SGC-33-15-00013-P Numbers and Win-4 Lottery Wagers
8/19/15 N.Y. St. Reg. SGC-33-15-00013-P
NEW YORK STATE REGISTER
VOLUME XXXVII, ISSUE 33
August 19, 2015
RULE MAKING ACTIVITIES
NEW YORK STATE GAMING COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. SGC-33-15-00013-P
Numbers and Win-4 Lottery Wagers
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of sections 5009.2 and 5010.2 of Title 9 NYCRR.
Statutory authority:
Tax Law, sections 1601, 1604 and 1612(a)(4); Racing, Pari-Mutuel Wagering and Breeding Law, sections 103(2), 104(1) and (19)
Subject:
Numbers and Win-4 lottery wagers.
Purpose:
To allow the Commission to introduce a new type of lottery wager to raise revenue for education.
Text of proposed rule:
Pursuant to the authority granted by Tax Law Sections 1601, 1604 and 1612(a)(4) and Racing, Pari-Mutuel Wagering and Breeding Law Sections 103(2) and 104(1,19), the New York State Gaming Commission hereby proposes this amendment of subdivision (b) of Section 5009.2 and subdivision (b) of Section 5010.2 of Title 9 of the Official Compilation of Codes, Rules and Regulations of the State of New York, to read as follows:
PART 5009
New York’s Numbers
* * *
§ 5009.2. Game Description.
New York's Numbers game shall determine winners from tickets by matching a permutation or segment of a three-digit number from 000 to and including 999, randomly drawn at a regularly scheduled daily drawing or by succeeding in a game feature as set forth in subdivisions (h) and (i) of this section. Correctly matching the three-digit number or designated permutation thereof shall entitle the ticket holder to one of those prizes as described below:
(a) New York Numbers game bets may be purchased for a minimum of 50 cents and in multiples thereof to a maximum of $5.
(b) The following types of bets [are] may be made available for purchase:
(1) Straight. A three-digit number designed to match in exact order the three-digit winning number drawn for a given day.
(2) Six-way box. A three-digit number in which all three digits are unique (for example, “123”), designed to match in any order the three-digit winning number drawn for a given day.
(3) Three-way box. A three-digit number in which two of the digits are the same (for example, “122”), designed to match in any order the three-digit winning number drawn for a given day.
(4) Front pair. A two-digit number designed to match in exact order the first and second digits of the three-digit winning number drawn for a given day.
(5) Back pair. A two-digit number designed to match in exact order the second and third digits of the three-digit winning number drawn for a given day.
(6) Straight/six-way box. A three-digit number in which all three digits are unique (for example, “123”), that generates one straight bet and one six-way box bet. Straight/six-way box bets are limited to 50 cents for each bet type for a ticket price of $1.
(7) Straight/three-way box. A three-digit number in which two of the digits are the same (for example, “122”), that generates one straight bet and one three-way box bet. Straight/three-way box bets are limited to 50 cents for each bet type for a ticket price of $1.
(8) Combination six-way. A three-digit number in which all three digits are unique (for example, “123”), that generates six straight bets. The minimum cost [for which] of a combination six-way wager is $3 (6 bets x 50 cents minimum bet).
(9) Combination three-way. A three-digit number in which two of the digits are the same (for example, “122”), that generates three straight bets. The minimum cost [for which] of a combination three-way wager is $1.50 (3 bets [X] x 50 cents minimum bet).
(10) Close Enough. A three-digit number, of which each digit must match or be one number greater or less than the corresponding digit of the three-digit number selected in a drawing. For purposes of this wager, one number greater than nine is defined as zero and one number less than zero is defined as nine. A detailed description of the odds, prize structure, wager price, play instructions and any further information in regard to this wager shall be communicated to the public and set forth on the website for the New York Lottery in advance of offering this wager. Such detailed description shall be consistent with the game rules otherwise set forth in this Part in regard to other wagers and features of the New York’s Numbers game.
