2006 New York Code - Disposition Of Revenues.



 
    §  1612.  Disposition of revenues. * a. The division shall pay into an
  account, to be known as the  lottery  prize  account,  under  the  joint
  custody  of  the comptroller and the commissioner, within one week after
  collection of sales receipts from a lottery game, such moneys  necessary
  for  the  payment  of  lottery  prizes  but  not to exceed the following
  percentages, plus interest earned thereon:
    (1) sixty percent of the total amount for which tickets have been sold
  for a lawful lottery game introduced on or after the effective  date  of
  this paragraph, subject to the following provisions:
    (A)  drawings  in such game shall be held during no more than thirteen
  hours each day, no more than eight hours of which shall be consecutive;
    (B) such game shall be available only on premises occupied by licensed
  lottery sales agents, subject to the following provisions:
    (i) if the licensee holds a license issued pursuant to  the  alcoholic
  beverage  control law to sell alcoholic beverages for consumption on the
  premises, then not less than twenty-five percent of the gross sales must
  result from sales of food;
    (ii) if the licensee does not hold a license issued  pursuant  to  the
  alcoholic   beverage   control  law  to  sell  alcoholic  beverages  for
  consumption on the premises, then  the  premises  must  have  a  minimum
  square footage greater than two thousand five hundred square feet;
    (iii)  notwithstanding  the foregoing provisions, television equipment
  that  automatically  displays  the  results  of  such  drawings  may  be
  installed and used without regard to the percentage of food sales or the
  square footage if such premises are used as:
    (I) a commercial bowling establishment, or
    (II)  a facility authorized under the racing, pari-mutuel wagering and
  breeding law to accept pari-mutuel wagers;
    (C) the rules for the operation of such game shall be as prescribed by
  regulations promulgated and adopted by the division,  provided  however,
  that such rules shall provide that no person under the age of twenty-one
  may  participate in such games on the premises of a licensee who holds a
  license issued pursuant to the alcoholic beverage control  law  to  sell
  alcoholic  beverages  for  consumption  on  the premises; and, provided,
  further, that such regulations may be revised on an emergency basis  not
  later than ninety days after the enactment of this paragraph in order to
  conform such regulations to the requirements of this paragraph; or
    (2) sixty-five percent of the total amount for which tickets have been
  sold  for  the  "Instant Cash" game in which the participant purchases a
  preprinted ticket on which dollar amounts or symbols  are  concealed  on
  the  face  or the back of such ticket, provided however up to three such
  games may be offered during the fiscal year, seventy-five percent of the
  total amount for which tickets have been sold for such  three  games  in
  which  the  participant  purchases  a  preprinted ticket on which dollar
  amounts or symbols are concealed on the face or the back of such ticket;
  or
    (3) fifty percent of the total amount for which tickets have been sold
  for games known as: (A) the "Daily Numbers Game" or  "Win  4",  discrete
  games  in  which  the  participants select no more than three or four of
  their own numbers to match with three  or  four  numbers  drawn  by  the
  division  for  purposes  of determining winners of such games, (B) "Pick
  10", offered no more than once daily, in which participants select  from
  a  specified field of numbers a subset of ten numbers to match against a
  subset of numbers to be drawn by the division from such field of numbers
  for the purpose of determining winners  of  such  game,  (C)  "Take  5",
  offered  no  more  than  once daily, in which participants select from a
  specified field of numbers a subset of five numbers to match  against  a
  subset  of  five  numbers to be drawn by the division from such field of
  numbers for purposes of determining winners of such game,  and  (D)  any
  joint, multi-jurisdiction, and out-of-state lottery; or
    (4) forty percent of the total amount for which tickets have been sold
  for:  (A)  "Lotto",  offered no more than once daily, a discrete game in
  which all participants select a specific subset of numbers  to  match  a
  specific  subset  of  numbers,  as  prescribed  by rules and regulations
  promulgated and adopted by the division, from a larger specific field of
  numbers, as also prescribed by such rules and regulations and  (B)  with
  the   exception   of  the  game  described  in  paragraph  one  of  this
  subdivision, such other state-operated lottery games which the  division
  may  introduce,  offered no more than once daily, commencing on or after
  forty-five days following the official  publication  of  the  rules  and
  regulations for such game.
