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General Assembly Substitute Bill No. 1237
January Session, 2025
AN ACT CONCERNING THE CONNECTICUT LOTTERY
CORPORATION AND DELINQUENCY ASSESSMENTS, TICKET
DISTRIBUTION SERVICES, OCCUPATIONAL LICENSES,
PROHIBITED ADVERTISING PRACTICES AND LOTTERY TICKET
REDEMPTION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-569 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2025): 2
(a) For purposes of this section, "delinquency assessment" means the 3
principal amount due but unremitted as of the stated past settlement 4
date, the penalty imposed by the commissioner and the interest due and 5
outstanding. 6
[(a)] (b) (1) If the president of the Connecticut Lottery Corporation 7
determines that any lottery sales agent has breached such agent's 8
fiduciary responsibility to the corporation in that the account of such 9
lottery sales agent with respect to moneys received from the sale of 10
lottery tickets has become delinquent [in accordance with regulations 11
adopted under section 12-568a] by failure to remit all moneys due and 12
owing upon the settlement date established by the Connecticut Lottery 13
Corporation, the president shall notify the commissioner of the breach 14
of fiduciary duty. [and the] The commissioner shall impose (A) a 15
[delinquency assessment] penalty upon such delinquent account equal 16 Substitute Bill No. 1237
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to ten per cent of the principal amount due but unremitted or ten dollars, 17
whichever amount is greater, [plus] which shall be effective upon 18
delivery of notice to the agent, and (B) simple interest at the rate of one 19
and one-half per cent of such principal amount due but unremitted for 20
each month or fraction of a month from the date such principal amount 21
is due but unremitted to the date of payment. 22
(2) A lottery sales agent whose account was delinquent prior to July 23
1, 2022, and whose delinquency assessment was subject to 24
compounding interest on June 30, 2022, may apply to the commissioner 25
on or after July 1, 2022, for a hardship waiver to reduce the amount of 26
interest delinquent, outstanding and payable to an amount based on 27
simple interest. 28
(3) A lottery sales agent whose account is delinquent on or after July 29
1, 2025, may file an application with the president of the Connecticut 30
Lottery Corporation for a hardship waiver to reduce the amount of 31
interest delinquent, outstanding and payable. Each lottery sales agent 32
applying for a hardship waiver shall pay, with such application, the 33
principal amount due but unremitted as of the stated past settlement 34
date and the penalty imposed in accordance with subdivision (1) of this 35
subsection, except that if the president determines that an undue 36
hardship exists which prevents such agent from paying the principal 37
amount due but unremitted as of the stated past settlement date and the 38
penalty at the time of application for such hardship waiver, the 39
president may enter into a payment schedule permitting an agent to pay 40
the principal amount due but unremitted and the penalty over a period 41
of time not to exceed one year from the date the hardship waiver is 42
provisionally granted by the president. An agent who fails to pay the 43
principal amount due but unremitted and the penalty in accordance 44
with a payment schedule entered into pursuant to this subdivision shall 45
be ineligible for a further hardship waiver pursuant to this subdivision. 46
If the president determines that it would be beneficial to the state to do 47
so, the president may reduce the amount of any interest delinquent, 48
outstanding and payable by such agent. The president shall establish 49
procedures, to be published and maintained on the Internet web site of 50 Substitute Bill No. 1237
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the Connecticut Lottery Corporation, specifying the requirements for 51
hardship waiver applications and the availability of payment plans. In 52
no event shall a hardship waiver result in a refund or credit of any 53
amount of money, penalty or interest previously paid by such agent. 54
[(3)] (4) Subject to the provisions of section 12-3a, the commissioner 55
may waive all or part of the penalties provided under this subsection 56
when it is proven to the commissioner's satisfaction that the failure to 57
pay such moneys to the state within the time allowed was due to 58
reasonable cause and was not intentional or due to neglect. 59
[(4)] (5) Any such delinquent lottery sales agent shall be notified of 60
such delinquency assessment and shall be afforded an opportunity to 61
contest the validity and amount of such assessment before the 62
