LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01015-R01- SB.docx 1 of 9 General Assembly Substitute Bill No. 1015 January Session, 2019 AN ACT CONCERNING ON LINE LOTTERY DRAW GA MES IN THE STATE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective from passage) (a) As used in this section, 1 "lottery draw game" means any draw game that is available for 2 purchase through a lottery sales agent. 3 (b) The Connecticut Lottery Corporation shall establish a program 4 to sell lottery tickets for lottery draw games through the corporation's 5 Internet web site, online service or mobile application, provided: (1) 6 Such program does not violate any compact, memorandum of 7 understanding or agreement in force between the state and the 8 Mashantucket Pequot Tribe or the Mohegan Tribe of Indians of 9 Connecticut; and (2) the keno draw game is offered pursuant to signed 10 agreements with the Mashantucket Pequot Tribe and the Mohegan 11 Tribe of Indians of Connecticut or signed amendments to such 12 agreements, in accordance with the provisions of section 12-806c of the 13 general statutes, as amended by this act. 14 (c) Such program shall, at a minimum: (1) Verify that a person who 15 establishes an online lottery account to purchase a lottery ticket 16 through such program is eighteen years of age or older and is located 17 in the state; (2) restrict the sale of lottery tickets to transactions initiated 18 Substitute Bill No. 1015 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01015- R01-SB.docx } 2 of 9 and received within the state; (3) allow a person to deposit money into 19 an online lottery account through the use of a verified bank account, 20 prepaid lottery gift card, debit card or credit card; (4) limit a person 21 with an online lottery account to using only one debit card or credit 22 card; (5) provide that any money in an online lottery account belongs 23 solely to the owner of the account and may be withdrawn by the 24 owner at any time; (6) provide a mechanism to prevent the 25 unauthorized use of online lottery accounts; (7) establish a voluntary 26 self-exclusion process to allow a person to exclude himself or herself 27 from establishing an online lottery account or purchasing a lottery 28 ticket through such program; (8) provide a mechanism to prevent a 29 person who participates in the self-exclusion process from establishing 30 an online lottery account; (9) within one year from the date such 31 program is established, be the subject of an application for certification 32 from a national or international responsible gambling compliance 33 assessment program; (10) post a conspicuous link to responsible 34 gambling information on all online lottery account Internet web pages; 35 and (11) after consultation with advocacy groups for individuals with 36 gambling problems, (A) limit the amount of money a person may 37 deposit into an online lottery account, (B) limit the amount of money a 38 person may spend per day through such program, and (C) provide for 39 online messages regarding the importance of responsible gambling 40 when a person is using his or her online lottery account for an amount 41 of time specified by the corporation. 42 (d) Prior to implementing any procedure, as defined in subdivision 43 (2) of section 1-120 of the general statutes, to assure the integrity of 44 such program, the corporation shall obtain the written approval of the 45 Commissioner of Consumer Protection in accordance with regulations 46 adopted under section 12-568a of the general statutes. 47 (e) The corporation shall: (1) Implement initiatives to promote the 48 purchase of lottery tickets through lottery sales agents; (2) permit 49 lottery sales agents to sell prepaid lottery gift cards; and (3) conduct an 50 online public awareness campaign designed to educate the public 51 Substitute Bill No. 1015 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01015- R01-SB.docx } 3 of 9 regarding compulsive gambling and to inform the public of the 52 programs available for the prevention, treatment and rehabilitation of 53 compulsive gamblers in the state. 54 Sec. 2. Subdivision (4) of subsection (b) of section 12-806 of the 55 general statutes is repealed and the following is substituted in lieu 56 thereof (Effective from passage): 57 (4) (A) To introduce new lottery games, modify existing lottery 58 games, utilize existing and new technologies, determine distribution 59 channels for the sale of lottery tickets, introduce keno pursuant to 60 signed agreements with the Mashantucket Pequot Tribe and the 61 Mohegan Tribe of Indians of Connecticut, in accordance with section 62 12-806c, as amended by this act, and, to the extent specifically 63 authorized by regulations adopted by the Department of Consumer 64 Protection pursuant to chapter 54, introduce instant ticket vending 65 machines, kiosks and automated wagering systems or machines, with 66 all such rights being subject to regulatory oversight by the Department 67 of Consumer Protection; and 68 (B) To offer lottery draw games, including for promotional 69 purposes, through the corporation's Internet web site, online service or 70 mobile application in accordance with section 1 of this act, except that 71 the corporation shall not offer any other interactive [on-line] lottery 72 games, including [on-line video] lottery games for promotional 73 purposes, on the corporation's Internet web site, online service or 74 mobile application; 75 Sec. 3. Section 12-810 of the general statutes is repealed and the 76 following is substituted in lieu thereof (Effective from passage): 77 (a) The Freedom of Information Act, as defined in section 1-200, 78 shall apply to all actions, meetings and records of the corporation, 79 except (1) where otherwise limited by subsection (c) of this section as 80 to new lottery games and serial numbers of unclaimed lottery tickets, 81 [and] (2) with respect to financial, credit and proprietary information 82 Substitute Bill No. 1015 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01015- R01-SB.docx } 4 of 9 submitted by any person to the corporation in connection with any 83 proposal to provide goods, services or professional advice to the 84 corporation as provided in section 12-815, and (3) where otherwise 85 limited by subsection (d) of this section as to information submitted by 86 any person to the corporation regarding such person's participation in 87 the corporation's voluntary self-exclusion process established pursuant 88 to subdivision (7) of subsection (c) of section 1 of this act. 89 (b) The records of proceedings as provided in subsection (a) of 90 section 12-805 shall be subject to disclosure pursuant to the provisions 91 of subsection (a) of section 1-210. 