Sec. 12-810. Compliance with Freedom of Information Act. Exceptions.
Sec. 12-814. Lottery advertising and promotions.
Sec. 12-806. Purpose. Powers. (a) The purposes of the corporation shall be to: (1) Operate and manage the lottery, and retail sports wagering, online sports wagering and fantasy contests if licensed pursuant to section 12-853, in an entrepreneurial and business-like manner free from the budgetary and other constraints that affect state agencies;
(2) provide continuing and increased revenue to the people of the state through the lottery, and retail sports wagering, online sports wagering and fantasy contests if licensed pursuant to section 12-853, by being responsive to market forces and acting generally as a corporation engaged in entrepreneurial pursuits; (3) pay to the trustee of the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund, established in section 10-183vv, the amounts, if any, required pursuant to subsection (c) of section 12-812; and (4) ensure that the lottery, and retail sports wagering, online sports wagering and fantasy contests, if licensed pursuant to section 12-853, continue to be operated with integrity and for the public good.
(b) The corporation shall have the following powers:
(1) To receive as transferee from the state of Connecticut all of the tangible and intangible assets constituting the lottery including the exclusive right to operate the lottery as the exclusive lottery of the state and, subject to subsection (b) of section 12-808, to assume and discharge all of the agreements, covenants and obligations of the Department of Consumer Protection entered into which constitute a part of the operation and management of the lottery;
(2) To operate and manage the lottery consistent with the provisions of sections 1-120, 1-121, 1-125, 12-563, 12-563a, 12-564, 12-566, 12-568a and 12-569, subsection (c) of section 12-574, sections 12-800 to 12-818, inclusive, and section 12-853, and as specifically provided in section 12-812;
(3) To have perpetual succession as a body corporate and to adopt bylaws, policies and procedures for the operation of its affairs and conduct of its businesses;
(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, or pursuant to section 12-853, 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 sell tickets for lottery draw games through the corporation's Internet web site, online service or mobile application in accordance with section 12-853 and to advertise lottery games on the corporation's Internet web site, online service or mobile application, except the corporation shall not offer any interactive lottery game, including for promotional purposes;
(5) To establish an annual budget of revenues and expenditures, along with reasonable reserves for working capital, capital expenditures, debt retirement and other anticipated expenditures, in a manner and at levels considered by the board of directors as appropriate and prudent;
(6) To adopt such administrative and operating procedures which the board of directors deems appropriate;
(7) To enter into agreements with one or more states or territories of the United States for the promotion and operation of joint lottery games and to continue to participate in any joint lottery game in which the corporation participates on July 1, 2003, regardless of whether any government-authorized lottery operated outside of the United States participates in such game;
(8) Subject to the provisions of section 12-815, to enter into agreements with vendors with respect to the operation and management of the lottery, and retail sports wagering, online sports wagering and fantasy contests if licensed pursuant to section 12-853, including operation of lottery terminals, management services, printing of lottery tickets, management expertise, marketing expertise, advertising or such other goods or services as the board of directors deems necessary and appropriate;
(9) To purchase or lease operating equipment, including, but not limited to, computer gaming and automated wagering systems and to employ agents or employees to operate such systems;
(10) To retain unclaimed prize funds as additional revenue for the state, or to use unclaimed prize funds to increase sales, or to return to participants unclaimed prize funds in a manner designed to increase sales;
(11) To establish prize reserve accounts as the board of directors deems appropriate;
(12) To pay lottery prizes as awarded under section 12-812, to purchase annuities to fund such prizes, and to assure that all annuities from which payments to winners of lottery prizes are made are invested in instruments issued by agencies of the United States government and backed by the full faith and credit of the United States, or are issued by insurance companies licensed to do business in the state, provided the issuer has been determined by the Department of Consumer Protection to be financially stable and meets the minimum investment rating as determined by the department;
