LOTTERY-TICKETS

104th Regular Session Introduced by Celina Villanueva

Licensed lottery agents may use third-party processors to handle sales, with strict data privacy, Illinois-only sales, and Board oversight.

Rule 2-10 Committee/3rd Reading Deadline Established As May 15, 2026

Purpose and Intent

SB 3328 amends the Illinois Lottery Law to authorize licensed lottery sales agents to work with third-party entities to assist with processing the sale of lottery tickets. The measure sets conditions for such third-party arrangements and requires the agent to notify the Illinois Lottery Control Board (Board) of the agreement. The overall aim is to expand how lottery tickets can be sold while protecting integrity, data privacy, and compliance with Board rules.

Key Provisions

Authorization of third-party assistance (new subsection in Section 14):

A licensed lottery sales agent may enter into an agreement with a third-party entity to help process lottery ticket sales on behalf of the agent.
The licensed sales agent must provide the Board with a copy of the agreement within 5 business days of execution.

Mandatory terms of the agreement:

Non-commingling of terminal usage at the retail location.
Ticket sales restricted to individuals physically located in Illinois (i.e., no out-of-state sales through the third party).
Data privacy provisions: A third-party entity shall not share or sell user data to entities unaffiliated with the retailer or the third-party entity.
Compliance with Board rules: The third-party entity must adhere to all Board rules related to the sale of lottery tickets.

Penalties for violations:

A person convicted of violating these provisions faces a Class B misdemeanor.
If the offense is a subsequent offense, the offender faces a Class 4 felony.

Effective date: The act takes effect upon becoming law.

Who Is Affected

Licensed lottery sales agents (i.e., retailers authorized to sell lottery tickets) may engage third-party processing entities.

Third-party entities that assist with processing lottery sales at retail locations.

Residents of Illinois who purchase lottery tickets, due to the location-based sale requirement.

Board and Lottery Control Board staff responsible for overseeing compliance with the new terms and data privacy provisions.

Procedural and Timeline Details

The bill requires the sales agent to deliver a copy of the third-party agreement to the Board within 5 business days of execution.

If enacted, the new rules would be in effect immediately upon becoming law, with enforcement starting upon effective date.

The bill has standard legislative action history typical for the 104th General Assembly, including committee referrals and readings; specific rule deadlines are noted in the bill’s action history.

Remarks

The bill emphasizes data privacy (no sharing or selling of user data to unaffiliated entities) and location integrity (tickets sold only to Illinois residents).

It sets tiered penalties for violations, escalating on repeat offenses.

While it broadens potential sales channels via third-party processing, it confines operations to licensed agents and requires Board oversight to ensure compliance with existing lottery rules.

Bill