565.02(8)(b)
(b) Monitor the regulatory compliance of gaming operations under this chapter.
565.02(8)(c)
(c) Audit the gaming operations under this chapter.
565.02(8)(d)
(d) Investigate suspected violations of this chapter.
565.02(8)(e)
(e) Report suspected gaming-related criminal activity to the division of criminal investigation in the department of justice for investigation by that division.
565.02(8)(f)
(f) If the division of criminal investigation in the department of justice chooses not to investigate a report under
par. (e), coordinate an investigation of the suspected criminal activity with local law enforcement officials and district attorneys.
565.05
565.05
Conflicts of interest. 565.05(1)
(1) No employee in the lottery division of the department or the executive assistant or the secretary or deputy secretary of revenue may do any of the following:
565.05(1)(a)
(a) Have a direct or indirect interest in, or be employed by, any vendor while serving as an employee in the lottery division of the department or as the executive assistant or as secretary or deputy secretary of revenue or for 2 years following the person's termination of service.
565.05(1)(b)
(b) Have a direct or indirect interest in or be employed by a business which has entered into a retailer contract under
s. 565.10.
565.05(1)(d)
(d) Accept or agree to accept money or any other thing of value from any vendor, retailer or person who has submitted a bid, proposal or application to be a vendor or retailer.
565.05(2)
(2) A vendor selected to provide management consultation services described under
s. 565.01 (4c) (a) or
(b) may not do any of the following:
565.05(2)(a)
(a) Submit a bid or competitive sealed proposal with respect to those goods or services.
565.05(2)(b)
(b) Have any ownership interest in or any partners, members or shareholders who have any ownership interest in any vendor that is under contract to supply or that submits a bid or competitive sealed proposal to supply those goods or services.
565.10
565.10
Retailer contract. 565.10(1)(1)
Selection of retailers; retailer contract. Under rules promulgated by the department under
s. 565.02 (3) (b) and
(4) (a), the administrator may contract with a person for the retail sale of lottery tickets or lottery shares. Retailers shall be selected for contract so as to provide adequate and convenient availability of lottery tickets and lottery shares to prospective buyers.
565.10(2)
(2) Age restriction. No lottery retailer contract may be entered into with any person under 18 years of age. If the retailer is a partnership, this subsection applies to each partner of the partnership. If the retailer is a limited liability company, this subsection applies to each member of the limited liability company. If the retailer is an association or a corporation, this subsection applies to each officer and director of the association or corporation.
565.10(3)
(3) Felony and other violations restriction; delinquent taxes and contributions restriction. 565.10(3)(a)(a) Notwithstanding
s. 111.321, no lottery retailer contract may be entered into with a person if, during the immediately preceding 10 years, the person has been convicted of, or entered a plea of guilty or no contest to, any of the following, unless the person has been pardoned:
565.10(3)(a)4.
4. A violation of this chapter or any rule promulgated under this chapter.
565.10(3)(b)
(b) No lottery retailer contract may be entered into with a person who has been finally adjudged to be delinquent in the payment of taxes under
ch. 71,
72,
76,
77,
78 or
139 or who has been found delinquent in the payment of contributions to the unemployment reserve fund under
s. 108.16 in a proceeding under
s. 108.10 if the person remains delinquent in the payment of those taxes or contributions at the time the person seeks to enter into the lottery retailer contract.
565.10(3)(c)1.1. Except as provided in
subd. 4., if the retailer is a partnership,
pars. (a) and
(b) apply to the partnership and each partner of the partnership.
565.10(3)(c)1L.
1L. Except as provided in
subd. 4., if the retailer is a limited liability company,
pars. (a) and
(b) apply to the limited liability company and to each of its members.
565.10(3)(c)2.
2. Except as provided in
subd. 4., if the retailer is an association,
pars. (a) and
(b) apply to the association and each officer and director of the association.
565.10(3)(c)3.
3. Except as provided in
subd. 4., if the retailer is a corporation,
pars. (a) and
(b) apply to the corporation, each officer or director of the corporation and each owner, directly or indirectly, of any equity security or other ownership interest in the corporation. In the case of owners of publicly held securities of a publicly traded corporation,
pars. (a) and
(b) apply only to those persons who are beneficial owners of 5% or more of the publicly held securities.
565.10(3)(c)4.
4. The restrictions under
par. (a) do not apply to the partnership, limited liability company, association or corporation if the department determines that the partnership, limited liability company, association or corporation has terminated its relationship with the partner, member, officer, director or owner who was convicted or entered the plea or with the partner, member, officer, director, owner or other individual whose actions directly contributed to the partnership's, limited liability company's, association's or corporation's conviction or entry of plea.
565.10(3m)
(3m) False statement or material omission. No retailer or person seeking a contract under this section may intentionally make a false statement or material omission in any disclosure statement required to obtain, retain or renew a retailer contract.