(13) To reimburse the Department of Consumer Protection for the reasonable and necessary costs arising from the department's regulatory oversight of the operation of the lottery, retail sports wagering, online sports wagering and fantasy contests by the corporation, in accordance with the assessment made pursuant to section 12-806b, including costs arising directly or indirectly from the licensing of lottery agents, performance of state police background investigations, and the implementation of subsection (b) of section 12-562 and sections 12-563a, 12-568a, 12-569, 12-570, 12-570a, 12-800 to 12-818, inclusive, and sections 12-853, 12-854, 12-863 to 12-865, inclusive, 12-867 and 12-868;
(14) In the event that the operation or management of the corporation becomes subject to the federal gaming occupation tax, to pay such tax on behalf of lottery sales agents and to assist agents subject thereto;
(15) To determine the commissions payable to lottery sales agents, provided any agent's commission shall not average less than four per cent of such agent's lottery sales;
(16) To invest in, acquire, lease, purchase, own, manage, hold and dispose of real property and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to carrying out the purposes of sections 12-563a, 12-800 to 12-818, inclusive, and sections 12-853 and 12-854, provided such transactions shall not be subject to approval, review or regulation pursuant to title 4b or any other statute by any state agency, except that real property transactions shall be subject to review by the State Properties Review Board;
(17) To borrow money for the purpose of obtaining working capital;
(18) To hold patents, copyrights, trademarks, marketing rights, licenses or any other evidence of protection or exclusivity issued under the laws of the United States or any state;
(19) To employ such assistants, agents and other employees as may be necessary or desirable to carry out its purposes in accordance with sections 12-563a, 12-800 to 12-818, inclusive, 12-853, 12-854, 12-863 to 12-865, inclusive, 12-867 and 12-868, to fix their compensation and, subject to the provisions of subsections (e) and (f) of section 12-802, establish all necessary and appropriate personnel practices and policies; to engage consultants, accountants, attorneys and financial and other independent professionals as may be necessary or desirable to assist the corporation in performing its purposes in accordance with sections 12-563a, 12-800 to 12-818, inclusive, 12-853, 12-854, 12-863 to 12-865, inclusive, 12-867 and 12-868;
(20) To make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under sections 12-563a, 12-800 to 12-818, inclusive, 12-853, 12-854, 12-863 to 12-865, inclusive, 12-867 and 12-868;
(21) In its own name, to sue and be sued, plead and be impleaded, adopt a seal and alter the same at pleasure;
(22) Subject to the approval of the board and to the requirement to remit excess lottery funds to the General Fund as set forth in section 12-812, to invest any funds not needed for immediate use or disbursement, including any funds held in approved reserve accounts, in investments permitted by sections 3-20 and 3-27a for the proceeds of state bonds;
(23) To procure insurance against any loss in connection with its property and other assets in such amounts and from such insurers as it deems desirable;
(24) To the extent permitted under any contract with other persons to which the corporation is a party, to consent to any termination, modification, forgiveness or other change of any term of any contractual right, payment, royalty, contract or agreement of any kind;
(25) To acquire, lease, purchase, own, manage, hold and dispose of personal property, and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to the carrying out of these purposes;
(26) To account for and audit funds of the corporation;
(27) To pay or provide for payment from operating revenues all expenses, costs and obligations incurred by the corporation in the exercise of the powers of the corporation under sections 12-563a, 12-800 to 12-818, inclusive, 12-853, 12-854, 12-863 to 12-865, inclusive, 12-867 and 12-868;
(28) To operate retail sports wagering at up to fifteen facilities located throughout the state and one skin for online sports wagering, if licensed pursuant to section 12-853;
(29) To operate fantasy contests, if licensed pursuant to section 12-853; and
(30) To exercise any powers necessary to carry out the purposes of sections 12-563a, 12-800 to 12-818, inclusive, 12-853, 12-854, 12-863 to 12-865, inclusive, 12-867 and 12-868.
(P.A. 96-212, S. 7, 32; P.A. 03-60, S. 3; 03-191, S. 1; P.A. 09-2, S. 23; P.A. 10-154, S. 1; P.A. 11-8, S. 2; 11-51, S. 182; 11-233, S. 10; P.A. 13-184, S. 85; 13-299, S. 89; P.A. 14-47, S. 53; P.A. 15-244, S. 104; P.A. 19-117, S. 84; P.A. 21-23, S. 29; June Sp. Sess. P.A. 21-2, S. 72; P.A. 23-204, S. 91; P.A. 25-168, S. 71.)