(c) Prize structure and odds for the Numbers game.
Bet type
Odds
For each $.50 bet
For each $1 bet
Comment
Straight
1:1,000
$250
$500
Box six-way
1:167
$40
$80
Box three-way
1:333
$80
$160
Front pair
1:100
$25
$50
Back pair
1:100
$25
$50
Straight/box six-way
1:167
$290 $440
n/a n/a
If straight hits If box only
Straight/box three-way
1:[133] 333
$330 $80
n/a n/a
If straight hits If box only
Combination six-way
1:167
$250
$500
Combination three-way
1:333
$250
$500
Close Enough (straight match)
1:1,000
$125
$250
Close Enough (1 digit, 1 off)
1:167
$12
$24
Close Enough (2 digits, 1 off)
1:83
$2
$4
Close Enough (3 digits, 1 off)
1:125
$4
$8
Close Enough (overall; any prize)
1:37
* * *
(h) Lucky Sum. Lucky Sum is a feature of New York's Numbers game. Lucky Sum shall determine winners from bet tickets by correctly matching the sum of the player's number selection against the sum of the winning numbers drawn by the commission for that drawing.
* * *
(2) Lucky Sum wagers shall not be placed with pairs or Close Enough wagers.
* * *
(i) A New York’s Numbers type of bet or game feature may be added at the discretion of the commission, so long as such game feature is an alternative or additional method for playing the game within the same basic game design and a detailed description of the odds, prize structure, wager price, play instructions and any further information in regard to how a player may use such feature, if offered, shall be communicated to the public and set forth on the website for the New York Lottery in advance of offering such feature.
* * *
PART 5010
Win-4
* * *
§ 5010.2. Game description.
The Win-4 game shall determine winners from tickets matching a permutation of a four-digit number from 0000 to and including 9999 randomly drawn at a regularly scheduled drawing conducted by the Lottery as described in section 5010.4 of this Part drawing or by succeeding in a game feature as set forth in subdivisions (g) and (h) of this section. Correctly matching the winning four-digit number drawn, or a designated permutation thereof shall entitle the ticket holder to one of the prizes described in subdivision (c) of this section.
(a) Win-4 bets may be purchased for a minimum of 50 cents and in multiples of 50 cents thereof to a maximum of $5.
(b) The following types of bets [will] may be used in the determination of winners for the specified draw day indicated on the bet ticket[.]:
(1) Straight. A four-digit number (for example, “1234”) designed to match in exact sequence the [4-digit] four-digit winning number drawn.
(2) Twenty-four-way box. A four-digit number in which all four digits are unique (for example, “1234”) designed to match in any order the winning four-digit number drawn for a given day.
(3) Twelve-way box. A four-digit number in which two of the digits are the same (for example, “1233”) designed to match in any order the winning four-digit number drawn for a given day.
(4) Six-way box. A four-digit number in which there are two pairs of identical numbers (for example, “1122”) designed to match in any order the winning four-digit number drawn for a given day.
(5) Four-way box. A four-digit number in which three of the digits are the same (for example, “1112”) designed to match in any order the winning four-digit number drawn for a given day.
(6) Front pair. A two-digit number chosen to match in exact order the first and second digits of the four-digit winning number selected in a drawing.
(7) Back pair. A two-digit number chosen to match in exact order the third and fourth digits of the four-digit winning number selected in a drawing.
[(6)] (8) Straight/twenty-four-way box. A four-digit number in which all four digits are unique (for example, “1234’) that generates one straight bet and one box bet on a single ticket. Straight/box bets are limited to 50 cents for each bet type for a ticket price of $1.
[(7)] (9) Straight/twelve-way box. A four-digit number in which two of the digits are the same (for example, “1233”) that generates one straight bet and one box bet on a single ticket. Straight/box bets are limited to 50 cents for each bet type for a ticket price of $1.
