Connecticut Seal

General Assembly

 

Raised Bill No. 277

February Session, 2018

 

LCO No. 1826

 

*01826_______PS_*

Referred to Committee on PUBLIC SAFETY AND SECURITY

 

Introduced by:

 

(PS)

 

AN ACT CONCERNING ONLINE LOTTERY DRAW GAMES.

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, "lottery draw game" includes only the Powerball draw game, Mega Millions draw game, Lucky for Life draw game, Keno draw game, Lotto draw game, Cash5 draw game, Play3 Day draw game, Play3 Night draw game, Play4 Day draw game, Play4 Night draw game, Lucky Links Day draw game and Lucky Links Night draw game.

(b) The Connecticut Lottery Corporation shall establish a program to sell lottery tickets for lottery draw games through the corporation's Internet web site, online service or mobile application, provided: (1) Such program does not violate any compact, memorandum of understanding or agreement in force between the state and the Mashantucket Pequot Tribe or the Mohegan Tribe of Indians of Connecticut; and (2) the Keno draw game is offered pursuant to signed agreements with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut or signed amendments to such agreements, in accordance with the provisions of section 12-806c of the general statutes, as amended by this act.

(c) Such program shall, at a minimum: (1) Verify that a person who establishes an online lottery account to purchase a lottery ticket through such program is eighteen years of age or older and is located in the state; (2) restrict the sale of lottery tickets to transactions initiated and received within the state; (3) allow a person to deposit money into an online lottery account through the use of a verified bank account, prepaid lottery gift card, debit card or credit card; (4) limit a person with an online lottery account to using only one debit card or credit card; (5) provide that any money in an online lottery account belongs solely to the owner of the account and may be withdrawn by the owner at any time; (6) provide a mechanism to prevent the unauthorized use of online lottery accounts; (7) establish a voluntary self-exclusion process to allow a person to exclude himself or herself from establishing an online lottery account or purchasing a lottery ticket through such program; (8) provide a mechanism to prevent a person who participates in the self-exclusion process from establishing an online lottery account; (9) within one year from the date such program is established, be the subject of an application for certification from a national or international responsible gambling compliance assessment program; (10) post a conspicuous link to responsible gambling information on all online lottery account web pages; and (11) after consultation with advocacy groups for individuals with gambling problems, (A) limit the amount of money a person may deposit into an online lottery account, (B) limit the amount of money a person may spend per day through such program, and (C) provide for online messages regarding the importance of responsible gambling when a person is using his or her online lottery account for an amount of time specified by the corporation.

(d) Prior to implementing any procedure, as defined in subdivision (2) of section 1-120 of the general statutes, to assure the integrity of such program, the corporation shall obtain the written approval of the Commissioner of Consumer Protection in accordance with regulations adopted under section 12-568a of the general statutes.

(e) The corporation shall: (1) Implement initiatives to promote the purchase of lottery tickets through lottery sales agents; (2) permit lottery sales agents to sell prepaid lottery gift cards; and (3) conduct an online public awareness campaign designed to educate the public regarding compulsive gambling and to inform the public of the programs available for the prevention, treatment and rehabilitation of compulsive gamblers in the state.

Sec. 2. Subdivision (4) of subsection (b) of section 12-806 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(4) (A) To introduce new lottery games, modify existing lottery games, utilize existing and new technologies, determine distribution channels for the sale of lottery tickets, introduce keno pursuant to signed agreements with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut, in accordance with section 12-806c, as amended by this act, and, to the extent specifically authorized by regulations adopted by the Department of Consumer Protection pursuant to chapter 54, introduce instant ticket vending machines, kiosks and automated wagering systems or machines, with all such rights being subject to regulatory oversight by the Department of Consumer Protection; and

(B) To offer certain lottery games through the corporation's Internet web site, online service or mobile application in accordance with section 1 of this act, except that the corporation shall not offer any interactive [on-line] online lottery games, including [on-line] online video lottery games for promotional purposes, unless such online video lottery games for promotional purposes are offered as part of the program established pursuant to section 1 of this act;

Sec. 3. Section 12-810 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The Freedom of Information Act, as defined in section 1-200, shall apply to all actions, meetings and records of the corporation, except (1) where otherwise limited by subsection (c) of this section as to new lottery games and serial numbers of unclaimed lottery tickets, [and] (2) with respect to financial, credit and proprietary information submitted by any person to the corporation in connection with any proposal to provide goods, services or professional advice to the corporation as provided in section 12-815, and (3) where otherwise limited by subsection (d) of this section as to information submitted by any person to the corporation regarding such person's participation in the corporation's voluntary self-exclusion process established pursuant to subdivision (7) of subsection (b) of section 1 of this act.