commissioner who may conduct such hearing. Upon request of the 63
president of the Connecticut Lottery Corporation, the commissioner 64
may prepare and sign a warrant directed to any state marshal, constable 65
or any collection agent employed by the Connecticut Lottery 66
Corporation for distraint upon any property of such delinquent lottery 67
sales agent within the state, whether personal or real property. An 68
itemized bill shall be attached to the warrant certified by the 69
commissioner as a true statement of the amount due from such lottery 70
sales agent. Such warrant shall have the same force and effect as an 71
execution issued in accordance with chapter 906. Such warrant shall be 72
levied on any real, personal, tangible or intangible property of such 73
agent and sale made pursuant to such warrant in the same manner and 74
with the same force and effect as a levy and sale pursuant to an 75
execution. 76
[(b)] (c) The commissioner shall adopt regulations in accordance with 77
the provisions of chapter 54 to carry out the purposes of this section. 78
Sec. 2. Subsection (b) of section 12-815a of the general statutes is 79
repealed and the following is substituted in lieu thereof (Effective from 80
passage): 81
(b) No person or business organization awarded a primary contract 82 Substitute Bill No. 1237
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by the Connecticut Lottery Corporation to provide facilities, 83
components, goods or services that are necessary for and directly related 84
to the secure operation of the activities of said corporation shall do so 85
unless such person or business organization is issued a vendor license 86
by the Commissioner of Consumer Protection. A person or business 87
organization providing ticket distribution services for the corporation 88
shall not be required to obtain a vendor license pursuant to this section. 89
For the purposes of this subsection, "primary contract" means a contract 90
to provide facilities, components, goods or services to said corporation 91
by a person or business organization (1) that provides any lottery game 92
or any online wagering system related facilities, components, goods or 93
services and that receives or, in the exercise of reasonable business 94
judgment, can be expected to receive more than seventy-five thousand 95
dollars or twenty-five per cent of its gross annual sales from said 96
corporation, or (2) that has access to the facilities of said corporation and 97
provides services in such facilities without supervision by said 98
corporation. Each applicant for a vendor license shall pay a 99
nonrefundable application fee of two hundred fifty dollars. 100
Sec. 3. Subsections (e) to (n), inclusive, of section 12-815a of the 101
general statutes are repealed and the following is substituted in lieu 102
thereof (Effective January 1, 2026): 103
(e) The commissioner shall issue occupational licenses in the 104
following classes: (1) Class I for persons specified in subdivision (1) of 105
subsection (d) of this section; (2) Class II for persons specified in 106
subdivision (2) of subsection (d) of this section; (3) Class III for persons 107
specified in subdivision (3) of subsection (d) of this section who, in the 108
judgment of the commissioner, will not exercise authority over or direct 109
the management and policies of the Connecticut Lottery Corporation; 110
and (4) Class IV for persons specified in subdivision (3) of subsection (d) 111
of this section who, in the judgment of the commissioner, will exercise 112
authority over or direct the management and policies of the Connecticut 113
Lottery Corporation. Each applicant for a Class I or III occupational 114
license shall pay a nonrefundable application fee of twenty dollars. Each 115
applicant for a Class II or IV occupational license shall pay a 116 Substitute Bill No. 1237
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nonrefundable application fee of one hundred dollars. The 117
nonrefundable application fee shall accompany the application for each 118
such occupational license. Applicants for such licenses shall apply in a 119
form and manner prescribed by the commissioner. 120
(f) Each applicant for a Class III or Class IV occupational license, and 121
each employee of the corporation holding such a license on January 1, 122
2026, shall disclose, in a form and manner prescribed by the 123
commissioner, the forms of gaming under this chapter and chapter 229b 124
on which such applicant or such licensed employee will work as an 125
employee of the corporation. For an applicant approved for a Class III 126
or Class IV occupational license, or for an employee of the corporation 127
who currently holds such a license, the commissioner may issue a 128