[(8)] (10) Straight/six-way box. A four-digit number in which there are two pairs of identical digits (for example, “1122”) that generates one straight bet and one box bet on a single ticket. Straight/box bets are limited to 50 cents for each bet type for a ticket price of $1.
[(9)] (11) Straight/four-way box. A four-digit number in which three of the digits are the same (for example, “1112”) that generates one straight bet and one box bet on a single ticket. Straight/box bets are limited to 50 cents for each bet type for a ticket price of $1.
[(10)] (12) Twenty-four-way combination. A four-digit number in which all four digits are unique (for example, “1234”) that generates 24 straight bets on a single ticket. The minimum cost [for which] of a 24-way combination wager is $12 (24 bets x $.50 minimum bet).
[(11)] (13) Twelve-way combination. A four-digit number in which two of the digits are the same (for example, “1233”) that generates 12 straight bets on a single ticket. The minimum cost [for which] of a 12-way combination wager is $6 (12 bets x $.50 minimum bet).
[(12)] (14) Six-way combination. A four-digit number in which there are two pairs of identical digits (for example, “1122”) that generates six straight bets on a single ticket. The minimum cost [for which] of a six-way combination wager is $3 (6 bets x $.50 minimum bet).
[(13)] (15) Four-way combination. A four-digit number in which three of the digits are the same (for example, “1112”) that generates four straight bets on a single ticket. The minimum cost [for which] of a four-way combination wager is $2 (4 bets x $.50 minimum bet).
(16) Close Enough. A four-digit number, of which each digit must match or be one number greater or less than the corresponding digit of the four-digit number selected in a drawing. For purposes of this wager, one number greater than nine is defined as zero and one number less than zero is defined as nine. A detailed description of the odds, prize structure, wager price, play instructions and any further information in regard to this wager shall be communicated to the public and set forth on the website for the New York Lottery in advance of offering this wager. Such detailed description shall be consistent with the game rules otherwise set forth in this Part in regard to other wagers and features of the Win-4 game.
(c) Prize structure and game odds for Win-4.
Bet Type and Prize Payouts Per Amount Bet
Bet Type
50 cents
$1
$2
$3
$4
$5
Straight
$2,500
$5,000
$10,000
$15,000
$20,000
$25,000
Box(24)
$100
$200
$400
$600
$800
$1,000
Box(12)
$200
$400
$800
$1,200
$1,600
$2,000
Box(6)
$400
$800
$1,600
$2,400
$3,200
$4,000
Box(4)
$600
$1,200
$2,400
$3,600
$4,800
$6,000
Front Pair
$25
$50
Back Pair
$25
$50
Straight/Box (24)
$2,600 $100
If Straight hits If Box only
Straight/Box (12)
$2,700 $100
If Straight hits If Box only
Straight/Box (6)
$2,900 $400
If Straight hits If Box only
Straight/Box (4)
$3,100 $600
If Straight hits If Box only
Combina- tion (all types)
$2,500
$5,000
$10,000
$15,000
$20,000
$25,000
Close Enough (straight match)
$1,250
$2,500
Close Enough (1 digit, 1 off)
$62
$124
Close Enough (2 digits, 1 off)
$12
$24
Close Enough (3 digits, 1 off)
$7
$14
Close Enough (4 digits, 1 off)
$16
$32
Game odds:
Bet type
Odds
Straight
1:10,000
Box(24)
1:417
Box(12)
1:833
Box(6)
1:1,667
Box(4)
1:2,500
Front Pair
1:100
Back Pair
1:100
Straight/Box (24)
1:417
Straight/Box (12)
1:833
Straight/Box (6)
1:1,667
Straight/Box (4)
1:2,500
Combina- tion (24)
1:417
Combina- tion (12)
1:833
Combina- tion (6)
1:1,667
Combina- tion (4)
1:2,500
Close Enough (straight match)
1:10,000
Close Enough (1 digit, 1 off)
1:1,250
Close Enough (2 digits, 1 off)
1:417
Close Enough (3 digits, 1 off)
1:313
Close Enough (4 digits, 1 off)
1:625
Close Enough (overall; any prize)
1:123
* * *
(g) Lucky Sum. Lucky Sum is a feature of the Win-4 game. Lucky Sum shall determine winners from bet tickets by correctly matching the sum of the player's number selection against the sum of the winning numbers drawn by the Lottery for that drawing.