(b) The records of proceedings as provided in subsection (a) of section 12-805 shall be subject to disclosure pursuant to the provisions of subsection (a) of section 1-210.

(c) Any new lottery game and the procedures for such game, until the game is publicly announced by the corporation, and any serial number of an unclaimed lottery ticket shall not be deemed public records, as defined in section 1-200, and shall not be available to the public under the provisions of section 1-210. The president shall submit a fiscal note prepared by the corporation with respect to the procedures for a new lottery game to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue, bonding and public safety after approval of such game by the board.

(d) The name and any personally identifying information of a person who is participating or participated in the corporation's voluntary self-exclusion process shall not be deemed public records, as defined in section 1-200, and shall not be available to the public under the provisions of section 1-210. The president may disclose the name and any records of such person if such person claims a winning lottery ticket from the use of the program established pursuant to section 1 of this act.

Sec. 4. Section 12-818 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

For each of the fiscal years ending June 30, 2010, and June 30, 2011, the Connecticut Lottery Corporation shall transfer one million nine hundred thousand dollars of the revenue received from the sale of lottery tickets to the chronic gamblers treatment rehabilitation account created pursuant to section 17a-713, as amended by this act. For the fiscal years ending June 30, 2012, to June 30, 2013, inclusive, the [Connecticut Lottery Corporation] corporation shall transfer one million nine hundred thousand dollars of the revenue received from the sale of lottery tickets to the chronic gamblers treatment rehabilitation account. [created pursuant to section 17a-713.] For the fiscal [year] years ending June 30, 2014, [and each fiscal year thereafter] to June 30, 2018, inclusive, the [Connecticut Lottery Corporation] corporation shall transfer two million three hundred thousand dollars of the revenue received from the sale of lottery tickets to the chronic gamblers treatment rehabilitation account. [created pursuant to section 17a-713.] For the fiscal year ending June 30, 2019, and each fiscal year thereafter, the corporation shall transfer two million four hundred thousand dollars of the revenue received from the sale of lottery tickets to the chronic gamblers treatment rehabilitation account.

Sec. 5. Section 17a-713 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):

(a) The Department of Mental Health and Addiction Services shall establish a program for the treatment and rehabilitation of compulsive gamblers in the state. The program shall provide prevention, treatment and rehabilitation services for chronic gamblers. The department may enter into agreements with subregional planning and action councils and nonprofit organizations to assist in providing these services, provided not less than twenty-five per cent of the amount received pursuant to section 12-818, as amended by this act, annually shall be set aside for contracts with subregional planning and action councils established pursuant to section 17a-671 and nonprofit organizations and not less than five per cent of the amount received pursuant to section 12-818, as amended by this act, annually shall be set aside for a contract with the Connecticut Council on Problem Gambling. The department may impose a reasonable fee, on a sliding scale, on those participants who can afford to pay for any such services. The department shall implement such program when the account established under subsection (b) of this section is sufficient to meet initial operating expenses. As used in this section, "chronic gambler" means a person who is chronically and progressively preoccupied with gambling and the urge to gamble, and with gambling behavior that compromises, disrupts or damages personal, family or vocational pursuits.

