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SENATE DOCKET, NO. 1791 FILED ON: 1/19/2023
SENATE . . . . . . . . . . . . . . No. 170
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Paul R. Feeney
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act establishing an online lottery.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :Paul R. FeeneyBristol and NorfolkDeborah B. Goldberg, Treasurer and
Receiver General
Treasurer 1 of 7
SENATE DOCKET, NO. 1791 FILED ON: 1/19/2023
SENATE . . . . . . . . . . . . . . No. 170
By Mr. Feeney, a petition (accompanied by bill, Senate, No. 170) of Paul R. Feeney and Deborah
B. Goldberg, Treasurer and Receiver General for legislation to establish an online lottery.
Consumer Protection and Professional Licensure.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 203 OF 2021-2022.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act establishing an online lottery.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Chapter 10 of the General Laws is hereby amended by striking out section
224, as appearing in the 2020 Official Edition, and inserting in place thereof the following
3section:-
4 Section 24. (a) The commission is hereby authorized to conduct a state lottery and shall
5determine: (i) the types of lottery or lotteries, to be conducted; (ii) the price, or prices, of tickets
6or shares in the lottery; (iii) the numbers and sizes of the prizes on the winning tickets or shares;
7(iv) the manner of selecting the winning tickets or shares; (v) the manner of payment of prizes to
8the holders of winning tickets or shares; (vi) the frequency of the drawings or selections of
9winning tickets or shares; (vii) the type or types of locations at which tickets or shares may be
10sold; (viii) the method to be used in selling tickets or shares; (ix) the licensing of agents to sell 2 of 7
11tickets or shares; provided, however, that no person under the age of eighteen shall be licensed as
12an agent; (x) the manner and amount of compensation, if any, to be paid licensed sales agents;
13provided, however, that the amount of compensation, if any, to be paid to licensed sales agents as
14a commission pursuant to this section shall be calculated on the total face value of each ticket or
15share sold and not on any discounted price of any such ticket or share sold; and (xi) such other
16matters necessary or desirable for the efficient and economical operation and administration of
17the lottery and for the convenience of the purchasers of tickets or shares and the holders of
18winning tickets or shares. The commission is authorized to operate the daily numbers game
19seven days a week. Each physical state lottery ticket or share shall have imprinted thereon the
20state seal and a serial number. The commission may establish, and from time to time revise, such
21rules and regulations as it deems necessary or desirable and shall file the same with the office of
22the state secretary.
23 (b) The commission shall establish rules and regulations for lotteries conducted online,
24over the internet, through the use of a mobile application or through any other means that shall,
25at a minimum:
26 (i) require age verification measures to be reasonably designed to block access to and
27prevent sales of lottery tickets, games or shares online, over the internet, through the use of a
28mobile application or through any other means to persons under the age of 18;
29 (ii) limit sales of lottery tickets, games or shares online, over the internet, through the use
30of a mobile application or through any other means to transactions initiated and received, or
31otherwise made, within the commonwealth; 3 of 7
32 (iii) allow any player to voluntarily prohibit or otherwise exclude themselves from
33purchasing a lottery ticket, game or share online, over the internet, through the use of a mobile
34application or through any other means;
35 (iv) establish maximum limits for account deposits and transactions of lottery tickets,
36games or shares conducted online, over the internet, through the use of a mobile application or
37through any other means and allow players to reduce their own deposit or transaction limit at any
38time;
39 (v) clarify that money in a lottery account belongs solely to the owner of the account and
40may be withdrawn by the owner at any time;
41 (vi) require the commission to implement promotional activities to encourage the
42purchase of lottery tickets, games or shares through licenses sales agents including, but not
43limited to, the sale of prepaid gift cards for lottery sales through licensed sales agents; and
44 (vii) prohibit the purchase or other use of any personal or identifying information of an
45individual who purchases lottery tickets, game or shares online, over the internet, through the use
46of a mobile application, or through any other means.
47 (c) Notwithstanding any general or special law to the contrary, the name, address,
48transaction history, account balance or other personal or identifying information of an individual
49who purchases lottery tickets, games or shares online, over the internet, through the use of a
50mobile application or through any other means shall not be deemed public records of the
51commission for the purposes of section 10 of chapter 66; provided, however, that this section
52shall not prohibit the commission from maintaining, using or sharing such information in the 4 of 7
53course of an investigation by law enforcement or in compliance with sections 28A or 28B of this
54chapter.
55 (d) The commission shall advise and make recommendations to the director regarding the
56operation and administration of the lottery. The commission shall report monthly to the
57governor, the attorney general and the general court, the total lottery revenues, prize
58disbursements and other expenses for the preceding month, and shall make an annual
59independently audited financial report to the same which shall include a full and complete
60statement of lottery revenues, prize disbursements and other expenses, including such
61recommendations as it may deem necessary or advisable, which shall be made available
62electronically to the general public not later than the earliest date established for reports in
63section 12 of chapter 7A. The commission shall report immediately to the governor and the
64general court any matters which require immediate changes in the laws of the commonwealth in
65order to prevent abuses and evasions of the lottery law or rules and regulations promulgated
66thereunder or to rectify undesirable conditions in connection with the administration or operation
67of the state lottery.