(1) Lucky Sum wagers shall not be placed with pairs or Close Enough wagers.
* * *
(h) A Win-4 type of bet or game feature may be added at the discretion of the commission, so long as such game feature is an alternative or additional method for playing the game within the same basic game design and a detailed description of the odds, prize structure, wager price, play instructions and any further information in regard to how a player may use such feature, if offered, shall be communicated to the public and set forth on the website for the New York Lottery in advance of offering such feature.
Text of proposed rule and any required statements and analyses may be obtained from:
Kristen Buckley, New York State Gaming Commission, One Broadway Center, PO Box 7500, Schenectady, New York 12301, (518) 388-3407, email: gamingrules@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: The New York State Gaming Commission (“Commission”) is authorized to promulgate this rule by Tax Law Sections 1601, 1604 and 1612(a)(4) and by Racing, Pari-Mutuel Wagering and Breeding Law (“Racing Law”) Sections 103(2) and 104(1, 19). Tax Law Section 1601 describes the purpose of the New York State Lottery for Education Law (Tax Law Article 34) as being to establish a lottery operated by the State, the net proceeds of which are applied exclusively to aid to education. Tax Law Section 1604 authorizes the promulgation of rules governing the establishment and operation of such lottery. Tax Law Section 1612(a)(4) describes the distribution of revenues for the NEW YORK’S NUMBERS and WIN-4 games.
Racing Law Section 103(2) provides that the Commission is responsible to operate and administer the state lottery for education, as prescribed by Article 34 of the Tax Law. Racing Law Section 104(1) provides the Commission with general jurisdiction over all gaming activities within the State and over any person, corporation or association engaged in such activities. Section 104(19) of such law authorizes the Commission to promulgate any rules it deems necessary to carry out its responsibilities.
2. Legislative Objectives: To allow the Commission to introduce a new wager type for NEW YORK’S NUMBERS and WIN-4 lottery games that will raise revenue for education.
3. Needs and Benefits: This rulemaking would permit the Commission to offer the Close Enough wager type in connection with the Lottery Division’s popular NEW YORK’S NUMBERS and WIN-4 games. This new wager type would allow a player to collect a prize if each of the player’s selections either matches or is one number greater or less than the corresponding digit of the winning combination selected in a particular NEW YORK’S NUMBERS or WIN-4 drawing.
The NEW YORK’S NUMBERS and WIN-4 draw games typically account for approximately 23 percent of traditional lottery sales, which amounted to approximately $1.7 billion during the previous two fiscal years. The NEW YORK’S NUMBERS and WIN-4 games continue to provide significant revenue for education in New York State even though few changes or improvements have been necessary to stimulate player interest in NEW YORK’S NUMBERS and WIN-4 since the games were introduced in the early 1980s (e.g., twice-daily drawings began in 2001, additional wager types were introduced in 2007). The Commission seeks to make these games appealing to new players by introducing the Close Enough wager type, which is designed for players who prefer a bet type in which more winning number combinations may entitle the player to a prize even though the prize amounts that can be won may be smaller than prize amounts available for existing wager types. The Commission intends to introduce this feature after reprogramming of Lottery systems is completed and tested.
The proposed rule amends 9 NYCRR Section 5009.2 of the Commission’s regulations, which describes the NEW YORK’S NUMBERS game and identifies available wager types that can be purchased. A description of the Close Enough wager type for the NEW YORK’S NUMBERS game is added to the existing regulation, as well as the odds of winning each Close Enough prize level and the amount of the prize won at each prize level for $1 and $.50 Close Enough wagers in the NEW YORK’S NUMBERS game.