92 (c) Any new lottery game and the procedures for such game, until 93 the game is publicly announced by the corporation, and any serial 94 number of an unclaimed lottery ticket shall not be deemed public 95 records, as defined in section 1-200, and shall not be available to the 96 public under the provisions of section 1-210. The president shall 97 submit a fiscal note prepared by the corporation with respect to the 98 procedures for a new lottery game to the joint standing committees of 99 the General Assembly having cognizance of matters relating to finance, 100 revenue, bonding and public safety after approval of such game by the 101 board. 102 (d) The name and any personally identifying information of a 103 person who is participating or has participated in the corporation's 104 voluntary self-exclusion process shall not be deemed public records, as 105 defined in section 1-200, and shall not be available to the public under 106 the provisions of section 1-210. The president may disclose the name 107 and any records of such person if such person claims a winning lottery 108 ticket from the use of the online lottery program established pursuant 109 to section 1 of this act. 110 Sec. 4. Section 12-818 of the general statutes is repealed and the 111 following is substituted in lieu thereof (Effective from passage): 112 For each of the fiscal years ending June 30, 2010, and June 30, 2011, 113 Substitute Bill No. 1015 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01015- R01-SB.docx } 5 of 9 the Connecticut Lottery Corporation shall transfer one million nine 114 hundred thousand dollars of the revenue received from the sale of 115 lottery tickets to the chronic gamblers treatment rehabilitation account 116 created pursuant to section 17a-713, as amended by this act. For the 117 fiscal years ending June 30, 2012, to June 30, 2013, inclusive, the 118 [Connecticut Lottery Corporation] corporation shall transfer one 119 million nine hundred thousand dollars of the revenue received from 120 the sale of lottery tickets to the chronic gamblers treatment 121 rehabilitation account. [created pursuant to section 17a-713.] For the 122 fiscal [year] years ending June 30, 2014, [and each fiscal year thereafter] 123 to June 30, 2019, inclusive, the [Connecticut Lottery Corporation] 124 corporation shall transfer two million three hundred thousand dollars 125 of the revenue received from the sale of lottery tickets to the chronic 126 gamblers treatment rehabilitation account. [created pursuant to section 127 17a-713.] For the fiscal year ending June 30, 2020, and each fiscal year 128 thereafter, the corporation shall transfer two million eight hundred 129 thousand dollars of the revenue received from the sale of lottery tickets 130 to the chronic gamblers treatment rehabilitation account. 131 Sec. 5. Section 17a-713 of the general statutes is repealed and the 132 following is substituted in lieu thereof (Effective from passage): 133 (a) The Department of Mental Health and Addiction Services shall 134 establish a program for the treatment and rehabilitation of compulsive 135 gamblers in the state. The program shall provide prevention, treatment 136 and rehabilitation services for chronic gamblers. The department may 137 enter into agreements with subregional planning and action councils 138 and nonprofit organizations to assist in providing these services, 139 provided not less than twenty-five per cent of the amount received 140 pursuant to section 12-818, as amended by this act, annually shall be 141 set aside for contracts with subregional planning and action councils 142 established pursuant to section 17a-671 and nonprofit organizations 143 and not less than five per cent of the amount received pursuant to 144 section 12-818, as amended by this act, annually shall be set aside for a 145 contract with the Connecticut Council on Problem Gambling. The 146 Substitute Bill No. 1015 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01015- R01-SB.docx } 6 of 9 department may impose a reasonable fee, on a sliding scale, on those 147 participants who can afford to pay for any such services. The 148 department shall implement such program when the account 149 established under subsection (b) of this section is sufficient to meet 150 initial operating expenses. As used in this section, "chronic gambler" 151 means a person who is chronically and progressively preoccupied with 152 gambling and the urge to gamble, and with gambling behavior that 153 compromises, disrupts or damages personal, family or vocational 154 pursuits. 155 (b) The program established by subsection (a) of this section shall be 156 funded by imposition of: (1) A fee of one hundred thirty-five dollars on 157 each association license, for each performance of jai alai or dog racing 158 conducted under the provisions of chapter 226, provided no such 159 licensee shall contribute more than forty-five thousand dollars in any 160 one year; (2) a fee of twenty-five dollars for each teletheater 161 performance on each operator of a teletheater facility; and (3) the 162 amount received from the Connecticut Lottery Corporation pursuant 163 to section 12-818, as amended by this act. The Commissioner of 164 Consumer Protection shall collect the fee from each association 165 licensee or such operator on a monthly basis. The receipts shall be 166 deposited in the General Fund and credited to a separate, nonlapsing 167 chronic gamblers treatment and rehabilitation account which shall be 168 established by the Comptroller. All moneys in the account are deemed 169 to be appropriated and shall be expended (A) for the purposes 170 established in subsection (a) of this section, and (B) in an amount not to 171 exceed one hundred thousand dollars to fund the study described in 172 subsection (d) of this section. 