565.10(4)
(4) Exclusive business restriction. No lottery retailer contract may be entered into with any person who is engaged in business exclusively as a lottery ticket or lottery share retailer unless one of the following is true:
565.10(4)(a)
(a) The retailer contract is a temporary retailer contract.
565.10(4)(b)
(b) Subject to approval of each such retailer contract by the department, the retailer contract is with one of the following:
565.10(4)(b)1.
1. An individual who has a physical or mental disability which constitutes or results in a substantial handicap to his or her employment.
565.10(4)(b)2.
2. A group of individuals who have physical or mental disabilities which constitute or result in substantial handicaps to their employment.
565.10(4)(b)3.
3. A nonprofit organization, as defined in
s. 108.02 (19), whose primary purpose is to provide service to or for individuals who have physical or mental disabilities which constitute or result in substantial handicaps to their employment.
565.10(5)
(5) State agencies; government property. 565.10(5)(a)(a) In entering into a lottery retailer contract with state agencies, other than the department, and agencies of local units of government, the administrator shall attempt to minimize the competitive effect of sales by the state or local agencies on other retailers. An application for a retailer contract by a local unit of government shall be approved by the governing body of the local unit of government.
565.10(5)(b)
(b) A lottery retailer contract may be entered into with a private person operating activities on state or local government property. The department shall give preference to an individual, group of individuals or nonprofit organization, as specified under
sub. (4) (b), in entering into contracts under this paragraph.
565.10(7)
(7) Length and sales authorization of contract. 565.10(7)(a)(a) Except as provided in
par. (b), a lottery retailer contract shall be for a period of 3 years and shall specify whether the retailer is authorized to conduct lottery ticket sales on a year-round, seasonal or temporary basis.
565.10(7)(b)
(b) The administrator may, under rules promulgated by the department, contract for a period that is shorter than 3 years in order to stagger lottery retailer contract expiration dates throughout a 3-year period.
565.10(8)
(8) Contract fees. A contract entered into under this section may require payment of a nonrefundable initial application fee or a nonrefundable annual fee for continuation, or both, in an amount promulgated by the department by rule under
s. 565.02 (4) (b). A separate nonrefundable fee, in an amount specified in rules promulgated under
s. 565.02 (4) (b), may be required for each certificate of authority issued under
sub. (11).
565.10(8m)
(8m) Payment to department or contractor. Payment by a retailer to the department or to any contractor for lottery tickets or lottery shares shall be by check, bank draft, electronic fund transfer or other recorded means, as determined by the administrator. No payment under this subsection may be in cash.
565.10(9)
(9) Contract not assignable or transferable. A lottery retailer contract may not be assigned or transferred from one person or location to another.
565.10(10)
(10) Location of sales. A retailer may sell lottery tickets or lottery shares only at locations specified in the contract entered into under this section.
565.10(11)
(11) Certificate of authority; required display. The department shall issue to each retailer a separate certificate of authority for each location from which the retailer may sell lottery tickets or lottery shares. Each retailer shall conspicuously display the certificate of authority on the premises where retail sales of lottery tickets or lottery shares are authorized under the certificate in a location which is accessible for public inspection.
565.10(12)
(12) Certificate of authority not assignable or transferable. A certificate of authority may not be assigned or transferred from one person or location to another.
565.10(13)
(13) Bond. The department may by rule under
s. 565.02 (4) (d) require fidelity bonds from retailers. In lieu of a bond, the department may purchase blanket bonds covering all or selected retailers or may allow a retailer to deposit and maintain with the department interest-bearing or interest-accruing securities approved by the department. Such securities shall be held in trust by the department and shall have at all times a market value at least equal to the amount required by the department.
565.10(14)(a)(a) In this subsection, "nonprofit organization" means a religious, charitable, service, fraternal or veterans' organization or any organization, other than the state or a political subdivision of the state, to which contributions are deductible for federal income tax purposes or state income or franchise tax purposes, which meets all of the following criteria:
565.10(14)(a)1.
1. Is incorporated in this state as a nonprofit corporation or organized in this state as a religious or nonprofit organization.
565.10(14)(a)2.
2. Has been in existence for at least 3 years immediately preceding its application for a contract under this subsection.
565.10(14)(a)4.
4. Operates without profit to its members and no part of the net earnings of the organization inure to the benefit of any private shareholder or individual.
565.10(14)(a)5.
5. Conducts activities within this state in addition to selling lottery tickets or lottery shares.
565.10(14)(b)1.1. The basic compensation to be paid to a retailer for the sale of a lottery ticket or lottery share described under
s. 565.01 (6m) (a) 2. is 5.5% of the retail price of lottery tickets or lottery shares sold by the retailer.
565.10(14)(b)2.