As provided in the rule, a player who purchases a Close Enough ticket in the NEW YORK’S NUMBERS game can win a prize under the following circumstances:
(i) each of the player’s selections matches the corresponding digits drawn (Example: player selects 147, drawing result is 147);
(ii) two of the player’s selections match the corresponding digits drawn and the player’s remaining selection is one number greater or less than the corresponding digit drawn (Example: player selects 147, drawing result is 146; 148; 137; 157; 047 or 247);
(iii) one of the player’s selections matches the corresponding digit drawn and the player’s remaining selections are one number greater or less than the corresponding digits drawn (Example: player selects 147; drawing result is 136; 138; 156; 158; 046, 048, 246, 248, 037, 057, 237 or 247); and
(iv) all three of the player’s selections are one number greater or less than the corresponding digits drawn. (Example: player selects 147, drawing result is 036, 038, 056, 058, 236, 238, 256 and 258).
For purposes of this wager, one number greater than nine is defined as zero and one number less than zero is defined as nine.
In addition, the opening paragraph of 9 NYCRR Section 5009.2 is clarified to describe accurately that winners can be determined by matching numbers or by succeeding in other game features. Section 5009.2(b) is amended to make optional the offering of each of the various types of wagers. Sections 5009.2(b)(8) and (9) are amended to make stylistic changes consistent with other portions of the rule. Section 5009.2(h)(2) is amended to provide that the Lucky Sum feature cannot be played with the Close Enough wager. Section 5009.2(i) would grant flexibility to develop additional wager types or features for this game, so long as information about odds, prize structure and play instructions are communicated to the public and set forth on the New York Lottery’s website.
The proposed rule amends 9 NYCRR Section 5010.2 of the Commission’s regulations, which describes the WIN-4 game and identifies available wager types that can be purchased. A description of the Close Enough wager type for the WIN-4 game is added to the existing regulation, as well as the odds of winning each Close Enough prize level and the amount of the prize won at each prize level for $1 and $.50 Close Enough wagers in the WIN-4 game.
As provided in the rule, a player who purchases a Close Enough ticket in the WIN-4 game can win a prize under the following circumstances:
(i) each of the player’s selections matches the corresponding digits drawn (Example: player selects 1467, drawing result is 1467);
(ii) three of the player’s selections match the corresponding digits drawn and the player’s remaining selection is one number greater or less than the corresponding digit drawn (Example: player selects 1467, drawing result is 1466, 1468, 1457, 1477, 1367, 1467, 0467 and 2467);
(iii) two of the player’s selections match the corresponding digits drawn and the player’s other selections are one number greater or less than the corresponding digits drawn (Example: player selects 1467, drawing result is 1456, 1458, 1476, 1478, 1366, 1368, 1556, 1568, 1357, 1377, 1557, 1577, 0457, 0477, 2457, 2477, 0466, 0468, 2466, 2468, 0367, 0567, 2367 and 2567);
(iv) one of the player’s selections matches the corresponding digit drawn and the player’s remaining selections are one number greater or less than the corresponding digits drawn (Example: player selects 1467; drawing result is 1356, 1358, 1376, 1378, 1556, 1558, 1576, 1578, 0456, 0458, 0476, 0478, 2456, 2458, 2476, 2478, 0366, 0368, 0566, 0568, 2366, 2368, 2566, 2568, 0357, 0377, 0557, 0577, 2357, 2377, 2557 and 2577); and
(v) all four of the player’s selections are one number greater or less than the corresponding digits drawn. (Example: player selects 1467, drawing result is 0356, 0358, 0376, 0578, 0556, 0558, 0576, 0578, 2356, 2358, 2376, 2578, 2556, 2558, 2576 and 2578).