History: P.A. 96-212 effective July 1, 1996; P.A. 03-60 amended Subsec. (b)(4) to provide that the corporation shall not offer any interactive on-line lottery games, including on-line video lottery games for promotional purposes; P.A. 03-191 amended Subsec. (b)(7) to allow corporation to enter into agreements with one or more territories of the United States for promotion and operation of joint lottery games and to continue to participate in any joint lottery game in which the corporation participates on July 1, 2003, regardless of whether any government-authorized lottery operated outside of the United States participates in such game, effective July 1, 2003; P.A. 09-2 amended Subsec. (b)(15) by revising agent's commission from 5% to 4%, effective April 1, 2009; P.A. 10-154 amended Subsec. (b)(13) to require corporation to pay Office of Policy and Management to reimburse Division of Special Revenue for its regulatory oversight of corporation, in accordance with assessment made pursuant to Sec. 12-806b, deleted provisions re planning and implementation costs, deleted provision re other affected state agencies, replaced “direct and indirect” with “and necessary” re costs and added implementation of specific statutory references to list of reimbursable costs, effective June 7, 2010; P.A. 11-8 made a technical change in Subsec. (b)(13), effective May 24, 2011; pursuant to P.A. 11-51, “Division of Special Revenue” and “division” were changed editorially by the Revisors to “Department of Consumer Protection” and “department”, respectively, effective July 1, 2011; P.A. 11-233 amended Subsec. (b)(2) by deleting reference to Sec. 12-567, effective July 1, 2011; P.A. 13-184 amended Subsec. (b)(4) to add provision re introduction of keno, effective June 18, 2013; P.A. 13-299 amended Subsec. (b)(2) to delete reference to Sec. 12-557e and replace reference to Sec. 12-574(d) with reference to Sec. 12-574(c), effective July 1, 2013; P.A. 14-47 amended Subsec. (b)(4) to delete provision re introduction of keno, effective May 29, 2014; P.A. 15-244 amended Subsec. (b)(4) to allow corporation to introduce keno, effective July 1, 2015; P.A. 19-117 amended Subsec. (a) to add new Subdiv. (3) re payments to Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund and to redesignate existing Subdiv. (3) as Subdiv. (4), effective June 26, 2019; P.A. 21-23 amended Subsec. (a) by adding references to retail sports wagering, online sports wagering and fantasy contests in Subdiv. (1), (2) and (4) and amended Subsec. (b) by adding reference to Sec. 12-853 in Subdiv. (2), designating existing provision in Subdiv. (4) as Subpara. (A) and adding Subpara. (B) re selling tickets through Internet web site, online service or mobile application, adding reference to retail sports wagering, online sports wagering and fantasy contests in Subdiv. (8), adding reference re operation of lottery, retail sports wagering, online sports wagering and fantasy contests in Subdiv. (13), adding references to Secs. 12-853, 12-854, 12-863 to 12-865, 12-867 and 12-868 in Subdivs. (13), (19), (20) and (27) and redesignated Subdiv. (30), adding references to Secs. 12-853 and 12-854 in Subdiv. (16), adding new Subdiv. (28) re retail sports wagering, adding Subdiv. (29) re fantasy contests and redesignating existing Subdiv. (28) as Subdiv. (30), effective July 1, 2021; June Sp. Sess. P.A. 21-2 amended Subsec. (a) to add new Subdiv. (4) re transfer to debt-free community college account and redesignate existing Subdiv. (4) as Subdiv. (5), effective July 1, 2021; P.A. 23-204 amended Subsec. (a) by deleting former Subdiv. (4) re transfer to debt-free community college account and redesignating existing Subdiv. (5) as Subdiv. (4), effective July 1, 2023; P.A. 25-168 amended Subsec. (b)(13) by deleting provision re payment to Office of Policy and Management, effective July 1, 2025.
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Sec. 12-806b. Assessment of Connecticut Lottery Corporation. Payments to Office of Policy and Management. Lottery assessment account. (a) Commencing July 1, 2011, and annually thereafter, the Office of Policy and Management shall assess the Connecticut Lottery Corporation in an amount sufficient to compensate the Department of Consumer Protection for the reasonable and necessary costs incurred by the department for the regulatory activities specified in subdivision (13) of subsection (b) of section 12-806 for the preceding fiscal year ending June thirtieth.
(b) (1) For the assessment year ending June 30, 2013, and each assessment year thereafter until and including the assessment year ending June 30, 2026, the Office of Policy and Management shall, on or before May first of each year, submit the total of the assessment made in accordance with subsection (a) of this section, together with a proposed assessment for the succeeding fiscal year based on the preceding fiscal year cost, to the Connecticut Lottery Corporation. The assessment for the preceding fiscal year shall be determined not later than June fifteenth of each year, after receiving any objections to the proposed assessments and making such changes or adjustments as the Secretary of the Office of Policy and Management determines to be warranted. The corporation shall pay the total assessment in quarterly payments to the Office of Policy and Management, with the first payment commencing on July first of each year, and with the remaining payments to be made on October first, January first and April first annually. The office shall deposit any such payment in the lottery assessment account established under subsection (c) of this section.
(2) For the assessment year ending June 30, 2027, and each assessment year thereafter, the Office of Policy and Management shall, on or before August first of each year, submit the total of the assessment made in accordance with subsection (a) of this section, which shall be an estimate of the current fiscal year cost based on the preceding fiscal year cost, to the Connecticut Lottery Corporation. If the actual fiscal year cost does not equal the estimated fiscal year cost used to calculate the assessment, the assessment for the succeeding fiscal year shall be adjusted accordingly. The assessment for each fiscal year shall be determined not later than September fifteenth of each year, after receiving any objections to the proposed assessments and making such changes or adjustments as the Secretary of the Office of Policy and Management determines to be warranted. The corporation shall pay the total assessment in triannual payments to the Department of Consumer Protection, with the first payment commencing on October first of each year, and with the remaining payments to be made on January first and April first annually. The department shall deposit any such payment in the lottery assessment account established under subsection (c) of this section.
(c) There is established an account to be known as the “lottery assessment account”, which shall be a separate, nonlapsing account. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by the Department of Consumer Protection.
