Bill
SB 2035
Allows licensed Illinois lottery retailers to contract with third-party processors to handle ticket sales, with strict data, geolocation, and board-rule safeguards.
Status note
- The bill information provided contains conflicting metadata. The header lists the status as "Died In Committee," and the title line reads "Reckless endangerment; create crime of" (which appears unrelated to the bill text). The bill text and most document content, however, show an amendment to the Illinois Lottery Law (20 ILCS 1605/14) relating to third‑party processing of lottery sales. Legislative action entries also show extensive floor and committee activity (including readings, committee reports, and entries dated through May–June 2025). Before relying on this summary for action, verify final status on the official Illinois General Assembly website.
Purpose and intent
- To allow licensed Illinois lottery sales agents (retailers) to contract with third‑party entities to assist with processing lottery ticket sales, while imposing conditions intended to protect game integrity, comply with state jurisdiction rules, and limit unauthorized data sharing.
Key provisions
- Authorization: A licensed lottery sales agent may enter into an agreement with a third‑party entity to assist processing lottery ticket sales on the agent’s behalf.
- Filing requirement: The licensed sales agent must provide a copy of the agreement to the Illinois Lottery Control Board within 5 business days after execution.
- Required agreement terms (at minimum):
1. Terminal usage at the location cannot be commingled (i.e., usage of lottery terminals must remain separate as required by the Board or location controls).
2. A ticket may only be sold to a person physically located within the State of Illinois.
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: A violation of the section is a Class B misdemeanor; a subsequent offense by the same offender is a Class 4 felony (language follows existing structure in Section 14).
Who would be affected
- Licensed lottery sales agents (retailers) — gain ability to contract with third‑party processors but must comply with filing and contract content requirements.
- Third‑party processors or platforms — become subject to contract terms and Board rules, restrictions on data sharing, and potential enforcement.
- Illinois Lottery Control Board — receives agreements, responsible for enforcement and rulemaking oversight.
- Consumers — potential expanded sale/processing channels; privacy protections for user data and geolocation enforcement for in‑state sales.
Regulatory and practical impacts
- Enables greater use of third‑party technology (e.g., apps, payment processors, third‑party sales platforms) to process lottery sales, potentially expanding retail capabilities and convenience.
- Imposes specific safeguards aimed at preserving jurisdictional sale rules and consumer data privacy; may prompt the Lottery Control Board to issue implementing rules and compliance guidance.
- Enforcement consequences are criminal for violations; retailers and processors will likely need contract review, compliance systems, and geolocation controls.
Procedural timeline (selected)
- Introduced: March 7, 2025 (document also shows Feb. 6/Feb. 25 entries).
- Multiple committee hearings, reports, and floor actions are recorded through May 2025 in the provided ledger. Some entries indicate passage and transmittal activity into late May and early June 2025 (including an “Approved by Governor” entry dated 2025‑06‑04), but these conflict with the header status. Verify the final disposition on the official legislative record.
Notes and ambiguities
- The bill text contains some formatting/wording irregularities (e.g., stray text and duplicative lines). The phrase "terminal usage cannot be commingled at the location" could use clarification in rulemaking or implementing guidance.
- The metadata (title, sponsor list, and status) contains inconsistencies; users should cross‑check the official bill page for authoritative details.
Compiled from official sources — confirm details with the bill’s official record.
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