PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Addition of section 5007.14; and amendment of sections 5007.1, 5007.2 and 5007.7 of Title 9 NYCRR.
Statutory authority:
Racing and Pari-Mutuel Wagering and Breeding Law, section 104; and Tax Law, sections 1601, 1604, 1612 and 1617
Subject:
Mega Millions and Raffle Games.
Purpose:
To provide for a Mega Millions game matrix change and raffle game.
Text of proposed rule:
Subdivision (b) of Section 5007.1 is amended as follows:
§ 5007.1. Mega Millions purpose.
(b) During each Mega Millions drawing, [6] six Mega Millions Winning Numbers will be selected from [2] two fields of numbers in the following manner: [5] five winning numbers from a field of [1] one through [56] 75 numbers, and [1] one winning number from a field of [1] one through [46] 15 numbers.
Paragraphs (2), (8), and (11) of Subdivision (a) of Section 5007.2 are amended to read as follows:
§ 5007.2. Mega Millions definitions.
(a) The following definitions shall apply to Mega Millions.
(2) Annuity Option[.] is [The] the manner in which the Mega Millions Jackpot Prize may be paid in [26] 30 annual installments.
(8) Mega Millions Play Area[, For] is, for the on-line Mega Millions game, the [areas] area on a Mega Millions play slip identified by an alpha character, A through E, containing two separate fields—one field of [56] 75 and a second field of [46] 15—both containing [one or two] one- or two-digit numbers each. This is the area where the player, or computer if the player is using the Quick Pick option, will select five [(5) one] one- or two-digit numbers from the first field[,] and will select one [(1) one] one- or two-digit numbers from the second field.
(11) Mega Millions Winning Numbers[. For] are, for the on-line Mega Millions game, five [(5) one] one- or two-digit numbers, from one [(1)] through [fifty-six (56)] 75 and one [(1) one] one- or two-digit number from one [(1)] through [forty-six (46)] 15, randomly selected at each Mega Millions drawing, which shall be used to determine winning Mega Millions plays contained on Mega Millions tickets.
Subdivision (a), clause (i) of subparagraph (4) of subdivision (b) and subdivision (c) of section 5007.7 are amended to read as follows:
§ 5007.7. Prize structure.
(a) For the [on-line] Mega Millions game—Matrix of 5/[56] 75 and 1/[46] 15 with 50 Percent Anticipated Prize Fund.
[Match
Match
Odds
Prize
Percentage of]
[Field 1
Field 2
Category
Prize Fund]
[5
1
1:175,711,536.00
Grand
63.60 percent]
[5
0
1:3,904,700.80
Second
12.80 percent]
[4
1
1:689,064.85
Third
2.90 percent]
[4
0
1:15,312.55
Fourth
1.96 percent]
[3
1
1:13,781.30
Fifth
2.18 percent]
[2
1
1:843.75
Sixth
2.38 percent]
[3
0
1:306.25
Seventh
4.58 percent]
[1
1
1:140.63
Eighth
4.26 percent]
[0
1
1:74.80
Ninth
5.34 percent]
[Reserve]
[0 percent]
[Totals]
[1:39.89]
[100 percent]
Match Field 1
Match Field 2
Odds
% of
1 in
Prize
Sales
Level
5
1
258,890,850
JACKPOT
32.577%
1
5
0
18,492,204
$1,000,000
5.408%
2
4
1
739,688
$5,000
0.676%
3
4
0
52,835
$500
0.946%
4
3
1
10,720
$50
0.466%
5
3
0
766
$5
0.653%
6
2
1
473
$5
1.057%
7
1
1
56
$2
3.542%
8
0
1
21
$1
4.675%
9
Total
14.71
50.000%
(b) Jackpot prize payments. For the Mega Millions game:
(4) (i) Annuity option jackpot prizes shall be paid through a 30-year graduated annuity (five percent escalation per payment) in [26] 30 consecutive annual installments. The initial payment shall be paid upon completion of internal validation procedures. The subsequent [25] 29 payments shall be paid annually to coincide with the month of the federal auction date at which the bonds were purchased to fund the Annuity. All such payments shall be made within seven days of the anniversary of the annual auction date.
(c) Second- through ninth-level prizes.
