LTR-03-07-00003-E Raffle to Riches Promotional Game

1/17/07 N.Y. St. Reg. LTR-03-07-00003-E

NEW YORK STATE REGISTER

VOLUME XXIX, ISSUE 3

January 17, 2007

RULE MAKING ACTIVITIES

DIVISION OF THE LOTTERY

EMERGENCY RULE MAKING

 

I.D No. LTR-03-07-00003-E

Filing No. 1594

Filing Date. Dec. 28, 2006

Effective Date. Dec. 28, 2006

Raffle to Riches Promotional Game

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:

Action taken:

Addition of Part 2837 to Title 21 NYCRR.

Statutory authority:

Tax Law, section 1604(a)

Finding of necessity for emergency rule:

Preservation of general welfare.

Specific reasons underlying the finding of necessity:

The New York Lottery will be conducting New York's Raffle to Riches promotional game. Game sales are scheduled to commence on or about January 17, 2007, thereby leaving insufficient time for the normal rule making process under SAPA section 202 to be completed. This game is necessary to assist the lottery in reaching its projected revenue target for this fiscal year. This promotional game is intended to improve somewhat slow revenues and will provide needed aid to education by the end of this fiscal year.

Subject:

Raffle to Riches promotional game.

Purpose:

To add New York's Raffle to Riches promotional game to current New York Lottery regulations.

Text of emergency rule:

PART 2837

NEW YORK LOTTERY

NEW YORK'S RAFFLE TO RICHES GAME

Section 2837.1 Definitions. The following definitions apply to New York's Raffle to Riches game.

(a) “Bet ticket” means the ticket generated by the computer terminal containing at a minimum a unique multiple-digit number constituting a single play or chance, the drawing date and validation data. Consecutively numbered on-line tickets will be sold through computer terminals. Players purchasing more than one bet ticket may not receive consecutively numbered tickets.

(b) “Computer terminal” means the device at the on-line retailer location authorized by the Lottery for the placing of game bets.

(c) “Director” means the director of the New York State Lottery or any other person to whom the director's authority is lawfully delegated.

(d) “Draw date” means the date determined by the director on which the process used to randomly select the winning game numbers takes place for the game.

(e) “Drawing” means the formal process which is used to randomly select the winning numbers for the game.

(f) “Game” means New York's Raffle to Riches Game which is a Lottery game where a player purchases number(s) generated by the Lottery's on-line gaming computer system.

(g) “Gross sales” means the value of the tickets eligible for the game.

(h) “Lottery” or “State Lottery” means the New York State Division of the Lottery operated pursuant to Article 34 of the Tax Law.

(i) “Lottery rules and regulations” means the rules and regulations currently in force as adopted by the Lottery.

(j) “Manual entry” means the capability of the computer terminal operator to enter the amount of dollars wagered by a player for the game into the terminal in response to verbal or written communication by the player. There is no other method of play at the terminal for the game.

(k) “New York's Raffle to Riches” means a game played at any on-line retailer location(s) by purchasing a ticket which will be sold for a limited sales period, and in which a maximum designated number of chances or plays will be offered, and the winning chances or plays will be selected from only those chances or plays eligible.

(l) “On-line retailer” means a person licensed to sell Lottery tickets, pursuant to Part 2801 of this Title.

(m) “Prize pool” means those funds available from the game sales or other sources to support the payment of prizes for the game.

(n) “Sales period” means the period of time starting from the initial sales date of the game tickets as specified by the director and ending on the date when all available numbers have been sold or a date specified by the director.

(o) “Ticket” means New York's Raffle to Riches game ticket produced by the Lottery and sold by a licensed retailer in an authorized manner containing at a minimum a unique nine digit number constituting a single play or chance, the drawing date and validation data. Raffle numbers are issued in sequence starting at X00000000 and continuing in single digit increments until all possible game numbers are distributed.

2837.2 Drawing. (a) Winning game numbers are the numbers randomly selected by the Lottery at a drawing which entitle the legitimate ticket holder to a prize. Such winning numbers shall be (i) randomly selected in accordance with existing Lottery draw procedures and (ii) announced publicly.

(b) The game drawing shall be conducted on or about a date which shall be determined by the director.

2837.3 Calculation and payment of prizes. (a) Prizes levels and amounts for the game shall be determined by the director prior to the sales period.

(b) The holder of a winning bet ticket shall only win one prize per winning number.

(c) The payment of prizes to persons under 18 years of age and to those who are known to have died before receiving any or all of the particular prize shall be paid as prescribed in Lottery rules and regulations as set forth in Part 2803 of this Title.

2837.4 Withholding. Federal, State and local withholding taxes shall be withheld by the Lottery from prize payments in such amounts as may be required in accordance with the applicable provisions of law.

2837.5 Procedures for claiming a prize. (a) All prizes must be claimed within one year of the drawing date. All prize claims must be made by surrendering the winning ticket, together with a completed prize claim form, to the Lottery in person at a Lottery office or by mail, addressed to: New York Lottery, Post Office Box 7533, Schenectady, NY 12301-7533.

(b) A bet ticket is deemed to be a bearer instrument. Neither the New York State Lottery nor its contractors shall be responsible for lost or stolen bet tickets, nor for alleged winning tickets thrown away by mistake.