separate endorsement authorizing such licensee to engage in the 129
corporation's operation, under chapter 229b, of Internet games or retail 130
sports wagering, as such terms are defined in section 12-850, and such 131
employee shall not be required to apply for a license pursuant to section 132
12-858, as amended by this act, or section 12-859, as amended by this act, 133
in order to engage in such operation. All Class III or Class IV 134
occupational licensees shall report to the department any criminal 135
conviction not later than two business days after the order or judgment 136
of such conviction is rendered. The corporation and all Class III or Class 137
IV occupational licensees shall immediately report to the department 138
any change in the scope of employment of such licensee employed by 139
the corporation that would require the employee to obtain an additional 140
endorsement pursuant to this subsection. 141
[(f)] (g) No person or business organization may be a lottery sales 142
agent unless such person or organization is licensed as a lottery sales 143
agent by the commissioner. 144
[(g)] (h) In determining whether to grant a vendor, affiliate, lottery 145
sales agent or occupational license to any such person or business 146
organization, the commissioner may require an applicant to provide 147
information as to such applicant and person in charge related to: (1) 148
Financial standing and credit; (2) moral character; (3) criminal record, if 149 Substitute Bill No. 1237
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any; (4) previous employment; (5) corporate, partnership or association 150
affiliations; (6) ownership of personal assets; and (7) such other 151
information as the commissioner deems pertinent to the issuance of 152
such license, provided the submission of such other information will 153
assure the integrity of the state lottery. The commissioner shall require 154
each applicant for a vendor, affiliate, lottery sales agent or occupational 155
license, provided if an applicant for a lottery sales agent is a business 156
organization the commissioner shall require such entity's person in 157
charge to submit to state and national criminal history records checks 158
and may require each such applicant, or person in charge, to submit to 159
an international criminal history records check before such license is 160
issued. The state and national criminal history records checks required 161
pursuant to this subsection shall be conducted in accordance with 162
section 29-17a. The commissioner shall issue a vendor, affiliate, lottery 163
sales agent or occupational license, as the case may be, to each applicant 164
who satisfies the requirements of this subsection and who is deemed 165
qualified by the commissioner. The commissioner may reject for good 166
cause an application for a vendor, affiliate, lottery sales agent or 167
occupational license. 168
[(h)] (i) Each vendor, affiliate or Class I or II occupational license shall 169
be effective for not more than one year from the date of issuance. Each 170
Class III or IV occupational license shall remain in effect throughout the 171
term of employment of any such employee holding such a license. The 172
commissioner may require each employee issued a Class IV 173
occupational license to submit information as to such employee's 174
financial standing and credit annually. Initial application for and 175
renewal of any such license shall be in such form and manner as the 176
commissioner shall prescribe. 177
[(i)] (j) (1) Upon petition of the corporation, a vendor licensee or an 178
affiliate licensee, the department may authorize an applicant for an 179
occupational license to provisionally perform the work permitted under 180
the license applied for, if: (A) The applicant has filed a completed 181
occupational license application in the form and manner required by the 182
commissioner, and (B) the corporation, vendor licensee or affiliate 183 Substitute Bill No. 1237
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licensee attests that the provisional authorization is necessary to 184
continue the efficient operation of the lottery, and is based on 185
circumstances that are extraordinary and not designed to circumvent 186
the otherwise applicable licensing procedures. 187
(2) The department may issue a provisional authorization to an 188
applicant for an occupational license in advance of issuance or denial of 189
such license for a period not to exceed six months. Provisional 190
authorization shall permit such applicant to perform the functions and 191
require the applicant to comply with the requirements of the 192
occupational license applied for as set forth in the provisions of this 193