For purposes of this wager, one number greater than nine is defined as zero and one number less than zero is defined as nine.
In addition, the opening paragraph of 9 NYCRR Section 5010.2 is clarified to describe accurately that winners can be determined by matching numbers or by succeeding in other game features. Section 5910.2(b) is amended to make optional the offering of each of the various types of wagers. Sections 5010.2(b), 5010.2(b)(1), (11), (12) and (13) and 5010.2(g) are amended to make stylistic changes consistent with other portions of the rule. New paragraphs (6) and (7) are added to Section 5010.2(b) to describe existing Front pair and Back pair wagers, and subsequent paragraphs within such subdivision are renumbered accordingly. Game odds are added for Front pair and Back pair wagers. Section 5010.2(g)(1) is amended to provide that the Lucky Sum feature cannot be played with the Close Enough wager. Section 5010.2(h) would grant flexibility to develop additional wager types or features for this game, so long as information about odds, prize structure and play instructions are communicated to the public and set forth on the New York Lottery’s website.
The prize structures for the NEW YORK’S NUMBERS and WIN-4 Close Enough game features are consistent with Tax Law Section 1612(a)(4), which describes the distribution of revenues for the NEW YORK’S NUMBERS and WIN-4 games.
The Commission anticipates that the Close Enough wager type will increase ticket sales in the NEW YORK’S NUMBERS and WIN-4 games due to favorable feedback from players and retailers surveyed as well as the positive performance of similar wager types in other jurisdictions, including Missouri, North Carolina, Michigan and Florida. The Commission expects that introduction of the new wager type will increase ticket sales for NEW YORK’S NUMBERS by 1.5 percent and Win-4 by 2.5 percent, which would earn an additional $6 million for aid to education in the current fiscal year and an additional $12 million for Fiscal Year 2016-17.
4. Costs:
a. Costs to regulated parties for the implementation and continuing compliance with the rule: There are no costs to stakeholders. Existing lottery agents will be able to sell these tickets the same as they do other lottery games.
b. Costs to the agency, the State, and local governments for the implementation and continuation of the rule: No additional operating costs are anticipated. The Commission can administer this game using existing resources.
c. Sources of cost evaluations: The foregoing cost evaluations are based on the Commission’s experience operating State Lottery games for more than 40 years.
5. Local Government Mandates: The proposed amendment does not impose any new programs, services, duties or responsibilities upon any country, city, town, village school district, fire district or other special district.
6. Paperwork: There are no changes in paperwork requirements. Lottery agents will be able to report the sales of this game using the same electronic reporting system.
7. Duplication: There are no relevant State programs or regulations that duplicate, overlap or conflict with the proposed amendment.
8. Alternatives: The alternative to amending these regulations is to continue offering the games presently offered. This alternative was rejected because offering new games and introducing game features to existing games are proven to generate greater revenue for education by attracting the interest of players and providing them with another game choice.
9. Federal Standards: The proposed amendment does not exceed any minimum standards imposed by the federal government.
10. Compliance Schedule: The Commission believes that regulated persons will be able to achieve compliance with the rule upon its adoption.
Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
A regulatory flexibility analysis for small business and local governments, a rural area flexibility analysis, and a job impact statement are not required for this rule making because it will have no adverse effect on small businesses, local governments, rural areas, or jobs.
The rule making allows the Commission to offer customers a new play option, the Close Enough wager type for the New York’s Numbers and Win-4 lottery games. This addition will impose no significant technological changes. No local government activity is involved. Lottery sales agents offer new or different lottery games only in order to increase sales. Customers are not required to play. There will be no new reporting, record keeping or other compliance requirements on small businesses or local governments or rural areas. The new lottery game wager type will not adversely affect employment opportunities or jobs.
Based on the foregoing, no regulatory flexibility analysis for small businesses and local governments, rural area flexibility analysis, or a job impact statement is required for this proposed rule making.