    The  moneys  in  the  lottery  prize account shall be paid out of such
  account on  the  audit  and  warrant  of  the  comptroller  on  vouchers
  certified  or  approved  by  the  director or his or her duly designated
  official.
    Prize money derived from ticket sales receipts of  a  particular  game
  and  deposited  in  the  lottery  prize  account  in accordance with the
  percentages set forth above may be used to  pay  prizes  in  such  game.
  Balances in the lottery prize account identified by individual games may
  be carried over from one fiscal year to the next to ensure proper payout
  of games.
    * NB Effective until May 31, 2006
    * a.  The  division  shall  pay  into  an  account, to be known as the
  lottery prize account, under the joint custody of  the  comptroller  and
  the commissioner, within one week after a lottery prize drawing has been
  held, such moneys necessary for the payment of lottery prizes but not to
  exceed the following percentages, plus interest earned thereon:
    (1) sixty-five percent of the total amount for which tickets have been
  sold  for  the  "Instant Cash" game in which the participant purchases a
  preprinted ticket on which dollar amounts or symbols  are  concealed  on
  the  face  or the back of such ticket, provided however up to three such
  games may be offered during the fiscal year, seventy-five percent of the
  total amount for which tickets have been sold for such  three  games  in
  which  the  participant  purchases  a  preprinted ticket on which dollar
  amounts or symbols are concealed on the face or the back of such ticket;
  or
    (2) fifty percent of the total amount for which tickets have been sold
  for games known as: (A) the "Daily Numbers Game" or  "Win  4",  discrete
  games  in  which  the  participants select no more than three or four of
  their own numbers to match with three  or  four  numbers  drawn  by  the
  division for purposes of determining winners of such games and (B) "Pick
  10",  offered no more than once daily, in which participants select from
  a specified field of numbers a subset of ten numbers to match against  a
  subset of numbers to be drawn by the division from such field of numbers
  for  the  purpose  of  determining  winners  of such game, (C) "Take 5",
  offered no more than once daily, in which  participants  select  from  a
  specified  field  of numbers a subset of five numbers to match against a
  subset of five numbers to be drawn by the division from  such  field  of
  numbers  for  purposes  of determining winners of such game, and (D) any
  joint, multi-jurisdiction, and out-of-state lottery; or
    (3) forty percent of the total amount for which tickets have been sold
  for: (A) "Lotto", offered no more than once daily, a  discrete  game  in
  which  all  participants  select a specific subset of numbers to match a
  specific subset of numbers,  as  prescribed  by  rules  and  regulations
  promulgated and adopted by the division, from a larger specific field of
  numbers,  as  also prescribed by such rules and regulations and (B) such
  other state-operated lottery games which  the  division  may  introduce,
  offered  no more than once daily, commencing on or after forty-five days
  following the official publication of the rules and regulations for such
  game.
    The  moneys  in  the  lottery  prize account shall be paid out of such
  account on  the  audit  and  warrant  of  the  comptroller  on  vouchers
  certified  or  approved  by  the  director or his or her duly designated
  official.
    Prize money derived from ticket sales receipts of  a  particular  game
  and  deposited  in  the  lottery  prize  account  in accordance with the
  percentages set forth above may be used to  pay  prizes  in  such  game.
  Balances in the lottery prize account identified by individual games may
  be carried over from one fiscal year to the next to ensure proper payout
  of games.