68 (e) The commission is authorized to carry on a continuous study and investigation of said
69lottery throughout the commonwealth in order to: (i) to ascertain any defects in the state lottery
70law or in the rules and regulations issued thereunder whereby any abuse in the administration
71and operation of the lottery or any evasion of said law or said rules and regulations may arise or
72be practiced, (ii) to formulate recommendations for changes in said law and the rules and
73regulations promulgated thereunder to prevent such abuses and evasions, and (iii) guard against
74the use of said law and rules and regulations issued thereunder as a cloak for the carrying on of
75organized gambling and crime. 5 of 7
76 (f) The commission shall make a continuous study and investigation of the operation and
77administration of similar laws in other states or countries, of any literature on the subject which
78from time to time may be published or available, of any federal laws which may affect the
79operation of the lottery, and of the reaction of citizens of the commonwealth to existing and
80potential features of the lottery with a view to recommending or effecting changes that will tend
81to better serve and implement the purposes of the state lottery law.
82 (g) The concurrence of the chairman and of not less than two other members of the
83commission shall be required for all official actions of the commission. A copy of the minutes of
84each meeting of the commission, including any rules and regulations adopted by the commission
85or any amendments thereof, shall be forthwith transmitted, by and under the certification of the
86secretary thereof, to the governor.
87 (h) The commission shall have the power to issue subpoenas to compel the attendance of
88witnesses and the production of documents, papers, books, records and other evidence before it
89in any matter over which it has jurisdiction, control or supervision. The commission shall have
90the power to administer oaths and affirmations to persons whose testimony is required.
91 SECTION 2. Section 24A of said chapter 10, as so appearing, is hereby amended by
92striking out subsection (a) and inserting in place thereof the following subsection:-
93 (a) For the purposes of this section, ''group agreement'' shall mean any lottery activity in
94which the commission participates pursuant to a written agreement between the commission, on
95behalf of the commonwealth, and any state, territory, country or other sovereignty. The
96commission is hereby authorized to enter into agreements with one or more states or other
97jurisdictions, hereinafter referred to as a group, for the purpose of creating and maintaining 6 of 7
98multi-jurisdictional lottery games, including multi-jurisdictional lottery games to be conducted
99online, over the internet, through the use of a mobile application or through any other means;
100provided, however, that any such lottery game to be conducted online, over the internet, through
101the use of a mobile application or through any other means has been properly authorized by each
102state or other jurisdiction that is part of the group; provided, further, that a group agreement shall
103not include the state lottery games created pursuant to section 24; provided further, that nothing
104in this section and nothing in a group agreement shall authorize the commission to make
105expenditures that are not consistent with restrictions on expenditures by the commission
106provided in any other general or special law. The group shall determine the types of lotteries to
107be conducted, the prices of tickets or shares, the manner of selecting the winning tickets or
108shares, the manner of payment of prizes to the holders of winning tickets or shares and the
109frequency of the drawings or selection of winning tickets or shares. The commission may
110establish, and from time to time revise, such rules and regulations as it deems necessary or
111desirable to carry out the group agreement and shall file the same with the office of the state
112secretary.
113 SECTION 3. Said chapter, as so appearing, is hereby amended by striking out section 25
114and inserting in place thereof the following section:-
115 Section 25. (a) The apportionment of the total revenues accruing from the sale of lottery
116tickets or shares and from all other sources at the point of sale shall be as follows: (i) the
117payment of prizes to the holders of winning tickets or shares which in any case shall be no less
118than forty-five per cent of the total revenues accruing from the sale of lottery tickets; (ii) the
119payment of costs incurred in the operation and administration of the lottery, including the
120expenses of the commission and the costs resulting from any contract or contracts entered into 7 of 7
121for promotional, advertising or operational services or for the purchase or lease of lottery
122equipment and materials which in no case shall exceed fifteen per cent of the total revenues
123accruing from the sale of lottery tickets, subject to appropriation; and (iii) the balance shall be
124used to fund budgeted aid to cities and towns as provided in section 18C of chapter 58, subject to
125appropriation.
126 (b) The apportionment of the total revenues accruing from the sale of lotteries conducted
127online, over the internet, through the use of a mobile application or through any other means as
128authorized by section 24 of this chapter shall be as follows: (i) the payment of prizes to the
129holders of winning tickets or shares; (ii) the payment of costs incurred in the operation and
130administration of such lotteries, including the expenses of the commission and the costs resulting
131from any contract or contracts entered into for promotional, advertising or operational services or
132for the purchase or lease of lottery equipment and materials which in no case shall exceed fifteen
133per cent of the total revenues accruing from the sale of lottery tickets, subject to appropriation;
134and (iii) the balance shall be used to fund budgeted aid to cities and towns as provided in section
13518C of chapter 58, subject to appropriation; provided that, in any fiscal year where the balance
136used to fund such budgeted aid exceeds one-hundred-three per cent of budgeted aid apportioned
137in the previous fiscal year, the portion of the balance exceeding one-hundred-three per cent shall
138be apportioned as follows:-- (i) twenty five per cent to the Massachusetts School Building
139Authority established in section 1A of chapter 70B; (ii) twenty five per cent to special education
140programs as set forth in chapter 71B; and (ii) fifty per cent to fund budgeted aid to cities and
141towns as provided in section 18C of chapter 58, subject to appropriation.
142 SECTION 4. Section 3 of chapter 137 of the General Laws, as so appearing, is hereby
143amended by inserting after the word “to”, in line 6, the following words:- “chapter 10 or”.