(1) Mega Millions Panels matching five [(5)] of the five [(5)] Mega Millions Winning Numbers drawn for Field 1, but not matching the Mega Millions Winning Number drawn for Field 2, shall be entitled to receive a [Second Prize] second prize of $[250,000] 1,000,000.
(2) Mega Millions panels matching four [(4)] of the five [(5)] Mega Millions Winning Numbers drawn for Field 1 and the Mega Millions Winning Number drawn for Field 2 shall be entitled to receive a [Third] third prize of $[10,000] 5,000.
(3) Mega Millions panels matching four [(4)] of the five [(5)] Mega Millions Winning Numbers drawn for Field 1 but not matching the Mega Millions Winning Number drawn for Field 2 shall be entitled to receive a fourth prize of $[150] 500.
(4) Mega Millions panels matching three [(3)] of the five [(5)] Mega Millions Winning Numbers drawn for Field 1 and the Mega Millions winning Number drawn for Field 2 shall be entitled to receive a fifth prize of $[150] 50.
(5) Mega Millions panels matching [two] three of the five Mega Millions Winning Numbers drawn for Field 1 [and] but not matching the Mega Millions winning Number drawn for Field 2 shall be entitled to receive a sixth prize of $[10] 5.
(6) Mega Millions Panels matching [three (3)] two of the five [(5)] Mega Millions winning numbers drawn for Field 1 [but not matching] and the Mega Millions winning number drawn for Field 2 shall be entitled to receive a [Seventh] seventh prize of $[7] 5.
(7) Mega Millions panels matching one of the five Mega Millions winning numbers drawn for field 1 and the Mega Millions winning number drawn for field 2 shall be entitled to receive an eighth prize of $[3] 2.
(8) Mega Millions Panels matching no numbers of the five Mega Millions winning numbers drawn for field 1 but matching the Mega Millions winning number drawn for field 2 shall be entitled to receive a ninth prize of $[2] 1.
Section 5007.14 is added to read as follows:
§ 5007.14, Raffle Game definitions.
(a) The following definitions shall apply to a Raffle Game:
(1) 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.
(2) Commission means the New York State Gaming Commission established pursuant to Article 1 of the Racing, Pari-Mutuel Wagering and Breeding Law.
(3) Computer terminal means the device at the sales agent location authorized by the Gaming Commission for the placing of game bets.
(4) Draw date means the date determined by the commission on which the process used to randomly select the winning game numbers takes place for the game.
(5) Game means a Raffle Game, which is a Lottery game in which a player purchases a number or numbers generated by the Lottery’s gaming computer system.
(6) Gross sales means the value of the tickets eligible for the game.
(7) Lottery or State Lottery means the New York State Division of Lottery established and operated pursuant to Article 34 of the Tax Law and Article 1 of the Racing, Pari-Mutuel Wagering and Breeding Law.
(8) 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.
(9) Raffle Game means a game played at any sales agent location by purchasing a ticket that will be sold for a limited sales period, in which a number of chances or plays will be offered.
(10) Prize pool means those funds available from the game sales or other sources to support the payment of prizes for the game.
(11) Sales period means a period of time starting from the initial sales date of the game tickets as specified by the Director and ending.
(i) on the date when all available numbers for such Raffle Game sales period have been sold, or
(ii) a date specified by the Director.
(12) Ticket means a Raffle Game ticket produced by the Lottery and sold by a licensed sales agent 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.
(13) Winning ticket means the ticket bearing the unique numbers randomly selected in the drawing as a winning play.
(b) Sale of Tickets.
(1) The price for a Raffle Game wager shall be determined by the commission prior to the sales period.
(2) Each number shall constitute a single play or chance.
(3) A player shall not select specific game numbers. Numbers shall be generated in an order based on instruction from the gaming central system.
(c) Ticket Price. The price for each Raffle Game wager shall be the price set by the commission.
(d) Drawing.
(1) A Raffle Game drawing will be conducted at a day, time, frequency and location determined by the commission. Winning game numbers are the numbers randomly selected that entitle the legitimate holder of a winning Raffle Game ticket to a prize for which such numbers were drawn. Such winning numbers shall be:
(i) randomly selected in accordance with existing Lottery draw procedures; and
(ii) announced publicly.
(2) A game number can only be selected once during the draw.
(e) Calculation and payment of prizes.
(1) Prizes levels and amounts for the game shall be determined by the commission prior to the sales period and announced publicly.
