislative Audit
Commission, or the General Assembly deems necessary. The
annual post-audits shall include payments made by lottery
sales agents of prizes of less than $600 authorized under
Section 20, and payments made by the Department of prizes up to
$25,000 authorized under Section 20.1. The Auditor General or
his agent conducting an audit under this Act shall have access
and authority to examine any and all records of the Department
or the Board, its distributing agents and its licensees.
(Source: P.A. 94-776, eff. 5-19-06.)
(20 ILCS 1605/27) (from Ch. 120, par. 1177)

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Sec. 27. (a) The Department State Treasurer may, with the
consent of the Director, contract with any person or
corporation, including, without limitation, a bank, banking
house, trust company or investment banking firm, to perform
such financial functions, activities or services in connection
with operation of the lottery. The State Treasurer may, with
the consent of the Director, act as an agent of the Department
to perform the financial functions as the State Treasurer and
the Director may prescribe.
(b) All proceeds from investments made pursuant to
contracts executed by the Department or the State Treasurer,
with the consent of the Director, to perform financial
functions, activities or services in connection with operation
of the lottery, shall be deposited and held by the State
Treasurer as ex-officio custodian thereof, separate and apart
from all public money or funds of this State in a special trust
fund outside the State treasury. Such trust fund shall be
known as the "Deferred Lottery Prize Winners Trust Fund", and
shall be administered by the Director.
The Director shall, at such times and in such amounts as
shall be necessary, prepare and send to the State Comptroller
vouchers requesting payment from the Deferred Lottery Prize
Winners Trust Fund to deferred prize winners, in a manner that
will insure the timely payment of such amounts owed.
This Act shall constitute an irrevocable appropriation of
all amounts necessary for that purpose, and the irrevocable

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and continuing authority for and direction to the Director and
the State Treasurer to make the necessary payments out of such
trust fund for that purpose.
(c) Moneys invested pursuant to subsection (a) of this
Section may be invested only in bonds, notes, certificates of
indebtedness, treasury bills, or other securities constituting
direct obligations of the United States of America and all
securities or obligations the prompt payment of principal and
interest of which is guaranteed by a pledge of the full faith
and credit of the United States of America. Interest earnings
on moneys in the Deferred Lottery Prize Winners Trust Fund
shall remain in such fund and be used to pay the winners of
lottery prizes deferred as to payment until such obligations
are discharged. Proceeds from bonds purchased and interest
accumulated as a result of a grand prize multi-state game
ticket that goes unclaimed will be transferred after the
termination of the relevant claim period directly from the
lottery's Deferred Lottery Prize Winners Trust Fund to each
respective multi-state partner state according to its
contribution ratio.
(c-5) If a deferred lottery prize is not claimed within
the claim period established by game rule, then the securities
or other instruments purchased to fund the prize shall be
liquidated and the liquidated amount shall be transferred to
the State Lottery Fund for disposition pursuant to Section 19
of this Act.

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(c-10) The Director may use a portion of the moneys in the
Deferred Lottery Prize Winners Trust Fund to purchase bonds to
pay a lifetime prize if the prize duration exceeds the length
of available securities. If the winner of a lifetime prize
exceeds his or her life expectancy as determined using
actuarial assumptions and the securities or moneys set aside
to pay the prize have been exhausted, moneys in the State
Lottery Fund shall be used to make payments to the winner for
the duration of the winner's life.
(c-15) From time to time, the Director may request that
the State Comptroller transfer any excess moneys in the
Deferred Lottery Prize Winners Trust Fund to the State Lottery
Fund.
(d) This amendatory Act of 1985 shall be construed
liberally to effect the purposes of the Illinois Lottery Law.
(Source: P.A. 97-464, eff. 10-15-11; 98-463, eff. 8-16-13;
98-499, eff. 8-16-13.)
(20 ILCS 1605/10.8 rep.)
Section 10. The Illinois Lottery Law is amended by
repealing Section 10.8.".