(P.A. 10-154, S. 2; P.A. 11-51, S. 198; 11-61, S. 98; P.A. 25-110, S. 33; 25-168, S. 72.)
History: P.A. 10-154 effective June 7, 2010; P.A. 11-51 amended Subsec. (a) by changing commencement date of assessments from July 1, 2010, to April 1, 2012, and replacing “Division of Special Revenue” with “Department of Consumer Protection” and “division” with “department”, amended Subsec. (b) by changing “August” to “May”, “September” to “June”, “October” to “July”, “January” to “October”, “April” to “January” and “July” to “April” and amended Subsec. (c) by replacing “Division of Special Revenue” with “Department of Consumer Protection”, effective July 1, 2011; P.A. 11-61 amended Subsec. (a) by changing commencement date of assessments from April 1, 2012, to July 1, 2011, amended Subsec. (b) by providing that, for assessment year ending June 30, 2012, total assessment for such year with proposed assessment for succeeding year be submitted to Connecticut Lottery Corporation on or before August 1, 2012, that assessment for preceding assessment year be determined not later than September 15, 2011, and that quarterly payments for assessment year ending June 30, 2012, be made on October 1, 2011, January 1, 2012, April 1, 2012, and June 1, 2011, added new Subsec. (c) re assessments for assessment year ending June 30, 2013, and each assessment year thereafter, redesignated existing Subsec. (c) as Subsec. (d) and added Subsec. (e) re final quarterly payment for fiscal year ending June 30, 2011, effective July 1, 2011; P.A. 25-110 amended Subsec. (d) to delete reference to General Fund and make a technical change, effective July 1, 2025; P.A. 25-168 deleted former Subsec. (b), redesignated existing Subsec. (c) as Subsec. (b)(1) and made conforming changes therein, added Subsec. (c)(2) re assessment years ending on or after June 30, 2027, redesignated existing Subsec. (d) as Subsec. (c) and deleted former Subsec. (e) re fiscal year ending June 30, 2011, effective July 1, 2025.
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Sec. 12-810. Compliance with Freedom of Information Act. Exceptions. (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, (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, (3) with respect to any personally identifying, financial, credit or wagering information associated with any person's account for Internet games, as defined in section 12-850, and (4) where otherwise limited by subsection (h) of section 12-863.
(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.
(P.A. 96-212, S. 11, 32; P.A. 97-47, S. 20; P.A. 21-23, S. 31; P.A. 22-113, S. 2; P.A. 24-142, S. 77; P.A. 25-112, S. 2.)
History: P.A. 96-212 effective July 1, 1996; P.A. 97-47 substituted “the Freedom of Information Act, as defined in Sec. 1-18a” for list of sections; P.A. 21-23 amended Subsec. (a) by adding Subdiv. (3) re personally identifying financial, credit or wagering information and Subdiv. (4) re voluntary self-exclusion process and added Subsec. (d) re voluntary self-exclusion process, effective July 1, 2021 (Revisor's note: In codifying section 31 of public act 21-23, an incorrect reference to “section 13 of this act”, which appeared in the engrossed bill, was changed editorially by the Revisors to “section 14 of this act” and therefore cited as “section 12-863”); P.A. 22-113 amended Subsec. (a)(4) by deleting “subsection (d) of this section as to information submitted by any person to the corporation regarding such person's participation in the voluntary self-exclusion process established pursuant to subdivision (5) of subsection (c) of section 12-863” and inserting “subsection (f) of section 12-863” and deleted Subsec. (d) re information from participation in voluntary self-exclusion process, effective May 27, 2022; P.A. 24-142 amended Subsec. (a)(4) to replace reference to Sec. 12-863(f) with Subsec. (g) of said section, effective June 6, 2024; P.A. 25-112 made a conforming change in Subsec. (a)(4).
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Sec. 12-814. Lottery advertising and promotions. (a) In each advertisement intended to promote the purchase of lottery tickets issued for games authorized under sections 12-563a, 12-800 to 12-818, inclusive, and 12-850 to 12-872, inclusive, the corporation shall include a prominent and clear statement of the average chances of winning per specific lottery ticket. A prominent and clear statement in any written digital or print advertising shall mean a type font no smaller than ten per cent of the largest font included in such advertisement, provided, for digital advertising posted in a physical retail location, the type font shall be no smaller than ten per cent of the largest font displayed that is applicable to the specific game to which the odds apply.
(b) The provisions of subsection (a) of this section shall apply to (1) digital or print advertisements including, but not limited to, social media, electronic mail communications, newspapers, magazines and brochures and on posters, (2) video advertisements, and (3) audio-only advertisements, except those that are less than thirty seconds for (A) the sale of tickets for lottery draw games through the Internet, an online service or a mobile application, or (B) keno through the Internet, an online service or a mobile application.
