Bill S.134

SENATE DOCKET, NO. 1452 FILED ON: 1/20/2017

SENATE . . . . . . . . . . . . . . No. 134

By Ms. L'Italien, a petition (accompanied by bill, Senate, No. 134) of Barbara A. L'Italien for legislation relative to online lottery products. Consumer Protection and Professional Licensure.

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 2351 OF 2015-2016.]

The Commonwealth of Massachusetts

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In the One Hundred and Ninetieth General Court
(2017-2018)

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An Act relative to online lottery products.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 24 of chapter 10 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph: -

The commission is hereby authorized to conduct a state lottery, including a lottery or lotteries conducted online, over the internet, or through the use of mobile applications, and shall determine the types of lottery or lotteries to be conducted, the price, or prices, of tickets, games, or shares in the lottery, the numbers and sizes of the prizes on the winning tickets, games, or shares, the manner of selecting the winning tickets, games, or shares, the manner of payment of prizes to the holders of winning tickets, games, or shares, the frequency of the drawings or selections of winning tickets, games, or shares and the type or types of locations at which tickets, games, or shares may be sold, the method to be used in selling tickets, games, or shares, the licensing of agents to sell tickets, games, or shares; provided, however, that no person under the age of eighteen shall be licensed as an agent, the manner and amount of compensation, if any, to be paid licensed sales agents, and such other matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets, games, or shares and the holders of winning tickets, games, or shares; provided, however, that the amount of compensation, if any, to be paid to licensed sales agents as a commission pursuant to this section shall be calculated on the total face value of each ticket, game, or share sold and not on any discounted price of any such ticket, game, or share sold. The commission is authorized to operate the daily numbers game seven days a week. Each state lottery ticket, game, or share shall have imprinted thereon the state seal and a serial number. The commission may establish, and from time to time revise, such rules and regulations as it deems necessary or desirable and shall file the same with the office of the state secretary. With respect to a lottery or lotteries conducted online, over the internet, or through use of mobile applications, such rules and regulations shall, at a minimum, provide that:

(i)age verification measures be reasonably designed to block access to and prevent sales of lottery tickets or shares online or over the internet to persons under the age of eighteen;

(ii) sales of lottery tickets, games, or shares online, over the internet, or through the use of mobile applications are limited to transactions initiated and received or otherwise made within the commonwealth;

(iii)privacy protections exist so that the personal and financial information of individuals who purchase lottery tickets, games, or shares online, over the internet, or through the use of mobile applications is not available as a public record upon request;

(iv)lottery winnings in excess of $200 but less than $600 from lottery tickets, games, or shares conducted online, over the internet, or through use of a mobile application must be collected in person, by the winner, at a physical location that is a licensed sales agent;

(v)lottery winnings in excess of $600 from lottery tickets, games, or shares conducted online, over the internet, or through use of a mobile application must be collected in person, by the winner, at the lottery commission office and shall not be distributed until the commission office has determined that the individual does not have outstanding child or spousal support payments or other state debt

(vi)maximum daily, weekly, and monthly limits exist for purchases of lottery tickets, games, or shares conducted online, over the internet, or through the use of a mobile application, and that players may lower their own deposit limit at any time;

(vii)a player may not use direct deposit to transfer funds from a bank account to an online lottery account;

(viii)a mechanism exists to ensure that a player has the option to withdraw any and all winnings at any time;

(ix)an option exists to purchase an online game card from an existing licensed sales agent; and

(x)the use of credit or debit cards to purchase lottery tickets shall be limited to online transactions and transactions at the lottery commission office.

The commission shall advise and make recommendations to the director regarding the operation and administration of the lottery. The commission shall report monthly to the governor, the attorney general and the general court, the total lottery revenues, prize disbursements and other expenses for the preceding month, and shall make an annual report to the same which shall include a full and complete statement of lottery revenues, prize disbursements and other expenses, including such recommendations as it may deem necessary or advisable. The commission shall report immediately to the governor and the general court any matters which require immediate changes in the laws of the commonwealth in order to prevent abuses and evasions of the lottery law or rules and regulations promulgated thereunder or to rectify undesirable conditions in connection with the administration or operation of the state lottery.

SECTION 2. Section 24A of chapter 10 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting in line 8, after the words “creating and maintaining multi-jurisdictional lottery games”, the following words: - , including such multi-jurisdictional lottery games to be conducted online, over the internet, or through the use of mobile applications, provided that any such lottery or lotteries conducted online, over the internet, or through the use of mobile applications has been properly authorized by each state or other jurisdiction that is part of the group

SECTION 3. Section 3 of chapter 137 of the General Laws, as most recently amended by chapter 194, section 44 of the Acts of 2011, is hereby amended by inserting, after the words “but not including gaming conducted pursuant to chapter 23K”, the following words: - and chapter 10.

Name:	District/Address:
Barbara A. L'Italien	Second Essex and Middlesex