(2) The commission may hold a daily drawing for one or more prizes. If the commission chooses to award daily prizes, it will publicly announce such prizes prior to the start of the game. Any number drawn as a daily prize shall remain eligible for the top prize. The holder of a winning bet ticket shall win only one daily prize per winning number.
(3) Prize categories and amounts shall be determined by the commission prior to the sales period.
(f) Probability of Winning. The probability of winning a Raffle Game prize on a single qualifying wager shall be determined by the number of prizes awarded divided by the number of total plays in the drawing. The probability of winning a Raffle Game prize shall be determined by the commission prior to the sales period and announced publicly.
(g) Miscellaneous.
(1) A Raffle Game as described in this section may be, at the discretion of the commission, a multi-state game among other participating government-authorized lotteries or a game sold only by the Lottery. The frequency that a Raffle Game is conducted shall be as determined by the commission. If the Raffle Game is a multi-state game, the commission shall operate such game in compliance with any applicable multi-state agreement.
(2) No claimant will be considered eligible to receive a prize without presentation of a valid winning bet ticket.
(3) The commission reserves the right to change the prize structures, frequency of draws, draw dates or the games themselves.
(4) If, for any reason, a bet ticket is not entirely legible or is misprinted or altered in any way, then the computer record created at the time of sale shall be the sole method of determining whether such ticket is a valid winning ticket.
(5) A bet ticket for a Raffle Game may not be cancelled once issued by the computer terminal. The sales agent, however, may receive credit for any unreadable bet ticket issued, as these tickets (although unreadable) are recorded on the computer file as valid bets. A sales agent’s request for credit must be postmarked before the draw date in order to receive credit for any such unreadable bet ticket.
Text of proposed rule and any required statements and analyses may be obtained from:
Julie B. Silverstein Barker, New York State Gaming Commission, One Broadway Center, Schenectady, New York 12301, (518) 388-3408, email: nylrules@gaming.ny.gov
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement
1. Statutory authority: Pursuant to the authority conferred in New York State Tax Law Sections 1601, 1604, 1612 and 1617, Racing, Pari-Mutuel Wagering and Breeding Law Section 104, the following official game rules shall take effect and shall remain in full force and effect throughout the New York Lottery’s Raffle game and Mega Millions game. Section 1601 of the Tax Law states the purpose of Article 34 of the Tax is to carry out the constitutional mandate to establish a lottery operated by the State. Section 1604 of the Tax Law provides for the Lottery’s authority to promulgate rules and regulations governing the Lottery. Section 1617 of the Tax Law authorizes the Lottery to participate in multi-jurisdictional lottery games. Subdivision 19 of Section 104 of the Racing, Pari-Mutuel Wagering and Breeding Law authorizes the Gaming Commission to promulgate rules and regulations necessary to carry out its responsibilities.
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 Lottery to generate revenue for education.
3. Needs and benefits: The regulations govern the Millions game and Raffle Game. The revisions to the Mega Millions game are necessary to comply with the amendments adopted by the Mega Millions game consortium which consists of other state-authorized lotteries. This will allow the New York Lottery to continue participation in the Mega Millions game and generate earnings for education. The new Mega Millions game matrix is accepted to be more attractive to jackpot Lottery game players because it will offer a more robust prize structure (for example, the second prize will be a $1 million). The success of the new Powerball game matrix shows the popularity that higher jackpots and higher non-jackpot prizes are amongst Lottery players.
The Lottery is adding the Raffle game to its mix of draw games because the game provides a distinctive play format and style from other Lottery games, especially due to the game’s limited sales period. The limited sales period provides the Lottery with the opportunity to identify such games with a particular holiday or event (for example, Halloween) to grab players’ attention. The relatively easy manner in which a player plays the Raffle game which may encourage occasional Lottery players to purchase a ticket for the game. Ticket numbers will be generated automatically by the Lottery’s computer system for the Raffle game to mirror the classic raffle game style. The addition of the Raffle Game will allow 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 jackpot lottery games. The New York Lottery anticipates that the Raffle Game will generate more than $3.5 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 40 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 amending the Mega Millions regulations is that the New York Lottery will no longer be able to participate in the Mega Millions game which will result in lost revenue to education within the State. The New York Lottery would then forfeit the investment already made by the New York State Lottery for the Mega Millions games. The alternative to adding a Raffle Game is not to proceed with such game which 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.