(c) On or before October 1, 1999, the corporation shall implement a code of standards for all advertisements and other activities intended to promote the purchase of lottery tickets for games authorized pursuant to this chapter. The code of standards shall include the requirement that no advertisement or promotion shall denigrate the character or conduct of nonlottery players or praise the character or conduct of lottery players.
(d) The corporation shall not publish the name or address of any person who redeems a winning lottery ticket, claims or is paid a winning wager from online sports wagering or retail sports wagering or is paid a prize from a fantasy contest, or publish the photograph of any person who redeems a winning lottery ticket, claims or is paid a winning wager from online sports wagering or retail sports wagering or is paid a prize from a fantasy contest, without the prior written consent of such person. The provisions of this subsection shall not be construed to prohibit the corporation from disclosing any such name, address or photograph under the Freedom of Information Act, as defined in section 1-200.
(P.A. 96-212, S. 15, 32; P.A. 99-173, S. 57, 65; P.A. 21-63, S. 1; P.A. 22-120, S. 2; P.A. 25-112, S. 3.)
History: P.A. 96-212 effective July 1, 1996; P.A. 99-173 added new Subsec. (c) re implementation of code of standards, effective July 1, 1999; P.A. 21-63 added Subsec. (d) re publication of photograph on Internet web site, added Subsec. (e) re list of winners on Internet web site and made technical changes in Subsec. (b)(1), effective July 1, 2021; P.A. 22-120 amended Subsec. (a) by adding “and 12-850 to 12-872, inclusive,”, “specific” and provision re written digital or print advertising and substantially revised Subsec. (b), effective July 1, 2022; P.A. 25-112 substantially amended Subsec. (d) including by restricting corporation's ability to publish name, address or photograph of person who redeems winning lottery ticket, claims or is paid winning wager from sports wagering or is paid prize from fantasy contest and deleted former Subsec. (e) re exclusion from list of names of lottery winners.
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Sec. 12-815a. Vendor, affiliate, lottery sales agent and occupational licenses. Exemptions. Delivery services. Suspension, revocation, refusal to renew or placement of conditions on license. Compliance by licensees. Provisional authorization for occupational license applicant. Incidents involving lottery gaming system. Regulations. Fine and civil penalty. (a) The Commissioner of Consumer Protection shall issue vendor, affiliate, lottery sales agent and occupational licenses in a form and manner prescribed by the commissioner and in accordance with the provisions of this section.
(b) No person or business organization awarded a primary contract by the Connecticut Lottery Corporation to provide facilities, components, goods or services that are necessary for and directly related to the secure operation of the activities of said corporation shall do so unless such person or business organization is issued a vendor license by the Commissioner of Consumer Protection. For the purposes of this subsection, “primary contract” means a contract to provide facilities, components, goods or services to said corporation by a person or business organization (1) that provides any lottery game or any online wagering system related facilities, components, goods or services and that receives or, in the exercise of reasonable business judgment, can be expected to receive more than seventy-five thousand dollars or twenty-five per cent of its gross annual sales from said corporation, or (2) that has access to the facilities of said corporation and provides services in such facilities without supervision by said corporation. Each applicant for a vendor license shall pay a nonrefundable application fee of two hundred fifty dollars.
(c) (1) The Connecticut Lottery Corporation may employ the delivery services of a business organization that does not hold a vendor license for the purpose of transporting and delivering lottery tickets to lottery sales agents, provided:
(A) All lottery tickets are securely packaged in tamper-evident packaging by employees of the corporation on the premises of the corporation while under video surveillance, the exterior of such packaging does not contain any word, graphic or symbol indicating that such packaging contains lottery tickets and the corporation does not include the word “lottery” anywhere on such packaging, including in the return address;
(B) All packages are tracked and require a signature upon delivery;
(C) The corporation creates and retains documentation for each package, which documentation includes, at a minimum, the following information: (i) The lottery game number; (ii) the pack number or numbers; (iii) the lottery game name; (iv) the number of packs contained in such package; (v) the name and address of the lottery sales agent who is the intended recipient of the lottery tickets; (vi) the package shipment date; and (vii) the name of the business organization delivering the tickets from the corporation to the lottery sales agent.
(2) Prior to utilizing a business organization described in subdivision (1) of this subsection for the purpose set forth in said subdivision, the corporation shall provide a detailed plan to the department, in a form and manner prescribed by the commissioner, which plan shall be reviewed and approved or denied by the commissioner not later than thirty days after the department receives such plan. Such plan shall include, at a minimum, the following information:
(A) The name and contact information for the business organization;
(B) The proposed date to commence shipment through such business organization;
(C) A detailed description of the specific tamper-evident packaging to be used, which description shall include the security features for such packaging;
(D) The additional security measures to be provided by the business organization during transport and at the point of delivery; and
(E) A description of the processes to be employed by the business organization in transporting the lottery tickets in the event a delivery is unsuccessful.