    * NB Effective May 31, 2006
    b. Notwithstanding section one hundred twenty-one of the state finance
  law,  on  or  before the twentieth day of each month, the division shall
  pay into the state treasury, to the credit of  the  state  lottery  fund
  created  by section ninety-two-c of the state finance law, not less than
  forty-five percent of the total amount for which tickets have been  sold
  for  games  defined  in  paragraph four of subdivision a of this section
  during the preceding month, not less than  thirty-five  percent  of  the
  total  amount  for  which  tickets  have  been sold for games defined in
  paragraph three of subdivision a of this section  during  the  preceding
  month,  not  less  than  twenty  percent  of  the total amount for which
  tickets have been sold for games defined in paragraph two of subdivision
  a of this section during the preceding month, provided however that  for
  games  with  a  prize payout of seventy-five percent of the total amount
  for which tickets have been sold, the division shall pay not  less  than
  ten  percent  of  sales  into  the  state  treasury  and  not  less than
  twenty-five percent of the total amount for which tickets have been sold
  for games defined in paragraph one of  subdivision  a  of  this  section
  during  the  preceding  month and the balance of the total revenue after
  payout for prizes for games known as "video lottery  gaming,"  less  ten
  percent  of  the  total  revenue  wagered  after payout for prizes to be
  retained by the division for operation, administration, and  procurement
  purposes; less a vendor's fee to be paid to the track operator at a rate
  of  thirty-two  percent  for  the  first fifty million dollars annually,
  twenty-nine percent for the next hundred million dollars  annually,  and
  twenty-six percent thereafter of the total revenue wagered at the vendor
  track  after  payout  for  prizes pursuant to this chapter, which amount
  shall be paid to the operator of the racetrack for serving as a  lottery
  agent  under  this  pilot  program,  and  less  an  additional  vendor's
  marketing allowance at a rate of eight percent for the first one hundred
  million dollars annually  and  five  percent  thereafter  of  the  total
  revenue  wagered  at the vendor track after payout for prizes to be used
  by the vendor track for the marketing and promotion and associated costs
  of its video lottery gaming operations, consistent  with  the  customary
  manner of marketing comparable operations in the industry and subject to
  the  overall  supervision  of  the division; provided, however, that the
  additional vendor's marketing allowance shall not exceed four percent in
  any year for any operator of  a  racetrack  located  in  the  county  of
  Westchester  or  Queens.  In  establishing  the  lottery  agent fee, the
  division shall ensure the maximum lottery support  for  education  while
  also  ensuring  the  effective implementation of section sixteen hundred
  seventeen-a  of  this  article  through  the  provision  of   reasonable
  reimbursements  and  compensation  to vendor tracks for participation in
  such pilot program. Within  twenty  days  after  any  award  of  lottery
  prizes, the division shall pay into the state treasury, to the credit of
  the state lottery fund, the balance of all moneys received from the sale
  of  all  tickets  for  the  lottery  in  which  such prizes were awarded
  remaining  after provision for the payment of prizes as herein provided.
  Any revenues derived from the sale of  advertising  on  lottery  tickets
  shall be deposited in the state lottery fund.
    c. 1. The specifications for video lottery gaming shall be designed in
  such  a manner as to pay prizes that average no less than ninety percent
  of sales.
    2. Of the ten percent retained  by  the  division  for  administrative
  purposes,  any amounts beyond that which are necessary for the operation
  and administration of this pilot  program  shall  be  deposited  in  the
  lottery education account.
    d.  1.  Notwithstanding  any  law, rule or regulation to the contrary,
  fees paid by the New York Racing  Association,  Inc.  or  any  successor
  thereto  to an outside agent for the marketing, management and operation
  of  video  lottery  gaming  at  Aqueduct  racetrack  shall   be   deemed
  "associated costs" within the scope of the additional vendor's marketing
  allowance  described  in subdivision b of section sixteen hundred twelve
  of the tax law.
    2. Notwithstanding any law, rule or regulation to  the  contrary,  any
  successor  to  the New York Racing Association, Inc. with respect to the
  operation and maintenance of video lottery gaming at Aqueduct  racetrack
  shall  be  deemed the successor to the New York Racing Association, Inc.
  for purposes of being subject to existing contracts and loan agreements,
  if any, entered into by the New York Racing Association,  Inc.  directly
  related  to  the construction, operation, management and distribution of
  revenues of the video lottery gaming facility at Aqueduct racetrack.

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