173 (c) The department shall adopt regulations in accordance with the 174 provisions of chapter 54 to carry out the purposes of this section. 175 (d) Not later than January 1, 2023, the Commissioner of Mental 176 Health and Addiction Services shall develop and issue a request for 177 proposals to study the socioeconomic impact of the program 178 established by the Connecticut Lottery Corporation pursuant to section 179 Substitute Bill No. 1015 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01015- R01-SB.docx } 7 of 9 1 of this act on problem gambling in this state. Such study shall be 180 performed by an institution of higher education located in the state 181 with expertise in problem gambling and addiction and the institution 182 shall submit the study for peer review to ensure accuracy, validity and 183 reliability. The corporation shall provide any information and data 184 needed by the institution of higher education to perform the study, 185 provided the information and data does not disclose the identity of 186 individuals. Not later than July 1, 2024, the commissioner shall submit 187 the results of such study, in accordance with the provisions of section 188 11-4a, to the joint standing committee of the General Assembly having 189 cognizance of matters related to public safety and security. 190 Sec. 6. Section 12-806c of the general statutes is repealed and the 191 following is substituted in lieu thereof (Effective from passage): 192 Notwithstanding the provisions of section 3-6c, the Secretary of the 193 Office of Policy and Management, on behalf of the state of Connecticut, 194 may enter into separate agreements with the Mashantucket Pequot 195 Tribe and the Mohegan Tribe of Indians of Connecticut concerning the 196 operation of keno by the Connecticut Lottery Corporation in the state 197 of Connecticut. Any such agreement shall provide that the state of 198 Connecticut shall distribute to each tribe a sum not to exceed a twelve 199 and one-half per cent share of the gross operating revenue received by 200 the state from the operation of keno. The corporation may not operate 201 keno until such separate agreements are effective. Any such agreement 202 may be amended to provide for the operation of keno on the 203 corporation's Internet web site, online service or mobile application 204 pursuant to the program established in section 1 of this act. The 205 corporation may not operate keno through such program until such 206 separate agreements are amended and such agreements are effective. 207 For the purposes of this section, "gross operating revenues" means the 208 total amounts wagered, less amounts paid out as prizes. 209 Sec. 7. Section 52-553 of the general statutes is repealed and the 210 following is substituted in lieu thereof (Effective from passage): 211 Substitute Bill No. 1015 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01015- R01-SB.docx } 8 of 9 All wagers, and all contracts and securities of which the whole or 212 any part of the consideration is money or other valuable thing won, 213 laid or bet, at any game, horse race, sport or pastime, and all contracts 214 to repay any money knowingly lent at the time and place of such 215 game, race, sport or pastime, to any person so gaming, betting or 216 wagering, or to repay any money lent to any person who, at such time 217 and place, so pays, bets or wagers, shall be void, provided nothing in 218 this section shall (1) affect the validity of any negotiable instrument 219 held by any person who acquired the same for value and in good faith 220 without notice of illegality in the consideration, (2) apply to the sale of 221 a raffle ticket pursuant to section 7-172, (3) apply to the participation in 222 the program established by the Connecticut Lottery Corporation 223 pursuant to section 1 of this act, or [(3)] (4) apply to any wager or 224 contract otherwise authorized by law. 225 Sec. 8. Section 52-554 of the general statutes is repealed and the 226 following is substituted in lieu thereof (Effective from passage): 227 Any person who, by playing at any game, or betting on the sides or 228 hands of such as play at any game, excluding any game permitted 229 under chapter 226 or any activity not prohibited under the provisions 230 of sections 53-278a to 53-278g, inclusive, loses the sum or value of one 231 dollar in the whole and pays or delivers the same or any part thereof, 232 may, within three months next following, recover from the winner the 233 money or the value of the goods so lost and paid or delivered, with 234 costs of suit in a civil action, without setting forth the special matter in 235 his complaint. If the defendant refuses to testify, if called upon in such 236 action, relative to the discovery of the property so won, he shall be 237 defaulted; but no evidence so given by him shall be offered against 238 him in any criminal prosecution. Nothing in this section shall prohibit 239 any person from using a credit card to participate in the program 240 established by the Connecticut Lottery Corporation pursuant to section 241 1 of this act. 242 Substitute Bill No. 1015 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01015- R01-SB.docx } 9 of 9 This act shall take effect as follows and shall amend the following sections: Section 1 from passage New section Sec. 2 from passage 12-806(b)(4) Sec. 3 from passage 12-810 Sec. 4 from passage 12-818 Sec. 5 from passage 17a-713 Sec. 6 from passage 12-806c Sec. 7 from passage 52-553 Sec. 8 from passage 52-554 PS Joint Favorable Subst.