2. The basic compensation to be paid to a retailer for the sale of a lottery ticket or lottery share described under
s. 565.01 (6m) (a) 1. is 6.25% [6.5%] of the retail price of lottery tickets or lottery shares sold by the retailer.
565.10 Note
NOTE: The bracketed language was erroneously marked as partially vetoed in
1997 Wis. Act 27, section
4759. Section 4759, the treatment of s. 560.10 (14) (b), was not listed as partially vetoed in the Governor's Veto Message and the veto message made no mention of the subject matter of section 4759. See also, 70 Atty Gen. 189 and State ex rel. Klezcka v. Conta,
82 Wis. 2d 679,
264 N.W.2d 539 (1978).
565.10(14)(b)3m.
3m. The department may, in rules promulgated under
s. 565.02 (4) (g), provide for additional compensation, above the compensation provided under
subd. 1. or
2., to be paid to retailers who meet certain performance goals identified by the department.
565.10(14)(b)4.
4. The department may, in the rules promulgated under
s. 565.02 (4) (f), provide for the payment of a higher rate of compensation to nonprofit organizations making sales under a contract issued on a temporary basis than the rate of compensation paid to other retailers.
565.10(15)
(15) Remitting proceeds. A retailer shall, on a daily basis, unless another basis, but not less than weekly, is provided by the department by rule, remit to the department the lottery proceeds from the sale of lottery tickets or lottery shares. The amount of compensation deducted by the retailer, if any, shall be indicated as a deduction from the total remitted.
565.10 Cross-reference
Cross Reference: See also chs.
Tax 61 and
63, Wis. adm. code.
565.12
565.12
Retailer contract termination or suspension. 565.12(1)(1) A lottery retailer contract entered into under
s. 565.10 may be terminated or suspended for a specified period if the department finds that the retailer has done any of the following:
565.12(1)(a)
(a) Violated this chapter or any rule promulgated under this chapter.
565.12(1)(b)
(b) Failed to meet any of the qualifications for being a retailer under
s. 565.10 or rules promulgated under
s. 565.02 (3) (b) or as specified by contract.
565.12(1)(d)
(d) Engaged in fraud, deceit, misrepresentation or other conduct prejudicial to public confidence in the lottery.
565.12(1)(e)
(e) Failed to account accurately for lottery tickets, revenues or prizes or lottery shares, as required by the department, or is delinquent in remitting lottery ticket or lottery share revenues.
565.12(1)(f)
(f) Performed any action constituting a reason for termination or suspension as specified in the contract, which shall include the following:
565.12(1)(f)1.
1. The intentional sale of lottery tickets or lottery shares to any person under the age of 18.
565.12(1)(f)2.
2. A violation of this chapter or any rule promulgated under this chapter.
565.12(2)
(2) If the administrator determines that the immediate suspension or termination of a lottery retailer contract entered into under
s. 565.10 is necessary to protect the public interest or the security, integrity or fiscal responsibility of the lottery, the administrator may, without prior notice or hearing, suspend for a specified period or terminate the lottery retailer contract by mailing to the retailer a notice of suspension or termination that includes a statement of the facts or conduct that warrant the suspension or termination and a notice that the retailer may, within 30 days after the date on which the notice of suspension or termination is mailed, have the suspension or termination reconsidered by the administrator. If, upon reconsideration, the administrator affirms the determination to suspend or terminate the lottery retailer contract, the retailer shall be afforded an opportunity for a hearing before the department to review the determination of the administrator.
565.12(3)
(3) The department shall render the final decisions under
s. 227.47 for all terminations and suspensions under
subs. (1) and
(2).
565.15
565.15
Department retail outlet. The department may establish and operate a lottery ticket or lottery share retail sales outlet or sell lottery tickets or lottery shares to the public at a special event. In considering whether to engage in direct retail sales, the department shall attempt to minimize the competitive effects of its sales on sales by other retailers.
565.17
565.17
Limitations on ticket and share sales and purchases. 565.17(1)(1)
Who may sell. Lottery tickets or lottery shares may not be sold by any person other than a retailer or the department.
565.17(2)
(2) Price. No person may sell lottery tickets or lottery shares at a price other than the retail sales price established by the administrator under
s. 565.27 (1) (b), except to the extent of any discount authorized by the administrator or the department.
565.17(3)
(3) Cash sales. Lottery tickets or lottery shares may be sold only for cash.
565.17(4)(a)(a) A person under 18 years of age may not purchase a lottery ticket or lottery share. This paragraph does not prohibit a person 18 years of age or older from giving a lottery ticket or lottery share to a person under 18 years of age.
565.17(4)(b)
(b) No person may sell a lottery ticket or lottery share to a person under 18 years of age or to any other person knowing that the lottery ticket or lottery share is being purchased for a person under 18 years of age other than as a gift.
