IL SB1654

Amends Illinois Lottery Law to allow the State to enter into Management Agreements with private third parties to operate and manage the lottery on behalf of the State while retaining State control and oversight.

Creates an Internet pilot program enabling individuals to purchase Illinois lottery tickets online for Lotto and Mega Million games only, limited to persons 18+ years old and Illinois residents unless federal Department of Justice clarifies non-residents may participate.

Requires Department of Revenue to seek clarification from federal Department of Justice on legality of Internet lottery ticket sales under the Unlawful Internet Gambling Enforcement Act of 2006 before implementing the pilot program.

Establishes age and residency verification procedures for Internet lottery accounts, monthly purchase limitations, and requires contracts with private vendors to develop technology and controls ensuring compliance with age and residency restrictions.

Specifies pilot program shall last 36 to 48 months and amends Criminal Code to exempt purchases of lottery tickets through the Internet program from gambling convictions and to permit third-party management of state lotteries.