chapter and regulations adopted pursuant to this chapter. Provisional 194
authorization shall not constitute approval for an occupational license. 195
During the period of time that any provisional authorization is in effect, 196
the applicant granted such authorization shall be subject to and comply 197
with all applicable statutes and regulations. Any provisional 198
authorization issued by the department shall expire immediately upon 199
the earlier of: (A) The date of issuance of written notice from the 200
department that the occupational license has been approved or denied, 201
or (B) six months after the date the provisional authorization was issued. 202
(3) An individual whose occupational license application is denied 203
after a period of provisional authorization shall not reapply for an 204
occupational license for a period of one year from the date of the denial. 205
(4) An individual whose provisional authorization expires pursuant 206
to subparagraph (B) of subdivision (2) of this subsection may apply for 207
an additional provisional authorization. The department may issue such 208
additional provisional authorization upon a determination that the 209
conditions of subparagraph (B) of subdivision (1) of this subsection 210
exist. 211
[(j)] (k) When an incident occurs, or is reasonably suspected to have 212
occurred, that causes a disruption in the operation, security, accuracy, 213
integrity or availability of the lottery gaming system, the vendor 214
licensed to provide such lottery gaming system shall, immediately upon 215 Substitute Bill No. 1237
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discovery of such incident, but not later than twenty-four hours after 216
discovery of such incident, provide the department with a written 217
incident report including the details of the incident and the vendor's 218
proposed corrections. Not later than five business days after notifying 219
the department of an incident, the vendor licensee shall provide the 220
department with a written incident report that (1) details the incident, 221
including the root cause of the incident, and (2) outlines the vendor's 222
plan to make corrections, mitigate the effects of the incident and prevent 223
incidents of a similar nature from occurring in the future. If the vendor 224
licensee is unable to determine the root cause and correct the incident 225
within the initial five business days, the licensee shall continue to 226
update the department every five business days with written incident 227
reports until the root cause is determined and the incident is corrected. 228
The department may require the vendor licensee to submit the lottery 229
gaming system to a gaming laboratory for recertification. 230
[(k)] (l) (1) The commissioner may suspend or revoke for good cause 231
a vendor, affiliate, lottery sales agent or occupational license after a 232
hearing held before the commissioner in accordance with chapter 54. 233
The commissioner may order summary suspension of any such license 234
in accordance with subsection (c) of section 4-182. 235
(2) Any such applicant aggrieved by the action of the commissioner 236
concerning an application for a license, or any person or business 237
organization whose license is suspended or revoked, may appeal 238
pursuant to section 4-183. 239
(3) The commissioner may impose a civil penalty on any licensee for 240
a violation of any provision of this chapter or any regulation adopted 241
under section 12-568a in an amount not to exceed two thousand five 242
hundred dollars after a hearing held in accordance with chapter 54. 243
[(l)] (m) The commissioner may require that the books and records of 244
any vendor or affiliate licensee be maintained in any manner which the 245
commissioner may deem best, and that any financial or other statements 246
based on such books and records be prepared in accordance with 247 Substitute Bill No. 1237
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generally accepted accounting principles in such form as the 248
commissioner shall prescribe. The commissioner or a designee may 249
visit, investigate and place expert accountants and such other persons 250
as deemed necessary in the offices or places of business of any such 251
licensee for the purpose of satisfying himself or herself that such licensee 252
is in compliance with the regulations of the department. 253
[(m)] (n) For the purposes of this section, (1) "business organization" 254
means a partnership, incorporated or unincorporated association, firm, 255
corporation, limited liability company, trust or other form of business 256
or legal entity; (2) "control" means the power to exercise authority over 257
or direct the management and policies of a licensee; and (3) "person" 258