(b) The program established by subsection (a) of this section shall be funded by imposition of: (1) A fee of one hundred thirty-five dollars on each association license, for each performance of jai alai or dog racing conducted under the provisions of chapter 226, provided no such licensee shall contribute more than forty-five thousand dollars in any one year; (2) a fee of twenty-five dollars for each teletheater performance on each operator of a teletheater facility; and (3) the amount received from the Connecticut Lottery Corporation pursuant to section 12-818, as amended by this act. The Commissioner of Consumer Protection shall collect the fee from each association licensee or such operator on a monthly basis. The receipts shall be deposited in the General Fund and credited to a separate, nonlapsing chronic gamblers treatment and rehabilitation account which shall be established by the Comptroller. All moneys in the account are deemed to be appropriated and shall be expended (A) for the purposes established in subsection (a) of this section, and (B) in an amount not to exceed one hundred thousand dollars to fund the study described in subsection (d) of this section.

(c) The department shall adopt regulations in accordance with the provisions of chapter 54 to carry out the purposes of this section.

(d) Not later than January 1, 2022, the Commissioner of Mental Health and Addiction Services shall develop and issue a request for proposals to study the socioeconomic impact of the program established by the Connecticut Lottery Corporation pursuant to section 1 of this act on problem gambling in this state. Such study shall be performed by an institution of higher learning located in this state with expertise in problem gambling and addiction and submitted for peer review to ensure accuracy, validity and reliability. The Connecticut Lottery Corporation shall provide any information and data needed by the institution of higher learning to perform the study, provided the information and data does not disclose the identity of individuals. Not later than July 1, 2023, the commissioner shall submit the results of such study, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters related to public safety and security.

Sec. 6. Section 12-806c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Notwithstanding the provisions of section 3-6c, the Secretary of the Office of Policy and Management, on behalf of the state of Connecticut, may enter into separate agreements with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut concerning the operation of keno by the Connecticut Lottery Corporation in the state of Connecticut. Any such agreement shall provide that the state of Connecticut shall distribute to each tribe a sum not to exceed a twelve and one-half per cent share of the gross operating revenue received by the state from the operation of keno. The corporation may not operate keno until such separate agreements are effective. Any such agreement may be amended concerning the operation of keno on the corporation's Internet web site, online service or mobile application pursuant to the program established in accordance with section 1 of this act. The corporation may not operate keno through such program until such separate agreements are amended and such amendments are effective. For the purposes of this section, "gross operating revenues" means the total amounts wagered, less amounts paid out as prizes.

Sec. 7. Section 52-553 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

All wagers, and all contracts and securities of which the whole or any part of the consideration is money or other valuable thing won, laid or bet, at any game, horse race, sport or pastime, and all contracts to repay any money knowingly lent at the time and place of such game, race, sport or pastime, to any person so gaming, betting or wagering, or to repay any money lent to any person who, at such time and place, so pays, bets or wagers, shall be void, provided nothing in this section shall (1) affect the validity of any negotiable instrument held by any person who acquired the same for value and in good faith without notice of illegality in the consideration, (2) apply to the sale of a raffle ticket pursuant to section 7-172, [or] (3) apply to any wager or contract otherwise authorized by law, or (4) apply to the participation in the program established by the Connecticut Lottery Corporation pursuant to section 1 of this act.

Sec. 8. Section 52-554 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Any person who, by playing at any game, or betting on the sides or hands of such as play at any game, excluding any game permitted under chapter 226 or any activity not prohibited under the provisions of sections 53-278a to 53-278g, inclusive, loses the sum or value of one dollar in the whole and pays or delivers the same or any part thereof, may, within three months next following, recover from the winner the money or the value of the goods so lost and paid or delivered, with costs of suit in a civil action, without setting forth the special matter in his complaint. If the defendant refuses to testify, if called upon in such action, relative to the discovery of the property so won, he shall be defaulted; but no evidence so given by him shall be offered against him in any criminal prosecution. Nothing in this section shall preclude any person from using a credit card to participate in the program established by the Connecticut Lottery Corporation pursuant to section 1 of this act.

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

October 1, 2018

17a-713

Sec. 6

from passage

12-806c

Sec. 7

from passage

52-553

Sec. 8

from passage

52-554

Statement of Purpose:

To (1) authorize the Connecticut Lottery Corporation to offer certain online lottery games, (2) exempt certain records concerning the corporation's voluntary self-exclusion process from disclosure under the Freedom of Information Act, and (3) increase the corporation's contribution to the chronic gamblers treatment rehabilitation account.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]