Lottery, Division of the

Although lotteries were a major source of state revenue in the early nineteenth century, New York State did not operate any state lotteries for nearly 150 years because the state constitutions of 1821, 1846, and 1894 specifically prohibited them. At the 1966 general election the constitution was amended to allow the establishment and operation of a state lottery. The following year (Ch. 278, L. 1967) enabling legislation created the lottery and designated that net proceeds be used for public education and scholarships. To administer the lottery a Division of the Lottery was set up in the Department of Taxation and Finance, which operated the lottery with advice from a State Lottery Commission appointed by the Governor. In 1973 (Ch. 346) the division was transferred to the State Racing and Wagering Board in the Executive Department, and the State Lottery Commission became an advisory body to the board. In 1976 (Ch. 92), the Lottery operated by the Racing and Wagering Board was abolished, and a "separate and independent division of the lottery" was created within the Department of Taxation and Finance. The Division is headed by a director appointed by the Commissioner of Taxation and Finance, but the director has "sole charge of the administration of the division," including the power to establish and operate state lotteries. Initially two games--instant and weekly--were created, and from 1977 to 1980 an Olympic Lottery was also held. The amended New York State Lottery for Education Law (Article 34 of the Consolidated Tax Law) stipulates that forty-five percent of total revenue be allocated for education, forty percent for prizes, and fifteen percent for administration. In 2012 (Ch. 60), the Division of the Lottery and the New York State Racing and Wagering Board were merged to form the New York State Gaming Commission. The commission is responsible for regulating all aspects of gaming and gambling activity in the state, including horse racing and pari-mutuel wagering, Class III Indian Gaming, the state lottery (including video lottery terminals) and charitable gaming.