means any individual. 259
[(n)] (o) The Commissioner of Consumer Protection may adopt such 260
regulations, in accordance with chapter 54, as are necessary to 261
implement the provisions of this section. 262
Sec. 4. Subsection (a) of section 12-858 of the general statutes is 263
repealed and the following is substituted in lieu thereof (Effective January 264
1, 2026): 265
(a) An occupational employee, other than a key employee, of a master 266
wagering licensee or a licensed online gaming operator, online gaming 267
service provider or sports wagering retailer who will be directly or 268
substantially involved in the operation of Internet games or retail sports 269
wagering in a manner impacting the integrity of such gaming or 270
wagering, data security, patron interaction, game or equipment testing 271
or any other aspect of the gaming activity of a licensee that impacts the 272
integrity of gaming, shall obtain an occupational employee license prior 273
to commencing such employment. An employee of the Connecticut 274
Lottery Corporation holding an active Class III or Class IV license with 275
an endorsement to operate Internet games or retail sports wagering 276
issued pursuant to subsection (f) of section 12-815a, as amended by this 277
act, shall not be required to obtain an occupational employee license 278
pursuant to this section. An occupational employee shall be deemed to 279 Substitute Bill No. 1237
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be directly or substantially involved in the operation of Internet games 280
or retail sports wagering in a manner impacting the integrity of such 281
gaming or wagering if such employee: (1) Has the capability of affecting 282
the outcome of a wager through deployment of code to production for 283
any critical component of an electronic wagering platform; (2) (A) can 284
deploy code to production, and (B) directly supervises individuals who 285
have the capability of affecting the outcome of Internet games through 286
deployment of code to production for other than read-only access or the 287
equivalent access to any critical component of an electronic wagering 288
platform; or (3) directly manages gaming operations or directly 289
supervises an individual who directly manages gaming operations. For 290
purposes of this subsection, [a] "critical component" means a component 291
of an electronic wagering platform that records, stores, processes, 292
shares, transmits or receives sensitive information, such as validation 293
numbers and personal identification numbers, or which stores the 294
results or the current state of a participant's wager for an Internet game. 295
Sec. 5. Subsection (b) of section 12-859 of the general statutes is 296
repealed and the following is substituted in lieu thereof (Effective January 297
1, 2026): 298
(b) A key employee of a master wagering licensee or licensed online 299
gaming operator, online gaming service provider or sports wagering 300
retailer shall obtain a key employee license from the department 301
pursuant to this section. An employee of the Connecticut Lottery 302
Corporation holding an active Class III or Class IV license with an 303
endorsement to operate Internet games or retail sports wagering issued 304
pursuant to subsection (f) of section 12-815a, as amended by this act, 305
shall not be required to obtain a key employee license pursuant to this 306
section. The commissioner may establish, through regulations adopted 307
pursuant to section 12-865, criteria to exercise discretion to determine 308
that an individual who is a key employee is not required to be licensed 309
as a key employee in order to protect the integrity of gaming. 310
Sec. 6. Section 12-859c of the general statutes is repealed and the 311
following is substituted in lieu thereof (Effective January 1, 2026): 312 Substitute Bill No. 1237
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In place of the criminal history records check required of an applicant 313
for a key employee license under subsection (c) of section 12-859, an 314
applicant for a live game employee license under subsection (b) of 315
section 12-859a, an applicant for a lottery sales agent license, or person 316
in charge of such agent, under subsection [(g)] (h) of section 12-815a, as 317
amended by this act, the commissioner may accept from such applicant 318
the submission of a third-party local and national criminal background 319
check that includes a multistate and multijurisdictional criminal record 320
locator or other similar commercial nation-wide database with 321
validation, and other such background screening as the commissioner 322
may require. Any such third-party criminal background check shall be 323