2837.6 Disputes. In the event a dispute occurs between the Lottery and/or its contractors and the player as to whether a ticket is a winning ticket, and if the ticket prize is not paid, the director may, at his or her discretion, refund the entry cost of the wager placed by the player on that ticket. This shall be the sole and exclusive remedy of the player.

2837.7 Ticket sales. (a) No person shall sell a bet ticket at a price greater than that fixed by this Part.

(b) No person other than a licensed Lottery retailer shall sell a bet ticket.

(c) The price for a Raffle to Riches bet shall be determined by the director prior to the sales period.

(d) Each number shall constitute a single play or chance.

(e) A player shall not select specific game numbers. Numbers shall be generated in consecutive numerical order based on instruction from the on-line gaming central system with the next consecutive number. Players shall only be entitled to the next available game number(s) when purchasing a ticket.

2837.8 Prize funds. Any funds in the Lottery prize account may be utilized to support the prize structure of the game in relation to the prize pool.

2837.9 Determination of winning ticket prizes, chances of winning, allocation of winning prize pool. For the game, the number of tickets sold shall be limited as prescribed by the director prior to the sales period. Winning numbers shall be randomly selected and announced publicly. A game number can only be selected once during the draw. Any bet ticket having a match with the winning number shall be entitled to the prize for which the number was drawn. Prize categories and amounts shall be determined by the director prior to the sales period.

2837.10 Miscellaneous. (a) Where one person submits a ticket as agent or nominee for another person or persons, the Lottery shall not be deemed to have any knowledge of such transaction, and all dealings of the Lottery will be conducted solely with the bearer of the ticket.

(b) No claimant will be considered eligible to receive a prize without presentation of a valid winning bet ticket.

(c) The Lottery reserves the right to change the prize structures, frequency of draws, draw dates, or the games themselves.

(d) If, for any reason, an on-line bet ticket is not entirely legible or is misprinted or altered in any way, then the on-line computer record created at the time of sale will be the sole method of determining whether such ticket is a valid winning ticket.

(e) When any question shall arise as to the validity of a Lottery drawing for any reason whatsoever, the director shall make the determination as to the validity of said drawing on the basis of the information at his or her disposal. The director's determination shall be final.

(f) Bet tickets for the game may not be cancelled once issued by the computer terminal. However, the retailer may receive credit for any unreadable bet ticket issued, as these tickets (although unreadable) are recorded on the computer file as valid bets. A request for credit must be postmarked before the draw date to receive credit for any such unreadable bet ticket.

This notice is intended

to serve only as a notice of emergency adoption. This agency intends to adopt this emergency rule as a permanent rule and will publish a notice of proposed rule making in the State Register at some future date. The emergency rule will expire March 27, 2007.

Text of emergency rule and any required statements and analyses may be obtained from:

Julie B. Silverstein Barker, Acting General Counsel, Division of the Lottery, One Broadway Center, P.O. Box 7500, Schenectady, NY 12301-7500, [phone], e-mail:[e-mail]

Regulatory Impact Statement

1. Statutory authority: Pursuant to the authority conferred in New York State Tax Law, Section 1604[a] and the Official Compilation of Codes, Rules and Regulations of the State of New York, Title 21, Chapter XLIV, Section 2804.6, the following official game rules shall take effect and shall remain in full force and effect throughout the New York Lottery's Raffle to Riches promotional game.

2. Legislative objectives: The purpose of operating Lottery games is to generate revenue for the support of education in the State. Amendment of these regulations forwards the mission of the New York State Lottery to generate revenue for education.

3. Needs and benefits: The New York Lottery has sustained competitive pressure from large jackpot lottery games in adjoining states. New Yorkers routinely travel outside the state to participate in those games. The New York Lottery's Raffle to Riches promotional game allows the New York Lottery to continue its effort to keep and enlarge its market share of players (from within New York State and those visiting New York State from other states) who participate in large jackpot lottery games. The New York Lottery's Raffle to Riches promotional game is anticipated to bring in more than $13.5 million in revenue to benefit education in the State.

4. Costs:

a. Costs to regulated parties for the implementation and continuing compliance with the rule: None.

b. Costs to the agency, the State, and local governments for the implementation and continuation of the rule: No additional operating costs are anticipated, since funds originally appropriated for the expenses of operating the existing lottery games are expected to be sufficient to support this new game.

c. Sources of cost evaluations: The foregoing cost evaluations are based on the New York State Lottery's experience in operating State Lottery games for more than 30 years.

5. Local government mandates: None.

6. Paperwork: There are no changes in paperwork requirements. New game brochures will be issued by the New York State Lottery for public convenience at retailer locations free of charge.

7. Duplication: None.

8. Alternatives: The alternative to adding New York Lottery's Raffle to Riches promotional game is not to proceed and forfeit the investment already made by the New York State Lottery for the game. The failure to proceed will also result in lost revenue to education that is anticipated to be earned.

9. Federal standards: None.

10. Compliance schedule: None.

Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

The proposal does not require a Regulatory Flexibility Statement, Rural Flexibility Statement or Job Impact Statement. There will be no adverse impact on jobs, rural areas, small business or local governments.