(3) The corporation shall retain a copy of all documentation created pursuant to subdivision (2) of this subsection for not less than three years. In the event the corporation is notified by a lottery sales agent that a package of lottery tickets appears to be damaged, missing or otherwise compromised at the time of delivery, the corporation shall immediately notify the department and shall provide instructions to the lottery sales agent to embargo the package until such time that the contents can be verified against the documentation retained by the corporation.
(d) No person or business organization, other than a shareholder in a publicly traded corporation, may be a contractor or a subcontractor for the provision of facilities, components, goods or services that are necessary for and directly related to the secure operation of the activities of the Connecticut Lottery Corporation, or may exercise control in or over a vendor licensee unless such person or business organization is licensed as an affiliate licensee by the commissioner. Each applicant for an affiliate license shall pay a nonrefundable application fee of two hundred fifty dollars.
(e) (1) Each employee of a vendor or affiliate licensee who has access to the facilities of the Connecticut Lottery Corporation and provides services in such facilities without supervision by said corporation or performs duties directly related to the activities of said corporation shall obtain an occupational license.
(2) Each officer, director, partner, trustee or owner of a business organization licensed as a vendor or affiliate licensee and any shareholder, executive, agent or other person connected with any vendor or affiliate licensee who, in the judgment of the commissioner, will exercise control in or over any such licensee shall obtain an occupational license.
(3) Each employee of the Connecticut Lottery Corporation shall obtain an occupational license.
(f) The commissioner shall issue occupational licenses in the following classes: (1) Class I for persons specified in subdivision (1) of subsection (e) of this section; (2) Class II for persons specified in subdivision (2) of subsection (e) of this section; (3) Class III for persons specified in subdivision (3) of subsection (e) of this section who, in the judgment of the commissioner, will not exercise authority over or direct the management and policies of the Connecticut Lottery Corporation; and (4) Class IV for persons specified in subdivision (3) of subsection (e) of this section who, in the judgment of the commissioner, will exercise authority over or direct the management and policies of the Connecticut Lottery Corporation. Each applicant for a Class I or III occupational license shall pay a nonrefundable application fee of twenty dollars. Each applicant for a Class II or IV occupational license shall pay a nonrefundable application fee of one hundred dollars. The nonrefundable application fee shall accompany the application for each such occupational license. Applicants for such licenses shall apply in a form and manner prescribed by the commissioner.
(g) Each applicant for a Class III or Class IV occupational license, and each employee of the corporation holding such a license on January 1, 2026, shall disclose, in a form and manner prescribed by the commissioner, the forms of gaming under this chapter and chapter 229b on which such applicant or such licensed employee will work as an employee of the corporation. For an applicant approved for a Class III or Class IV occupational license, or for an employee of the corporation who currently holds such a license, the commissioner may issue a separate endorsement authorizing such licensee to engage in the corporation's operation, under chapter 229b, of Internet games or retail sports wagering, as such terms are defined in section 12-850, and such employee shall not be required to apply for a license pursuant to section 12-858 or section 12-859 in order to engage in such operation. All Class III or Class IV occupational licensees shall report to the department any criminal conviction not later than two business days after the order or judgment of such conviction is rendered. The corporation and all Class III or Class IV occupational licensees shall immediately report to the department any change in the scope of employment of such licensee employed by the corporation that would require the employee to obtain an additional endorsement pursuant to this subsection.
(h) No person or business organization may be a lottery sales agent unless such person or organization is licensed as a lottery sales agent by the commissioner.
(i) In determining whether to grant a vendor, affiliate, lottery sales agent or occupational license to any such person or business organization, the commissioner may require an applicant to provide information as to such applicant and person in charge related to: (1) Financial standing and credit; (2) moral character; (3) criminal record, if any; (4) previous employment; (5) corporate, partnership or association affiliations; (6) ownership of personal assets; and (7) such other information as the commissioner deems pertinent to the issuance of such license, provided the submission of such other information will assure the integrity of the state lottery. The commissioner shall require each applicant for a vendor, affiliate, lottery sales agent or occupational license, provided if an applicant for a lottery sales agent is a business organization the commissioner shall require such entity's person in charge to submit to state and national criminal history records checks and may require each such applicant, or person in charge, to submit to an international criminal history records check before such license is issued. The state and national criminal history records checks required pursuant to this subsection shall be conducted in accordance with section 29-17a. The commissioner shall issue a vendor, affiliate, lottery sales agent or occupational license, as the case may be, to each applicant who satisfies the requirements of this subsection and who is deemed qualified by the commissioner.
(j) Each vendor, affiliate or Class I or II occupational license shall be effective for not more than one year from the date of issuance. Each Class III or IV occupational license shall remain in effect throughout the term of employment of any such employee holding such a license. The commissioner may require each employee issued a Class IV occupational license to submit information as to such employee's financial standing and credit annually. Initial application for and renewal of any such license shall be in such form and manner as the commissioner shall prescribe.
