PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Addition of section 2817.12 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 is conducting Lotto Extra as a feature to the existing game available to New York's Lotto players. Game sales commenced on March 1, 2007. This game is necessary to assist the Lottery in reaching its projected revenue target for this fiscal year. A Notice of Proposed Rulemaking for this rule is expected to be filed shortly; however to continue operation of this game feature, this emergency adoption is necessary. This feature is intended to improve somewhat slow revenues and will provide needed aid to education this fiscal year.
Subject:
Lotto Extra game feature.
Purpose:
To add the Lotto Extra game feature to current New York Lottery regulations.
Text of emergency rule:
Section 1. Part 2817 is amended by adding a new section 2817.12 to read as follows:
Section 2817.12 Lotto Extra.
(a) Lotto Extra is a feature of New York's Lotto game. Except as otherwise noted in this section, the rules of Lotto apply to all Lotto Extra wagers.
(b) Lotto Extra shall determine winners from bet tickets by correctly matching some or all of the numbers in the player's number selection against the winning numbers, bonus number and Extra bonus number drawn by the Lottery for that drawing.
(c) Players of Lotto Extra are automatically included in the respective Lotto drawing, and have the added benefit of matching their number selections against the Extra bonus number for additional prize levels not available to Lotto players.
(d) To place a bet, a purchaser must communicate the desired game bet data to an agent by presenting a completed Lotto Extra playcard or by requesting a Lotto Extra quick pick. The playcard provides for the player's number selections, number of drawings requested and the option for Cash Value or Annuity Payments if the jackpot is won. The agent will issue a bet ticket. Such bet ticket will reflect the numbers played by the purchaser on that wager as the Lotto Extra.
(e) Forty percent of the gross Lotto Extra sales for each Lotto drawing shall be paid into the New York Lottery prize account for allocation of prize winnings.
(f) Not less than 38 percent of gross Lotto Extra sales for a particular drawing shall be the amount allocated to the winning pool for that particular game.
(g) During each Lotto drawing, the Lottery will draw an Extra bonus number. Numbers will be drawn in the following sequence: the first randomly chosen six numbers will be the winning numbers; the seventh number will be the bonus; and the eighth number will be the Extra bonus number.
(h) Lotto Extra bets may be purchased for a minimum of $2.00 per two game panels; $1.00 of such bet is on the Lotto game, and $1.00 of such bet is for the Lotto Extra feature.
(i) Determination of Prizes: The prize structure and odds for this feature are:
Match
Odds
Pool Percentage
5
+ Either Bonus
3,754,789.50
14.50%
5
147,246.65
5.50%
4
+ Either Bonus
29,449.33
25.25%
4
2,355.95
5.75%
3
+ Either Bonus
883.48
15.00%
3
108.18
11.00%
2
+ Either Bonus
72.12
23.00%
Overall Odds
40.47
100.00%
(j) In the event that supplemental prize funds are necessary to fund prizes for Lotto Extra, those funds will be supplemented from unclaimed prize funds in accordance with sixteen hundred fourteen (a) of this article.
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 November 4, 2007.
Text of emergency rule and any required statements and analyses may be obtained from:
Julie B. Silverstein Barker, Acting General Counsel, New York Lottery, One Broadway Center, P.O. Box 7500, Schenectady, NY 12301-7500, (518) 388-3408, e-mail: jbarker@lottery.state.ny.us
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 2817, the following official game rules shall take effect and shall remain in full force and effect throughout the New York Lottery's LOTTO Extra as a feature to the existing LOTTO 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 LOTTO Extra, as an existing game feature, 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 while also providing more opportunities for players to win prizes. The New York Lottery's LOTTO Extra as a feature to an existing game is anticipated on a full annual basis, to bring in more than $5.4 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. Game feature 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 continuing New York Lottery's LOTTO Extra as an existing game feature is not to proceed and forfeit the investment already made by the New York State Lottery for the game feature. 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, 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.
