Ill. Admin. Code tit. 86 § 432.130

Current through Register Vol. 48, No. 43, October 25, 2024

Section 432.130 - Manufacturer's Licenses

a) Applications. Application for a manufacturer's license must be made on the form prescribed by the Department, and must be accompanied by a license fee of $5,000 in the form of a check or money order payable to the Illinois Department of Revenue, and by the following documents and information:

1) If the applicant is a corporation, a copy of the applicant's Articles of Incorporation and bylaws;

2) Any other information requested by the Department which is necessary to establish the applicant's eligibility for a manufacturer's license.

3) If, during a license year, any of the information provided to the Department by the licensee changes or becomes inaccurate, the licensee must notify the Department within 20 days, in writing, of any changes.

4) The application form shall include the following information:

A) Name of business

B) Place of business

C) Mailing address

D) Registration number (if registered under Retailer's Occupation Tax Act)

E) Ownership (specify individual, partnership, corporation, or other)

F) Date established

G) If foreign corporation, date qualified to do business in Illinois

H) If doing business under an assumed name, enter county and number of your Assumed Name Certificate

I) For each officer and director, enter name, title, address, social security number, date of birth, and race. (If partnership enter name and address of all partners)

J) Has any person not in the application herein, or if corporate applicant, any person not an officer, director or stockholder of such a corporation any interest, financial proprietary, or other, direct or indirect, in the business to be licensed, or has made any loan to the applicant, for said business (If so, set forth the names and addresses of such persons, the nature of the interest and the date acquired)

K) Has the applicant or any officer, director, partner, or employee of the applicant been convicted of a felony within the last 10 years, or convicted of a violation of Article 28 (gambling) of the Criminal Code of 1961?

L) Has the applicant of (if a partnership) any partner or (if a corporation) any of the officers, directors, or stockholders, or any employee thereof ever been a professional gambler?

M) Has the applicant or any officer, director, partner, or employee of the applicant ever had a pull tab, bingo, or charitable games license revoked by the Department?

N) Name and phone number of the person responsible for furnishing records and information about company

O) Signature of applicant, president and secretary

b) Licenses. If, after receipt of a completed application the Department determines that the applicant is not ineligible for a license for any of the reasons stated in Section 432.150, the Department will issue a manufacturer's license. The license authorizes the manufacturer to produce pull tabs for sale to suppliers licensed under the Act (see Section 432.140) . No other sales of pull tabs for delivery within Illinois, or to persons or organizations located in Illinois, are authorized.

1) Manufacturer's licenses are issued for a period of one year from the date of issue. If a manufacturer submits a license renewal application which the Department receives not more than 7 days after the expiration of the manufacturer's license, the manufacturer may continue to operate under its expired license until the Department approves or denies the renewal application. It is the Department's policy to send a renewal application to each manufacturer at least six weeks prior to the expiration of its license. However, failure to receive a renewal application does not relieve a manufacturer of its obligation to either renew its license in a timely manner, or to discontinue the sale of pull tabs if a timely application is not filed.

2) Manufacturer's licensees are requested to notify the Department immediately, in writing, whenever the licensee has knowledge of the sale of pull tabs in Illinois, or for delivery to persons or organizations who are located in Illinois, by unlicensed manufacturers or suppliers, or the sale of pull tabs in Illinois to the public by unlicensed organizations. The notification should be addressed to the Illinois Department of Revenue, Bingo and Charitable Games Unit, P.O. Box 19019, Springfield, Illinois 62794-9019. The Department will keep the source of any such notification strictly confidential.

c) Pull tab production standards. Having considered the minimum quality production standards for pull tabs adopted by the National Association of Gambling Regulatory Agencies and the National Association of Fundraising Ticket Manufacturers, the following production standards are hereby adopted for all pull tabs sold to regular and limited licensees:

1) Opacity. Concealed numbers or symbols must not be able to be viewed or winning numbers or symbols determined from the outside of the pull tab using a high intensity lamp of 500 watts or less. Protection shall be provided by using opaque paper stock or by use of an aluminum foil laminate;

2) Randomization. The deal must be assembled so that no placement of winners or losers exists that allows the possibility of prize manipulation; i.e. prior knowledge of which pull tabs are winning tickets;

3) Information printed on pull tabs. Every pull tab shall have printed on it at least the following information: The manufacturer's name or logo; the serial number assigned by the manufacturer and the supplier's name, both of which must be printed on the face (game information side) of break open tickets and must appear in plain view to the casual observer; and the number of winners, respective winning numbers or symbols, selling price of each ticket, and prize amounts (this information may be printed on a flare rather than on the pull tab). A supplier's name may be reasonably abbreviated, but initials alone are not sufficient unless they constitute the supplier's full name. A person or organization holding both a manufacturer's license and a supplier's license must include the supplier's license number on pull tabs which it manufactures and sells to regular licensees;

4) Specific requirements for break opens. In addition to the requirements of subsection (c)(3) above, the following information must be printed on each gaming ticket which falls into the category of break open: The name of the game, the manufacturer's form number, the selling price (not to exceed one dollar), and the prize amount (not to exceed $250). In addition, the back side of a break open ticket shall contain a series of perforated tabs marked "open here" (Section 5 of the Act);

5) Game construction. The pull tabs shall be designed, constructed, glued, and assembled in such a manner as to prevent the determination of a winning ticket without removing the tabs or otherwise uncovering the symbols or numbers as intended. Each ticket in a deal must bear the same serial number of at least five digits. There shall not be more than one serial number in a deal. A manufacturer may not use one deal's serial number on a second deal with the same form number unless at least three years have elapsed between the manufacture of the first and second deals. The break opens' numbers or symbols must be fully visible in the window, and shall be centered so that no part of a symbol or number remains covered when the tab is removed;

6) Cutting variations. It must not be possible to isolate winning or potential winning tickets from variations in size or the appearance of a cut edge of the pull tabs comprising a particular game;

7) Color or printing variations. It must not be possible to detect or pick out winning pull tabs from losing pull tabs through variations in printing graphics or colors, especially those involving different printing plates;

8) Winner protection. A unique symbol or printed security device, such as a specific number keyed to particular winners, or the name of the symbol or some of the symbol colors changed for a winner, or other similar protection shall be placed in the winning windows of prize winners. This does not apply to numeral games;

9) Packaging. Each deal's package shall be sealed by the manufacturer with a seal including a warning that the deal may have been tampered with if the package was received by the purchaser with the seal broken. A deal's serial number shall be clearly placed on the outside of the deal's package, or be able to be viewed from the outside of the package. No deal shall contain more than 4,000 tickets.

d) Records. Every manufacturer shall maintain a record, by serial and form number, of the disposition of every deal of pull tabs it produces. When provided by the Department with the serial and form number of a deal it has produced, a licensed manufacturer must be able to inform the Department of the name and address of the person or organization that received the deal. Manufacturers shall retain the record for each deal for a period of three years from the date the deal left the manufacturer's possession.

Ill. Admin. Code tit. 86, § 432.130