(k) (1) Upon petition of the corporation, a vendor licensee or an affiliate licensee, the department may authorize an applicant for an occupational license to provisionally perform the work permitted under the license applied for, if: (A) The applicant has filed a completed occupational license application in the form and manner required by the commissioner, and (B) the corporation, vendor licensee or affiliate licensee attests that the provisional authorization is necessary to continue the efficient operation of the lottery, and is based on circumstances that are extraordinary and not designed to circumvent the otherwise applicable licensing procedures.
(2) The department may issue a provisional authorization to an applicant for an occupational license in advance of issuance or denial of such license for a period not to exceed six months. Provisional authorization shall permit such applicant to perform the functions and require the applicant to comply with the requirements of the occupational license applied for as set forth in the provisions of this chapter and regulations adopted pursuant to this chapter. Provisional authorization shall not constitute approval for an occupational license. During the period of time that any provisional authorization is in effect, the applicant granted such authorization shall be subject to and comply with all applicable statutes and regulations. Any provisional authorization issued by the department shall expire immediately upon the earlier of: (A) The date of issuance of written notice from the department that the occupational license has been approved or denied, or (B) six months after the date the provisional authorization was issued.
(3) An individual whose occupational license application is denied after a period of provisional authorization shall not reapply for an occupational license for a period of one year from the date of the denial.
(4) An individual whose provisional authorization expires pursuant to subparagraph (B) of subdivision (2) of this subsection may apply for an additional provisional authorization. The department may issue such additional provisional authorization upon a determination that the conditions of subparagraph (B) of subdivision (1) of this subsection exist.
(l) When an incident occurs, or is reasonably suspected to have occurred, that causes a disruption in the operation, security, accuracy, integrity or availability of the lottery gaming system, the vendor licensed to provide such lottery gaming system shall, immediately upon discovery of such incident, but not later than twenty-four hours after discovery of such incident, provide the department with a written incident report including the details of the incident and the vendor's proposed corrections. Not later than five business days after notifying the department of an incident, the vendor licensee shall provide the department with a written incident report that (1) details the incident, including the root cause of the incident, and (2) outlines the vendor's plan to make corrections, mitigate the effects of the incident and prevent incidents of a similar nature from occurring in the future. If the vendor licensee is unable to determine the root cause and correct the incident within the initial five business days, the licensee shall continue to update the department every five business days with written incident reports until the root cause is determined and the incident is corrected. The department may require the vendor licensee to submit the lottery gaming system to a gaming laboratory for recertification.
(m) (1) After a hearing held in accordance with chapter 54, the commissioner may, for good cause, suspend, revoke, refuse to renew or place conditions on a vendor, affiliate, lottery sales agent or occupational license, deny an application for any such license or impose a civil penalty on a vendor, affiliate, lottery sales agent or occupational licensee for good cause, including, but not limited to: (A) Any failure to comply with the provisions of this chapter, chapter 226 or the regulations adopted pursuant to said chapters; (B) any conduct likely to mislead, deceive or defraud the public or the commissioner; (C) any provision of materially false or misleading information; (D) any criminal conviction or civil judgment involving fraud, theft or another financial crime; (E) any demonstrated insolvency, including, but not limited to, the filing of a bankruptcy petition or any failure to meet material financial obligations that directly impact the licensee's ability to operate in compliance with the provisions of this chapter and chapter 226; or (F) any failure to complete an application. The commissioner may order summary suspension of any such license in accordance with subsection (c) of section 4-182.
(2) Any such applicant aggrieved by the action of the commissioner concerning an application for a license, or any person or business organization whose license is suspended or revoked, may appeal pursuant to section 4-183.
(3) The commissioner may impose a civil penalty on any licensee for a violation of any provision of this chapter or any regulation adopted under section 12-568a in an amount not to exceed two thousand five hundred dollars per violation after a hearing held in accordance with chapter 54.
(4) No lottery sales agent shall keep any unauthorized gambling device, illegitimate lottery ticket or illegal bookmaking equipment, or allow any professional gambling, as defined in section 53-278a, at the lottery sales agent's retail facility. In the event the department finds any unauthorized gambling device, illegitimate lottery ticket, illegal bookmaking equipment or professional gambling at a lottery sales agent's retail facility, the lottery sales agent shall be fined not more than four thousand dollars per violation, and the commissioner shall issue a notice of violation to the lottery sales agent that (A) includes an order summarily suspending the lottery sales agent license the commissioner issued to the lottery sales agent, and (B) notifies the suspended lottery sales agent that the suspended lottery sales agent (i) is liable for the fine imposed pursuant to this subdivision, (ii) shall immediately cease all activity that requires a lottery sales agent license, and (iii) may, not later than fifteen days after the lottery sales agent receives such notice of violation, submit to the commissioner a written request that a hearing be held in accordance with the provisions of chapter 54 concerning such summary suspension and fine. If the suspended lottery sales agent requests a hearing within such fifteen-day period, the commissioner shall conduct a hearing in accordance with the provisions of chapter 54 concerning such summary suspension and fine. If the suspended lottery sales agent does not request a hearing within such fifteen-day period, the summary suspension order issued, and fine imposed, pursuant to this subdivision shall be deemed a final decision subject to appeal pursuant to section 4-183. A summary suspension order issued pursuant to this subdivision shall remain in effect until the summary suspension is lifted and all fines imposed pursuant to this subdivision have been paid. The summary suspension may be lifted by a written order issued by the commissioner or upon a final decision rendered after a hearing held in accordance with the provisions of chapter 54.
