Bill
HB 2654
Allows licensed lottery sales agents to use third-party entities to process ticket sales, with strict contracts, data privacy, and in-state purchase requirements.
Note on source materials
- The provided document appears to contain text from two different measures: (A) an Arizona House engrossed bill creating an “Arizona Cryptocurrency and Blockchain Commission,” and (B) an Illinois bill that would amend the Illinois Lottery Law. The bill title you supplied (LOTTERY‑TICKET SALES AGREEMENT) and the substantive text below relate to the Illinois Lottery amendment. This summary focuses on the Illinois lottery provisions.
Purpose and intent
- To allow a licensed lottery sales agent to contract with a third‑party entity to assist in processing lottery ticket sales, while establishing minimum contract terms, consumer protections, data‑privacy limits, and Board notice/oversight requirements.
Key provisions
- Authorizes: A licensed lottery sales agent may enter into an agreement with a third‑party entity to assist with processing the sale of lottery tickets on the agent’s behalf (explicit exception to a general prohibition on who may sell tickets).
- Notice to Board: The licensed sales agent must provide a copy of the agreement to the Lottery Control Board within 5 business days after execution.
- Required contract terms (at minimum):
1. Terminal usage at the retail location cannot be commingled (i.e., delineation of terminal use must be preserved).
2. A ticket may only be sold to a person physically located within the State.
3. The third‑party entity shall not share or sell user data to any entity unaffiliated with the retailer or the third‑party entity.
4. The third‑party entity must adhere to all rules established by the Lottery Control Board related to the sale of lottery tickets.
- Penalties: Violation of the section is criminalized — the draft references a Class B misdemeanor; it also indicates that a subsequent offense is elevated to a Class 4 felony (text in the source is partially garbled; the bill retains criminal penalties for violations).
Who is affected
- Licensed lottery sales agents and their retail locations (must enter compliant agreements and submit copies to the Board).
- Third‑party service providers that process ticket sales (must comply with state rules and contract restrictions, including data‑use limits and geolocation requirements).
- Illinois Lottery Control Board (receives notice, enforces rules).
- Consumers (protected by the in‑state purchase requirement and data‑sharing limits).
- Potentially law enforcement and courts (responsible for enforcing criminal penalties).
Potential impacts and considerations
- Enables third‑party technology/payment providers to support ticket sales (may expand retail options or digital front‑ends) while attempting to preserve regulatory control.
- Compliance burdens on retailers and vendors (contract drafting, data safeguards, geolocation enforcement, and Board reporting).
- Data privacy and consumer location protections explicitly required, but effectiveness depends on Board rules and enforcement.
- Criminal sanctions create strong deterrence but may raise issues about proportionality, enforcement priorities, and definitions (e.g., what constitutes “sharing” data or “physically located”).
Procedural status (selected actions from provided record)
- Filed: 2025‑02‑06 / 2025‑02‑11 (documents show both dates in different versions)
- House readings and approvals: First and second readings in late January/February 2025; Passed (House) 2025‑02‑26; Transmitted to Senate 2025‑02‑26
- Senate first/second readings: early March 2025 (Senate first reading 2025‑03‑06; second reading 2025‑03‑10)
- Committee referrals: Assigned to Gaming Committee (House), Referred to Rules Committee; later entry: Rule 19(a) / Re‑referred to Rules Committee (2025‑03‑21)
- Sponsor listed in provided materials: Rep. Jay Hoffman (Illinois text); other metadata lists Rep. Jeff Weninger (Arizona text) — see note above about mixed documents.
If you want, I can:
- Produce a clean, single‑page version of the proposed amendment (stripped of extraneous material), or
- Draft a plain‑language compliance checklist for retailers and third‑party vendors summarizing the contract and reporting requirements.
Compiled from official sources — confirm details with the bill’s official record.
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