By: Mansoor Ansari
Lottery License and Sales Tax Compliance
If you are behind on your sales tax payment plan or even filing returns, your lottery license can be revoked by the state of Illinois. You will be afforded an opportunity to have your case heard at the IDOR, simply for the reason that you are losing an interest in a license – a means that helps you earn money.
All Illinois licenses (e.g., Lottery, Liquor) are subject to compliance with the state. If you are not compliant (sales tax returns filed and paid), you will eventually face revocation of your sales tax certificate and/or lottery license. Contact our firm if you are facing trouble with the IDOR.
By: Mansoor Ansari J.D., LL.M. (TAX)
Phone: (888) 577-1482
Title 11: Alcohol, Horse Racing, and Lottery
Subtitle C: Lottery
Chapter II: Department of the Lottery
Part 1770 Lottery (General)
Section 1770.90 Delinquent Financial Obligations
a) Financial Obligations
It is the obligation of each Lottery sales agent to remain current on his or her financial obligations to the Department. Lottery accounts are due and owing, in full, each Wednesday, unless the sales agent has been notified by the Department of an alternate settlement day due to a bank holiday or other business disruption. Accounts not settled on the designated settlement day shall be deemed delinquent.
b) Sanctions for Delinquent Accounts
The Department will apply sanctions with respect to delinquent licensed sales agent accounts, according to the following schedule of sanctions:
1) First Delinquency
- If the delinquency is the first within the past 12 months:
- Payment must be delivered to one of the Department’s regional offices or wire transferred by:
- 4:00 p.m. next business day if reported before noon
- 10:00 a.m. second business day if reported after noon
- Payment must be delivered to one of the Department’s regional offices or wire transferred by:
- If paid on time:
- Only charged with one delinquency, no further sanction
- If not paid on time:
- Terminal(s) will be immediately deactivated
- Account referred to accounts receivable staff or regional office
- Reactivation only after review by the Department’s Chief Financial Officer (CFO) or designee
2) Second Delinquency
- If the delinquency is the second in the past 12 months:
- Terminal(s) will be immediately deactivated
- Reactivation occurs after payment unless:
- Second incident occurs within one month of the first
- Payment was made after the extended deadline
- In such cases:
- Reactivation only after CFO review
- Factors considered:
- History of delinquencies
- Financial status (e.g., credit report)
- Ability to provide security deposit, letter of credit, or bond
- Other relevant information
3) Subsequent Delinquencies
- If delinquency is:
- The second within 30 days
- Or the third or more in the past 12 months:
- Terminal(s) immediately deactivated
- Reactivation only after payment and CFO review
- Considerations same as above
c) License Suspension or Revocation
The Department may suspend or revoke a license at any stage after review if the Superintendent determines it is in the Lottery’s best interest. Evaluation includes:
- Review of delinquency circumstances
- Past delinquency history
- Determination between incidental errors and financial instability
d) Agent’s Responsibility
It is the agent’s responsibility to ensure all payments are properly prepared and submitted. Improper preparation is not a valid excuse for nonpayment.
e) Continued Liability
Deactivation, terminal removal, or license suspension/revocation does not relieve the agent of any financial obligations owed to the Department.
(Source: Amended at 36 Ill. Reg. 14356, effective September 14, 2012)