(n) The commissioner may require that the books and records of any vendor or affiliate licensee be maintained in any manner which the commissioner may deem best, and that any financial or other statements based on such books and records be prepared in accordance with generally accepted accounting principles in such form as the commissioner shall prescribe. The commissioner or a designee may visit, investigate and place expert accountants and such other persons as deemed necessary in the offices or places of business of any such licensee, or require that the books and records of any such licensee be provided to the department, for the purpose of satisfying the commissioner that such licensee is in compliance with the regulations adopted by the department.
(o) For the purposes of this section, (1) “business organization” means a partnership, incorporated or unincorporated association, firm, corporation, limited liability company, trust or other form of business or legal entity; (2) “control” means the power to exercise authority over or direct the management and policies of a licensee; and (3) “person” means any individual.
(p) The Commissioner of Consumer Protection may adopt such regulations, in accordance with chapter 54, as are necessary to implement the provisions of this section.
(P.A. 97-277, S. 6, 13; P.A. 01-175, S. 8, 32; June Sp. Sess. P.A. 05-3, S. 38; June Sp. Sess. P.A. 09-3, S. 159; P.A. 11-51, S. 182; P.A. 13-299, S. 82; P.A. 24-142, S. 78; P.A. 25-113, S. 2.)
History: P.A. 97-277 effective June 26, 1997; P.A. 01-175 referenced executive director and added language re state and national criminal history records checks in accordance with Sec. 29-17a, added prohibition re provision of facilities, components, goods or service without background investigation and added reference to Sec. 12-574(i), effective July 1, 2001; June Sp. Sess. P.A. 05-3 rewrote section to provide for vendor, affiliate and occupational licensure, require certain information from an applicant and a criminal history records check, provide for suspension or revocation of licenses, appeal from suspension or revocation, civil penalties and review of licensee records and allow adoption of regulations, effective June 30, 2005; June Sp. Sess. P.A. 09-3 amended Subsecs. (b), (c) and (e) to increase fees; pursuant to P.A. 11-51, “executive director of the Division of Special Revenue”, “executive director” and “division” were changed editorially by the Revisors to “Commissioner of Consumer Protection”, “commissioner” and “department”, respectively, effective July 1, 2011; P.A. 13-299 amended Subsec. (h)(2) to delete provision re appeal to Gaming Policy Board, effective July 1, 2013; P.A. 24-142 amended Subsec. (a) to add reference to “lottery sales agent” and licenses “in a form and manner prescribed by the commissioner and”, amended Subsec. (c) to add reference to contractor, added new Subsec. (f) re licensing as lottery sales agent, redesignated existing Subsec. (f) as Subsec. (g) and added provisions re lottery sales agent and person in charge, redesignated Subsec. (g) as Subsec. (h), added new Subsec. (i) re provisional authorization for occupational license applicant, added new Subsec. (j) re incidents involving the lottery gaming system, redesignated existing Subsec. (h) as Subsec. (k) and added reference to lottery sales agent in Subdiv. (1), redesignated Subsec. (i) as Subsec. (l), redesignated Subsec. (j) as Subsec. (m) and added reference to limited liability company, and redesignated existing Subsec. (k) as Subsec. (n), effective June 6, 2024; P.A. 25-113 added new Subsec. (c) re employment of delivery service, redesignated existing Subsecs. (c) to (e) as Subsecs. (d) to (f), amended redesignated Subsec. (f) by adding provision re form and manner of application, added new Subsec. (g) re applicants for Class III or Class IV occupational licenses and employees of corporation holding such licenses, redesignated existing Subsecs. (f) to (n) as Subsecs. (h) to (p), amended redesignated Subsec. (i) by deleting provision re rejection of application for good cause, substantially amended redesignated Subsec. (m)(1) re commissioner's enforcement authority, added “per violation” after “dollars” in redesignated Subsec. (m)(3), added Subsec. (m)(4) re unauthorized gambling device, illegitimate lottery ticket, illegal bookmaking equipment or professional gambling, amended redesignated Subsec. (n) by adding provision re requirement that books and records be provided to department and made technical and conforming changes in redesignated Subsecs. (f), (m)(1) and (n).
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