conducted by a third-party consumer reporting agency or background 324
screening company that is in compliance with the federal Fair Credit 325
Reporting Act and accredited by the Professional Background Screening 326
Association. 327
Sec. 7. Subsection (e) of section 12-863 of the general statutes is 328
repealed and the following is substituted in lieu thereof (Effective from 329
passage): 330
(e) Advertising, marketing and other promotional materials 331
published, aired, displayed or disseminated by or on behalf of any 332
gaming entity licensee shall: 333
(1) Not depict an individual who is, or appears to be, under twenty-334
one years of age, unless such individual is a professional athlete or a 335
collegiate athlete who, if permitted by applicable law, is able to profit 336
from the use of his or her name and likeness; 337
(2) Not be aimed exclusively or primarily at individuals under 338
twenty-one years of age, or at individuals under eighteen years of age if 339
pertaining exclusively to keno, online lottery ticket sales or fantasy 340
contests, or any combination thereof; 341
(3) Not directly advertise, target or promote Internet games or retail 342
sports wagering to specific individuals, rather than a general audience, 343
who are excluded pursuant to a self-exclusion process as described in 344 Substitute Bill No. 1237
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subdivision (5) of subsection (c) of this section, through methods, 345
including, but not limited to, electronic mail, telephone calls, text 346
messages, direct messaging applications, mail and social media; 347
(4) State that individuals shall be eighteen or twenty-one years of age 348
or older, as applicable, to participate in the type of gaming advertised, 349
marketed or promoted; 350
(5) Not contain images, symbols, celebrity or entertainer 351
endorsements or language designed to appeal specifically to those 352
under twenty-one years of age, or, if pertaining exclusively to keno, 353
online lottery ticket sales or fantasy contests, or any combination 354
thereof, to those under eighteen years of age; 355
(6) Not contain inaccurate or misleading information that would 356
reasonably be expected to confuse and mislead patrons in order to 357
induce them to engage in gaming; 358
(7) Not be published, aired, displayed or disseminated to a media 359
outlet or on social media, that appeal primarily to individuals under 360
twenty-one years or age, or, if pertaining exclusively to keno, online 361
lottery ticket sales or fantasy contests, or any combination thereof, to 362
those under eighteen years of age; 363
(8) Not be placed before any audience where the majority of the 364
viewers or participants is presumed to be under twenty-one years of 365
age, or, if pertaining exclusively to keno, online lottery ticket sales or 366
fantasy contests, or any combination thereof, to those under eighteen 367
years of age; 368
(9) Not imply greater chances of winning compared to other 369
licensees; 370
(10) Not imply greater chances of winning based on wagering in 371
greater quantity or amount, except for [a lottery draw game that was 372
approved prior to January 1, 2024, is available for patron wagering as of 373
June 6, 2024, includes] online keno and online lottery draw games that 374 Substitute Bill No. 1237
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include game features approved by the department that increase the 375
chances of winning; [and is not exclusively sold by lottery sales agents;] 376
(11) Not contain claims or representations that gaming will guarantee 377
an individual's social, financial or personal success; 378
(12) Not use any type, size, location, lighting, illustration, graphic, 379
depiction or color resulting in the obscuring of any material fact; and 380
(13) If a direct or targeted advertisement or promotion sent to an 381
individual, including, but not limited to, electronic mail or text message, 382
include a clear and conspicuous Internet link that allows the recipient to 383
unsubscribe by clicking on one link. 384
Sec. 8. (NEW) (Effective January 1, 2026) Not later than July 1, 2026, the 385
Connecticut Lottery Corporation shall adopt procedures establishing a 386
period of not less than three hundred sixty-five days for a person to 387
redeem a winning lottery ticket. 388
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2025 12-569
Sec. 2 from passage 12-815a(b)
Sec. 3 January 1, 2026 12-815a(e) to (n)
Sec. 4 January 1, 2026 12-858(a)
Sec. 5 January 1, 2026 12-859(b)
Sec. 6 January 1, 2026 12-859c
Sec. 7 from passage 12-863(e)
Sec. 8 January 1, 2026 New section
Statement of Legislative Commissioners:
In Section 1(b)(3), provisions were redrafted for clarity.
GL Joint Favorable Subst.